Houston Construction News January 2019

Covering the Industry’s News

Texas Style

P.O. Box 791290 San Antonio, Texas 78279-1290

PRSRT. STD. U.S. POSTAGE PAID DALLAS, TX PERMIT #1451

Change Service Requested

San Antonio H Austin Dallas/Fort Worth H Houston

Houston

CONSTRUCTION

™

The Industry’s Newspaper www.constructionnews.net H (210) 308-5800 H Volume 17 H Number 1 H JANUARY 2019

A good front

Bravo, sir - well done

Ed and Robyn LeGris in front of some stone and cast stonework they did in their home.

Stephen Moreno, owner of 12 Bravo Construction

E

ver hear the expression that someone is putting on a good front? The meaning is: the person may look happy or sincere on the outside, but not so much on the inside. Usually, that expression denotes some type of hypocrisy.

But in the case of Ed and Robyn LeGris, when they put on a good front, that’s good. As owners of First Choice Plastering, the couple has been at it for years, know their stuff, and will make any structure look great.

Robyn’s father started the company back in the ‘50s, calling it Do All Plastering. Ed worked for him for about 10 years and ended up marrying Robyn. Robyn’s mother wasn’t too keen about her daughter getting hooked up with another bluecollar construction worker, but in the end

she accepted and loved Ed all the same.

Her father wasn’t doing too well physically toward the end, and was secretly grooming Ed and Robyn to take over Do All Plastering once he was not there. He passed away in 1994, and the pair did take it over, changing the name to First Choice Plastering.

“When he passed, [taking over the business] was a pretty seamless transition,” Robyn said. Since the plastering circuit was a tight-knit group, they all knew everyone, and the LeGrises maintain many of these life-long relationships to this day. Robyn’s father trained many of those who went out to start their own companies.

“Plaster and lath are almost an art,” continued on Page 14

F

rom VA counseling and medications for PTSD to running his own construction company - Stephen Moreno of 12 Bravo Construction is motivated.

At 17, with a young son and working two jobs, the high school dropout joined the Army. His entrance exam scores weren’t good, so the only jobs offered Moreno were infantry and combat engineer. He chose the latter.

The three main aspects of combat engineer are mobility, counter mobility and survivability, all three of which he did during his eight years enlisted and his deployments to Iraq and Afghanistan.

But after eight years, the Army told Moreno he had to be medically retired as an E-6. He wanted to stay in, but no.

“I’ve always been an entrepreneur,” Moreno said. He took this can-do attitude and started his own handyman service while studying HVAC. Via networking with other vets and contacts, Moreno found steady work in construction and repair.

Moreno worked as a roofing supervisor in 2014, then as a project manager for an AC company in 2015. He was this company’s top project manager.

Even though this job didn’t go well in the long run, Moreno was taught a valuable lesson: getting out of his comfort zone.

“I learned how to deal with customers,” he said. The result was personal continued on Page 14

Bernard Johnson Coliseum gets a facelift

W

hen Charles N. White founded White Construction Company (WCC) in 1971, he understood that the best way to achieve his clients’ goals was by sharing their vision of success, not just in the terms of the final project, but at every single stage of the process. With a strategic mix of both private and public clients spanning several market sectors including corporate office, corrections, education, healthcare, highend residential and multi-family housing, historic preservation, religious, retail, senior living and more, they remain a family business.

WCC was sought after to help modernize Sam Houston State University’s Bernard Johnson Coliseum, including significant architectural and mechanical renovations. The coliseum, which was originally completed in 1976 hosts a variety of sports activities and university events including graduations, concerts,

campus organization events, summer camps, and family shows.

The estimated 90,000sf-facility took five months to renovate at an estimated cost of $11,500,000. Concrete, HVAC AHU’s and associated steel piping systems, metal studs, gypsum drywall, paint, tile, flooring, millwork, 6,200 coliseum seats and an athletic wood flooring system were the primary construction materials used throughout the project.

Renovation of the HVAC system proved to be very challenging. The mechanical space for the coliseum is 60ft above the floor of the facility. The space was 3,500ft in circumference and only 10ft wide. Access was limited to three small doors only 3ft wide and 7ft high.

Removal and installation of 10ton air conditioning units the size of a pickup truck and 21-ft pipe lengths were daunting.

Special scaffolding was custom designed Inside look of the renovated Bernard Johnson Coliseum, Sam Houston State University

continued on Page 14

Page 2

T

Houston Construction News • JAN 2019

Paved to last

hink about all the work we do and effort we put into things. Chances are 99.9 percent of whatever it is we do, it’s not going to last.

Except…the odds that Randy Carpenter’s work as head of Paver Connection lasting a very long time are great.

“Pavers go all the way back to Roman times,” he said. They developed the engineering techniques that are pavers, which last longer than concrete or asphalt.

The Romans are famous for their road systems, building some 50,000 miles of it. “Some of those streets made 2,000 years ago are still in place today,” Carpenter said.

Paver Connection began in 1989. When Carpenter started, there were two other guys in the Houston area who also did pavers. One is semi-retired, while the Randy Carpenter, owner of Paver Connection other is fully retired, leaving Carpenter as “the oldest paver and stone backyard can be a trick, given the tight company in the Houston area.” spaces he has to negotiate. If large

Before Paver Connection, Carpenter equipment can’t fit, it’s the trusty shovel worked for his dad at his landscaping and wheelbarrow that’s called upon. and tree trimming business. Carpenter Vertical retaining walls look great got his irrigation license and started do- but present more of a construction chaling sprinklers and yard irrigation. During lenge. Carpenter is proud of his record this time, a paver company asked him if of not having one of his walls ever colhe wanted to be an installer. Carpenter lapsing or failing. did that for a couple of years.

If lighting and electricity are in Carpenter has a robust crew of 15 volved, Paver Connection can do it if it’s construction guys and more support not high voltage. At that point, electrical staff behind the scenes. “We all work to- contractors are called in. gether as a team,” he said.

Paver Connection does about 35

At any given time, he has anywhere percent residential work and 65 percent from two to five projects going on. “If commercial. However, they do more resI’m in the vicinity,” Carpenter said, “I’ll go idential jobs in terms of number, while by a project whether they need me or the commercial brings in more income. not.” No matter where the job is, Car- Being in Houston, Carpenter has to penter will get daily photos and up- watch the weather closely. “Rain is not dates. our friend,” he said. “One day of rain can Paver Connection stays within a cost us three days of work. This year 100/130-mile radius from its home base we’ve lost 45 days” of productivity due in Katy, but will venture out further if re- to weather. quested by name by a customer. Its big- The period of rough economy set gest project to date was a 4,000sf job in Paver Connection back when it came to Beaumont. its size. Now rebounding from that, Car With the kind of software available, penter wants to see steady but managethe customer can see the final product able growth. “If you’re not moving forbefore giving the green light. “There’s ward, you’re backing up,” he said. The some great software out there,” Carpen- main thing to avoid is any loss of quality ter said. “We can produce renderings or customer satisfaction. that almost basically show their house Some jobs just need to be done or backyard complete.” over again. That’s okay. But it’s good to Carpenter and his designers will know the job you do now will be around work with a customer to figure out their for people to use and admire for years to vision, then discuss the options of paver: come. color, style, multi-levels/steps, walls, etc. Someone in Houston might be Outdoor living is something that walking on a Paver Connection’s patio wasn’t in vogue when Carpenter start- walkway 2,000 years from now. ed, but is now. Getting into someone’s Paver Connection, Katy, Tx -dsz

Pipes will be ringing

The Gulf Coast Plumbing Heating Cooling Contractors (PHCC) Association hosted their annual Christmas party on Dec. 6 at the Redneck Country Club. L-R: Event sponsor Texas Pluming Supply’s Wayne and Glenn Fuller . -cmw

Newly acquired firm keeps local name

F

Gary Raba will continue to run the RK operations.

ounded in 1968 and having just celebrated 50 years in business, Raba Kistner Inc. (RK) has been acquired by an Australian engineering firm, Construction Sciences.

Raba Kistner has been operating in 10 markets in Texas, Utah, Nebraska, Arizona, New York, California and Mexico with a firm size of nearly 500 employees.

Through this acquisition, RK will be able to expand their services, which has been a goal for the company. “We are operating more and more on a national level with some of our services all over the country. This gives us some more muscle to do that and to compete with national and international firms on that front,” says Joe Irizarry, senior vice president and chief marketing officer.

RK’s services, which include project management and oversight services, forensic engineering, construction material engineering, testing and observation, geotechnical engineering, testing and pavement consulting, environmental consulting, infrastructure oversight and

quality management will mesh perfectly with Construction Science’s services. Construction Sciences services also include construction material testing, geotechnical and environment consulting as well as subsurface utility engineering. Together, they will be providing the full package.

