San Antonio Construction News January 2019

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Covering the Industry’s News

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The Industry’s Newspaper www.constructionnews.net H (210) 308-5800 H Volume 22 H Number 1 H JANUARY 2019

How the Keck did it happen?

40 years of not working

L-R: Owner of Keck Electric Co, Tommy Keck and Vice President Casey Keck.

Setien & Associates team

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et’s take it from the top. Tommy Keck was in the Air Force Reserve in 1973, going through basic training at Lackland Air Force Base in San Antonio. Then he went to electrician school at Sheppard Air Force Base in Wichita Falls, TX. “We were stationed out at the 433 Tactical Airlift Wing at Kelly and a ‘prime beef’ [civil] engineering [deployable] team. I was an electrician out there,” explained Tommy. After coming out of the AF Reserve, Tommy went to work for a small electrical company that he remembers being located on Josephine St. “I worked for other companies along the way. My wife, Julie, was pregnant with Casey while I was working for another electric company,” shared Tommy.

“She got laid off and then I got laid off. We didn’t have any insurance, so we had to pay cash for Casey to be born. When Casey was born, that’s when I went into business for myself.” Tommy is the proud owner of Keck Electric Co, which he established in 1981. Of course, Tommy was on his own then, but already had nine years of experience within the trade. To continue what he started, Tommy paid $600 for an old, used green van, made it his by installing shelves in it and started to go to work. “The engine was between the twobucket seats,” Tommy recalled. “I remember I had to pick up Casey from day care and I had his little car seat strapped down to the top of the engine.” continued on Page 21

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young man of 14 getting ready to start high school usually only has one or two things on his mind. Likewise, a father with a daughter preparing to start high school has only one thing dominating his thoughts as well. When Domingo Setien was 14 and getting ready to start his freshmen year at Central Catholic High School, he naturally was only interested in seeing his girlfriend. Every chance he could, he would go and visit the young lady. Her father, an engineer, had converted his garage into a work studio where he and his buddies would work on designs and brainstorm ideas. “All these men would accumulate in the afternoon and evenings,” recalls

Setien. “I’m looking at these guys and they were jolly and laughing. They’d come in smoking their cigarettes and just going to town working at their tables. I was intrigued by their attitudes and how they were bouncing ideas off each other.” Noticing the frequent visits by Setien and being a protective father, he decided he had to disrupt the visits, as the two were too young to be seeing each other so often. He approached Setien during one of his visits and gruffly asked him if he wanted to learn the stuff they were working on. Suddenly, money seemed to be more important. As he learned, he earned – $.75 an hour to be exact, scrubbing drawings. continued on Page 21

A new distribution center

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ounded in 1997, Catamount Constructors, Inc., has been in business for 22 years and opened their San Antonio Office eight years ago. After 20 years, Catamount transitioned in 2017 to a 100 percent Employee Owned Company (ESOP). With vast experience in commercial, industrial, multi-family, retail, senior living, medical and government work, Catamount is no stranger to multimillion dollar projects. In early 2017, Catamount began construction of the new TJ Maxx Distribution Center San Antonio located on San Antonio’s south side. The 1.2MMsf warehouse, plus 540,000sf mezzanine facility, took 15 months to complete at an approximate cost of $70,000,000. The distribution center is one of the largest and most modern in the country. It was built on a 200-acre tract of undeveloped rangeland near Mitchell and Cassin Lakes, wetlands known to attract

many species of migratory birds and other wildlife. Project Manager John Poitevint, Superintendent Randy Metz and MacGregor Associates Architects oversaw the construction of the new ground-up distribution center. Of the 1.2MMsf space, 540,000sf is mezzanine space and 33,000sf is office space. The slab-ongrade facility with its concrete tilt panels was constructed primarily of concrete and steel materials. The structure’s heights varied from 20ft 10in office ridges to 40ft low bay ridges and 60ft high bay ridges. The facility’s parking lot is equipped with 866 auto spaces and 846 trailer spaces with room allocated for an additional 266 auto spaces and 413 trailer spaces. The Catamount team was faced with 20ft of fill at the north end of the buildTJ Maxx Distribution Center San Antonio

continued on Page 21


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San Antonio Construction News • JAN 2019


San Antonio Construction News • JAN 2019

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Not Hispanic, don’t worry about it

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019 will mark the 20-year anniversary of The Hispanic Contractor’s Association De San Antonio. Since 1999, the HCA de SA has continuously grown in size and success thanks to the dedication, hard work, and generous contributions of our sponsors and members. As a registered 501C3 organization, many people know that our purpose is to promote small, minority, woman, and veteran-owned businesses, but when recruiting new members, we often hear the response “But I’m not Hispanic”. Well the good news is that you don’t have to be Hispanic to join us. You don’t even have to be a minority-owned or otherwise designated business to get involved. Our association connects project teams with the resources needed to achieve success, whatever their size or ownership classification. Our Association is made up of all types of companies that see the value and benefits of membership in the HCA de SA. Those benefits include numerous free or substantially discounted employee training opportunities, monthly presentations that include valuable information about upcoming large-scale projects, access to our Association Group Health Plan where it is possible to leverage the group population to achieve lower premiums, and an annual calendar full of fantastic and fun networking events including a Spring Fishing Tournament just when the action heats up down in Rockport, the Paloma Primer Sporting Shoot to get you warmed up in August on the last Friday before Dove Season, and our October Golf Tournament when the weather is Chamber-of-Commerce perfect for being outside. We also have teams at the January Rodeo Cook-off, our signature Night in Old Havana Gala Awards Banquet in July, and our Hispanic Heritage Event in September.

Edward C. Pape, HCA Vice President

These fun and enjoyable networking opportunities help to fund our annual contribution to Alamo Colleges and the scholarship opportunities that are available to children of members. While our mission statement clearly outlines our goals and purpose, the discussion about revising our name to alleviate confusion is one that remains ongoing, but whatever changes come in our next 20 years, the best improvement that we can hope for is the addition of new members wanting to get engaged with their industry. We are kicking off the new year with a new office located at 2391 N.E. Loop 410, Suite 206, 78217. Stop in and see us or check out our website at www.hcadesa.org

Hispanic Contractors Association

Newly acquired firm keeps local name

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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


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San Antonio Construction News • JAN 2019

Lots of Lights

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he National Electrical Contractors Association (NECA) held their annual Christmas dinner complete with their traditional white elephant gift exchange on Nov. 30. The event was held at Bob’s Steak & Chop House where members and guests were treated to a great meal, fine wines and spirits and of course, great camaraderie. –cmw

NECA members share a spectacular dinner together.

Mrs. Corbo, Corbo Electric, opens the first of many white elephant gifts that passed through her hands.

