Houston Construction News October 2019 by Construction News

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The Industry’s Newspaper www.constructionnews.net H (210) 308-5800 H Volume 17 H Number 10 H OCTOBER 2019

Sandcastles - Page 10

Saying goodbye for now

t is with deep regret that we announce the October 2019 issue of Houston Construction News will be the last, at least for now. We started publishing in this market in 2003 and have met and worked with so many wonderful people during the last 16 years. Our coverage, which has included companies, people, and associations, has always been wide. We have especially enjoyed writing articles about new or small companies that, in all likelihood, would have been ignored by other publications This is a great industry that offers many opportunities to those who want to expend the effort and take risks to succeed. In some small fashion, I believe Houston Construction News has helped those folks on their journeys with our articles and profiles.

Everyone at Construction News expresses many thanks to the numerous people who contributed to the paper, especially our Focus and monthly column contributors and our advertisers who were supportive of our efforts in Houston. To all of our readers, we wish you good luck and great achievements for your future. This industry can be tough at times, but it gives so many opportunities for success. We invite everyone to keep up with Construction News in Austin and San Antonio by subscribing to our free digital subscriptions for those papers. Until we meet again, Buddy Doebbler Publisher

Right out of the gate

L-R: Trails West Gate Company manager Bill Walker and owner John King

rails West Gate Company could design and install the grandest of gates to mark its Chappell Hill office entrance. Visitors could be greeted with iron images of Roman gods, majestic wildlife, or even the company’s logo. Ironically, though, the company has no gate – but that’s all for the better. First, there’s no need for one: Trails West Gate Company is located at 11440 Hwy. 290 E. – way out in the “don’t-fence-me-in” country. Plus, no gate means customers – and new general managers such as Bill Walker – can come right on in. Walker was enjoying early retirement when his pal, JK Welding owner John King, bought Trails West Gate Company and invited Walker to run it. Impressed and inspired by the artistic design and

quality installation of the company’s custom gates, Walker came on board four months ago. King, Walker, longtime artist Lee Lee Brazeal, designer Emily Glass and shop employees Rickie Deshotel and Roland Gonzales work together to give clients the gates of their dreams. Starting with the designer’s conceptual drawings, the team ensures that the design is beautiful from every angle. Then, they put the plan into Google Earth for an aerial view and the engineer makes blueprints, including electrical markers, for all of the contractors. The heavy gauge steel custom gate is then installed on the property, along with brick or stone columns if needed, and custom overhead artwork if the continued on Page 14

“Selling Happy” in Uptown Park

hen the California-based premium fast casual sandwich and salad restaurant, Mendocino Farm, reached out to Wyatt Management, Tim and Jeannette Wyatt (who is a California native), were thrilled. Specializing in ground-up, remodel, and tenant finish construction, Wyatt Management has a long history working with discerning, design-forward clients (including Chipotle, Grub Burger Bar, and Shake Shack, to name a few). This resume of experience, along with Wyatt’s personal approach to service, was a key factor in Mendocino Farms’ decision to contract with the company. Mendocino Farms Director of Construction Chris Konecny worked closely with Wyatt Management Project Manager Paul Celis and Superintendent David Ramirez over a period of 12 weeks on the construction of the “Mendo” (as loyal fans affectionately call it) in Uptown Park.

Designed by celebrated architect Michael Hsu, this chic new restaurant uses details like ombre-painted cedar shingles and white shiplap to evoke the coastal cottages of northern California, the region where Mendocino Farms draws the inspiration for its name and its food philosophy. The intricate storefront is built out of thermally broken steel frames and includes over 450 individual panes of glass, giving a light and airy feel to the space. The décor includes various woods and rustic finishes including more than 18 50-ft faux beams constructed on-site, white picketfence accent features, and copper gooseneck light fixtures. While each restaurant location has its own personal style, the Mendocino Farms brand is immediately recognizable. In Uptown Park, its life-size blue cow mascot can be found on the patio (and throughout the store in various Mendocino Farms Sandwich Market, Uptown Park

continued on Page 14

Page 2

Houston Construction News • OCT 2019

A new chapter begins

A sense of un-titlement

Joeris General Contractor President, Kenny Fuller

Flagship Floors’ Dean Dorman

e has been in construction his entire life. Starting out as a subcontractor working for his dad, eventually moving over to the general construction side of the construction industry, Kenny Fuller has been named the new president of Joeris General Contractors. Fuller has been part of the Joeris team for more than 20 years. Most recently, Fuller served as the company’s Executive Vice President. He succeeds John Casstevens, who announced his departure from Joeris after 24 years on Sept. 4. With a career focused on client services and project management, Fuller’s client-focused philosophy will steer the company through this transition and continued growth in the market as the company deepens its values-based leadership. “To get the message out of who we are, especially the new values-based leadership piece portion. I don’t go very far without talking faith inside of what I do. Today’s values-based leadership becomes very easy to talk about inside of that arena. We have some amazing peo-

ple that we work with here and we’re just going to put the pieces together that allows them to voice their opinions and be what they can be.” “The values are very much faith-based values. It’s been a part of who we have been since Leo Joeris started this,” says Fuller. “Our values are something we have reinforced within our mission statement.” Fuller is very excited to be leading the charge with the company’s new values-based leadership. It allows him to work with people across all different parts of the company. Prior to Fuller’s new post, he had been primarily concerned with the private side of what Joeris does. Now he can embark into new arenas. “We are excited about this next chapter at Joeris and look forward to continuing our Joeris Journey, providing the highest level of service to our customers, trade partners and Joeris team members,” says CEO Gary Joeris. Joeris General Contractors is a full-service general contractor. -cmw

Industrial park breaks ground

Cadence McShane Construction recently broke ground on the Parc 59 Project. Parc 59 is an Urban Industrial master planned development specifically designed by Powers Brown Architects to cater to a wide variety of industrial users. The Developer, Jackson Shaw, and CBRE, the project’s commercial real estate firm, held a ground breaking ceremony at the future site of the master planned development in Humble, TX. -cmw

close look at Dean Dorman’s business card reveals that, despite taking over his dad’s business last year, Dean doesn’t have a title – a conscious decision on his part. “One of the things I did was take titles off of business cards,” Dean explains. “My title is ‘Whatever It Takes.’” It’s the same unofficial title all of the Flagship Floors staff – made up of three Dorman generations – has. Each family member does what it takes to move Flagship’s original League City location forward. Dean’s father Dan Dorman and stepmother Mary Jane started the business 25 years ago, and although Dan is slowly retiring, he and Mary Jane still come in to check on the business when they aren’t traveling. “Dan and Mary Jane are both very business savvy, and they both knew what it took to start a business,” Dean says. “Obviously starting a company in the beginning is always a little slower, a little tighter, and a little rougher, but once they got going, it was easier for them with the area and their personalities to let it grow.” Dean joined Flagship Floors 20 years ago after completing his military service; he also worked for a couple of major distributors in the US doing the commercial and retail side. Today, Dean’s sons have joined him in the family business as he takes its helm. “My oldest son, 22-year old Devan, does sales, helps manage the company when we’re not around and helps keep up with stock. My 19-year-old, Delan, does a little bit of everything, too. He works here part-time with computers, keeps the warehouse in check and makes sure we have our products when stock is running low,” Dean says. Being sandwiched between two generations of Dormans suits Dean just fine. “I love working with my boys. It’s more hours and a little less money, but I

end up being able to spend more time with my boys every day and see my dad on a pretty regular basis,” Dean says. “That kind of camaraderie, teaching them and helping them is always fun. Between the business and all of the family working there, we get together to hang out at the house, do some grilling, and try to get on the golf course every once in a blue moon, or get on the boat near the water. We all still have our separate lives so we try to do it where we can.” Another thing the Dormans do as a family is gather surplus flooring materials to benefit causes they care about. “I do donations and spend time with Wounded Warrior Project; I spent some time serving overseas and my dad did a little bit in the Army and so that’s big for us,” Dean explains. “We buy a lot of stock material, and when you get to the end of it, you get your odds and ends that could be used for small kitchens, entryways and back areas; there is carpet as well. We are working to try and get that done with the Gary Sinise Foundation, which does a lot with the military. We’re just now starting to get that going, as we have pallets of material in the back. We were previously donating them to the schools for their art departments, but now we have some larger quantities and things that we want to give back to wounded veterans.” In its 25 years, Flagship Floors has grown, necessitating a showroom expansion, warehouse and lot. Dean hopes to open a second location within a year and a third location within five years between Houston and Galveston. “It’s going to be one of those things where we see where the economy and market have grown in the next nine months, give or take,” he says. Even if it does grow, Dean hopes Flagship Flooring’s business cards can remain title-free. Flagship Floors, located in League City, supplies and installs carpet, tile, wood, granite countertops and cabinets. –mjm

Houston Construction News • OCT 2019

Page 3

Top gun

Roofs done good

he Mechanical Contractors Association (MCA) Houston held their annual Top Gun Shoot Event at the Athena Gun Club held on Aug. 23. This unique event features three-person teams, shooting handguns and rifles in various indoor ranges at the gun club for a combined score. While the event is a competition, it is at its core a networking event for the mechanical contractor members with the association’s manufacturer and supplier sponsors and partners. Patrick Seidel, Jeremy Wilson and Matt Solomon took second place; while Rick Emde, Kevin McDonald and Terry Sowell took home the third place trophy. -cmw