The much larger Australian firm approached Raba Kistner as a means to take flight in the United States. “They were attracted to Raba Kistner because of our team, the way we do business and our success,” says Raba Kistner Inc. Chairman and CEO Gary Raba.

Having served as one of RK’s executive leaders since 1999, Raba will continue to run the RK operation. And the San Antonio based RK will keep the Raba Kistner Inc. name.

“Our company has a clear purpose to build a better world for our employees, their families, our clients and the communities we serve. This aligns perfectly with Construction Sciences’ purpose,” adds Irizarry.

Raba Kistner Inc. is headquartered in San Antonio. -cmw

Terror on Black Oak Ridge

Dale Hargrowe was not pleased. At all. Everything had been going so well. He had just graduated from the Massachusetts Institute of Technology with his Ph.D in the new field of nuclear physics this past June of 1944.

In August, he had been asked to stay on with MIT in charming Cambridge to teach first-year students as well as to continue assisting Dr. Ronald Tupper, the department chair, in research. Dr. Hargrowe had a bright future. It was going even better than had he planned it. Most importantly, he was in perfect control of his life. Despite America being involved in a world war on two fronts, Dale was doing well. Life was going well. Until now.

O

ur very own Construction News’ editor, Dan Zulli, has just published his book, “Terror on Black Oak Ridge,” a novel from the top-secret days of the Manhattan Project.

When asked how he chose this subject and why is it set in Oak Ridge, TN, Zulli said, “I had the basic idea in my head for years, but didn’t begin until March 2015.

“I was born in Oak Ridge, TN and lived there during the height of the Cold War. My father and step-grandfather worked for the Atomic Energy Commission. All my schoolmates’ dads worked in one of those three main plants. Oak Ridge was one of the three sites chosen for the Manhattan Project, which began in Sept. 1942. By the war’s end, it was a full-blown town of 75,000 people. Sadly, not many know of Oak Ridge or the role it played in the war. I thought it was an ideal setting for a suspense thriller, and I wanted to give it a good shout out.

Zulli said he hired two professional editors and a professional book designer who took his idea for the cover and made it look great. Aside from the professional editors, he had lots of people proof read it and give him suggestions along the way.

He’s hoping to get good reviews and be the next “great American novelist.”

When asked if there will be a sequel,

Author Dan Zulli Construction News Editor

Zullie says, “You bet. It’s called “Terror on Proctor’s Ledge. It’s set in Salem, MA where my two protagonists, Dale and Brenda, can’t seem to stay out of trouble!

I hope to have it out by this time next year.

The book is available at Amazon in Kindle and paperback.

Houston Construction News • JAN 2019

A

Page 3

Built by design

The 500-lb gorilla

An Aztec warrior greets folks at the entrance to the Aztec Industries.

Gus Rasch with his clamshell generator enclosure

ncient Aztec architecture is world famous, such as the pyramid of Santa Cecelia Acatitlan. The Aztecs took great pride in their craftsmanship.

Thus, when Neri Alvarez wanted a name for his new fabrication company in 2012, he thought Aztec Industries summed it up well.

The primary reason for this, and Alvarez’s philosophy, was he sometimes saw a disconnect between the original designer’s plans and the final product. There was too much concern for the end result at the expense of what the engineer designed.

Alvarez himself is a structural engineer, having been trained at the University of Houston. He used to work for a company that did exactly what he said was the problem. Therefore, he left to start Aztec Industries. He maintained that the engineer’s design had to be carried out to the letter, and not have the fabricator make a decision on his own that would compromise the original plan.

With his watchful eye, Alvarez can oversee his contracted fabricators to en-

sure the end result is just right.

“We are able to go from design - or even just an idea - and to production, and a finished product faster than any fabricator out there,” he said, “at least that we’re aware of.”

Aztec Industries does mostly commercial work, with industrial work sprinkled in.

“Quality is an extremely important thing,” Alvarez said. “Pricing is important, but not as important as being able to provide a high quality product and a quick turnaround.”

Alvarez has a stable of contracted fabricators that he’ll call in to his new facility to do the job at hand. His goal for the future, however, is to expand larger so he can hire his own crews. “We just want to be able to grow into a company that can provide work for a lot more employees.”

Overall, Alvarez is pleased how well the past six years have gone.

Aztec Industries is a fabrication business in Humble. -dsz

O

kay, so what does a 500-lb gorilla build? In this case, it’s much sought-after cages and enclosures for such items as irrigation backflow equipment to generators and AC units.

Gus Rasch owned Houston Irrigation Services, but wasn’t satisfied with the protective cages for backflow units he was getting. So he built his own. People took notice of them. He built more.

And more. Then he built the same protective cages for AC units and generators.

And he built more. And more.

So much so, that Houston Irrigation Services became Gorilla Manufacturing in 2010. They specialize in generator stands, AC unit and generator enclosures, forklift extensions, and irrigation backflow enclosures.

“People seem to like what we do,” Rasch said. Case in point is some whizbang, high-security generator enclosures he recently shipped to a Department of Defense facility in Illinois.

“We have gotten very good at what

we do,” he said.

“Right now our big push are the generator stands,” Rasch added. Not only are these items essential in an area like Houston, which gets a little bit of rain every now and then, but to the northeast, which gets just a pinch of snow every winter. Rasch ships a lot up there too.

For Rasch, working side-by-side his crew is key to creating a healthy workforce; that, and providing good customer service. “Part of being a good business is having customer service above and beyond customer expectation,” he said.

Gorilla Manufacturing’s items are ideal to keep folks with a propensity to “borrow” things away from AC units and generators. Their clamshell design enclosures make it easy to protect these things as well as grant access for servicing them.

“We’ve gotten really good at this over the years,” Rasch said. With its wellmade products, this gorilla can do whatever it wants to do. -dsz

Gorilla Manufacturing is in Spring, Tx.

Page 4

Houston Construction News • JAN 2019

Required by written contract

Don’t lose half the business when you retire

Charles E. Comiskey Sr. Vice President Brady Chapman Holland & Associates, Inc. Houston, TX

Steven Bankler, Owner Steven Bankler, CPA, Ltd. San Antonio TX

I

t’s a shocking but common statistic for business owners who retire: More than half the sale price of your business could be lost to the IRS when you sell it or pass it down. The scenario can play out in various ways depending on how your business is structured. A retiring C Corp owner, for example, might sell his $1 million of stock in his business and realize too late that his long-term capital gains tax is a staggering $240,000. And then there’s the buyer’s tax bill. Depending on the buyer’s income tax bracket, an added $690,600 might be needed to walk away with that same $1 million in stock. Consider now that this is a family business. All combined, the sale of that $1 million in stock — just to pass it from one generation to the next — costs the business owner and his heir $895,600 in taxes (a “tax rate” of 55 percent).

Whether your end-goal is family succession, selling the business, or dissolving it when you retire, start strategizing now and be prepared to change course when needed. The process is called exit planning or succession planning, and it can help you and those who inherit your business after you, avoid an unnecessarily huge tax bill.

One of the biggest traps owners fall into when selling their business is with balancing capital gains versus ordinary income. Ordinary income is taxed at a higher rate than capital gains but sometimes paying more in ordinary income taxes produces better results.

With careful coordination, taking a bigger tax hit can often be reimbursed by the buyer, for a lower overall cost.

Three in five small businesses do not have an exit plan in place. In nearly half of those businesses, the business owners simply believe it’s not necessary. The truth is, with 100% certainty, you WILL leave your business. You may retire, quit, close the company, sell the business, or work until they carry you out. No one is an exception to the rule. So if you want to leave a strong legacy behind, it’s time to start planning ahead. We often recommend starting 10 years in advance because it takes that much time to alter your course from “build mode” to “exit mode.”

An exit plan can help you gain tax advantages in these areas by helping you rethink and recharacterize certain assets in your company. Even a self-created asset like personal goodwill (which includes your reputation, expertise, skill, knowledge and the relationships you’ve built) can now be sold, along with or separate from the business, but this is also taxed. Add these factors to dozens of other considerations when it comes to tax-proofing the legacy of your business, and you can see how critical exit planning can be. Even your Social Security and retirement benefits can be affected.

You’ll leave your business at some point, and the IRS is betting on it being on their terms, not yours. Give yourself some time to prove Uncle Sam wrong.

Often when business owners put together an exit plan, they realize their business structure should change. That’s because a corporate entity like a C Corp is financially much different from a passthrough entity like an LLC, S Corp or partnership. The business structure that’s been right for you for years may not be right for a transition because it can affect your business operations (liability, credit, tax treatment, etc.) Changing tax laws like those concerning bonus depreciation and estate taxes can affect business structure for exiting owners, too.

Steven Bankler has more than 40 years of experience in the accounting industry.