Construction News’ Carol Wiatrek, Vincent and Donna Real, Big State Electric

Girls to the rescue

The girls from Joeris General Contractors come to the rescue while dropping off toys collected by Joeris employees. L-R: Cecilia Torres, Tanya Knox, Mimi Cuny, and Belinda Muniz, experienced in popping up canopies, helped the CAKC committee set up a canopy to protect the toys and volunteers from getting soaked during the CAKC toy drive on Dec. 7. -cmw

Cats and dogs living together

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rnest Juarez compares following stucco up work with paint to a marriage between a cat and a dog: unnatural and fraught with trouble. The Diamante Coatings owner increasingly faced that unholy union at the beginning of his career as he took on more painting projects. “As a painter, I ended up having to do minor repairs to stucco. Stucco and paint aren’t a common marriage; they’re separate trades entirely,” Juarez says. “Starting with a patch, we ended up doing entire houses, and I kind of fell towards the stucco side.” As the company progressed, Juarez found there was a demand for stucco renovation. “We found that there were more and more repairs needing to be done to stucco due to cracking and other issues that Ernest Juarez, owner of Diamante Coatings were involved,” he says. “As we began to repair them prior to painting them – because I was still in the though,” Juarez explains with pride. painting mode – I had to learn the trade “They are subcontractors who have of stucco. As time went by, my stucco worked with me over the last 10 to 20 crews that I had trained had to be fol- years, are very familiar with the product lowed by my painters because you we’re producing and the kind of customcouldn’t just have any painter follow a er demands that are required. I educate stucco installation. One guy is going to our subs to the standards and expectabe pointing the finger at the other [over tions our customers are having. That’s mistakes and quality], and you don’t what I’ve created, and I’ve been fortunate want that. To create a better environ- enough to have these people working for ment for the customer, I had my painters me for so many years.” follow the stucco guys and make small As for future plans, the sky is truly the corrections, cleanups, touch ups, and limit for Juarez. But rather than create spot repairs that they had left behind so grandiose schemes, he is dedicated to usthat we delivered a complete result to ing his range of experience to help others the customer.” succeed in the industry. Diamante’s commercial projects in- “I’m developing websites dedicated clude Candlewood Estates, the Starwood solely to the promotion of construction, Hotel, and Lackland Air Force Base’s air- real estate and stucco so that I can take port annex. other companies, put them in the direc “On the commercial side, we have tory and guide business to other stucco, people calling us directly to do commer- painting, real estate and property mancial repairs and renovations and com- agement-type businesses,” he says. pletely new installations. For residential, It’s a lot of knowledge to pass on to people do a major purchase of homes others, as Juarez will be quietly celebratthat can be any number of square feet. ing his business’ 35-year anniversary this I’ve done some of the largest homes in year. Rather than a blowout celebration, San Antonio, and some of the smallest,” Juarez is content to reflect on the comJuarez says. “The greatest satisfaction is pany’s accomplishments in the past that I am giving somebody what means three-and-a-half decades. the most to him or her, and that’s beauti- “It hardly seems like that much time fying their property in a way that they has passed,” he says. “We don’t have any can’t do. Stucco’s not something that you particular celebrations planned; we’ve can just go to Yahoo or any resource and had so many milestones, some being the just learn. Even though you might have largest house or building we’ve ever all of the instructions in front to you, you done. It’s all in a day’s work, and at the have to practice. It would be like me writ- end of the day, we all go home happy ing the book on how to ride a bicycle: that we’re making a name for ourselves here’s your bicycle and here are your in- and instilling that type of pride has been structions. You’d end up with a few the mainstay of the business.” bumps and bruises.” Diamante Coatings in San Antonio Juarez relies on a dedicated team of provides solar panels, siding, exterior paintsubcontractors to complete the projects. ing and stucco repair. –mjm “They’re not just any subcontractors

San Antonio

CONSTRUCTION NEWS

Call 210-308-5800 or email information to: AustinEditor@ConstructionNews.net HoustonEditor@ConstructionNews.net 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

Daniel Zulli Reesa Doebbler

Contributing Editors

Melissa Jones-Meyer Ann Keil Jesse Abercrombie 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

DFWeditor@ConstructionNews.net SAeditor@ConstructionNews.net 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.


San Antonio Construction News • JAN 2019

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Alphabet group

John Alvarez (far left) and A2Z team members at the Roten building project ground breaking.

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onstruction brought John Alvarez to San Antonio and he hopes construction – especially commercial – will be keeping him in the Alamo City for years to come. “I actually came to San Antonio with Thomas Enterprises, the developer of The Rim in Atlanta, and I was the senior project manager. We would come out to San Antonio quite often,” Alvarez says. “When the economy had the downturn, we unfortunately had to downsize, so there was an option made where I could come out to San Antonio, stay and take care of the shopping center. It was only supposed to be short-term, but when six months turned into a year and a year turned into 18 months, my wife and I just decided to stay.” In 2013, Alvarez had an opportunity to venture out on his own and start his business’ residential side, C60 Modern. “I was building homes for a friend of mine with Signature Homes, and we built several homes out in Vintage Oaks near New Braunfels. It just took off from there,” Alvarez says. “I was building homes and

took on some commercial work for an investor in California who I knew as a builder in San Antonio and then the commercial side took on from there.” Because he was bidding more commercial work, Alvarez has changed the company’s name to A2Z Development Services, and already has notable projects to highlight. One commercial project is the Roten commercial office, which will serve as the Roten Company insurance office’s home location. He also recently finished The Elevens on Presa, which he completed with brother-and-sister team MP2 Urban Development. The three-house residential project downtown on an infill lot on Presa was chosen to be a spotlight in the AIA San Antonio tour this past October. Alvarez looks forward to the future. “We’ve been blessed to be in San Antonio and we look to be here for quite a while and continue to build and prosper,” Alvarez says. General contractor A2Z Development Services is in San Antonio. –mjm

A new focus, a new direction

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fter 35 years in business as a successful general contractor, Anita Kegley is redesigning Kegley Inc. “For 35 years, I have been the one in charge, the one everyone goes to when something goes wrong to fix. I’m redesigning my business so that I’m no longer the one in charge, but the one helping the one in charge,” says Kegley. Instead of running the project as a general contractor, Kegley Inc. will now play a supporting role in areas of design-bid-build, designbuild, facility construction management services, project management, expert witness and catastrophe repair to contractors and subcontractors who may not otherwise have the personnel to preform such tasks. Anita Kegley, owner of Kegley Inc. For more than 10 years, Kegley has provided her services as an expert witness. She looks forward to their primary trade. An example would moving her focus more in that direction be an electrical contractor with a huge by assisting attorneys and opinionated electrical generator project and they construction related disputes, helping to need help with some concrete work or clearly identify issues and settle cases. some odd little things that are not electri “I really enjoy finding out who is re- cal in nature. I can get in there and help sponsible and who needs to take care of them,” she says. the situation,” she says. Additionally, over a year ago, Kegley In addition, Kegley and Kegley Inc. felt the calling to run for political office. will now provide services to aid small After much thought and prayer, Kegley contractors or subcontractors who are will be throwing her hat in the arena. Reornot used to being the general contractor ganizing her business will give Kegley the on a large project. time needed to run for political office. “Maybe they need help doing those Kegley Inc. is a SCTRCA, DBE, SBE, WBE, four or five little trades they are not ac- HUB general contractor in San Antonio. – customed to performing in addition to cmw


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San Antonio 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

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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

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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.

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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.” 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

In memoriam

erald (Jerry) Elmer Gueldner passed away Nov. 19. He was 88 years old. He graduated a Central Catholic High School, class of ’48 graduate. He enrolled at San Antonio College and later enlisted in the Army National Guard, where he retired as a Major. He became a master electrician during his employment with Nathan Alterman Electric Company. He later joined his brother John Gueldner at Gueldner Electric Company. He was a proud member of the International Brotherhood of Electrical Workers (IBEW) Local 60 and National Electrical Contractors Association (NECA). Jerry retired from Gueldner Electric Company in 2000. Following his retirement, he began volunteering his time and talents at the Bexar County Jail Detention Ministry and later at the Bexar County Appraisal District as a board

member appraising farms, ranches, and large commercial accounts. Funeral services were held at St. Matthews Catholic Church, where he and his late wife Mary were charter members on Dec. 3 followed by burial services at Ft. Sam Houston National Cemetery. –cmw


San Antonio Construction News • JAN 2019

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Beware factors and assignment of pay application proceeds

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

Ben Wheatley, Shareholder Munsch Hardt Kopf & Harr, P.C. Austin, TX

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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.