Another quality job by DG Metal Roofing

erek Gerdes’ first company was DG Home Exteriors. He did a little bit of everything and all kinds of

roofs. But instead of being a jack-of-alltrades, Gerdes decided to be “great at one thing.” Thus, in 2008, Gerdes “converted to metal only,” and became DG Metal Roofing. “We found a market that we really liked and was really, really good at,” he said of himself and his team. Gerdes worked for his uncle’s roofing company while still in school, but, “I wanted to be an owner from the first time I started doing this,” he said. Gerdes is also a licensed insurance adjuster, working on behalf of his clients and with the insurance companies. “I’m able to maximize claims and get people exactly what they deserve,” he said. “We just want to make sure it’s fair. We don’t want to go above and beyond” what is fair and ethical. If a customer wants to convert from a shingle roof to a metal roof, due to a storm incident, Gerdes says insurance companies are all on board. “Every part I put on that roof is made to hold up for as

long as that house will stand,” he said. Gerdes has seen hurricane-hit areas and how metal roofs are still intact. Thus, in the long run, a metal roof will cost an insurance company less. “When a big storm happens, we’ll be the first one people will call to get things taken care of,” Gerdes said. DG Metal Roofing has worked all over Texas, and at present does 60/40 percent, commercial to residential. Gerdes said a lot of commercial/industrial buildings are old, and a new, metal roof will greatly extend that building’s life. Gerdes has over 40 roofers working for him, around nine to a team with multiple jobs happening concurrently. With metal roofs being more energy efficient, quieter and durable, Gerdes is glad he made the switch. “Metal, I really liked,” he said. “I have so many builders now that the people are all wanting to go metal.” Gerdes just wants all of DG Metal Roofing done good. A 50-year warranty is pretty darn good. DG Metal Roofing is a metal seam roofing specialist, in Alvin. -dsz

L-R: 1st Place Team Fred Hoyt, Kenny Howard and Britt Adams.

Golfing for scholarships

emperatures of 100 degrees did not deter members of the Associated General Contractors (AGC) Greater Houston Chapter from playing a fun round of golf for a great cause on Aug. 9. AGC members raised $10,000 for the Construction Leadership Council (CLC) 15th Annual Golf Tournament. Congratulations to first place team winners Johnson Controls Team 3; second place winners McClenny | Mosely & Associates; third place winners Andrews Myers PC; closest-to-the-pin winner Jon Karsten, Karsten Interior Services LP; longest drive winner Josh Talley, Marek Sawing & Drilling LLC. And dead-ass-last place winners Rogers-O’Brien Construction. -cmw

If you could retire anywhere, where would it be? I would probably retire to Bandera, TX, the cowboy capital of the world. We go over there because of the Hill Country. It’s just beautiful over there, with the rivers running through it. It’s more of a slower pace than the city life. I would build a barndominium with a wrap-around porch on some property. I would like to have chickens and a horse and dogs and a big, nice garden. Bill Walker, Trails West Gate Company Ed: I’ve been reading a lot about Panama …. Robyn: Oh, hell no! We’re not going to Panama! Ed: Okay. If we had our choice of where we would retire, it would be Whitehouse, TX. It’s 10 miles south of Tyler. Robyn: We have a lake house there that is family-owned that was my grandmother’s. I would love to retire there. Ed: We have property in northern Arkansas that is absolutely beautiful, but we would be too far away from [family]. White House would be good for both of us. It’s nice and quiet and is a family-oriented town, too. Robyn: And, there’s fishing. Ed and Robyn LeGris, First Choice Plastering Key West. I love the water. It’s the most surreal sunset I’ve ever seen, and I’ve been pretty blessed to travel most of the world. It’s so easy just to go and be free and get lost. Dean Dorman, Flagship Floors At one time I was thinking Mexico, but it’s not safe there anymore. I’d probably like

to go to Colorado. That’s a nice, cool place to be. Joey Guerrero, Masonry Custom Design We like Florida a lot. The water’s so much prettier down there and you’re still Stateside. I’d have to say Florida. Ken Baldwin, Ritz Safety I’m thinking the Keys area in Florida. I would open up an umbrella and chair rental for the beach people. It sure is beautiful out there. Fred Guerrero, Masonry Custom Design

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Visit our Website to sign up for a free monthly Digital Subscription www.ConstructionNews.net The Houston Construction News (ISSN 1547-7630) is published monthly by Construction News LTD., dba Houston Construction News, and distributed by mail to construction-related companies in Houston and surrounding counties. All submissions should be mailed to our editorial offices. We reserve the right to edit any materials submitted. No fees for materials, copy or photographs submitted will be due unless agreed upon in advance in writing. Submissions will be published at our discretion on a space available basis. Construction News, Ltd. , dba Houston Construction News, will not be liable for errors in copy or in advertisements beyond the actual cost of space occupied by the error. Publisher reserves the right to reject any advertisement at any time. ©2019 Construction News, Ltd.

Page 4

Houston Construction News • OCT 2019

Five IRS audit mistakes to avoid

Non-Owned Vehicle Risk Management

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

Mark Gaskamp, Sr. Vice President Marsh Wortham Austin, TX

he IRS audits about one million taxpayers each year. While the agency is understaffed, that doesn’t mean you’ll slip through the cracks. IRS software automates the selection process now by flagging returns that show abnormalities: Perhaps the return deviates from what’s normally filed, or it’s been linked to a family member, investor, or business partner who is being audited. Also, the more money you make, the more likely you are to be audited. An audit may consist of a simple letter from the IRS or, when the stakes are higher, you may need to meet with an auditor in person. In either case, common mistakes can almost guarantee you don’t come out on top. They include: 1. Ignoring IRS requests and deadlines Failure to respond to IRS requests for information won’t stop the agency from taking action. The IRS has the power to request your tax information directly from financial institutions (banks, brokerage houses, credit card companies, etc.). If it’s an audit of a personal return, they could contact your employer. If it’s an audit of a business, they could contact both customers and vendors. All of these powers arise when the taxpayer (or authorized representative) fails to communicate or respond to the IRS’s Information Document Request (IDR). If the audit proceeds without your cooperation, the IRS can and will issue a Revenue Agent’s Report (RAR) and finally a Statutory Notice of Deficiency. Generally, you will have 90 days to file a court petition to The US tax Court. Again, failure to respond to this notice can cause the taxpayer to forfeit appeal rights. The IRS then begins collection procedures, which can include filing federal tax liens, wage garnishments, and levies. In Texas, we have a “homestead” protection - ordinary creditors cannot seize and sell your homestead. However, the IRS is no ordinary creditor. They HAVE the POWER to seize and sell your residence to pay your tax debts. Missing an IRS audit appointment could start you down this path. 2. Not filing past-due returns One of the first steps in addressing an audit is to make sure you have filed all tax returns that are overdue. Don’t let the fact that you may not be able to pay the taxes affect the filing. Late filing penalties accrue at the rate of 5% per month, while late payment of the taxes incurs penalties of 0.5% per month plus interest. If you failed to file at any time in the past, the IRS can prepare and file those returns for you as a Substitute for Return (SFR). Those returns, however, will not include the deductions and credits you may be entitled to receive. The IRS will begin collecting the tax due shown on these returns (which may be inflated due to deductions and credits having been omitted). If these returns indicate you may be owed a refund, there is a limited amount of time that refunds will be returned to the taxpayer on late filed returns. You could also risk losing Social Security benefits as well as your ability to obtain home, business, or education loans.

3. Lying

verybody’s got one, some larger than others, some are not even owned, but they still create a risk for the organization. Construction operations have so many worker safety (OSHA) and liability issues (construction defect, mold, silica, etc… ) they often neglect addressing one of the greatest risks to the organization, vehicles and safe driving. In fact, motor vehicle accidents are the largest source of workplace fatalities in the work place. This includes not only the owned trucks and other vehicles owned by the company, but also the use of personal vehicles on company business.

The most common tax-related lies are underreporting income (usually income received in cash or received outside the U.S. as foreign income) and claiming false deductions, both of which can trigger heavy IRS penalties, fees, and interest. And then there’s tax evasion and tax fraud, which can be criminal offenses that could land you in prison. When an auditor uncovers a cardinal sin like substantially underreporting your income or failing to report foreign bank and financial accounts, you may be heading down a long, dark path that could cost you dearly.

A serious auto accident involving an employee driving on company business is one of the few exposures that can result in a first party, property damage claim, second party workers compensation claim, and a third party liability claim. Each can result in significant financial loss depending on the nature of the accident. It is such a critical workplace safety issue OSHA, in cooperation with the National Highway Traffic Safety Association, has dedicated resources to develop a guide & resources to help show the importance of fleet safety. https://www.osha.gov/ Publications/motor_vehicle_guide.html

4. Not contesting when there’s a good reason.

The most important component of any fleet safety program is defining who is allowed to drive on company business. Not just who is assigned a company truck, but who is allowed to drive their personal vehicles on company business. This “non-owned” exposure can create a significant risk for any organization. The liability exposure for anyone operating a vehicle on company business ultimately falls upon the company, and can create as much liability as owned vehicles. Each year, our office sees multiple claims over $1MM involving “non-owned” drivers, so it is critical to make this a part of any fleet safety/ risk management program.