Steven’s expertise lies in consulting, planning, tax, and asset protection as well as exit strategy services for closely held businesses. He also provides litigation support (both as a testifying expert witness and a consulting expert), business negotiations and estate planning.

Learn more about Steven Bankler, CPA, Ltd. at www.bankler.com 210-691-3133

W

hat do you suppose is the primary triggering mechanism for the provision of coverage? A well written policy? Indemnification? Additional insured status? Many of the insurance coverages ostensibly provided to upstream parties (i.e., Owners, GCs) are provided only where required by written contract. When a loss occurs, one of the first documents that any insurance company adjuster will demand is the signed contract as that document stipulates the agreement of the parties. The contract is therefore the primary triggering mechanism. If the contract fails to state a necessary requirement, then the insurance may not be triggered. Simply requiring a coverage without specificity is insufficient and ineffective.

For instance, additional insured endorsements can be provided on a specific basis (i.e., naming the parties to be added as additional insureds) or a “blanket” basis (i.e., stating that additional insured status is extended to all parties required to be named as additional insured in a written contract). Neither basis informs about the kind of operations or the scope of negligence to which the additional insured status applies.

The ISO CG 20 10 is the constructionrelated endorsement most commonly used to provide additional insured status for ongoing operations. There have been six different editions of this endorsement, each progressively more restrictive.

The last four numbers of an ISO endorsement indicate the edition date. The CG 20 10 10 01 was promulgated in October, 2001. This endorsement is applicable to liabilities arising out of the insured’s on-going operations. “Arising out of” is commonly held to include protection for the additional insured’s sole negligence related to those operations.

The ISO CG 20 10 07 04 drops the “arising out of” wording and instead states that additional insured status is provided only for liabilities caused, in whole or in part, by the acts or omission of the Named Insured or of those acting on the Named Insured’s part, again in performance of ongoing operations.

ISO CG 20 10 04 13 is the latest ongoing operations additional insured endorsement. Like its immediate predecessor, it excludes coverage for the additional insured’s sole negligence but goes on to state that it: (1) Applies only to the extent permitted by law; (2) Will not be broader than that which [the Named Insured is] required by contract to provide; and (3) Will not pay more than the amount required by contract.

Houston

Warning: Note that requiring that the downstream party’s insurance be primary is not sufficient. The endorsement requires “primary and would not seek contribution.”

Charles E. Comiskey Brady Chapman Holland & Associates Inc. 10055 West Gulf Bank • Houston, Tx 77040 713-688-1500 Charles.Comiskey@bch-insurance.com

CONSTRUCTION NEWS

Publisher . . . . . . . . . . . . . . . . . Buddy Doebbler Editorial/Production . . . . . . Reesa Doebbler Managing Editor . . . . . . . . . . . . . Carol Wiatrek Production Manager . . . . Helen Greenwood Administration . . . . . . . . . . . . . . . . Terri Adams Account Manager . . . . . . . . . . . Dana Calonge Editors

Carol Wiatrek Lexie Velasquez

ISO CG 20 37 provides additional insured status with regard to completed operations. This endorsement is subject to the same editions and issues pertinent to those editions.

That said, there are hundreds of manuscript additional insured endorsements currently in use. These may (1) limited the parties covered, (2) limit the scope of coverage, (3) limit the operations coverage, and/or (4) add new exclusions.

Additional insured coverage should be primary and noncontributory to that carried by the additional insured. However, all general liability policies state that they are primary, unless any other insurance covering the same loss is also primary, in which case they share in payment of that loss. That is contrary to the desires of upstream parties, who want the downstream contractor’s insurance to pay fully until it is exhausted without contribution from the upstream party.

To achieve this ISO has issued a General Liability Primary & Noncontributory endorsement CG 20 01 04 13. This states that the Named Insured’s coverage “is primary and will not seek contribution from any other insurance available to an additional insured under [the Named Insured’s] policy provided that: • the additional insured is a Named Insured under such other insurance; and • [the Named Insured has] agreed in writing in a contract or agreement that this insurance would be primary and would not seek contribution from any other insurance available to the additional insured.”

Daniel Zulli Reesa Doebbler

Contributing Editors

Melissa Jones-Meyer Ann Keil Jesse Abercrombie Houston Area Counties Harris, Galveston, Fort Bend and Montgomery counties Construction News Ltd. Home Office P.O. Box 791290 • San Antonio, Tx 78279 210-308-5800 Fax 210-308-5960 www.ConstructionNews.net

AustinEditor@ConstructionNews.net HoustonEditor@ConstructionNews.net

Visit our Website to sign up for a free monthly Digital Subscription www.ConstructionNews.net The Houston Construction News (ISSN 1547-7630) is published monthly by Construction News LTD., dba Houston Construction News, and distributed by mail to construction-related companies in Houston and surrounding counties.

All submissions should be mailed to our editorial offices. We reserve the right to edit any materials submitted. No fees for materials, copy or photographs submitted will be due unless agreed upon in advance in writing. Submissions will be published at our discretion on a space available basis.

Construction News, Ltd. , dba Houston Construction News, will not be liable for errors in copy or in advertisements beyond the actual cost of space occupied by the error.

Publisher reserves the right to reject any advertisement at any time. ©2018 Construction News, Ltd.

DFWeditor@ConstructionNews.net SAeditor@ConstructionNews.net

Houston Construction News • JAN 2019

Page 5

Beware factors and assignment of pay application proceeds Ben Wheatley, Shareholder Munsch Hardt Kopf & Harr, P.C. Austin, TX

A

s the construction market in Texas continues its explosive activity, more and more new contractors or subcontractors are entering the arena. Many of these new businesses are inadequately capitalized and may need to resort to assignment of receivables in order to cover their cash flow needs, month to month. An example is as follows: A contractor enters into a prime agreement with an owner that requires the contractor to make all proper payments to its subcontractor via a third party system like Textura. That contractor has included a provision in its subcontracts that specifically prohibits the assignment of subcontract proceeds to a third party. Despite this restriction, one day a contractor receives written notice from a Factor notifying it that subcontract proceeds have been assigned, and that rather than pay the subcontractor via the third party system, all future subcontract proceed payments need to be made directly to the Factor. The notice asks the contractor to sign an acknowledgment that it will pay the Factor going forward, and may well ask the contractor to sign something warranting that there are no contract claims or defenses that will prevent full payment.

My first and most important advice to a contractor in this situation is to not sign anything or pay anything until you have discussed the issue with your lawyer, or you may well be at risk for paying the same subcontractor pay application twice. This is because the law that governs these transactions in Texas, Article 9 of the Uniform Commercial Code (“UCC”), is strongly tilted in favor of the Factor, and may well result in restrictive subcontract clauses like an anti-assignment provision being rendered null and void. At the same time, the UCC may protect a contractor from being in breach of its agreement with an owner, if after a careful analysis a contractor pays the Factor directly, thereby circumventing that contractor’s contractual obligation to make payments directly to the subcontractor via the Textura or other third party payment tools.

The second piece of advice is for the contractor to contact the Factor and request, pursuant to the UCC, all relevant

documents regarding the assignment of proceeds, including all documents relating to the agreement between the Factor and the subcontractor, and a copy of any UCC filing that the Factor has made with the county clerk where the project is located in relation to the assignment of the receivables. The Factor is obligated by the statute to provide you with these documents and they should be carefully reviewed before any document is signed or payments made.

There are numerous reasons for such a review including verifying what assignments were actually in place as of the date of the notice sent by the Factor to a contractor, to allow a contractor to safely determine what proceeds, if any, should go to the Factor, and what proceeds, if any, should be paid to a subcontractor. In addition, lien rights are possibly implicated, and therefore it is important to understand what lien rights a subcontractor might retain, if any, and what lien rights if any belong to the Factor.

All of the analysis referenced above is necessary in order for a contractor to fully understand its rights, obligations and defenses in the event a subcontractor assigns proceeds to a Factor. The third piece of advice for the contractor is to immediately notify the Owner of these issues to set the stage for a collaborative and deliberate process that a contractor can successfully navigate.

In summary, through education and training, a contractor should be able to put in procedural office safeguards that mitigate the risk of a contractor being legally liable to make double payments.

OSHA’s best kept secret Joann Natarajan Compliance Assistance Specialist OSHA Austin, TX

O

SHA’s best kept secret is the OSHA Consultation Program provided by the Texas Department of Insurance. This no-cost safety and health consultation program is completely separate from the OSHA inspection effort. Primarily targeted for smaller businesses, employers can find out about potential hazards at their workplace, improve programs that are already in place, and even qualify for a one-year exemption from routine OSHA inspections. Employers with less than 500 workers are the focus of the program’s services.

The consultation is confidential and will not be reported routinely to the OSHA inspection staff. No citations or penalties will be issued and your only obligation is to correct serious job safety and health hazards--a commitment which you are expected to make prior to the actual visit and carry out in a timely manner.