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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-

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.

A helping swing

SpawGlass Contractors hosted a sold-out crowd for the 5th Annual SpawGlass-San Antonio Golf Tournament at Olympia Hills Golf Course. The eventwas held on Oct. 5 with proceeds to benefit the Children’s Bereavement Center of South Texas. -cmw

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


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San Antonio Construction News • JAN 2019

standing), to include the old Joske’s building and his old warehouse on Medina Street, which is now the Dielmann lofts.

James W. Dielmann President J.W. Dielmann, Inc. San Antonio, TX

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ames W. Dielmann is not a master juggler, but he has mastered how to juggle a successful fire alarm system business and family life. As Dielmann is fond of saying, “Never forget, life’s a journey, not a destination. We’ll all get to that destination soon enough.” Tell us about your background. Where were you born and raised? I was born and raised in San Antonio. What were your early years like? My father served this great country with a career in the Air Force and I spent the early years of my life traveling the world. We lived on the south side of San Antonio, not far from McCreless Mall, until my father retired from the Air Force and then we moved to the north side, just outside of Alamo Heights. Can you tell us about your family history? My grandfather, Henry B. Dielmann, was a lawyer in San Antonio. He helped start and was the first Dean of St. Mary’s Law School. His father, my great-grandfather, J.C. Dielmann, was a contractor and built numerous historic buildings (still

How did your career path first unfold? I have been in the Life Safety industry for 40 years, most of my adult life. I worked for two smaller companies before starting the business in 1995. I have always believed there are certainly more important things in life than one’s job. To me, that is God and my family, but you can’t provide for either if you don’t work hard. Everyone needs to do something for a living, so find what it is and enjoy it. I obviously do or I wouldn’t still be in it after all these years. I have so much respect for anyone that has started a business or practice with nothing but hope and the willingness to give it everything you have. [I have so much respect for someone who is] not buying into a business or taking over a business – no doubt there are issues and concerns with that as well – but putting a desk out in your garage, making your truck your office, busting your butt day and night to feed your family, making a mortgage payment and become established. I never had to use my 20k line of credit the bank gave me and never once were we in the red, but I guarantee you there were many times I was wondering how I was going to pull it off. How did you transition into life as a business owner? Once the business took off and started to grow, the toughest thing for me was having to take off my tool pouch and just start managing the business. The feeling of starting and completing an installation was always so gratifying to me. Back when I first started in the industry, I was always so surprised to learn how many in the business had never installed a system; they were just salesmen and relied on other trades to do the install. What have you instilled into your business?

James and Donna back in August on one of their great adventures, trekking on Mendenhall Glacier in Juneau, Alaska.

We start everyone in installation. [It] doesn’t matter if you are in sales, design, service installation or the office – hands on experience is important for anyone in any business. What does your company do? We at J.W. Dielmann sell, service and install fire alarm systems, as well as fire extinguishers and nurse call systems. Our installations include pretty much anything imaginable, [from] simple tenant remodels to complete high-rise renovations, medical office buildings, hospitals, educational, nursing homes, military, industrial and historical buildings. I really can’t think of anything we haven’t installed a system in. How do you build relationships with clients? Our first responsibility always has been and always will be our clients. When they give us work, they become our boss and our job is to provide excellent service to them, for them to feel they got their money’s worth when they get the invoice. What do you ask of from your employees? Today all we really ask is that our employees put in a full 8-hour work day, giving it all you got. I never ask it, but am so proud and impressed that most of our core employees are at the office usually by 6 am and long after we close at 4 pm. I am so truly blessed to work with such an outstanding group of like-minded men and women that choose to be successful. How do you like to have the workplace setting? We try to provide a place to work that our employees can enjoy and we want everyone to succeed, not only in business but also more importantly in life. We expect our employees, in exchange for what we pay them, to do an excellent job, to give us a good day’s work, to do what we tell them and to be engaged in what we are doing. There are few things I wouldn’t do for our employees. They’re family and we care about all of them. What are the challenges in the industry you’ve faced? Our challenges are the same as what I hear from all the contractors we work with, which is finding good help in order to grow. It’s difficult; if we could find them we would certainly hire them, so yes, we are hiring! What are some of the business’s successes? We have very little turnover and I think that says a lot. We average 30 employees and probably half have been with us near or over 10 years. Our vice president, Andy Arellano, and I have been working together since before I started the business. Matt Reilly, our installation manager, has been with us for 19 years;

Aaron Pauli, our service manager, for 15 years; Richard Hansel, our design team manager, for 16 years; and Christine Klein, our office manager, has only been with us for six years –what a godsend she is for all of us, especially me. Tell us more about your personal life. Are you married? I have been married to my beautiful, incredible wife Donna for 34 years. We met some 38 years ago, but she took some convincing. She never doubted or questioned my ability and always offered her support and still does. I love San Antonio, but my wife and I live in the beautiful hill country on 10 acres in Bandera County. No city lights, no traffic or noise, no neighbors and I really don’t mind the 100 miles a day I commute. How do you like to spend your free time? We love to hunt, fish and enjoy the outdoors. My wife and I spend as much time as we possibly can at our ranch near Rocksprings, when we are not with our children or grandchildren. Do you have any ranch animals? We are no longer raising cattle, goats, sheep or pigs, [but] maybe when the grandkids get older – honestly, if the grandsons asked “Papa please,” I’d probably crumble. For now we just enjoy being at the ranch, keeping the wild hog population in check – which is impossible – and planning our next great adventure. Do you have any children? We have two wonderful children. Our daughter Stephanie and her husband Brad have blessed us with three awesome grandsons. Our son James Jr., “Jimbo” and his wife Jess had their first child in early December. We are very excited! Are there family members working in the family business? My son Jimbo has, of course, been around the business all his life. He recently joined our team last October after serving our community as a San Antonio police officer for eight years. I was finally able to convince him to come to work with us and I can’t tell you how much better his mother and I sleep. Although, we are still often restless when our son-inlaw, also one of San Antonio’s finest serving as a Captain on the Fire Department, is on duty. Unless you have a police officer or fire fighter in your family, you really have no idea what all they do to protect us. Every opportunity you have, you need to support and thank them! Can you tell us about your future plan? The future plan for our business is to continue to grow. We have young leaders and there is currently so much opportunity in San Antonio for all trades in the construction industry. J.W. Dielmann, Inc. is a fire alarm systems contractor in San Antonio. –lv


San Antonio Construction News • JAN 2019

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Let’s be merry

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embers of the Associated General Contractors (AGC) gathered at the AGC offices on Dec. 6 for the association’s annual Christmas Party. –cmw

Fishing relief

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he Associated Builders & Contractors (ABC) South Texas Chapter hosted the ABC 2018 Fishing Tournament in Rockport, TX at Drifter’s Resort, Oct. 12- 13, with 36 boats. ABC made a $2,000 donation to the Rockport Chamber of Commerce Hurricane Relief fund after the event. -cmw

Guided Heaviest Stringer winners: 2nd Place: Cokinos | Young 3rd Place: FSG Electrical Guided Redfish winners: 2nd Place: Moore Erection 3rd Place: Moore Erection 4th Place: Joeris General Contractors 5th Place: Cokinos | Young

Unguided Heaviest Stringer winners: 2nd Place: Terracon 3rd Place: RSM US LLP

1st Place Unguided Heaviest Stringer: Alpha Insulation & Waterproofing Inc.