Don’t be intimidated. The IRS promises a right to professional and courteous treatment as well as the right to appeal disagreements. Utilize those rights when it makes sense. For face-to-face audits, you can speak to the auditor’s manager if you don’t like the way the audit is being handled. After an audit concludes, you can still contest it with the IRS Office of Appeals and have the decision reviewed. If the appeals officer agrees with the auditor, you can go through the court system. 5. Not seeking expert help A qualified CPA can represent you before the IRS in a tax audit. This help is critical because you need someone on your side who knows not only tax laws but also IRS procedures. They’ll know how to present your case to both IRS Appeals and/or Tax Court. In addition, they could determine whether your penalties should be contested. When all else is said and done, a qualified CPA can help you negotiate payment of the tax bill, including applying for an installment agreement, and/or an offer in compromise, which allows you to settle your tax debt for less than the full amount. Take IRS audits seriously because the IRS certainly does. If you don’t take control of an audit from the beginning, you lose your power to file, contest, or appeal on your own terms. Steven Bankler has more than 42 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. Visit www.bankler. com for additional tax strategy tips and to learn more about Steven Bankler, CPA, Ltd.

The other aspect of controlling who is driving on behalf of the company is to ensure there are clear rules for the use of vehicles by non-employees and for nonbusiness use. Insurance coverage follows the vehicle, so if a 16-year-old kid hops in the superintendent’s company truck over the weekend and has a serious auto accident injuring a third party, the company will be responsible and the commercial auto policy will respond. Clearly defined rules for utilization of company vehicles can help reduce this exposure. Once the list of individuals allowed to operate a vehicle on company business is identified, the next step is to determine the qualifications each driver must maintain in order to drive on company business. Failure to properly screen drivers will create potential “negligent entrustment” exposures for the organization and negative financial consequences should an individual with a poor driving history be involved in an accident. Most insurance companies use the guideline of no more than three moving violations or at fault accidents in the past three years and no more than two violations or accidents in the past year as their guideline for an “acceptable” drivers. In addition, there are single events which should result in the driver being excluded from any driving privileges such as a DUI, driving without a license, or vehicular homicide. We encourage our clients to not rely on the insurance company to manage their drivers. It is best for new hires to provide their own driving record during the interview process and check motor vehicle record checks annually for your own staff rather than have an insurance company tell you who can and can-

not drive for your organization. It is also a good risk management practice to require individuals to maintain personal insurance if they are driving on behalf of the company. These really need to be more that the state minimum limits of $30,000 per person, $60,000 per accident for bodily injury and $25,000 property damage, as they are not adequate to protect the individual or the company from a significant collision. Requiring a $300,000 combined single limit will help insulate the company’s auto policy and reduce the risk of the individual being personally responsible for damages beyond these state minimums (depending on the type of vehicle this might cost from $50-$100 per year for 10 times the coverage). The mileage reimbursement rates account for this level of insurance. Per the IRS mileage calculations, over 10% of the current .58 cent reimbursement rate is to pay for adequate insurance. Managing drivers and fleet safety should be an important part of any risk management program. It can take some time to develop policies and procedures specific to your operations and maintain the records for company car drivers, but this is time well spent in order to reduce potential liability exposures for the organization. Mr. Gaskamp is responsible for developing partnerships with clients to implement risk control strategies to reduce the organization’s overall cost of risk. He has over 25 years of insurance and risk management experience and is very active in the safety and risk management community. He is a national faculty member of the National Alliance Certified Risk Manager’s program and serves on the safety committees for the Association of Building Contractors, Association of General Contractors, Texas Aggregate, Concrete Association (TACA) and the American Society of Safety Professionals (ASSP) Construction Specialty Practice. He holds a Bachelor of Business Administration in Risk Management and Finance degree from the University of Texas at Austin. Mark can be reached at mark. gaskamp@marsh.com

Marsh Wortham, a division of Marsh USA Inc., was formed in 2018 upon the combination of Marsh and Wortham Insurance, and consists of Wortham offices in Texas and Marsh offices in Texas, Oklahoma, and Louisiana. Our parent company is Marsh & McLennan Companies (NYSE: MMC), the leading global professional services firm in the areas of risk, strategy, and people. With 75,000 colleagues worldwide and annualized revenue approaching $17 billion, Marsh & McLennan Companies also include global leaders Guy Carpenter, Mercer, and Oliver Wyman.

Houston Construction News • OCT 2019

Page 5

Rethinking the recovery of attorney’s fees as a means to save costs

Maintenance versus construction Joann Natarajan Compliance Assistance Specialist OSHA Austin, TX

R. Carson Fisk, Shareholder Andrews Myers, P.C. Austin, TX

n a construction dispute, settlement often makes a lot of sense based on fundamental matters such as certainty of outcome and conservation of time and cost. In fact, as a matter of public policy, the State of Texas encourages “the peaceable resolution of disputes” as well as “the early settlement of pending litigation.” But in many construction disputes—particularly those involving a couple hundred thousand dollars or less—the recovery of attorneys’ fees can be a major factor as to whether settlement is realistically achievable. This is generally because in litigation or arbitration, the legal costs can quickly add up and, in some instances, become a disproportionately large number when compared to the actual principal amount in dispute. It is not uncommon for parties to spend $20,000 or more on attorneys for a $50,000-$100,000 dispute simply to reach a point where settlement negotiations might be productive based on the merits of the parties’ positions. This has the tendency to entrench parties in their positions given the need to recover attorneys’ fees’ in order to “be made whole.” So while settlement often makes sense— so much so that it is reflected in statepolicy as codified by statute—does the ability to recover attorneys’ fees promote settlement or hinder it? In the American judicial system, the recovery of attorneys’ fees in litigation is generally governed by what is known as the “American Rule.” Under this rule, each party bears its own attorneys’ fees, meaning that a party cannot recover such fees from the other party even if it prevails. The rule applies unless there is a statute authorizing the recovery of attorneys’ fees or such recovery is permitted by the terms of a contract. Thus, in a straightforward negligence case (e.g., a case involving a slip-and-fall, car accident, etc.), a party does not have the right to recover attorneys’ fees from the other party. However, in the construction context, a party often does have the right to recover attorneys’ fees. This is because multiple statutes apply—sometimes uniquely—to construction-related claims that permit the recovery of attorneys’ fees. For example, statutes addressing mechanic’s and materialman’s liens, prompt payment, breach of contract, and the declaration of contractual rights all authorize a party to recover attorneys’ fees under certain circumstances. Additionally, many construction-related contracts provide the winning party the right to recover attorneys’ fees from the losing party. With the recovery of attorneys’ fees routinely being an issue in construction disputes, the issue turns back to whether such a right of recovery is a help or hindrance to settlement. Under one theory, the ability to recover attorneys’ fees promotes settlement. The focus of risk assessment is on the potential for an expanded negative result—the fact that the losing party might not only have to pay an adverse judgment or arbitration award, but also the attorneys’ fees incurred by the winning party. This increased risk motivates parties to take a more reasonable position in settlement negotiations. This often emboldens a party with the stronger position (or perceived stronger position). But there is risk even for the winning party. Often the fact finder is not necessarily obligated to award the full amount of attorneys’ fees incurred, but rather what might be subjectively considered fair, just, reasonable, necessary, or a combination of these. So, while a winning party may have incurred $100,000 in attorneys’ fees, it may ultimately be awarded much

less. This, of course, makes a “win” less of one. And, as is often the case, each side may view itself as the party with the stronger position, presenting additional challenges. Under another theory, the ability to recover attorneys’ fees hinders settlement. The focus of risk assessment is on the merits of the dispute, without attention to added-on costs such as legal expenses. If this approach is preferred, often parties generally must contractually agree that neither side has the right to recover attorneys’ fees or, in arbitration, that the arbitrator does not have the power to award attorneys’ fees. This approach can be particularly effective for early stage resolution of “smaller” disputes, such as those involving a couple hundred thousand dollars or less. It is at the early stage of a dispute where the parties have the best chance at a costsaving resolution, avoiding the steep and ongoing legal costs and associated commitments of time (generally resulting in additional, less tangible losses to the parties). But it is also the point in time where the parties know the least about their respective strengths and weaknesses in a case. Such information can be obtained, but only after spending money on attorneys’ fees—such fees not being recoverable. Thus, there is an increased incentive to settle earlier than later to avoid sunk costs. Conversely, parties may be inclined to adopt harsher or unreasonable approaches knowing that their exposure to attorneys’ fees is lessened or non-existent. Neither approach is perfect under all scenarios, and unfortunately a decision on which approach to adopt generally has to be made well before any dispute is at hand. But owners, architects, engineers, contractors, subcontractors, and suppliers who leave the recovery of attorneys’ fees to chance are doing themselves a disservice. Thought should be given to the philosophy underlying any given approach, whether it be aggressive recovery or pragmatic resolution. Certainly state policy supports early amicable settlement, but the reality is that parties often feel strongly that the party who wins should recover all costs, including attorneys’ fees, from the party who loses. These theories and approaches should be considered, while keeping a party’s principles in mind, when drafting agreements.