Using OSHA’s no-cost consultation service lowers injury and illness rates, ultimately saving both employers and employees from the cost of accidents while raising morale and increasing productivity rates.

Because consultation is a voluntary activity, you must request it. The consultant will discuss your specific needs with you and set up a visit date based on the priority assigned to your request, your work schedule, and the time needed for the consultant to adequately prepare to serve you. OSHCON consultants attend the receive the same training classes at OSHA’s Training Institute to ensure they are able to evaluate hazards in the same way that OSHA compliance officers do in the field.

The consultant will start with an opening conference with you before beginning the walk through. The consultant will study your entire workplace, point-

ing out safety or health risks (some which may not have an applicable OSHA standard). The consultant will study your entire workplace or the specific operations you designate and discuss the applicable OSHA standards. You can request help with a specific area in your facility, a review of written programs, up to a comprehensive review of your facility. Employers that have implemented a comprehensive safety and health management system can apply for the Safety & Health Achievement Recognition Program (SHARP) and be recognized for their safety efforts.

After the walk-through, the consultant will review the findings with you before leaving. Finally, the consultant will send you a detailed written report explaining the findings and confirming any abatement periods agreed upon. The written report does not involve assessing penalties, as are OSHA citations. They may also contact you from time to time to check your progress.

To contact the OSHA Consultation program in Texas and request a free consultation, employers can call 1-800-252-7031 option 2, or visit http://www.txcoshcon.com to locate the closest consultant. natarajan.joann@dol.gov 512-374-0271 x232

Construction News ON LOCATION Ben Wheatley is a Shareholder in the Austin office of Munsch Hardt. He has more than 25 years of experience litigating complex construction matters, negotiating and drafting construction and design contracts and master service agreements, serving as in-house counsel for an international design firm, and working on issues concerning the practice of architecture, engineering, and project construction.

Always ready

Construction News ON LOCATION

Swaggers of paint L-R: Assistant Branch Manager William Anthony and Branch Manager Mounir Khiami are ready to help at Century A/C Supply. -cmw

L-R: Eric Parra Alex Gutierrez, Kevin Velasquez and Raymundo Cordova, Jr. bring their swag to work at PPG Paints. -cmw

Page 6

Houston Construction News • JAN 2019

or social worker. I have a heart for people and I think I’m a pretty great listener that can see all sides.

Amber Baker Peterson Managing Partner Capital Insulation Tomball, TX

F

or Amber Peterson, it’s almost hard to tell where family ends and business begins – or vice versa. Actually, it’s important to her that there really is no difference. If you work at her familyowned business, you are family. And if you’re her family, chances are you work at Capital Insulation, started by her beloved Papaw and her dad, Robert Baker.

When did you start with Capital Insulation?

As a kid, my brothers and I always worked during the summers. Our dad had a much larger distribution company – that he later sold – and Capital Insulation was its baby sister, so to speak. It was fun for us to see our dad at work and to learn the industry at such a young age.

Plus, the warehouse was a free jungle gym. I started officially working full time in 2012 while still in college at Sam Houston State University.

Are you from Houston?

I am. I was born and raised in Tomball, north of Houston. My parents still live in our childhood home and we all moved within five miles of them. My family, friends, and business are all here. Tomball is home and always will be.

What was your major at Sam Houston and is your role at Capital Insulation?

I graduated with a Bachelor of Science in Psychology with a minor in Philosophy. I definitely wanted a different career when I was in college.

My role at Capital is managing partner with my brother Kyle Baker. I handle finances and HR while Kyle handles operations, sales, purchasing, etc. Everything I know, I give credit to my mentors - our dad and our business coach Nicholas Stander. I also take educational classes, listen to podcasts, and seek counsel whenever possible.

If you did not want to be a part of the family business, what did you want to do?

I actually wanted to continue my education and get my master’s in psychology so I could become a family counselor

What was the transition between working part-time in the summer to where you are now? How did you work your way into this?

My transition began when I was in college. As I mentioned before, my dad had a much larger sister company that he was in the middle of selling. Kyle worked for that company and after the sale, he made the transition to Capital Insulation to eventually take over. I saw the potential of growth for Capital and I absolutely love working with my family every day – so I slowly started opening to the thought of making this my career, too.

Looking back now, it all happened super fast. Once my dad sold our sister company, he wanted to fully retire and have Kyle and I take ownership. Kyle was 100% in. I still had a semester left of school and I remember him saying to me one day over dinner, ‘You have to make a decision: are you in or are you out?’ No pressure right? I was 23 at the time, still in school, and I had to make that decision in a matter of weeks. It was do or die.

How have you liked it?

Best decision of my life. We have been through tough times – learning experience, rather – and I have never regretted it. I’m very blessed to work with my family every day and our team we have built, who is also family – blood-related or not. We’re all very, very close and we have something special.

Working with your family and living so close to them - does it ever get on your nerves?

Absolutely! Working with family is not for the faint heart. We fight hard but love harder. We’re not perfect. But you can’t beat the luxury of closeness. There is nobody on Earth I trust more than my family and in business that is something money can’t buy. The good thing about Kyle and I is we don’t ever take it home with us. We leave it here.

Are you married?

I am. Trevor and I were married in February and that man is my best friend and counselor when I get home from work. We have three rescue pups and no kids yet. He works for an oil and gas company in Conroe.

What do you do that gets you recharged?

Honestly, what recharges me is hanging out with the people I work with outside of work. That is usually when our best ideas come to light. We are a very close-knit company. Stephanie, our sales manager, and Jorge, our operations manager, have been with us since 2011 and their family is my family. I know their children and spouses, experienced heartaches and triumphs with them both.

Cody, our cousin, is our lead estimator, IT, our “everything” guy; my best friend

Amber Baker Peterson, managing partner, Capital Insulation

from pre-K is our project coordinator and also keeps everyone in line at the office!

My sister in law also works part time and manages our office needs. I can confidently say they are what recharges me and centers both Kyle and me. We do what we do not just for our family, but for theirs too and we’ll always continue to have that culture here no matter how big we grow. Now, for recharging outside of Capital, we go to our family lake house on Lake Travis every chance we get. We are always in Austin during the summer, even during the holidays.

Have you ever lived away from your family?

I moved out at 18. I moved to College Station for a year. I wanted to go to A&M but it turns out, I am not an Aggie. Our little brother took care of that for us. I hated being in College Station; I love being home. Not even home, just Tomball.

How did Capital Insulation start?

My grandfather - my Papaw, whom we are blessed to still have with us - started Capital Drywall with $600 to his name.

He taped and floated homes himself for years and made a name for himself in the industry. My dad, who worked for him, also started out hanging drywall and eventually took ownership. During that period, he started CBM, the sister company he sold, and Capital Insulation in 1980. The name Capital has been around for a long time and with that comes a responsibility to uphold the core values that have been established. We pride ourselves on doing honest and quality work. We try to make it personal and leave a lasting impression.

What is your daily job like?

I wish I could tell you because every day is different at the office! We have done a substantial amount of growth so we both wear a lot of hats. I heard a podcaster say once, “The six most expensive words in business are ‘We’ve always done it that way,’ and that couldn’t be more true. As our growth becomes more rapid,

we are adapting and creating a space for our team to bring new ideas, come up with more efficient ways of doing something, etc. We want our culture to be something that people want to be a part of. At the end of the day they’re going home to their family and I’m going home to mine. We really work hard at making anyone we encounter feel as though they are a part of the future here, because they most certainly are.

Has anything strange ever happened to you on the job?

You wouldn’t believe me if I told you.

How do you and Kyle work the business?

Day by day! He’s the yin to my yang. I couldn’t do it without Kyle.

What do you see for the future for yourself, professionally and personally?

Ten years from now, I see Capital as a statewide company with the same people we have working here now plus a lot more. God willing, Trevor and I will have some kiddos running around and I’m hoping a few more dogs!

Will you bring your kids along in the company as well?

I would never put the pressure on them for a succession plan. My dad did it right. He supported our dreams and would say, “You do exactly what you want to do in this life, and if this isn’t it, that’s totally fine.” Honestly, if my kids wanted to do something else, I think they would be smart – owning a business is hard!

Our little brother went to A&M and majored in geoscience; he is now getting his master’s and works for NASA. He went a completely different route and we couldn’t be prouder.

Kyle and I have learned so much about being business owners because we have failed multiple times. Experiencing those failures only made us stronger.