1st Place Guided Redfish: Central Builders Inc.

www.constructionnews.net publishing the industry’s news

1st Place Guided Heaviest Stringer: Central Builders Inc.

Texas Style

★ San Antonio ★ Austin ★ South Texas ★ Houston


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San Antonio Construction News • JAN 2019

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.

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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.

Joyful building, cheerful memories

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uring the December month of celebrations and traditions, Central Builders Inc., held their annual Christmas party for their employees, customers, vendors and subcontractors at Retama Park to celebrate their success in 2018. The celebration included food, beverages and a live DJ, plus the camaraderie of the Central Builders employees from San Antonio and Denton. CBI thanked everyone for his or her hard work this past year. “The award ceremony is a lot of fun. We do a raffle and give away Spurs tickets,” said CBI owner Carl Ehrlich. Carl Ehrlich, Bryan Ehrlich, Mark Ehrlich and Matt Ehrlich passed out plaques, some for their service and others who have been with the company for 20 years. –lv

L-R: Matt Ehrlich, Bryan Ehrlich, Mark Ehrlich, General Superintendent Raul Diaz, Carl Ehrlich and Dora Ehrlich

Waiting for the raffle to begin.

CBI employee and his family enjoying the celebration.


San Antonio Construction News • JAN 2019

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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.

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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

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.

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.

months, anglers can score on big trout by fishing slow-sinking mullet imitations 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. 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.

Good Luck and Good Fishing.


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San Antonio 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

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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. 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? 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! 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! 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! 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!

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

Don’t cross Jamie

Jim Limbrecht with Loftin Equipment Co. shared this photo of his daughter’s buck. Jamie Limbrecht, Alterman shot this 8-point beauty in Bulverde with her cross bow. Pictured with Jamie is her proud brother Ben and his dog, Malo. -cmw


San Antonio Construction News • JAN 2019

Page 13

Elk luck

Check it out

Michelle Seward Davis, Joeris General Contractors and Ben Davis, Beck Companies went on their “hunt of a lifetime” in Sonora, Mexico where Michelle shot this enormous Desert Bighorn at 300 yards on Nov. 8. -cmw

Paul Daniec, owner of Benchmark Utility Contractors, poses with son Jan Daniec with this massive elk the youngster shot during an October elk hunting trip in Utah. The younger Daniec also had the good fortune to shoot a nice cull elk during the hunt (photo unavailable). -cmw

Noteworthy holiday season

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t’s been a noteworthy holiday season so far for the folks at A-1 Fire & Safety. A-1 Fire & Safety was awarded two spots in a pheasant hunt in South Dakota. The trip was sponsored by a major manufacturer for A-1’s success this year with their products. It was a first of a kind for both. Trophy birds, although not pictured, are at the taxidermist. -cmw L-R: Clint Williams and Don Cadena, decided dove hunting weather is more pleasant than the temperatures in the teens they experienced during their recent pheasant hunt. The Saturday hunt started with a wind chill of 0 degrees. They just now thawed out enough to send Construction News some photos.

Klaire Williams, daughter of Don Williams and granddaughter of A-1Fire & Safety owner Jerry Williams, shot her first deer at the family ranch new Uvalde, TX.


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rom humble beginnings at Retama Park, the Construct-A-Kid’s Christmas Gala continues to share Christmas cheer. This year’s “A Woodland Christmas” theme brought warmth into the hearts of over 1,000 people who gathered at the Freeman Coliseum for the 18th annual gala held on Dec 6. The evening included the great sounds from the Texas Unlimited Band, a full buffet complete with a fabulous display of woodland desserts catered by Heavenly Gourmet, beer, wine, dancing and chances to win spectacular prizes at

San Antonio Construction News • JAN 2019

Woodlands Christmas cheer the ever-popular casino games. It was truly evident that no one has forgotten what Construct-A-Kids is all about to make a brighter and happier Christmas for the many children in the Bexar County foster and Child Protective Services programs. Toys and gifts were collected in abundance, enough to fill a large box truck. “I am overwhelmed at the generosity of the San Antonio construction industry. We had so many toys donated at the Gala this year. The truck was completely filled,”

says Sandee Morgan, Construct-A-Kid’s Christmas vice president. “I feel blessed to work in an industry with such big hearts. This group makes a difference in the lives of foster children in our area, both at Christmas and throughout the rest of the year.” As the silent auction and live auctions continue to grow, so does the generosity of all the attendees. “Thanks to the amazing group of attendees. We had our most successful live auction to date,” adds Morgan.

Additionally, the lure of the Grand Raffle with its “winner takes all” of multiple hunting trips, getaways, big kid toys, jewelry, gift baskets, guns and more, maintains its appeal to the generous bunch. A $45,000 check was presented to the Friends of the Bexar County Child Welfare Board at the toy drive the following morning. “Our hard-working committee has already started to discuss next year’s event. The theme is going to be over the top and FUN….mark your calendars for December 5, 2019!” Photos courtesy of Mary C. Haskin Photography. -cmw


San Antonio Construction News • JAN 2019

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or the second year in a row, Mother Nature decided to make an appearance. Although it wasn’t the beautiful carpet of snow she graced us with last year, the wet, dreary rain that seem to fall at the height of the Construct A Kids toy drive on Dec. 7 did not stop the construction community from bringing in toys and other goodies. Construction companies and associations throughout the city, in addition to the many toys collected at the CAKC gala the night before and the Alterman Open House toy drive brought this year’s collection total to 1,889 toys and $990 in gift certificates. Total gifts and toys collected since the very first Construct A Kid’s Christmas toy drive 18 years ago is 26,621. It goes without saying, but none of this would be possible without the BIG

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Deck the halls with toys & holly

CAKC Committee presents $45,000 donation to the Bexar County Child Welfare Board.

United Tool & Fastener Inc. donated 50 bicycles to help make Christmas a littler brighter.

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Santa’s helper

t seemed to be the biggest party in town as bus, after bus, after bus rolled in filled with people from the construction industry excited to party at Alterman Inc. for their annual Christmas Open House. The employee-owned company hosted the event on Dec. 5 just in time for their toy drive push for the industry’s annual Construct A Kids Christmas Gala. With a party this big, parking most definitely can be an issue, but the company arranged for luxury shuttles from near-by Blossom Athletic Center. Guests were treated to great food catered by Saltgrass Steakhouse, spirits, wine, dessert galore and of course, a Christmas favorite – photo booth. –cmw

hearts within the construction community. Thank you, thank you, thank you to everyone who donated time and effort to help bring Christmas cheer and happiness to the many children in the Bexar County foster care system including Allen & Allen for delivering the toys from the gala to the toy drive; Urban Concrete Contractors for providing the truck and driver to deliver the toys to Child Protective Services; CBS Rental & Supply for providing the scissor lifts that hung the toy drive banner outside the Construction News office; ESC Safety Consultants Inc. for providing the canopy to keep the toy collectors and toys dry during the toy drive; Buyers Barricades for providing the canopy tie-downs; and Alterman Inc. for their huge toy drive hosted in conjunction with their holiday open house. –cmw


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San Antonio Construction News • JAN 2019

The difference is …

Who has influenced your life the most? Jesus has influenced my life the most, especially the last 25 years. I take all my business decisions, personal challenges to him in prayer and he always does a great job. The Bible, especially the book of Proverbs, tells us everything we need to know on how to run a business and our personal lives. Anita Kegley, Kegley Inc.