SHA has both construction and general industry regulations. Construction activities fall under 29 CFR 1926, and maintenance activities fall under OSHA’s general industry regulations codified at 29 CFR 1910. Though the OSHA regulations for construction and general industry frequently agree, there are some differences. OSHA’s regulations define construction work as “construction, alteration, and/or repair, including painting and decorating.” Section 1910.12(a) further provides that OSHA’s construction industry standards apply “to every employment and place of employment of every employee engaged in construction work.” Unlike construction work, there is no regulatory definition for “maintenance,” nor a specified distinction between terms such as “maintenance,” “repair,” or “refurbishment.” “Maintenance activities” have commonly been defined in dictionaries as making or keeping a structure, fixture or foundation (substrates) in proper condition in a routine, scheduled, or anticipated fashion. OSHA has stated that maintenance involves keeping equipment working in its existing state, i.e., preventing its failure or decline. Construction work is not limited to new construction, but can include the repair of existing facilities or the replacement of structures and their components. For example, the replacement of one utility pole with a new, identical pole would be maintenance; however, if it were replaced with an improved pole or equipment, it would be considered construction. Additionally, the scale and complexity of the project are relevant. This takes into consideration concepts such as the amount of time and material required to

complete the job. For example, if a steel beam in a building had deteriorated and was to be replaced by a new, but identical beam, the project would be considered a construction repair rather than maintenance because of the replacement project’s scale and complexity. If a bridge was to be stripped and re-painted, that would be considered construction work even if the repainting were done on a scheduled basis. Replacement of a section of limestone cladding on a building, though not necessarily a large project in terms of scale, would typically be considered construction because it is a complex task in view of the steps involved and tools and equipment needed to do the work. Work that is anticipated, routine, and done on a regularly scheduled/periodic basis to help maintain the original condition of the component will be suggestive of “maintenance,” although this must be considered in light of the scale of the project. If the work consists of repair as opposed to replacement, a key factor is whether those repairs are extensive. If the work consists of removal and replacement of equipment, an important factor is whether the new equipment is of an improved type. For both cases of repair and replacement, a key factor is the scale of the project, including the extent to which other equipment or structures must be moved or altered. natarajan.joann@dol.gov 512-374-0271 x232

Shooting for PAC

he Texas Construction Association (TCA) hosted its PAC Clay Shoot at the Greater Houston Gun Club. The highly successful event was held on Aug. 20. -cmw

Annie Oakley competition winners: 2nd Place: Darin Petting 3rd Place: Roy Hennick Four-Man Flurry winners: 1st Place: Marek Brothers 2nd Place: Scott Macon Equipment 3rd Place: Pelletizer Knives Four-Man Lewis Class winners: 1st Place: National Terrazzo 2nd Place: Marek Brothers

3rd Place: Laticrete Two-Man Flurry winners: 1st Place: Marek Brothers 2nd Place: Scott Macon Equipment 3rd Place: Pelletizer Knives Two-Man Flurry Lewis Class winners: 1st Place: J Rollins 2nd Place: Chamberlin 3rd Place: Berger Iron Works

R. Carson Fisk is a construction attorney, mediator, and arbitrator and shareholder at Andrews Myers P.C. in Austin, Texas. He may be reached at cfisk@andrewsmyers. com.

1st Place Annie Oakley – Ron Whitmore

Top Woman Shooter – Kelly Vazquez

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Ed and Robyn LeGris General Partners First Choice Plastering LP Pearland, TX

d and Robyn LeGris’ eyes met at a Halloween party (actually, a few times before that). Their life together has been a treat ever since, even when life got tricky. Theirs is the ultimate couples costume: Two people in love, working together in an industry they enjoy. How were you introduced to construction? Robyn: When my dad moved to Houston in the 1950s, he started a plastering company along with a farm and some other businesses. He had so many kids that we all ended up playing on scaffolding, cleaning windows and sweeping up; we grew up in the industry. I had different plans, but I really enjoyed being with my dad. In order to get my dad’s attention, I would always get really involved in the company. That was the only time I would get to spend with him, either on the farm with him or at the job site; that was our special time. I was a pest and I was the youngest of all of the kids. I was pretty much spoiled so if I wanted to go to a job, then I went. I had two older brothers who were expected to do something in the construction industry, but I wasn’t. When I

Houston Construction News • OCT 2019

didn’t have another job outside of that one, I either had a business or I worked for somebody else. I started working really young, and I always wanted to be my own boss because my parents had their own company. I got out of school a year early and started an alteration design company in Spring, TX when I was 17. I planned to go to California to go to school for acting but my dad wouldn’t fund the bill so I just decided I would earn my own money. Right away, I got really good-paying jobs in the automotive sales industry selling to car dealerships. Through my early 20s, I didn’t work for Dad unless he needed me to. I sold real estate, and then I met my brother’s roommate, Ed, at a Halloween party. Ed: I was born in Lee’s Summit, MO and did not come from a construction family. When I was 14, I got a summer job working for a plastering contractor that did multi-family projects. That was my introduction to the plastering industry. After that, I worked for several different homebuilders, started painting and got on with the framing crew. Within a year, I was running two framing crews. Then, a cabinetmaker taught me how to do a lot of nice cabinet work and mill work. In 1983, I worked for a man who had a computer furnishings store. I managed all of the 10 stores he opened in 2 years. When he embezzled a large amount of money and went home to Syria, I started working for Robyn’s father in 1986. I worked for him about eight or nine years before I “met” Robyn, although we had had some run-ins … Robyn: But I never noticed him! He didn’t show on my radar until the party! How did you know you were meant to be? Robyn: I’ll never forget: my sister had a New Year’s Eve party and served a lot of champagne and I got really drunk. The next day, my dad sent me and Ed to Denton to start plaster work on a Red Lobster. Ed and I had only been living

L-R: First Choice Plastering LP’s Robyn and Ed LeGris

together a month and we were at that stage where you don’t do anything embarrassing around your boyfriend. Well, I had to vomit the entire way to Denton because I had such a bad hangover! He’s driving and holding back my hair, pulling the car over and buying me 7-Up and crackers. It was mortifying for me, but I thought he had to be a good guy if he would do that. On New Year’s Day, we got to Denton and it was 15 degrees, snowing and sleeting, and we are plastering this Red Lobster. My dad is hard-nosed and told us to rent heaters. So, we rented heaters to blow on the outside of walls so that our work wouldn’t freeze before it dried. We were up there for a week, and it was horrible. That was basically when we started working together. We figured if we could get through that, we were going to be okay. We got married June 21, 1992 and had a baby in 1993. How did you start running the business? Robyn: Everything was good for a while; I went to optician school and started working at an eyeglass place. In 1994, two weeks before our son’s first birthday and on my first Mother’s Day, my dad passed away of a heart attack. It was crushing, and really unexpected. The next day, we took over the company because we’re in the middle of projects. We had to pick up the ball. While my mom and I are planning the funeral, Ed is running the company. We didn’t get a day to stop. We had to keep these guys working and keep these jobs going and take care of my mom in the meantime. Ed: It was a rough period. Robyn: There wasn’t any question of what we would do, we just had to keep working. We ended up formally changing the name of the company to First Choice Plastering that year and changed it all over to us. We’ve kept some of the same clients that we had and some of the same people that were working for my dad. Ed: The people that had given us lines of credit at supply houses, all they knew about me was that I was the guy that had come in and pick stuff up when Bob had ordered it. They very graciously extended their credit and let everything keep going. Robyn: It was pretty seamless; it could have been a lot worse. Apparently, my dad had a premonition of things to come. My oldest brother had died, and my other brother isn’t in the industry, so my dad started grooming Ed. Ed: The management skills I picked up running all of the furniture stores really came into play. The different facets of the construction industry I’ve been in, the obstacles that showed their faces at the job sites, I was able to circumvent, and I became a pretty good manager of people. It wasn’t a difficult thing to [adapt to], it was just difficult how it happened. How did you change the company? Robyn: I computerized everything. Before, my dad wrote an invoice by hand, or my mom would type it on a regular typewriter. I put everything on a bookkeeping system and developed a website for us in 1994. As far as my

research goes, we were the first plastering company in the world to have a website. I started doing marketing and did the bookkeeping for a couple of years, but then my niece needed to work her way through college; she was taking accounting, so we hired her to do our accounting. I started doing websites, and developed a company called First Choice Publishing. Then, we started answering the phone “First Choice.” I still work with Ed, though; I take phone calls and look at job plans and help Ed out with sales work. My sister is our bookkeeper for both companies and our office manager. My niece graduated and went on to bigger and better things. It’s still a family-run business, just like my dad had and it has continued since 1955. We’re still a partnership. What qualities does the other bring? Ed: She has so many things that are a developed asset. The way she can market, the web developing, the rapport she maintains with long-time clients, and her general mode of being, it’s just a constant. There are no interruptions, no flutter. She an invaluable asset. Robyn: Ed is very organized. He knows how to look at a set of blueprints and see all of the secret places other people miss. He can talk to clients, even new clients, and gain trust from them. Ed: I try to convey to them that they’re in good company, that we have our act together, that I’ll take care of them. Robyn: We treat people how we would want to be treated. I think that works. How do you enjoy your spare time? Robyn: We remodel our home a lot! We buy fixer uppers. We bought our first house and we’ve spent 17 years fixing it. Then this house [that we live in now] was basically a time capsule to 1972, so we’ve been messing with that for 12 years. It looks a lot better than it did! Other than that, we work in theatre; we build sets for community theatres around town. That’s one of the things we love to do because we like being creative together. Ed: We really feed off of each other. We just like to be together. Robyn: We have date night every night. We have two boys and two grandsons who live with us. We’re such great parents that our kids don’t want to leave! Also, Ed’s mother is in a garage apartment here. We have a full house! What are your future plans? Ed: That’s hard to say. We’re on this wave, and it keeps on rolling so we’re staying on the surfboard cruising along. Opportunities present themselves in strange ways sometimes; you just never know. We can decide to get out of this and get into something else completely different. We keep our eyes and ears open, but we don’t plan on stopping what we’re doing any time soon. Robyn: As long as the industry remains strong, we’ll be here doing our thing as long as we’re able to. I think we have several years left in us. Ed: Yeah, we’ve got a couple good ones. Subcontractor First Choice Plastering LP is located in Pearland. –mjm

Houston Construction News • OCT 2019

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If you are interested in fishing this fall, feel free to give me a call or shoot me a text. There are some open dates available in October 24, 25, 28, 29, 30. To schedule your next bay fishing trip or hunting trip give Capt. Steve Schultz a call at 361-813-3716 or e-mail at SteveSchultzOutdoors@gmail.com. Good luck and Good Fishing.