Capital Insulation is an insulation contractor in Houston. -dsz

Gulf Coast electrical golfing

T

he Gulf Coast Chapter of the Independent Electrical Contractors (IEC) held their annual golf tournament at Kingwood Country Club on Nov. 8. Golfers enjoyed the camaraderie of the group and the beautiful Kingwood, TX weather. –cmw Forest Course winners: 2nd Place: Federated Insurance 3rd Place: Anixter Inc. Closest-to-the-Pin: Ron Vaughn Longest Drive: Bennett Cromer Marsh Course winners: 2nd Place: Walker Engineering 3rd Place: Stewart & Stevenson Services Closest-to-the-Pin: Billy Anagnostou Longest Drive: Johnny Ellis 1st Place Forest Course: Eco-Staff

1st Place Marsh Course: Starbrite Electric

Houston Construction News • JAN 2019

Page 7

around mud flats adjacent to deep guts and drop offs.

There is a wide variety of mullet imitation baits on the market today and most all of them are effective for catching fish. As a young boy fishing in the early ‘80s, one of my favorite lures was a 51MR and the TT lure made by MirrOlure. These hard plastic baits mimicked wounded mullet and would hold up to countless fishing trips that we made on the Lower Laguna Madre. Those baits are still available and very effective.

However, there are some new baits that have gained popularity and seem to have taken over the market. In the early ‘90s, Paul Brown, a Houston tackle manufacturer, introduced the Corky. The Corky is a soft plastic bait that has an elongated body which suspends in buoyant salty water and can be twitched and coaxed with almost magical troutcatching appeal. In 2010, L&S Bait Company, the makers of MirrOlure, bought the designs from Mr. Brown and now produce a wide variety of the baits in several different styles and colors. There are also some custom painted designs that have gained popularity that are available in local tackle shops. This has become a favorite lure of mine and there are not many trophy trout aficionados that will not wade without several in their box.

Corky - One bite at a time!

by Capt. Steve Schultz Sponsored by: Waypoint Marine, Shoalwater Boats, Evinrude Outboards, Fishing Tackle Unlimited, E-Z Bel Construction, Costa Sunglasses, Simms Fishing, ForEverlast Fishing Products, Interstate Batteries, MirrOlure, JL Marines PowerPole, AFW and AFTCO Clothing.

H

appy New Year everyone! Hopefully everyone had a safe and happy holiday. I am really excited about the new year and expecting the 2019 fishing season to be better than average. I’ve already had several fishing outings with clients and friends wading for big sow specks - although we didn’t land any trophies, we had several good ones that pushed the 7-lb mark. Barring any hard freezes or untimely rainfall, I predict this is the year we will be seeing lots of big fish showing up from the Laguna Madre/Baffin Bay complex.

Seasoned anglers know big speckled trout eat big baitfish, and there’s no better way to catch them than to throw big mullet-looking baits during the winter. It is no secret that larger trout prefer baitfish. This is because a mullet or croaker represents a more efficient source of forage than a small shellfish. In fact, as water temperatures drop, those big girls will only eat once or twice every few days. Typically, they will shift from eating 10 to 15 smaller baits a day, such as shrimp, to trying to eat a mullet over 8 inches to 10 inches. During these winter months, anglers can score on big trout by fishing slow-sinking mullet imitations

Angler Jim Crosby of San Antonio landed this 5-lb speck recently while fishing the Upper Laguna Madre. Jim was slow reeling a Corky Fat Boy over shallow grass while fishing with Steve Schultz Outdoors.

For the next few months my goal will be to put my clients in the best possible situation where they have a shot at catching a speckled trout they can call their personal best and perhaps be a trophy they can mount on the wall and enjoy for the rest of their life.

I still have a few spots available for both management and trophy whitetail hunting in January. My 2019 fishing calendar is now open. Don’t hesitate in booking your fishing trips because my dates usually go pretty quick, especially during the more popular months. To schedule your next bay fishing trip or hunting trip give Capt. Steve Schultz a call at 361-813-3716 or e-mail him at: SteveSchultzOutdoors@gmail.com.

Here is a sample of just a few of the custom Corky’s and Soft Dine lures you can find at some retailer’s along the coast. You can contact Steve Schultz Outdoors for specific locations near you.

Good Luck and Good Fishing.

Page 8

Houston Construction News • JAN 2019

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

Back to normal

I

guess it is time for things to get back to normal. With the close of deer season and the aftermath of the holidays, somehow the old humdrum routine we were so ready to escape a few weeks ago is sort of nice to slip back in to, like a favorite old coat.

The pastures will quiet down with all the hunters having left, and the deer can go on about the business of raising their little ones and growing even nicer racks of horns for us to lust after next year.

We are seeing good sized schools of white bass forming and beginning to work their way up the lake. One morning very soon I will look out my window and see wall to wall pickups and boat trailers that will mean the word is out. The annual white bass run has begun! This seems to happen usually a couple of weeks either side of Valentine’s Day depending on the severity of winter. On Lake Buchanan, the upper end of the lake is the place to be. Many fishermen grew up fishing the white bass run up at Lemon’s Camp near Bend, Texas. Lemon’s Camp has become Colorado Bend State Park, but the spring fishing up there is still legendary.

Stripers are picking up too, now that the water temperature has fallen into their optimum range. The shad population of the lake is good and the stripers are taking full advantage of it, feeding hard and getting strength built up toward their own spawning spree in the mid to late spring. We have good fishing now and even better fishing on the way!

Until then, we just have to keep ourselves busy as best we can. Clean and oil and put your rifles to bed now. While you were slipping around the pasture, the fish were still here doing their thing. Just where did you leave your fishing stuff?

Largemouth bass are still on the slow side which is just as it should be. They won’t be getting into a good pre-spawn pattern until a little later on in the spring.

You might find some success with them by fishing windy points on the main part of the lake. Try slow rolling spinner baits in shad colors across these points and you might hook one up. The key word is SLOW; they are too cold to move quickly!

On Lake Buchanan, we are beginning to see people bring in nice stringers of catfish from up the lake. Local fishermen are doing equally well on trotlines and jug lines with live bait or on rod and reel with stink bait, cheese bait being a favorite.

Crappie are showing signs of making a strong showing this year. On the warmer sunny afternoons, we are seeing them sneaking into brush piles and stacks of submerged driftwood along the shorelines. Some anglers prefer the old standby live minnows for bait, others prefer artificial baits. Everyone agrees on one thing about crappie though…they are the best freshwater fish to eat!

Even though my report is from Lake Buchanan, the basic information will translate pretty well to most lakes in our region. It always amazes me how fish behave so similarly from lake to lake.

Looks like we have a good year to look forward to!

Climbing new heights

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

Have an Outdoor Story or Photo?

Allstate Commercial Flooring Senior Estimator Salam Salmon shared this photo of himself and his son enjoying the Woodsedge Community Church Fall Festival together. -cmw

Send to: HoustonEditor@ ConstructionNews.net

or call 210-308-5800

Houston Construction News • JAN 2019

T

Page 9

Christmas with new board

he Independent Electrical Contractors (IEC) hosted a Christmas party and open house at the IEC Auditorium on Dec. 5. 2019 board of directors were sworn just in time to party and mingle with members of the Houston electrical and construction industry. -cmw

2019 board of directors L-R: Past President Danny Colwell, Colwell Electric; President Joe Banda, Walker Engineering; Board Position#3 Jim Roberts, E3 Electric; Board Position #1 Bill Canton, Tron Electric; Board Position#2 Tommy Skaff, Ohms Electric; 1st Vice Pres.

Armando Lozano, MSF Electric; Secretary/Treasurer Charlie Pfeiffer, Pfeiffer and Sone.

Not Pictured: Advisory Board Chairman Shane Sampson Elliott, Electric Supply; A&T Chairman Jeff Burke, Kenmor Electric and 2nd Vice Pres. Mark Boyer, Boyer Inc.

Sherry Toy and Hollie Allen, Lighthouse Business Solutions

L-R: Gilbert and Lily Soliz, IEC Texas Gulf Coast

T

Bicycles for Christmas

o show their support for the community during this season of giving, Tellepsen collected and donated more than 1,150 bicycles to the U.S. Marines’ Toys for Tots program. A local Marine battalion dispatched three 18-wheeler truck and trailers Dec. 18 to pick up the bicycles from the Tellepsen parking lot where the bikes were staged. –cmw

Tellepsen employees and U.S. Marines form an assembly line to load the 1,150 bicycles collected.

1,150 bicycles await three 18-wheelers that will carry them on behalf of the U.S. Marines Toys for Tots program

Page 10

Houston Construction News • JAN 2019

Architectural gingerbread

C

hristmas time seems to bring out the creative beast in individuals.