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Ron Mills outside his shop.

on Mills’ wardrobe changed from a pair of slacks to a pair of blue jeans since he became a concrete contractor 14 years ago. Mills was once a lawyer from Little Rock, AR. He graduated from the University of Arkansas Law School, and received his Master’s in taxation from Southern Methodist University. “I practiced for about 10 or 15 years and then moved to Texas and got into other business ventures,” said Mills. It was in 2005, when Mills realized he always enjoyed working with his hands and creating, so he decided that’s what he was going to do. In 2005, Mills became the owner of Ron Mills Custom Concrete Designs in New Braunfels. “For six months I pretty much experimented in New Braunfels,” he says, and it paid off because 14 years later Mills still enjoys his line of work. Mills creates, fabricates and installs concrete counter tops, sinks, signs and pretty much everything concrete with the “absolute exception of doing floors.” His work is mainly marketed toward

residential clients. Mills will advise a potential client to visit his shop and discuss why they want concrete. “Most say, ‘I’m tired of the other surfaces. I want something unique, I like the look and feel of concrete,’” added Mills. Mills explains that what his clients receive is a product made by hand. “In reality [concrete] is a higher-end countertop because it is completely made with vision and everything else versus picking out a slab and cutting it up.” Mills doesn’t have standard colors because he says each one is unique. Mills’ shop is 3,000sft, but his service area is pretty limitless. He’s done projects in Dallas, Uvalde, Blanco, Seguin, San Marcos and all over Central Texas. “Surprisingly we have three employees: me, myself, and I,” he jokes. Mills won’t be putting away his concrete grinder anytime soon because the concrete projects out there have his attention. Ron Mills Custom Concrete Designs is a custom concrete design contractor in New Braunfels, TX. –lv

My grandfather. We’re Native American and he was a sharecropper. I remember his hard work. Our tribe is Caddo-Adai, and we’re from a place called Spanish Lake, Louisiana. Charlie Barbo, Nations Air The fact that I’m doing what I’m doing is somewhat related to my dad, he constantly was redoing a project in his spare time. My dad has influenced me most. Ron Mills, Ron Mills Custom Concrete Designs It would be my dad; he influenced me by showing me a path to make a career out of and guidance and knowledge to be successful in this career. Casey Keck, Keck Electric My mother. She taught me a lot. She was self-employed and started a dance studio, Dorothy Keck Dancers in San Antonio back in 1965. Tommy Keck, Keck Electric I would have to say my father. He passed away in 2004 and it’s one of those unfortunate things that I didn’t start to realize just how much he truly had influenced

my life, until I myself started getting older. He took such great care of all five of us kids, and of course my mother. We didn’t have a lot, but we never did without. He kept us on a straight and narrow path, but also allowed us to grow wings, as all parents must do. He worked hard all his life, was caring and we always knew we were loved. I strive to be the man he was. James W. Dielmann, J.W. Dielmann Inc. My father and father-in-law. My father was a very hard worker. My father-in-law taught me patience. My father was not very patient, but my father-in-law was a very patient man. Also, my kids have influenced me a lot. Joe Sandoval, Sandoval Tile & Marble My uncle Antonio Cadena, he is the one who has always pushed me. He’s pushed me so hard that I know how to do what he does. I tell him I’ve gotten better than him. Ha. Ricardo Cadena, RF Cadena Drywall My wife. She’s keep me motivated. She’s such a positive person. My ex-employee was a big motivator and I learned a lot from him. Troy Mauldin, Mauldin Plumbing I would have to say my wife. Everyday she guides me in the right direction with love, keeping me in check on what my priorities should be. This is what gives me motivation everyday to be successful. Craig Noto, Quality Fence & Welding


San Antonio Construction News • JAN 2019

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Page 17

A Chama Gaucha Christmas

ore than 120 members attended the Mechanical Contractors Association Sheet Metal & A/C Nat’l Association (MCASMACNA) Christmas party Dec. 19 at Chama Gaucha. Mike Lawlor, Holland Equipment and Buster Williams, PMI whom are retiring this month were recognized for their contributions to both MCASMACNA and the mechanical industry. Member Attendance prizes were awarded to AJ Monier Service Co., Dynamic Systems Inc. and Service Mechanical Group. Associate Member Attendance prizes were awarded to Johnson Controls, Mechanical Reps, Mechler-Blass Associates and PMI. Matt Summerville of Brandt Companies was recognized for his service as president for 2018. –cmw

L-R: Buster Williams, PMI and Matt Summerville, Brandt Companies.

L-R: Mike Andreason, Texas Chiller; Sam Gutierrez , AJ Monier; Chris Finger, TX Chiller; Robert Uhl, Texas Chiller.

L-R: Stephen Grothues, DSI; Retiree Mike O’Day; Ryan Rehmann, DSI and Kenner Coon, Texas Air Products.

L-R Matt Summerville, Brandt Companies; John Gargotta, Service Mechanical Group passing the gavel.

L-R: Simon Honig, Mechler-Blass & Associates and Greg Chandler, Brandt Companies.


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San Antonio Construction News • JAN 2019

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

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

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

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

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.

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.

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

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

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.

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.

2019 MCA-SMACNA leadership

The Mechanical Contractors Association Sheet Metal & A/C Nat’l Association (MCA-SMACNA) would like to introduce their 2019 board of directors. President John Gargotta, Service Mechanical Group; Vice President/President Elect Chris Solis, Dynamic Systems Inc.; Secretary/Treasurer Chris Finger, Texas Chiller System; Associate Member Director JJ Jacobs, Milwaukee Tool and Immediate Past President Matt Summerville, Brandt Companies. L-R: JJ Jacobs, Matt Summerville, John Gargotta and Chris Finger. -cmw


San Antonio Construction News • JAN 2019

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THIS TH MON

CONSTRUCTION FORECAST

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

NEXT MONTH (FEBRUARY 2019) CONSTRUCTION SAFETY

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

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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 San Antonio/New Braunfels metro area added 2,500 construction workers over 12 months, a 5 percent increase. 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 filling hourly craft positions. Tight labor availability seems sure to continue, if not intensify, in 2019. The number of individuals reaching retire-

ment 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, logistics firms and ports for facilities they would otherwise have built. Although interest rates have fluctu-

Association Calendar

Christmas subs

Content submitted by Associations to Construction News ABC

Associated Builders & Contractors Inc.

Jan. 24: Happy Hour, Hofbrau at the Quarry, 7310 Jones Maltsberger Rd., 4:30pm Jan. 30: ABC Breakfast Club, Alamo Café, 14250 San Pedro, 7:30am. For more info, contact Alissa Miller at alissa@abcsouthtexas.org or 210-342-1994 AGC

Associated General Contractors

Jan. 14: General Membership & Installation of Directors Luncheon, San Antonio Zoo, 12-1:30pm. For more info, call Kelly Wilson at 210-349-4921 AIA

American Institute of Architects

Jan. 17: LiA Dreamweek, SAY Sí, 1518 S. Alamo St., 6-8pm. For more info, go to www.aiasa.org ASA

American Subcontractors Assn.