Angler Sam Boatright was successful landing the 21-in. flounder and two 27-in. trout on his recent fishing outing with Steve Schultz Outdoors. Both trout were released after photo.

Fall fishing possibilites

by Capt. Steve Schultz Sponsored by: Waypoint Marine, Shoalwater Boats, Evinrude Outboards, Fishing Tackle Unlimited, Shimano Reels, E-Z Bel Construction, Costa Sunglasses, Simms Fishing, ForEverlast Fishing Products, PowerPro, Interstate Batteries, MirrOlure, JL Marines Power-Pole, AFW and AFTCO Clothing. hen people think of saltwater fishing, most think of shorts and performance t-shirts in 90 degree weather. While we do love getting out on the boat in those summer months, there is also some incredible opportunities to cash in on saltwater fishing in the fall months as well. Fall fishing in our neck of the woods can actually be the best time of year for speckled trout, redfish, and other inshore species. The falling water temperature creates a feeding frenzy for these fish as they are gorging themselves on shrimp and baitfish that are stacked in the guts and sloughs in preparation for the coming winter. An added bonus to fishing the fall in our area is the incredible opportunity for

sight-fishing redfish. This time of year, the fish begin to school up. These groups that can sometimes be over 200 fish and our water becomes very clear. The thrill of pulling up on a flat and seeing a group of redfish pushing along is enough to get any angler’s blood pumping and an accurate presentation of an artificial bait or natural bait is usually all it takes to get a bite. At times, these schools are moving along the shallow water demolishing everything in their path and will actually race to get your bait before one of the other fish can beat them to it. Another alterative to fishing for reds in the fall is fish for black drum. There is an abundant population of black drum in the Texas Coastal Bend. The black drum is often overlooked as a primary game fish by sport fishermen, but is highly valued as table fare by many locals. The commercial fishing industry in Texas harvests over 1.5 million lbs. of black drum annually which illustrates the demand for its flaky white meat. Even though they get huge, the ideal black drum for dinner is typically under 5

lbs. A drum this size compares very favorably to its cousins – the red drum (redfish), the speckled trout and other highly sought game fish of the Coastal Bend in terms of flavor. Breeding stock drum over 30 in. have been nicknamed the Big Uglies for their relative unattractive features compared to all of their drum relatives like the red drum, speckled trout, croaker and whiting. Their high arching back and propensity to develop deformities as they grow large leave them without the streamlined torpedo shape of their cousins. Typically, their meat begins to get wormy and more coarse. Thanks to its abundance and wide distribution around our bays and beaches, fishing for black drum along the Texas Coastal Bend is a year ‘round activity that is available to virtually anyone that wants to fish. Most importantly, enjoy your time on the water. The fall and winter months can be some of the most beautiful times of year in the Coastal Bend and the lack of boaters on the water typically enhance the experience overall.

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Houston Construction News • OCT 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

hope by the time you read this we will finally be done with all of the one hundred plus degree days that we’ve had this year! It’s time to get into fall and start to enjoy it! Football is back! Hunting seasons are opening and fall fishing is just getting started. But there is one more thing we get to do this fall. We get to vote! I know, everyone has their attention focused on the big picture, the main event election that comes in 2020. We have a whole year to get all wound up about that one, but if you hunt, fish, or go to the state parks to camp and play and explore, you need to be aware that this upcoming election on November 5th is what matters today! Texas did something good for our outdoors in 1993. The 73rd Legislative Session replaced cigarette tax funding for state parks with a portion of revenues derived from the sales tax on sporting goods via House Bill 706. Between 1993 and 2017, the State has collected nearly $2.5 billion in revenues from sporting good sales tax, but only 40 percent of those funds have made it to the state parks of Texas. The trouble is that the money must be appropriated by the Legislature every two years. This makes it almost impossible for the Texas Parks and Wildlife Department to plan ahead for long-term capital improvements and open new parks such as Palo Pinto State Park. Our state parks have over 10 million visitors every year and attendance continues to increase. Most of the parks are over 30 years old and are in need of repair. Hurricane Harvey alone did $50 million in damage to the parks. Most of the

noise and confusion of the daily news. We can’t help a lot of the things we see happening our world, but your vote can help us protect those places we love to escape to when the world just seems too loud. I’ll hop off my stump now and wish you a HAPPY ELECTION DAY, NOVEMBER 5th.

Vote “YES” for Prop. 5 on Nov 5

September morning departure playgrounds are in urgent need of replacement and restrooms badly need renovation. This is how you can help. Vote “YES” for Prop. 5 on November 5, 2019! Prop. 5 is a constitutional dedication of revenue from the existing sales tax (called the Sporting Goods Sales Tax), so those dollars can only be used by the Texas Parks and Wildlife Department and the Texas Historical Commission on public parks and historic sites, and not for any other purposes. Best of all, this requires no new taxes or fees. A YES vote on Prop. 5 on

Nov. 5 will be sure that our parks get the money they are due to protect Texas’ natural areas and historic sites, so we don’t lose the very things that make Texas a special place in which to live. You can learn more about Prop. 5 at www.SupportTexasParks.org Help us get the word out so this important matter gets noticed amid the

Hawaiian casino night

he Independent Electrical Contractors (IEC) hosted 150 guests for their Casino Night. The Luau style themed event held on Aug. 9 and raised school supplies for the VFW. -cmw

Costume contest winners L-R: Gilbert and Lily Soliz and runner up Mike Breland

Lisa and Bill Canton

Pat Sherrill, Rene Colwell, Ellen Johnson and Bud Johnson

Houston Construction News • OCT 2019

Page 9

Houston brings home eight

he Associated General Contractors (AGC) Texas Building Branch (TBB) hosted an elegant evening for the presentation of the AGC TBB Outstanding Construction Awards. This year’s event was held at the Georgetown Sheraton Resort and Conference Center on Aug. 22. Thirty-four awards were presented to AGC members for their outstanding construction projects across the state. -cmw

General Contractor – Building 3: Satterfield & Pontikes Construction, Annunciation Greek Orthodox Cathedral

General Contractor – Design Build 3: Gilbane Building Company, Texas A&M Hotel & Conference Center Doug Pitcock ‘49

Specialty Contractor – Mechanical 1: MLN Company, Lone Star Flight Museum

Walker Engineering Inc., Specialty Contractor – Electrical 1: Inswood Manor – MEP Infrastructure Replacement Specialty Contractor – Electrical 2: Marriott CityPlace Hotel at Springwoods Village Specialty Contractor – Electrical 3: Houston Methodist Hospital North Campus Expansion

www.constructionnews.net publishing the industry’s news

Specialty Contractor – Interiors: Karsten Interior Services, University of Houston – Clear Lake Pearland Campus Health Sciences and Classroom Building

The “B.O.B” (Best of Building) goes to: Satterfield & Pontikes Construction, Annunciation Greek Orthodox Cathedral

Texas Style

★ ★ ★ ★

Austin Dallas/Fort Worth Houston San Antonio

Page 10

Fun, sand and sun

Houston Construction News • OCT 2019

ver 50 teams had their shovels set on winning the prestigious American Institute of Architects’ (AIA) Sandcastle Competition Golden Bucket award. This year’s annual event was held on Aug. 24 at East Beach in Galveston, TX. The AIA Sandcastle Competition is a fund-raising event for AIA Houston and the Architecture Center Houston Foundation. It is also one of the top five revenue generating events for the City of Galveston. -cmw

Golden Bucket: “The Litter Mermaid” Ziegler Cooper/Paradigm Construction

Best Traditional Castle: “Lego” ASCE Houston

Best Architectural Icon: “I.M. Pyramid” Prairie View A&M University

Kidtastic! Fables & Folklore: “Genie’s Beach Vacay” Kimley-Horn/Method/Alston

Best Houston-centric: “Astroworld: Past and Present” Stantec

Sydney LeNoir Public Favorite Award & Best Pop CultureDecades: “Winter Isn’t Coming” - Jacobs/Bartlett Cocke