Whether it is decorating your tree, stringing lights on your house or decorating those special Christmas cookies for good ol’ St. Nick.. For the American Institute of Architects (AIA), it was in their gingerbread building skills. AIA hosted their annual Gingerbread Build-Off on Dec. 8 with some amazing results. –cmw

Grand Prix de Show – PDG Architects, Rudolph the Red Nose Reindeer

Tallest Standing Structure – Huitt-Zollars, Sauron Tower – Lord of the Rings Best Non-Holiday Theme – Powers Brown Architecture, Candy Land

1st Runner Up – Thomas Printworks, Winnie the Pooh

High School Challenge ➤ The Woodlands High School, Houston City Hall

2nd Runner Up – Corgan, Haunted House

Most Creative Interpretation of Materials – FKP | CannonDesign, Willy Wonka

Best Houston-Centric Dewberry, Miller Theater

Best Architectural Icon – Reagan Andre Architects, Park Güell

Best Holiday Theme – VLK Architects, Rockefeller Center

Construction News ON LOCATION

Smiles as bright as light

L-R: Candise Juarez, Adolfo Suniaga, Hayden Sneed, Jose Ramirez, Fleurette Caruso and Erin Richey with M&M Lighting don’t just provide beautiful lighting. They offer beautiful smiles too. -cmw

Houston Construction News • JAN 2019

Page 11

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

2019 Texas contractors be wary Ken Simonson, Chief Economist Associated General Contractors of America Arlington, VA

T

exas contractors had a generally strong year in 2018 and can expect a repeat in 2019. However, there are three reasons for caution: rising materials costs, an evertightening labor market, and increasing interest rates.

Nationally, construction employment increased 4.6 percent from October 2017 to October 2018, nearly triple the growth rate for total nonfarm employment, according to the Bureau of Labor Statistics (BLS). In Texas, construction employment in October reached a record high of almost 770,000, an increase of 60,000 or 8.5 percent from a year earlier.

Employment increased in all of the state’s major metro areas over that span.

The Houston/The Woodlands-Sugar Land metro area added 29,500 construction jobs, the most of any metro in the nation and a 14 percent increase from October 2017. While some of the increase reflected recovery from Hurricane Har-

vey, a strong energy sector and rapid population growth fueled new construction.

Despite these hefty employment increases, contractors overwhelmingly report difficulty in filling positions. Construction industry job openings at the end of September were the highest for any September in the 18-year history of BLS’s Job Openings and Labor Turnover Survey, while the number of unemployed workers with construction experience was the lowest since BLS began presenting that data in 2000. Thus, it is no wonder that 78 percent of Texas contractors that participated in AGC of America’s 2018 workforce survey reported difficulty

What’s in Store for Construction in 2019 Anirban Basu, Chairman & CEO Sage Policy Group Inc. & Chief Economist, Associated Builders & Contractors Inc. Baltimore, MD

I

t would be easy to argue that U.S. economic performance in 2018 was better than it has been in 13 years.

While there has been abundant negativity this past year regarding the propriety of tariffs, trade skirmishes, abandonment of various treaties, shifting immigration policy, recently announced layoffs at GM, and rapidly expanding national debt, there can be little debate regarding whether near-term economic performance has been solid. It has been.

During 2018’s third quarter, the U.S. economy expanded 3.5 percent on an annualized basis. Growth this year has been broad-based, encompassing a combination of consumer spending, business investment, and government outlays, including on water systems, transportation, and other forms of infrastructure.

In November 2018, the nation added another 155,000 net new jobs, while the official rate of unemployment remained at 3.7 percent for the month. This is effectively the lowest rate of unemployment since December 1969 when the U.S. was just entering a recession that would last for 11 months.

Data released by the U.S. Bureau of Labor Statistics indicated that the U.S. construction industry added 5,000 net new jobs in October. This was a bit soft, but could be due to a range of non-eco-

nomic factors ranging from weather to wildfires. The industry has added 282,000 net new construction jobs over the past 12 months, representing a robust 4.0 percent increase. Nonresidential construction added more than 150,000 net new jobs during this period, of which nonresidential specialty trade contractors added 93,000 and heavy/civil engineering chipped in another 44,500.

This year may very well be remembered as the year that infrastructure investment roared back in America. The most recent nonresidential construction spending numbers released by the U.S. Census Bureau confirm sizeable increases in spending related to water supply, flood control, and transit options over the past year.

The fact that employment in the heavy and civil engineering segment continues to expand is consistent with

CONSTRUCTION FORECAST

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

filling hourly craft positions.

Tight labor availability seems sure to continue, if not intensify, in 2019. The number of individuals reaching retirement age keeps growing, while the number of people entering the labor force has stagnated. Meanwhile, restrictive immigration policies are reducing the availability of foreign-born workers, a group that has historically been a major source of employees for the Texas construction sector. The stiff competition for qualified workers amid flat or falling supply is likely to drive labor costs higher in 2019, either directly through higher pay or indirectly through higher expenditures on recruitment, training and overtime.

Materials costs also appear headed higher. From October 2017 to October 2018, BLS’ producer price index (PPI) for materials and services used in all types of construction jumped 6.6 percent. That was before the full effect of tariffs on steel, aluminum and thousands of Chinese products had been felt. Costs may rise even more in 2019 once items that were in inventory or ordered before the tariffs were imposed are used up. The tariffs and countermeasures that U.S. trading partners have imposed may also reduce demand from manufacturers, logis-

tics firms and ports for facilities they would otherwise have built.

Although interest rates have fluctuated in late 2018, the Federal Reserve’s determination to keep inflation in check, along with the federal government’s need to finance much larger deficits in 2019 and beyond, suggest that interest rates will increase. That may keep some home buyers from qualifying from mortgages, cause developers to decide some income-producing buildings will not “pencil out,” and reduce the number of projects that school districts and other municipal bond issuers can finance.

Despite these challenges, U.S. contractors appear to have enough backlog and prospects for new orders that 2019 will be another positive year. Thanks to high population growth, a strong energy sector, and ongoing recovery from the 2016 hurricane and flood, Texas contractors will be even busier than most.

Ken Simonson is the chief economist for Associated General Contractors of America since 2001. He is a fellow and past president of the National Association for Business Economics and holds a B.A. in economics from the University of Chicago. He also holds as M.A. in economics from Northwestern University. -cmw

ongoing growth in spending on public works. The surge in public investment is attributable to a number of factors, including rebuilding from certain catastrophes that have occurred over the past two years and significantly improved state and local government finances as the recovery works through its 10th year.

Given the elevated backlog that currently characterizes the nonresidential construction industry, the expectation is that demand for construction workers will remain elevated in 2019. Accordingly, per worker compensation is expected to expand further next year. These pressures working in conjunction with more expensive materials, rising tuitions, healthcare costs, and potentially expanded tariffs on Chinese goods suggest that economywide inflationary pressures will continue to mount going forward, which would tend to drive borrowing costs upwards.

Higher costs of capital would ultimately translate into more expensive financing for construction projects and potentially fewer construction starts.

These dynamics could also further suppress industry profit margins. But for now, it is all systems go for the U.S. nonresidential construction industry from

the perspective of demand for construction services.

Recent volatility in equity prices may represent a foreshadowing of the types of asset price dynamics that could characterize much of 2019 and eventually produce a broader economic downturn.

This is of course highly speculative, but recent earnings warnings by large corporations such as Fluor and PPG indicate that some of the shine is coming off corporate performance and the broader economy. Layoff activity appears to be drifting higher, with a recent announcement by General Motors garnering much of the attention.

One of the economy’s major vulnerabilities takes the form of significant U.S. corporate debt, which has mounted over recent years due in part to an abundance of stock buybacks as well as merger/acquisition activity. These elevated debt levels could cause many firms to rapidly reduce expenditures when signs of the next downturn become apparent in earnest. This dynamic would be consistent with rapid deceleration in business investment and economic activity by the latter stages of 2019 or perhaps in 2020/2021.

Appreciation with training

Milwaukee Tool and Texas Plumbing Supply showed their appreciation by hosting a complimentary drain-cleaning seminar and equipment display Nov. 7 for Gulf Coast PHCC contractors. Attending contractors were treated to complimentary breakfast, lunch, gifts and door prizes! -cmw

Page 12

Houston Construction News • JAN 2019

THIS TH MON

CONSTRUCTION FORECAST

To represent your company in an upcoming FOCUS, contact HoustonEditor@ConstructionNews.net (210) 308-5800

NEXT MONTH (FEBRUARY 2019) CONSTRUCTION SAFETY

Continued healthy growth Jane Feigenbaum, Chief Executive Officer Metropolitan Contracting Company San Antonio, TX

A

s Chief Executive Officer of Metropolitan Contracting Company, Feigenbaum brings over 25 years of construction experience. She is responsible for strategic planning, employee and leadership development, operations, and profitability. She oversees all hiring/recruitment decisions, project selection and ensures that client expectations are being satisfied and all projects are completed safely and in a timely manner.

Feigenbaum leads her team of project managers and strives to help clients understand each phase of the development and construction process. In this role, she serves as a communicator and educator whose honesty and integrity frequently result in long-term relationships with repeat clients.