Jan. 22: General Meeting, The Petroleum Club, 8620 N. New Braunfels Ave. #700. 11:30am. Jan. 25-26: Bash at the BBQ on “Construction Row,” Park at AT&T Center for Shuttle, Jan. 25 - $10 per person; Jan. 26 $15 per person. Jan. 30: 2019 Walk on the Capitol, Capitol of Texas, Austin, TX. Shuttle departure 8am. Feb. 1: Subs on Ice, AT&T Center, “Caliente Zone” Side Suite, 7:30pm. For more info, call Jennifer Swinney at 210-349-2105 ASSP

American Society of Safety Professionals

Jan. 21: Chapter Meeting, Southwest Research Institute Cafeteria, 11am-1pm. For more info, go to www.southtexasasse.org HCAdeSA

Hispanic Contractors Assn. de San Antonio

Jan. 16: Board Installation, The Quarry Golf Course, 444 E. Basse, 6-8pm. Jan. 25-26: SA BBQ Rodeo, Hold’em Tournament, The San Antonio Stock Show & Rodeo on the Salado, 12-11pm. For more info, call Dave Sanchez at 210444-1100 or go to www.hcadesa.org IEC

Independent Electrical Contractors

Jan. 28-30: IEC National Business Summit

2019, Riverside Hotel, Ft. Lauderdale, FL. For more info, contact Julie Howard at 210431-9861 or email jhoward@iecsanantonio. com MCA-SMACNA INC

Mechanical Contractors Assn. Sheet Metal & A/C Nat’l Assn.

Jan. 9: Regular & Associates Meeting, The Petroleum Club, 8620 N. New Braunfels, 7th Flr. For more info, call Sandee Morgan at 210-822-3763 Jan. 23: Joint Industry Fund Meeting, MCA-SMACNA office, 12500 Network Blvd., #410, 11:30am. For more info, call Sandee Morgan at 210-822-3763 Jan. 30: Butts on Bus/Walk on the Capitol, Capitol of Texas, Austin, TX. Shuttle departure 8am Walmart Parking Lot IH35 & FM 3009 NAWIC

Nat’l Assn. of Women in Construction

Jan. 9: General Meeting, The Petroleum Club, 8620 N. New Braunfels. For more info, call 210-639-2489 or email Rebecca. rodriguez@zachrycorp.com PHCC

Plumbing Heating Cooling Contractors

Jan. 10: PHCC Monthly Membership Meeting, The Petroleum Club, 8620 N. New Braunfels, 7th Flr., 11am. For more info, call Heidi Trimble at 210-824-7422 or go to www.phcc-sanantonio.org SAMCA

San Antonio Masonry Contractors Assn.

Jan. 30: Membership Meeting, Pappadeaux Restaurant, 76 NE Loop 410, 12pm. For more info, contact Debi at 210347-2423 TACCA

Texas Air Conditioning Contractors Assn.

Jan. 17: Member Meeting, Old San Francisco Steakhouse, 10223 Sahara Dr. For more info, call Dawn Thompson at 210901-4222 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

ated 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

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a Fonda on Main was the setting for the American Subcontractors Association (ASA) Christmas party. Fifty five-plus members and guests attended the party and participated in ever-popular White Elephant gift exchange. -cmw


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San Antonio Construction News • JAN 2019

Tiling the hill

AC for the nation of Texas

Joe Sandoval (center) owner of Sandoval Tile & Marble, with Jeremiah Lucio (L) and Oscar Salazar): “The hardest working crew I’ve had yet.”

Charlie Barbo, owner of Nations Air

he Texas Hill Country is a wonderful section of the Lone Star State. It boasts of the second largest granite dome in the United States - the Enchanted Rock. The Hill Country is also where Joe Sandoval conducts most of his business with Sandoval Tile & Marble. The El Paso native’s family has a history in the tiling trade. “My family was in the business prior to me,” Sandoval said. “I was actually into carpentry, initially.” Sandoval worked with his family for a number of years, but moved with his wife to Dallas around 1991. “I kind of wanted to get my feet wet, working on my own,” he explained. Sandoval moved to Boerne about 13 years ago. But, he said, the going was rough the first couple of years, and he did a lot more business in San Antonio that he does now. Having so many contacts in the Dallas area, Sandoval would still go up to the Metroplex for two-three weeks at a time.

Now, being established down here, Sandoval likes to stay on the north side of 1604 for the most part. Hill Country residents have some traits unique to them. Popular there is putting stonework on the outside of kitchen islands, sometimes matching their fireplaces. Hill Country residents also tend to favor more rugged, outdoorsy looks for their homes. Another interesting project Sandoval does is makes dog showers. Seriously. For the future, Sandoval gives himself about 10 more years before riding off into the sunset. His kids are grown, two of which are active duty Air Force and Navy. He does watch his grandson a lot, which keeps him active, and keeps alive the dream that the little tyke will come up after him in the tiling business. Until then, Sandoval has the Hill Country tiled and marbled with his top-notch work. He makes the best dog showers. Sandoval Tile & Marble is located in Boerne. -dsz

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he idea to one day have his own HVAC company goes all the way back to when Charlie Barbo got out of the Marines Corps in 1988. Barbo got trained in all things mechanical while in the Corps. He was in a support squadron that had to fix pretty much everything. He “worked on all kinds of stuff.” When he separated in ’88, Barbo worked in HVAC in Atlanta for an outfit based in Houston. But with family located in Boerne, he moved there in 1995. The big jump to his own company Nations Air - took place in October 2016. “I knew I could do it and it was just time,” he said. What he needed was the proficiency and confidence to take the plunge and be that guy. The name “Nations Air” comes from Barbo being Native American, of the Caddo-Adai tribe, which has its roots in Louisiana. Being in Boerne, Barbo’s turf is the northern side of San Antonio and the Hill

Country, where he sees more heating problems. “It gets quite a bit colder there,” he said. While many HVAC guys are also into plumbing for their business, Barbo is not. He is versed in electrical, and wants to someday expand into the “whole house” concept of home security and AC and everything being connected together. Nations Air is qualified to work on every major carrier. Most of Barbo’s calls are service calls for residential, but he has extensive experience in all things commercial. Since he started in HVAC, Barbo has seen plenty of changes. “You can count on every couple of years,” he said, “what you thought you knew is changing.” New changes usually come down from the federal government to the manufacturers. This requires the service techs, like Barbo, to be constantly trained and upgraded on the latest and greatest. If it’s broken, Barbo will fix it. Nations Air is an HVAC contractor in Boerne. -dsz

New office in the corridor

The Cadence McShane San Antonio team. L-R: Chase Hubbert, Jesse Rodriguez, Sam Cummings, Blanca Ruiz, Rayito Gonzales, Cody Wheeler, Zack Buck and Angel Palomino

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hen Cadence McShane Construction opened an office in San Antonio in 2015, they could not have imagined how much they would grow in San Antonio in just a few short years. “Central Texas for us is Austin, San Antonio and the entire I-35 corridor in between. All of our resources are shared between Austin and SA. We knew operationally we could handle it,” says Executive Vice President Srinath Pai Kasturi. Carefully managing their growth and the needs of their employees, they set out to ensure their location was not only geographically pleasing, but also spacious for further growth. “The construction industry is unique in that our biggest asset is our people, so when we first set up our office in San Antonio in 2015, we had a shortterm lease on an office space. When that lease was about to expire, we spoke to our employees to see where they lived and where they wanted the office to be.” With input from the employees with regards to the geographical area they resided in, Cadence McShane was able to

pinpoint a location appealing to all, while not too far from where their employees and clients were already accustomed to. The new San Antonio office is in a new long-term office space of approximately 4,000sf on Bitters Rd, allowing room for future growth as the company continues to make a name for itself in the San Antonio market. “Our strategic objectives are pretty similar in all of our geographic offices. We want to be diverse in the product type we build and the clients we serve. We build a lot of schools, commercial projects, multi-family/senior living, industrial projects and retail/hospitality projects. We have always tried to align ourselves with likeminded clients. In San Antonio so far, we’ve been successful in doing that. The backbone of our success over the last few years has been the great clients we’ve associated with. They’ve become repeat clients and friends for life. Cadence McShane Construction, GC, has offices in Dallas, Houston, Austin and San Antonio. -cmw