Tallest Standing Structure, Greatest Feat of Structural Ingenuity & Silver Shovel: “Game of Toys” Kirksey + Metzger Construction

Best Team Signage & Most Epic Fail: “Whale Hello There! cre8/Durotech/Matrix

Best Geometric: “Lost Our Marbles” Kendall/Heaton Associates

Best Marine Life: “Kraken a Cold One” HarrisonKornberg Architects/Walker Consultants

Most Sustainable Team: “Underwater Disco Party” Page/

Bronze Shovel: “Deep Blue G” - Gensler/Harvey

Diversity efforts recognized

Best Team T-shirt: “Game of the Decades - Walter P Moore”

ssociated General Contractors (AGC) Greater Houston Chapter President/CEO Jerry Nevlud and the AGC Diversity Committee were recently recognized at the Houston Community College’s fifth annual Minority Business Development Agency ’s Salute to Minority Contractors Luncheon on Jul. 18 honoring minority-owned construction firms and the advocates and organizations that support them. AGC Houston has been partnering with the Kingdom Builders’ Center Construction Contractors’ College, a six-month program that helps small and minority-owned businesses bid on construction work for local general and specialty contractors. -cmw

Houston Construction News • OCT 2019

Page 11

Association Calendar

The education of safety

Content submitted by Associations to Construction News ABC

Associated Builders & Contractors

Oct. 4: BBQ Cook-off, Bayou City Event Center Pavilion, 9401 Knight Rd. 3-8pm. Oct. 17: Excellence in Construction Awards Banquet, Ballroom at Bayou Place, 500 Texas Ave., 6-9pm. For info, contact Lauren Harrell at 713-523-6222 AIA

American Institute for Architects

Oct. 5: Interior Architecture Fall Tour, 10am-2pm. For more info, email debby@ aiahouston.org or call 713-520-0155 ASCE

American Society of Civil Engineers

Oct. 4: 5th Annual Light Rail Pub Crawl Oct. 8: Branch Meeting, HESS, 5430 Westheimer Rd., 5-7:30pm. For more info, call 713-261-5156 CMAA

Construction Management Assn. of America

Oct. 24: 7th Annual CMAA Houston Sporting Clays Tournament, American Shooting Center, 16500 Westheimer Pkwy., 8-11:30am. For more info, contact Spencer Clark at 713-842-0540 or email sclark@agcm.com CSI

Construction Specifications Institute

Oct. 9-11: CONSTRUCT AEC Education & Expo, Gaylord National Resort & Convention Center, National Harbor, MD. Oct. 18: Brian T. Harrington Golf Tournament, The Golf Club of Cinco Ranch, 23030 Cinco Ranch Blvd., Katy, TX. For more info, call Alex Bernard at 713-4077866 or go to www.csihouston.org FPA

Foundation Performance Assn.

Oct. 9: Meeting, Mr. Cody Colvin, HESS Club, 5430 Westheimer, 4pm. For more info, call Vicky Bonds at 713-699-4000 Oct. 9: Meeting, Dr. Abdeldjelil “D.J.” Belarbi, P.E., HESS Club, 5430 Westheimer, 5pm. For more info, call Vicky Bonds at 713-699-4000 HCA

Houston Contractors Assn.

Oct. 8: Fall Golf Tournament, Wildcat Golf Club, 12000 Almeda Rd., 10am. Oct. 24: Monthly Luncheon, Junior League Main Ballroom, 1811 Briar Oaks Ln., 11am. For info, call Emelie Englehart at 713-349-9434, emelie@houstoncontractors.org HARCA

Houston Area Roofing Contractors Assn.

Oct. 8: Monthly Meeting, Greater Houston Builders Association, 9511 W. Sam Houston Pkwy. N, 9am-4pm. For more info, email roofing@rcathouston.org IEC

Independent Electrical Contractors

Oct. 2-5: IEC National Conference, St. Louis, MO Oct. 16: IEC General Membership Meeting, IEC Auditorium, 601 N. Shepherd Dr. #350, 11:30am-1pm. For more info, call Tori Barrett at 713-869-1976 MCA

Mechanical Contractors Assn.

Oct. 9: Monthly Membership Lunch Meeting, HESS Club, 5430 Westheimer, 11:45am. Oct 13-16: MSCA Connect, Annual Education Conference, The Broadmoor, Colorado Springs, CO. For info, call 281-440-4380 PHCC

Plumbing Heating Cooling Contractors Gulf Coast Chapter

Oct. 23: Fall Social, FUNDraiser, TopGolf North Houston, 560 Spring Park Center Blvd., Spring, TX, 6-9pm. For more info, email Dorothy Gurka at dgurka@gulfcoastphcc.org RHCA

Regional Hispanic Contractors Assn.

Oct. 3: Luna Awards, Station 3, 1919

Houston Ave., 3:30-6pm. For more info, call Yolanda at 972-786-0909 SWE

Society of Women Engineers

Oct. 28: FHPW Quarterly Meeting, The Norris Conference Center, 816 Town & Country Blvd., 5:30-8pm. For more info, call 713-977-0909 SWICA

Southwest Insulation Contractors Assn.

Oct. 3: Fall Golf Tournament, Black Horse Golf Club, 12205 Fry Rd., Cypress, TX. For more info, call 713-977-0909 TACCA

Greater Houston Texas Air Conditioning Contractors Assn.

Oct. 18: TACCA-GH 2019 Annual Golf Classic, Clear Creek Golf Course, 3902 Fellows Rd., 1pm shotgun start. For more info, call 713-781-4822 TSPE

Texas Society of Professional Engineers

Oct. 10: TSPE Bowling Tournament, Bowlmor Houston, 925 Bunker Hill Rd., 5:30-8pm. For more info, email Candyce Ward at cward@cobbfendley.com TSPS

Texas Society of Professional Surveyors

Oct. 4-5: 68th Annual Convention & Tech Expo, Horseshoe Bay Resort, 200 Hi Circle North, Horseshoe Bay, TX. For more info, contact DJ Kyle at 512-237-7871 or email djkyle@tsps.org WCA

Women Contractors Assn.

Oct. 3: Monthly Luncheon, Tony Mandola’s, 1212 Waugh Dr. 11:30-1pm. For more info, call 713-807-9977 or email director@ womencontractors.org

Ken Baldwin, district manager of Ritz Safety’s Houston office.

en Baldwin is a newcomer to the world of Ritz Safety. He was brought on to be the district manager of Ritz’s Houston office April of this year. This location opened up around six years ago. Baldwin’s background was in Western wear in general, but he specialized in fireresistant clothing and safety footwear. Thus, coming into the Ritz Safety fold has been quite the education. “I’m learning a whole lot of new product categories that I just didn’t have any knowledge of in the past,” he said. “Every day is a new challenge for me just because there is so much that can be learned.” The Houston area not only has a booming construction business, but the oil and gas industries are dynamic in and of itself with its own challenges. However, Baldwin stated that “The number one recordable citation from OSHA in jobsites is fall protection.” The primary culprit in incidents is the residential construction market, where it’s easy (and convenient) to hire day labor or someone who wants to make some quick

cash working on a roof. This person simply may not be aware of what can be done to ensure his or her safety. “It’s us educating these contracting companies” about how Ritz can help them that fills much of Baldwin’s time. “There’s a void in the industry for training,” he said. Bigger companies aren’t a problem; it’s the smaller to medium-sized ones that are. “It’s scary,” Baldwin said. “We try at Ritz to provide the best training that we can” in order to minimize safety incidents. “Fall protection is definitely our strong suit.” “Secondly, it’s hand protection: being able to provide cut-resistant gloves, impact-rated gloves,” he added. “The balance is going home to your family.” Baldwin sums up his role at Ritz thusly: “Every day you wake up and it’s not the same as yesterday. There is no boredom.” Looks like Baldwin gets an “A” in the world of safety. Ritz Safety is family owned and has its corporate headquarters in Dayton, OH, with an office in Houston. -dsz

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Houston Construction News • OCT 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

Painting with guidance Johnny Perry, Owner HIS Professional Painting Houston, TX

ohnny Perry has always had a passion for painting. “I realized my calling after God sent me to help out a church whose pastor was out of town,” says Perry. While visiting the parish, he painted the church giving new life to parish facility.

Perry has been painting for over 20 years and started his own business in 2016. According to Perry, as an active pastor, not only does he paint, but he anoints his projects with God’s blessings. What is the most significant challenge your industry faces? Labor shortage? Cost increases? Other? There are many factors and challenges we face in this industry, but some of the most significant includes labor short-

age and cost increases. Labor shortage is a major challenge because it does take a certain skill set to do this work. It’s hard to find loyal and skilled workers. Cost increases are also a challenge. We are affected by fuel costs, insurance premiums, materials and labor increase. Unfortunately, customers are not aware of these factors, and we lose money in the end.

Turnkey enclosure Keith Myers, General Manager IWR North America, Southwest Division

➤

Garland, TX

Michael Smalley ➤

Director of Business Development

IWR North America

St. Louis, MO

ince 1940, IWR North America has been providing turnkey building enclosure and custom specialty metal design services coast-to-coast. Headquartered in St. Louis, Mo., IWR North America is one of the longest-standing specialty contractors in the nation.