How would you describe the state of the construction industry in general terms?

The construction industry is continu-

ing to see healthy growth through 2019.

We are seeing new projects in every market type and they are located throughout the San Antonio region.

In your perspective, what is your projection for 2019?

It appears that the market will maintain a steady growth throughout 2019.

The specific construction types we expect to see more significant growth within are industrial, medical and office.

What will be some significant challenges for the construction industry in 2019?

The labor market continues to tighten and will only be more challenging with continued growth in the construction industry. We do not see any relief to the labor shortage in the near future.

What is your projection concerning the cost and/or supply of materials?

We are not aware of any sharp increases in material prices, and if that’s the case, it shouldn’t affect construction cost significantly.

How will recent steel tariffs affect the construction industry in 2019?

The recent tariffs placed on steel initially had a large impact on the cost of steel but, since they were first announced, we’ve seen the prices level out. We expect prices to remain fairly level with normal price increases in 2019.

What is your projection for construction industry employment?

The U.S. as a whole has a low unemployment rate causing a tighter labor market, and the construction industry is

Christmas at Maggiano’s

no exception to this. As the current generation is entering the labor force, fewer than ever are choosing the skilled tradesperson route. As long as the overall unemployment rate remains low and fewer new workers enter into the construction market, we will continue to see difficulty in employment.

Will we see a change in the number of available workers and/or available jobs?

There is a growing recognition for the need for new skilled workers. There are an increasing number of training programs for various skilled trades, some even in-house at companies. There has also been a rise in the number of scholarships associated with skilled trades. There are lots of smart kids who don’t choose to go to college and the construction industry needs them. There are great opportunities in the construction industry for smart hard workers and it’s important that the industry gets that message out to high school kids.

Metropolitan Contracting Company is a full-service general contractor with over 30 years experience in San Antonio, TX. -cmw

What’s not to dig?

M

embers of the National Association of Women in Construction (NAWIC) had a very festive Christmas party at Maggiano’s Little Italy. The festive affair was held on Dec. 11. The evening was complete the sweater girls, a gift exchange and a very tasty dinner. -cmw

K&R’s Backhoe Service owner Kenny Ryans at the job site in Lake Charles, LA.

H

ouston is Kenny Ryans hometown, where he was born, raised and still resides at today. Back in the ‘90s when Ryans was a kid, his grandpa, whose name was MC Hammer, would take him out on job sites and he would watch his grandpa work in the construction industry. When Ryan’s grandpa passed away, he took all the experience he received from him and started his own business in the year 2000.

Today, Ryans is the proud owner of K&R’s Backhoe Service, an excavation contractor for plumbers and electricians.

His manager Erika Ramirez told us they do a lot of commercial and some residential projects. “We used to only do commercial, but then we started getting a lot of residential clients calling,” said Ramirez. She was also delighted to include that the company has expanded their services. “I am happy to say that in the last five years he [Kenny Ryans] has expanded because now he also provides the machinery equipment and the manpower, We have a hand digging crew too.” To sum it up, K&R’s Backhoe Service offers everything in house. Ramirez has watched the company grow since starting off with Ryans in 2002.

With today’s capability to provide a

manpower crew, they employ a total of 17, where each crew may have four or more guys. Ryans made a solid reputation for him and his crew. When Ryans was growing up in Houston, he was raised in what some might call “the hood,” but that didn’t stop him from doing great things. “He tries to hire people who need an opportunity and who come from a less fortunate environment,” shared Ramirez. “He likes to give people the opportunity that he was once given.”

K&R’s Backhoe Service has a service area that will cover the metro areas of Houston and Dallas, including surrounding areas. In fact, about eight years ago they began to do out of state work. They are currently working on a job in Lake Charles, LA called the Power Center Apartments.

But, home for Kenny Ryans will always be Houston and when the community is in desperate need due to devastation of Hurricane Harvey, you can bet Ryans was there to assist. “During Harvey, Kenny had pickup trucks go out and help the people collect trash and debris,” said Ramirez.

K&R’s Backhoe Service is an excavation contractor located in Houston, TX. –lv

Houston Construction News • JAN 2019

Page 13

Association Calendar

Who has influenced your life the most?

Content submitted by Associations to Construction News ABC

Associated Builders & Contractors

Jan. 10: 2019 Inaugural Celebration, Greater Houston Partnership, 701 Avenida de las Americas #900, 6-9pm. For more info, call 713-523-6222

MCA

Mechanical Contractors Assn.

Jan. 9: Regular Membership Meeting; HESS Club, 5430 Westheimer, 11:45am.

For more info, call 281-440-4380 or email glenn@mcahouston.org

AIA

American Institute of Architects

Jan. 5: Heights Bicycle Tour, Heights Branch of the Houston Public Libraray, 1302 Heights Blvd., 10am. $10 Gen. Admission, $5 AIA Houston member. For more info, call 713-520-0155 or email debby@aiahouston.org ASCE

American Society of Civil Engineers

Jan. 12: YM Houston Food Bank Volunteer Event, Houston Food Bank, 535 Portwall St., 8am-12pm.

Jan. 15: Branch Meeting, Hess Club, 5430 Westheimer, 11am-1pm. For more info, contact Sarah Alvarez at 713-428-2400 or email vpadmin@ascehouston.org ASSP

American Society of Safety Professionals

Jan. 10: ASSP Gulf Coast Chapter Meeting, Marriot Houston South Hobby Airport, 9100 Gulf Frwy., 11am-1pm. For more info, go to www.gulfcoast.assp.org FPA

Foundation Performance Assn.

Jan. 9: Meeting, Judge Michael Landrum, Hess Club, 5430 Westheimer, 4pm.

Jan. 9: Meeting, David A. Eastwood, Hess Club, 5430 Westheimer, 5:10pm. For more info, call Vicky Bonds at 713-6994000 HAGA

Houston Area Glass Assn.

Jan. 30: TCA/TGA Walk on the Capitol. For more info, go to www.houstonglass.org HARCA

Houston Area Roofing Contractors Assn.

Jan. 8: Lunch & Learn, Rudy’s Country Store, 21799 Katy Frwy., 11:30am-1pm.

For more info, email Sarah Burns at sarah. burns@rooftex.com HCA

Houston Contractors Assn.

Jan. 24: 2019 Forecast Luncheon, Junior League Main Ballroom, 1811 Briar Oaks Lane, 11am. For more info, contact Emelie Englehart at 713-349-9434 or emelie@ houstoncontractors.org IEC Independent Electrical Contractors Jan. 28-30: IEC National Business Summit 2019, Riverside Hotel, Ft. Lauderdale, FL. For more info, contact Tori Barrett at 713869-1976 or email mbrdir@iectxgc.org

NAWIC

National Assn. of Women in Construction

Jan. 8: General Meeting, Maggiano’s Little Italy, 2019 Post Oak, 5:30-8pm. For more info, go to www.nawic-houston.org

My Grandfather influenced my life the most. He taught me my core values, or what he would call character. He also taught me my work ethic, don’t look back but look forward, always grow and never be afraid to ask! Be a servant leader!

Jim Snyder White Construction Company

Jan. 23-17: Executive Management Institute, Charleston, SC. Jan. 29-30: TCA PAC Roundup & Walk on the Capital, Austin, TX. For more info, call 713-977-2522

It’s a hard choice between my father, who was from Germany and instilled a very strong work ethic and common sense approach to life, and my wife who does a fantastic job of putting up with me, and has worked for all of my companies throughout the years and taught me a lot about patience and treating people nicely.

Gus Rasch Gorilla Manufacturing

SFPE

It has most definitely been my wife. She’s

NECA

National Electrical Contractors Assn.

Society of Fire Protection Engineers

Jan. 15: January 2019 Meeting, SaltGrass Steak House East, 11900 I-10, 11am12:30pm. For more info, contact Jared Thibodaux at president@sfpehouston. org SWE

Society of Women Engineers

Jan. 28: FHPW Quarterly Meeting, Norris Conference Center, 816 Town & Country Blvd., 5:30-8pm. For more info, go to www.swehouston.org

got my back on everything, very supportive. I’m a lucky guy.

Ed LeGris First Choice Plastering My grandmother. She raised five kids alone and she was a very tough cookie.

The strength my grandmother had, I want to have it. She was the strongest women I’ve ever known, and I strife to be like her. My mother was a great woman, but she was a great woman because of my grandmother.

Robyn LeGris First Choice Plastering My wife Grace has influenced me the most. The support and how she anchors me, it puts things in perspective.

Neri Alvarez Aztec Industries

Holiday appreciation

L

inbeck Group hosted a Holiday party in appreciation of their employees, friends, family, clients and subcontractors on Dec. 13. The event was standing room only as everyone shared great holiday treats and drinks. –cmw

SWICA

Southwest Insulation Contractors Assn.