San Antonio Construction News • JAN 2019

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continued from Page 1 — Keck Electric Co Tommy had to provide for his family, so when Julie asked him what his plans were if the work dried up, Tommy said he would go get another job as an electrician – except Tommy never ran out of work since ’81. In fact, Tommy admits to his electrical company being small, but says his team has worked on some pretty large projects. And since 2004, Tommy has had his son, Casey Keck, working with him as vice president of Keck Electric. Casey was introduced to the industry at an early age. “I started working with my dad as a kid,” said Casey. “Then I went off to college and came back and started working full time in 2004.” After 15 years of the trade for Casey, he and the Keck Electric crew have put their hands on all types of projects. Keck Electric serves both commercial and residential clients, which include multifamily and large residential work such as the townhome projects by the Pearl. “We do large commercial work. We did a dormitory at San Angelo State University,” mentioned Casey. Other projects they completed are the Baylor Scott & White Medical Center – Marble Falls and San Antonio’s Scorpion Soccer Stadium.

“Not too many people get to do stadiums; it was neat to do that,” said Casey. The stadium is also an accomplishment for Tommy, who said, “When we took that on, it was quite a bit, but we got in there and we got it all done.” To work on projects, Tommy and Casey rely on a crew of up to 14. “We are there to help them grow,” Casey said. “We’d like them to work for as long as they’d possibly like to, but if they have the drive to move on and forge ahead on their own, we wish them all the luck.” Plus, the company wouldn’t run without Julie Keck, who does the company’s books and has been since they started in ’81. The Keck family doesn’t want to be a “really big company,” but rather keep the smaller-family feel. In the future, Tommy thinks he’ll be stepping down and turning things over to Casey. “Keck Electric is going to stay in the family and he is going to keep it going,” said Tommy. Tommy has created a family business that not only brings light, but also motivates others’ industry success. Keck Electric Co is an electrical subcontractor in San Antonio, TX. –lv

continued from Page 1 — Setien & Associates As he went through high school, he was doing more and more scrubs at night. Then, her father brought him on board at the company he was working for and introduced him to estimating. “I’m a person that went to school and failed math every year,” he says. “I just couldn’t put it together the way teachers were presenting it to me. They were using big words that would scare anybody, like ‘hypothesis of a triangle,’ ‘trigonometry,’ ‘A square plus B square.’ It didn’t make sense.” He was introduced to a job that involved ‘hoppers’ and ‘baffles’ for ‘precipitators,’ a fancy word for big ducts in a triangular formation. Suddenly, it all started making sense and became his passion and hobby. As an added bonus, he developed a “big brother, little brother friendship” with the girl’s father who became his best friend and mentor. Setien earned his degree and eventually worked for a steel contractor who saw something in him. “He saw that I was a workaholic, but I’m not,” he says. “It was my passion, my hobby. If you like what you’re doing, it’s not work. Once you find your passion, you never get up to go to work.” Setien would eventually find that he liked doing miscellaneous projects, which he learned after being asked to

help on a project when a key player fell ill. This project allowed him to work and challenge himself into the wee hours. “I knew that I could not work for a company,” he says. “I would be restricted and I liked challenging myself.“ He began working for himself and Setien & Associates was formed in 1978. Now 40 years later, Setien & Associates has grown from a one-man show to a production with locations in Houston, Rockport and Laredo. ”I never meant for it to be this big but here we are, having fun,” he says. “In 40 years, I have never woken up to go to work. I just don’t look at as work.” Setien & Associates isn’t just about structural design and steel fabrication. They are about educating and encouraging the next generation to find their passion. “College isn’t for everyone. Mr. Nehemias Moreno, our public relations/ marketing director and education consultant, has been researching jobs in the construction trades. He’s been connecting with local high schools hoping to bridge the gap.” Their goal is to educate the youth who know college is not for them and let them know there is another way. Setien & Associates is a structural design and steel fabricator in San Antonio, TX. -cmw

continued from Page 1 — Catamount Constructors, Inc.

In a perfect world

Melanie and Troy Mauldin, owners of Mauldin Plumbing

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n a perfect world, we wouldn’t ever have plumbing problems. But, since we don’t and we do, it’s nice to know we have a perfect plumber to help us out when those times arise. Enter Troy Mauldin, owner of Mauldin Plumber and who goes by the tag line, “The Perfect Plumber.” Mauldin wanted to call his company “The Perfect Plumber” but couldn’t because that name was already registered in the state of Texas. First come, first served. However, it was not registered as an Internet domain. Hence, he could use it as his tag line and be known as such. So there - perfect! In a perfect world, all of our plans work out, but Mauldin’s didn’t. However, that led him to be where he is today. Mauldin and his wife Melanie were in Colorado City in 1990. He worked in a machine shop, but unfortunately got laid off right before Christmas. On top of that, his heater at home wasn’t working. He brought the broken parts to an AC and plumbing business, inquired if they were hiring, and they hired him as a plumber. This is how he got into it in the first place. Mauldin studied a couple of years under a good mentor, and then moved to San Angelo for six years before moving to San Antonio. He worked for a plumbing company for 20 years or so before deciding to take the plunge and branch out on his own. Before he could, however, he had to take the three-day Responsible Master class, which the state of Texas requires. With Melanie sitting in with him, “It gave us a lot of knowledge that we needed,” he said. Mauldin Plumber started in April

2015. Beside Mauldin and his wife, four other employees make up the company. Mauldin does a lot of work all over Medina County. He also has some regular customers still in San Antonio from his days working for another company. Castroville is known for its old, quaint structures, and Mauldin is good at them. When one works on an older building, one never knows what kind of Pandora’s Box will be opened. Mauldin has worked on them in San Angelo and San Antonio. “I have a lot of experience with the older buildings,” he said, “which comes in handy here because there are lot of historical homes here.” Mauldin also does a good deal of commercial repair and small commercial construction. From the office, Melanie handles the phones, schedules the work, does the finances and marketing, and keeps the website and social media updated. Her knowledge of folks in a smaller town comes in handy because it leads to many referrals. Mauldin’s 24-year old son also works with him. He started out as a part-timer, but is now full time and “doing great,” Mauldin said. Yes, in a perfect world, cars would never break down, computers wouldn’t crash and one’s plumbing wouldn’t ever back up or leak. Good thing there is a perfect plumber nearby that can fix things. And to think, it took a really lousy day like getting laid off and a broken heater to get him here. Now that worked out just perfectly. Mauldin Plumbing is a plumbing contractor in Castroville. -dsz

When I grow up I want to be…

Interview of TJ Maxx Distribution Center warehouse space

ing. The owner allowed for an onsite borrow pit of 120,000cy fill material. In addition, the placement of 68 rooftop units (RTU) on the warehouse roof created an additional challenge for the Catamount team, but the challenge was quickly overcome. The construction team used a helicopter to lift and set the RTUs. All 68 RTUs were set in place in one day without incident.