How would you describe the state of the construction industry in general terms? Keith: It’s great. It’s labor intensive, obviously, but there’s so much going on. Texas is definitely ‘open for business.’ There’s a large amount of opportunity and growth going on. Dallas is growing quite extensively. The business climate is good, and Dallas offers an advantage by being so centrally located. Its business climate is conducive to getting a good foothold in the market. Michael: On the national level, there are a few cities across the country that are growing quite a bit; Nashville is one of those. However, there might be some drawbacks from the industry on the commercial side of things. The sectors of business vary, but commercial, healthcare and automotive are all rising, due to geographic areas, municipalities and corporate advantages. North Carolina, Nashville, etc. are seeing growth in most commercial sectors. Some cities and regions are developing incentives to get steady and continued growth. What are the “hot button” issues in your industry? Keith: For the Southwest, while we haven’t been open very long, we have had clients that are ready to find new partnerships and relationships with the offerings we provide. Our dedication to accuracy and strict project management has been well received. We know what our clients need, and where we fit in within the larger construction puzzle. One of our first clients in the area inquired if the job was a ‘one-off’ or if it was

the beginning of a new relationship, to which we showed how we forge partnerships that create lasting relationships. The hot button would be creating the sense of longevity that many other contractors neglect in going from client to client, project to project. Michael: We have a hot-button issue regarding availability of qualified workers in the field. It’s all about finding quality workers that can do the job right the first time. That is an issue across the construction industry everyone is seeing right now. IWR is focusing on actively growing a pool of leadership and developing the talent of these skilled workers. Unions are wonderful at helping to get talented team members with a great number of resources. What are the major changes in the industry in recent years relating to the type of work you do? Keith: There has been a change in philosophy in the industry and a change in the relationships of the contractor base. There’s a growth in scope of what IWR can do. We are being relied upon by companies and partners to get a job done by finding creative solutions to problems that arise with a ‘can-do’ attitude. Michael: We have grown our scope. We are doing things today that we didn’t do five years ago--the use of technology both in administration and in the actual building side of things. We have been able to utilize new methods to make things happen more efficiently than ever before. Different tactics have been created that help to streamline processes of design and fabrication. It’s a large amount of front-end preparation that helps to change the industry for the better. What is the most significant challenge your industry faces? Labor shortages? Cost increases? Other? Keith: Labor shortage is the short,

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

How has your industry changed over the past five years? The changes in our industry happened due to the advancement in paint products. For example, we have reflective paints that are used to reduce heat. Another example are aerial painting drones which can be used to save time and money.

work to go around, bringing more companies and homes into the area.

What is your workload like now compared to years past? Our workload compared to the last five years has definitely increased. We have extended our reach into the commercial and industrial side, so when the work comes in, it’s more of a larger scale with more demanding deadlines.

Has the “Going Green” push affected your industry? How? The “going green” push has influenced our industry but in a positive way. The new lifestyle of going green is awesome, it simply means “reduce, reuse and recycle.” It helps bring awareness to our earth and I’m all for that.

Has your industry become more competitive with the recent Texas population explosion? How has it affected your business? Yes, the industry has become more competitive because Houston is a largely populated area and there is plenty of

What is the most rewarding aspect of our business/trade? The most rewarding aspect of my business/trade is knowing that I was chosen to bring forth my customers’ vision. HIS Professional Painting is a full-service painting contractor. – cmw

quick answer. Construction does not have a good reputation historically when it comes to the ‘Top Jobs in the Country’ and while that is changing currently, it won’t happen overnight. It takes time to change this attitude, both in managing and in completing the work. Until that change takes hold, there will be a continued labor shortage.

see exceptional projects come to fruition that I can be proud to say, ‘I helped to create that.’ We like to have a high retention rate with our clients and are proud to say that we have so many clients that come back for projects time after time. We are proud to be a first-class company built for longevity. We are selective about who we bring in because we strive to hire the best, so that we can be the best and offer the best. We are excited to continue growing in the Dallas market. IWR is a subsidiary of MHS Legacy Group, a national holding corporation with roots back to 1895. -cmw

What are the rewards of the industry? Keith: It’s great to work with interesting, great and compelling people and businesses. It’s a moment of pride to build relationships that will last a lifetime, and to

What is on the horizon for your industry? In my opinion, our industry will see more products directed to DIY projects, encouraging everyone to have the ability to paint like a Pro.

Adapting for success Ray Gurley, Jr., Owner/Partner 3G Drywall Liberty, TX

hirty-seven-year-old, father of two, Ray Gurley, Jr. is a busy man. He and his wife (Jennifer) are expecting their third child and he still remains very active with his family as well as his business, 3G Drywall, a 3 plus-year-old company that performs commercial metal stud framing, drywall, acoustical ceilings, and doors and hardware.

What is the most significant challenge faced by the drywall industry? We feel like there are three significant challenges in the industry right now. One: Labor/manpower. Currently there is more work than workers. This has been a trend for the past few years. We meet about this topic weekly among the team. Two: General contractors are doing more in-house self-perform drywall. This has been a challenge that we cannot really control. General Contractors are opening up a separate self-performing drywall division. It has different pros and cons for everyone. Like everything in our industry we adjust to these things in order to be successful. Three: Younger/older generation in-

tegration. Taking the younger generation and merging them with the older generation has been a challenge for all construction companies. The younger side wants to try all the new advances in construction with tools and software. The old generation wants printed blueprints. They are set in doing things the same way, and they write everything down with a pencil and paper. So the challenge is taking the best of these two generations and merging them into a middle ground. It takes an in between with some give and take for everyone to be successful. Be open minded, but also understand the system and process in place. Most importantly, work as a team and always remember what is in the best interest of the company. continued on Page 13

Houston Construction News • OCT 2019

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NEXT TH N O M

Architecture & Engineering

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

The 2020 National Electrical Code Ryan Jackson, President Ryan Jackson Electrical Training Salt Lake City, UT

his September, the 55th edition of the National Electrical Code® (NEC®) was published by the National Fire Protection Association (NFPA). As always, we find new Code rules to address new technologies and newly discovered hazards, revised requirements, clarifications, and even deleted sections and articles. The 2020 NEC adds four new articles (Article 242 Overvoltage Protection, 311 Medium Voltage Conductors and Cables, 337 Type P Cable, and 805 Communications Circuits), but it also deletes four as well (280 and 285 were combined into the new Article 242, 328 was moved into the new Article 311, and 553 was moved into 555). The 2020 edition experienced a similar number of changes as the 2017 edition, although most agree that the changes in 2020 are much more farreaching and impactful, regardless of which facet of the industry you are involved in. Ground-fault circuit interrupters (GFCIs) were first put into the Code in 1971, and every edition since then has seen new GFCI requirements. The success of GFCIs in preventing shocks from becoming fatal is without argument, and Consumer Product Safety Commission has the data to prove it. The 2020 NEC requirements for GFCI protection in dwellings were expanded as never seen before, with GFCI protection now required

for all receptacles (not just 125V, 15A and 20A) in the areas requiring the protection, such as laundry rooms, bathrooms, and basements—and not just “unfinished” basements, but all basements, regardless of whether they are “finished” or not. Additionally, all outdoor equipment in residential settings, other than lighting, must now be GFCI-protected as well. This would include air-conditioners and water heaters, as well as RV receptacles.

Exploring new avenues Mike Kotubey, President North Texas TDIndustries Dallas, TX

ike Kotubey leads TDIndustries’ North Texas operations including mechanical construction, facilities maintenance and service. Kotubey is a proponent of Lean construction, prefabrication and integrated project delivery. When not in the office, he enjoys reading, learning and spending time on the golf course. What is the most significant challenge your industry faces? Like most other contractors, finding enough skilled labor is increasingly difficult. This has led us to further accelerate our fabrication efforts and explore new equipment and processes to better equip our partners (employees) to be more productive and safer. Beyond labor, our industry must continue to embrace new techniques and processes to produce better outcomes for our customers. While technology can give efficiency a boost, early collaboration and project involvement can lead to even greater cost savings, shorter schedules and

improved safety onsite. The net is greater value to the building owner through the elimination of waste and duplicated effort. What are the cost increases relating to your industry? Tariffs have had both a direct and indirect effect. Many materials (valves as an example) come from China so we have seen an 11-24 percent increase in these costs. Additionally, some companies are using tariffs as an excuse to raise prices even though they may have not been directly affected. The net result is their profits are increasing and the end users are bearing those costs while gaining no value on their projects.