Jan. 15: Cryogenic Craft Competition, Rilco Manufacturing, 12700 Tanner Rd., 7am-5pm. For more info, contact Linda Tracey at 281-435-3859 TSPE

Texas Society of Professional Engineers

Jan. 30: PE Day at the Capitol, Texas State Capitol, 1100 Congress Ave., Austin, TX. For more info, call Claire Black or email Claire@tspe.org TSPS

Texas Society of Professional Surveyors

Jan. 21: Joint Chapters 1, 10 & 18 Meeting, Butcher’s Block Restaurant, 1600 25th St., Snyder, TX., 7pm. For more info, email Robby Christopher at txlsls@gmail. com TCOA

Texas Crane Owners Assn.

Jan. 31: Winter General Membership Meeting, Hilton Palacio Del Rio, 200 S. Alamo, 9am. For more info, call 281-4404380 or email officemanager@rexassociationmanagement.com

L-R: Claire Gilroy, Carmen Reynolds and Allston Marble, members of the Linbeck, team pose for a photo during the holiday party.

May I help you?

s

Submitted to Construction News

Round-Up

Front Desk, VBX Home Office, San Antonio L-R: Delilah Coker and Marissa Chambers

Jorge Contreras has joined the Mobil Steel International Inc. team as Controller of the Houston-area steel fabricator. He brings over 20 years experience of U.S. and international accounting to the Mobil Steel family. Contreras holds a Bachelor of Science in Finance from Mexico Valley University in Mexico City, Mexico. -cmw

Round-Up Submissions

Brief company announcements of newor recently promoted personnel, free of charge, as space allows.

Submit Info & Photo: Houstoneditor@ConstructionNews.net (210) 308-5800

Page 14

Houston Construction News • JAN 2019

JOB SIGHTS

Total Site Foreman Donato Salazar poses for a photo outside his truck at the Parkway Ridge jobsite in Katy, TX. -cmw

continued from Page 1 — First Choice Plastering Robyn said, “and you have a very small community that are artisans that know how to work with the old style.”

Ed has a carpentry and general construction background, working for just about everybody in the ‘70s. Then he went to work for Robyn’s dad.

“We work for a small handful of really good contractors that pay us well,” Ed says of First Choice’s current jobs. One of those clients is the Golden Arches. Ed said he’s done work on close to 300 McDonald’s restaurants in the past 20 years.

That’s a lot of Big Macs.

First Choice does about 80 percent commercial work and 20 percent residential. One thing Ed loves is his award-winning work on historical structures, such as many buildings in Galveston’s historical district, and the Victoria Courthouse (the first federal courthouse in Texas).

“We really do enjoy the restoration work,” Ed said. He also likes doing duplicate historical work. That’s when he’ll match some design done on an older building and incorporate it into a new building.

Ed tries to stay in about a 100-mile radius. His motto is: “I’ll go 100 miles for a good time.”

Robyn’s sister helps out with some of the bookkeeping work. Robyn works from their home office and assists clients

with technical questions they may have, the paperwork, and will assist Ed on site.

“My commute is from my bedroom to my office,” she said. While that may have its perks, Robyn isn’t afraid to razz Ed about his perks and say to him, “At least you got out of the house. I’ve been sitting in here for a week!”

Because plaster is so durable, the repair work they usually do in the hurricane-prone area is when boats and debris impact structures. The wind and rain rarely do damage, but rain is a factor in the plaster business.

“One day of work and two days of rain can back us up three days,” Ed said.

For the future, the pair doesn’t see their computer-savvy kids taking over First Choice Plastering, but will likely sell the business it to someone else. That’s okay with them, as they know that running one’s own construction company is very hard work.

For now, the power couple is doing their best to put on a good front for their clients. With all sincerity, Ed says he “couldn’t ask for a better partner. I love her.” Robyn said it was love at first sight for her when they first met.

A good front from a good couple.

First Choice Plastering operates out of Pearland. -dsz

continued from Page 1 — 12 Bravo Construction

McCarthy Building Companies’ construction crew strategically relocates a Danish rescue boat artifact during the Holocaust Museum Houston expansion project. -cmw

A Cornelius Christmas

growth. “I can handle more stuff now.

Things that used to make me anxious and angry back in the day, I can handle more stuff now because I pushed myself outside my comfort zone.”

He left in 2016, got back into the handyman work again, and eventually started 12 Bravo, naming it after the MOS (Military Occupation Specialty) of the combat engineer.

12 Bravo did $580,000 in business it’s first year. Moreno not only got his HVAC license, but 17 other licenses and certifications. Not bad for a high school drop out. “It means something to me,” he said.

There are two sides to 12 Bravo: the HVAC side and the construction side.

Moreno has three other guys working for him, including his son from Colorado.

“It was a complete accident,” he said.

“I didn’t intend for it to get this big. I just pushed myself outside my comfort zone, and I started hanging around the right people who motivated me to do better and want to do better.”

The two primary lessons Moreno took with him from the Army to the civilian world were: (1) Motivation. This is what keeps him doing things that he might not feel like doing at the time, but has to. He tells his guys, “False motivation

is better than no motivation.”

Number two is leadership. “I might not like it. I might not agree with it, but I have to handle it.” The example he gave is taking the hit if one of his employees makes the mistake and it costs him. Leadership means he does what he has to in order to get the job done, to achieve the objective.

Moreno has two big goals. He wants to do $1 million in HVAC sales in 2019, and he wants to produce an app that helps contractors run their businesses from their phones. His goal is $35 million in sales from this app.

With the money from this app, Moreno wants to invest in helping disabled vets become more self-reliant, not on medications, but upon being able to own franchises of 12 Bravo in any one of its varied services. He wants to get them out of the counseling circles (and perhaps self-pity ruts) into being able to face the challenges of life and running a business.

“I’m comfortable where I’m at,” he said, “but I always want more. I’m always driving.”

Not only is Moreno driving himself to get out of his comfort zone and do better, he wants the same for other vets.

Bravo, sir. Well done.

12 Bravo Construction bivouacs out of Pearland. -dsz

continued from Page 1 — White Construction Company

Cornelius Contracting LLC held their company Christmas party on Dec. 7 at their Spring location. –cmw

Construction News ON LOCATION

Paints & Moore

L-R: Southwestern Paint Co. Inc. Sales Associate/Color Specialist Sarah Blake, Outside Sales Edgar Martinez and Sales Associate Diego Martinez visit the Benjamin Moore store in Katy, TX to answer questions visiting customers might have. -cmw

and installed to allow safe access for people and construction materials using cranes for hoisting the heavy bulky equipment from the floor of the coliseum. Four to 10-ft wide permanent access doors were installed to accommodate this construction as well as future maintenance.

This was an incredibly difficult fastpaced renovation in extremely tight spaces on a busy, crowded college campus. The graduations, games, concerts and meetings could not be halted. Complex logistics were necessary to keep the heartbeat of this campus and community strong, and to enable the school’s basketball team to begin its season in the beautifully renovated facility, avoiding the enormous expense of renting additional space.

Aside from general renovation challenges, the project included several safety challenges. With multiple crews working in dangerous high and confined spaces, special scaffolding and lift systems were designed and installed. Specialized training was developed and implemented from project start to finish. It required “all teams on the field” at all times to finish this facility while community events were still being conducted. Each and ev-

ery player had to keep his/her eye on the ball at all times and remain laser focused on the client’s goal. The result was a huge win for Sam Houston State University, for WCC, and for the Huntsville community.

SCORE! The construction team, made up of the owner, user, designers/architects/engineers, subcontractors and construction manager at risk (CMAR) worked together during the pre-construction phase to develop a design, budget, and schedule that was coordinated with the owner’s facility schedule. Careful planning, developed months in advance of construction, was the key to success for this project. Communication between Project Executive Jim Snyder, Project Manager Brian Brown, Project Superintendent Devin Hill, Architect PBK Sports, and the rest of the construction team helped minimize unforeseen adverse impacts to the budget and schedule. WCC is proud to have been the CMAR on this project and thrilled the team’s hard work earned this project a 2018 ABC Houston Excellence in Construction ICE Award.

White Construction Company is a fullservice general contractor with offices in Panama City, FL; Ridgeland, MS; Austin and Houston, TX. -cmw

Houston Construction News • JAN 2019

2017 Christmas in Review

The Habitat Construction Company had a seat at the office. (Second couple middle left side) Karen Sierra, purchasing manager/interior designer used her skills and transformed the garage to a lovely set dinner at the office. –lv

The employees of Linron Company-te

Page 15

Ferguson Enterprises was the setting for The Plumbing-Heating-Cooling Contractors of America (PHCC) Holiday Social held on Dec. 6. -te

Perrine Construction Services-te

Page 16

Houston Construction News • JAN 2019