Additionally, the customer asked Catamount to turn over the low bay area, 800,000sf, over five months early for training and to begin distribution. The construction team developed and executed a plan to allow for early occupancy in August 2018. Catamount Constructors, Inc., is a fullservice general contractor. -cmw

For Charlie Keck that’s easy, this 8-year-old darling believes she is going to be an electrical contractor. Here is Charlie on career day for school. “It has been her career for the past four years on career day at school,” said her father Casey Keck, vice president of Keck Electric. –lv


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San Antonio Construction News • JAN 2019

Primo job!

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Appreciation & gratitude

llen & Allen Co. hosted a monthlong “Gratitude Challenge” in November and ended it with a celebration of the people for whom the ownership team is most thankful for – their employees! On Nov. 28, Allen & Allen Co. hosted an employee appreciation event recognizing the hard working team that gets the job done everyday. A family style meal was made from scratch and served by members of management, kind words of gratitude were spoken from the owners, and conversations lasted well into the evening. The event came at the end of a month dedicated to gratitude and thank-

L-R: Sofia Cuellar, Luis Cuellar, Bill Craig, David Hernandez, Patricio Cuellar of Primo Painting

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atricio Cuellar’s “Aha!” moment came when he saw some painters at the Ingram Park Mall and thought to himself that being a painter sure looked easier than being a car mechanic. Cuellar came to America when he was around 18, working summer jobs in order to pay for school. He eventually worked full time here. He and another guy were painters for a Houston-based construction company, but when this company pulled up stakes in San Antonio, Cuellar told his fellow painter to not worry - he was going to start his own company and this guy would work with him. Primo Painting started in the summer of 1989. “Primo” is Cuellar’s nickname. The other painter worked for Cuellar for about 10 years before he moved on. When they started the business, wife Sofia said, “It was very scary because we didn’t know anything.” The Cuellar’s used to run the show from their home, but they grew so large the neighbors would complain about the plethora of trucks and vans outside the

house. They had to move to their present location off Blanco Road. With wife Sofia running the office operations, Primo Painting now has 17 employees. The Cuellar’s oldest son, Louis, works as one of the two estimators. He’s been with the family business since he got out of college. While Primo Painting won’t turn down a job, they do roughly 5 percent residential and 95 percent commercial jobs. This includes schools, stores, churches and restaurants. Cuellar doesn’t do the actual painting anymore, unless it’s to help train someone. Rather, he spends his time going to every job site to oversee all the projects. With four kids and six grandkids, the plan for the Cuellars is to someday pass the business off to son Louis, to “keep it going,” Sofia said. From auto mechanic to construction laborer to owning a painting company, Cuellar and his family have done well in keeping the work going. Primo Painting, San Antonio. -dsz

Happy New Year

fulness not just because of the Thanksgiving holiday, but also because of a challenge Allen & Allen Co. owners gave their employees. Known as the “30 Days of Thankfulness Gratitude Challenge,” employees and customers alike were encouraged to document one thing each day in November for which they were thankful. After documenting both the big and small things over the course of a month, one thing became very evident. The most beautiful things in life are not things. They’re people and feelings and moments and smiles and laughter. It was a good reminder for us all. Allen & Allen Co. is a lumber and hardware distributor in San Antonio, TX. –cmw


San Antonio Construction News • JAN 2019

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Family feels

family owned and operated business can sometimes just consist of one family member working with the company. That’s not the case at RF Cadena Drywall, a commercial and residential drywall contractor. The owner Ricardo Cadena, says he and his whole family work together and they love it. Some of his family members have been working in the industry for the past 20 years. Cadena is originally from Dallas, TX and that is where he was introduced to the construction industry because of his father, who used to be a painter 30 years ago. Then his dad started doing drywall and that’s how drywall became part of the family. Cadena shared that his mom is from Laredo, TX and his dad from Nuevo Laredo, Mexico, so they wanted to be closer to the border and moved to San Antonio. “I’ve been in San Antonio for the past 12 years,” said Cadena. Cadena established his company in 2005, “We work all over San Antonio and the surrounding areas,” said Cadena. Since then they have completed all sorts of small and large jobs anywhere from 50 to 100 miles from San Antonio. To name a couple, Planet Fitness and a Subway in New Braunfels are some of the most recent. The company has reached their clients by networking and that is something Cadena wants to continue to do as he grows his company. “I work from my house, but my goal is to own my own office and warehouse,” he said. Cadena would also like to help out the community as best as he can.

Industry FOLKS Aaron Schrandt Chief Risk Officer Hard Rock Directional Drilling LLC San Antonio, TX

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Ricardo Cadena

As we mentioned before RF Cadena Drywall is a family owned and operated business, so there is quite a bit of family camaraderie involved. Antonio Cadena, is Cadena’s uncle, who he looks up too. Antonio is known to be the jokester at work. “We always here a radio station in the morning and they tell jokes and he will stick with that joke all day,” explained Cadena. There is also Cadena’s cousin Jose Cadena and Cadena’s best friend Alvaro Retana who work with the company. On Friday or Saturday evenings they like to enjoy a carne asada together. RF Cadena Drywall is a commercial and residential drywall contractor in San Antonio, TX. –lv

his Texas-native is no stranger to the outdoors, or underground construction for that matter. Aaron was born in Houston and six months later moved to the panhandle of Texas. After shuffling around in different towns his family and him settled in Hereford, TX. Aaron has two brothers and a sister who all attended lots of different schools. “We grew up not having a whole lot in the beginning. My dad worked really hard from the ground up and taught me how important hard work was. He had a lot of opportunities to move up and that is the reason we would move.” After attending high school in Hereford and Amarillo, Aaron headed toward to Canyon, Texas to attend West Texas A&M University. The degree he was going for was in construction science, but money was tight, so he decided to work with a friend during the summer and then finish school. Even though Aaron didn’t return to the university he became involved in the underground construction industry. His summer job was climbing telephone poles and hanging fiber for a small construction company in Amarillo. This was around the mid ‘90s and safety wasn’t what it is today. “It was hard work; it didn’t pay well and was dangerous.” So two years later Aaron was introduced to directional drilling. He has been involved with directional drilling ever since. Aaron works at Hard Rock Directional Drilling in San Antonio as the Chief Risk Officer. He started as the

safety manager and then the operations manager to the position he holds today. Aaron also went back to A&M and received his CSHO (Certified Safety and Health Official) certification. And what really inspired Aaron to become involved in the safety of construction was an incident that took place 15 years ago. “My two brothers and myself were working and we were in a dangerous situation in a trench. We had all just gotten out of the trench and the trench collapsed. We should’ve never been allowed to be in the trench to begin with.” Now as a CRO for Hard Rock Directional Drilling, Aaron makes sure his crew is prepared for any given situation. HardRock Directional Drilling has received the Platinum safety award from Texas Mutual Insurance two years in a row. Aside from a hard-working individual, Aaron is also a loving husband and father. He has been married to Kaylynn for 19 years. Together they have three children – two boys and one girl. Karter, 13; Ally, 12; and Alec, 8. The Schrandt’s also have a few pets. Then when it is time to get the family together they enjoy camping or Aaron will take his boys hunting. In fact, his oldest son Karter is involved in 4H shooting sports. Aaron is a humble man with passion for the construction industry and love for his family. –lv


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San Antonio Construction News • JAN 2019


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