Changes in Article 230 for services include new requirements for an outdoor emergency disconnect for first responders, but only for one- and two-family dwellings. The allowance of two to six disconnects has been removed in many applications as well, and not just in residential. This was done to increase the safety of electricians working on the equipment. Whole-house surge protection is now required, and tamper-resistant receptacles are now required in more locations as well. While these changes will all increase safety, they will all increase cost as well. On the other side of the spectrum, the archaic and inflated load calculations of Article 220 were extensively revised, resulting in significantly lower load calculations for commercial and industrial facilities. These decreases could save a substantial amount of money. Ten years ago, it is doubtful that anyone would have predicted that the NEC would ever have a new Part of Article 410 to deal with marijuana growing operations, yet here we are with Part XVI of that article doing just that. Ten years ago, few would have predicated energized ceiling grids and Power over Ethernet lighting either, but both of those technologies may be taking a bite out of the average electrician’s wallet if we refuse to keep current and evolve with an evolving in-

dustry. When solar PV systems started gaining in popularity, many in the industry rolled their eyes and waited for the trend to pass, the same way previous generations rolled their eyes about home computers. Not only has Article 690 turned into one of the largest and most complex articles in the Code, but we now have energy storage systems, power management systems, standalone systems, and even dc microgrids to learn about. We can choose to bury our heads in the sand and pretend that these fads will all go away, but the fact is we are doing more things with less energy than ever before. The critical circuits of a building are no longer connected with branch circuits and feeders, they’re connected with twisted pair and optical fiber. Changes to the latter chapters of the Code reflect these quickly changing technologies. As is always the case, dealing with change is a difficult part of our lives. In the electrical industry we change with the times or we get left behind. Ryan Jackson has written and edited several books covering the National Electrical Code and has taught the subject in several states for trade associations, companies, government agencies, and contractors. He can be found online at www.ryanjacksonelectrical.com or on Facebook at Ryan Jackson Electrical Training. -cmw

What is on the horizon for your industry? In North Texas, the next decade will see increased acceptance of design-build delivery methods. We will continue to practice other deliveries, but owners who embrace design-build will find additional value – nimble project delivery; earlier collaboration; designs that incorporate fabrication and modularization; staged design and installation to match the construction schedule; and designing to budget so that costly redesigns are eliminated. Another benefit that design-build offers is the ability to design, coordinate and fabricate using a Revit model. A byproduct will be the elimination of the many hand-offs between architect, engineer, and contractor, and the duplicated, wasted resources that process requires.

in less than 2 minutes. As more cities look to improve fire safety in high rises and large warehouses, we anticipate these becoming commonly required.

Have there been any significant code changes in the past year? Or regulations? Firefighter Air-Replenishment Systems (FARS) aren’t new, but we are starting to see more Texas cities adopt codes in accordance with the International Fire Code. These systems bring breathing air to firefighters who are actively battling blazes, allowing them to refill their tanks

What advice would you give someone wanting to enter the mechanical industry? As a career, there is unmatched opportunity. Very few industry segments offer a person the opportunity to be an integral part of building or rebuilding the infrastructure of America. We offer a level of support and training that can propel a young person’s career so they can grow and prosper in a very short period and become a significant contributor to a vibrant part of our community. What are keys to being successful? Communication skills, a desire to learn, always look for a better way, Lean thinking, a willingness to invest in themselves to learn and grow as a person and professional, humility, an appreciation of the contributions that a diverse workforce can bring and strong collaboration skills. TDIndustries is a full-service mechanical contractor. -cmw

continued from page 12 — Adapting for success How has insurance and workers’ compensation rates affected your industry or business? There has been a small increase cost wise in the past few years, however nothing too significant. We work with certain clients that require specific insurance requirements. We continue to invest more into training to help prevent injuries and to ensure we can always meet the project or client requirements. At the end of the day this added cost is not as important as everyone going home to their families. Is timely payment and final retainage by general contractors an issue? How does

this affect your industry/business? This has and probably will continue to be an issue in our industry. There are a lot of variables that we do not control that prevent retainage payments. It forces some companies to struggle a lot more than they should. For us, it affected us more in year one than year three obviously. We tend to lean on our banking relationships, our CPA, and our overall relationship with our clients to ensure that this risk is as limited as possible in these situations. This issue essentially affects your cashflow and this sometimes leads companies to turning down work or not growing and expanding. Some clients

have adapted and created an APP program for all payments, and it can really be helpful at different times in a project. How has the cost of materials affected your industry and your business? We feel like material costs have their ups and down throughout each year. Similar to us, they have to have field workers to either make the material or handle the material and it is not easy when the demand is so high. So they are constantly trying to communicate and find newer and faster ways of getting material in and onto the job sites. The overall costs have been increasing. This is due to growth and demand.

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Are you expanding the services you provide? If so, what are they and why? We are always looking to add new things. We are doing more specialty stuff all the time such as EZO Panels, specialty wood ceilings, Filz-Felt, Turf, Baffles, etc. Anything that we feel can help the general contractor and the owner client, we are willing to try. This also helps us get some projects when we are always willing to try new things. The industry keeps changing and we have to change with it. However you also have to know when to say no on specific items that you are not very knowledgeable about. We want to eventually have a separate specialty division in the future. -cmw

Texas Style

★ ★ ★ ★

Austin Dallas/Fort Worth Houston San Antonio

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Houston Construction News • OCT 2019

JOB SIGHTS

High Quality Paint Finish team members L-R: Daniel Galvan, Demetino Fuentes, Julio Galvan and Jose Guerra perform parking lot repairs at a popular strip center in Spring, TX. -cmw

continued from Page 1 — Trails West Gate Company client desires. Walker says that the gates his company creates can be highly detailed with all of the bells and whistles. For instance, the team is currently constructing a double-sided, rolling gate with colorchanging lights positioned on the inside. “We’re proud of all of our gates because they’re one of a kind,” Walker says. “They’re not something that you can go into a hardware store and a tractor supply and buy. This is something that we put our heart and soul into. “As far as requests, each customer is individual. They have what they like, and so we try to custom-fit their gate to match what they want,” Walker continues. “We’ve done zoo entry gates where you have lions, giraffes and elephants in the gates. We did another gate where the client liked fishing, so we did big boats and marlin jumping out of the water. We’ve had deer and elk in designs before as well.” Trails West Gate Company offers sign inserts as well as gates, and Walker says custom gun racks are being added to their offerings. Trails West Gate Company installs throughout the United States and ships across the country and to England

and the company is also striving to reach a variety of potential clients. “Our future plans are to expand and try to do more trade shows; in fact, we’ll be doing the county fair,” Walker says. “We love what we do, so we want to make sure we can keep doing that.” The team loves what they do so much that they sometimes have to stop and take a moment to enjoy their craftsmanship. “As we build a gate, we sit back and admire it ourselves, and say, ‘Wow, that’s pretty,’” Walker says. Don’t feel bad that Trails West Custom Gates doesn’t have its own gate to admire, for that may soon change. The future gate might even have a bovine theme and serve as a pet portrait, of sorts. “Emily and her roommate bring their dog out here once in a while, and they have been trying to talk me into letting them bring their miniature cow out here,” Walker says with a chuckle. “We’re going to need a gate to keep that cow in, but it would be a small gate since it’s a small cow!” Subcontractor Trails West Gate Company in Chappell Hill offers custom gate design and installation and sign inserts. –mjm

continued from Page 1 — Wyatt Management

Alex Salas with Cyrex Glass & Mirror Inc. installs weather stripping around newly installed windows at the new shopping center on Kingsland Blvd. -cmw

Submitted to Construction News

Round-Up

Skanska USA is pleased to announce the promotion of Dennis Yung to Executive Vice President and General Manager of the Houston and Dallas offices. He will oversee both offices while focusing on developing new client relationships, managing construction projects and cultivating new opportunities throughout the Texas market. -cmw

DPR Construction has named Nick Abay as Business Unit Leader for DPR Houston. He has been instrumental in creating several national relationships with target clients, bringing work to other business units throughout DPR. Abay holds a B.S. in Construction Management from Sam Houston State University. -cmw

Pure Safety Group has named Joseph Piccione as Chief Executive Officer. Piccione assumed his new role as CEO on Aug. 19. Piccione will lead PSG’s workforce of more than 350 employees and be based out of the company’s Houston headquarters. He holds a bachelor’s degree in technical careers from Southern Illinois University. -cmw

Rebecca Mansfield has relocated to Houston as Cadence McShane Construction’s Director of Client Relations. In her role, Mansfield will continue to build and maintain her state and national clients, while enhancing relationships in the Houston region. -cmw

smaller forms). Founded by husband-and-wife team Mario Del Pero and Ellen Chen, Mendocino Farms’ dynamic seasonal menu incorporates locally-sourced produce and breads and often features dishes created in partnership with local chefs for charitable causes. The brand’s motto, “WE SELL HAPPY!” refers to their mission-driven approach to food and hospitality and rang particularly true for the Wyatt construction team. “Working with Mendo was a gratifying experience. Their construction team communicated well and exhibited an extremely thorough approach and attention to detail throughout the project,” says Celis. “There was a lot of design and construction collaboration between our two teams.” The Uptown Park location marks Mendocino Farms’ 29th restaurant (and second in Houston), with another scheduled to open at 609 Main Street in Down-

town Houston before the end of December, also in construction with Wyatt Management. The first Mendo in Texas opened in Rice Village in July of this year. The company has plans to build more stores in Houston, as well as iconic locations in Dallas and Austin. Wyatt Management is a general contractor with offices in Dallas and The Woodlands. -cmw

Mendo interior dining area.

The first of its kind

Remington Services in conjunction with Bautex Systems hosted a hard hat tour of Graceland Community Center. The new 15,000sf community center, the first of its kind using the Bautex Wall System, will be rated for wind speeds greater than 150mph, fire-rated up to four hours and resistant to mold/mildew. It will exceed FEMA standards for storm protection and exceeds energy efficiency building codes, making a quiet, comfortable and cool indoor environment superior to traditional construction methods. -cmw

“Mendo the Cow,” the famed mascot is a prominent figure throughout the restaurant.

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