Austin Construction News February 2020

Covering the Industry’s News

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www.constructionnews.net H (210) 308-5800 H Volume 20 H Number 2 H FEBRUARY 2020

Stone has grown

A star is built

Allied Stone Inc.’s Design Consultant Ryan Mowell in the company’s Austin showroom.

First Choice Framing and General Contracting’s Jorge Bermudez plays a builder in real life.

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ven though Allied Stone Inc. has been in business for more than 20 years, one thing continues to surprise its customers.

“People are surprised that we have so many locations,” Design Consultant Ryan Mowell says. “We have locations in Dallas, Houston, Lubbock, Liberty Hill, which is where I work, and also Durant, OK.”

People may also be surprised to learn that Allied Stone is one of the country’s largest importers, stocking over 75,000 slabs, 250,000sf of inventory and the most extensive selection available of engineered stone, and natural stone, such as granite, marble, onyx and soapstone. It is a certified distributor of Antolini Neolith, Caesarstone, Cambria and Silestone and fabricator of other

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hen Maxwell Rucker and Marc Vricella established Blue Diamond M.E.P. last year, it was full steam ahead.

“Neither one of us really had the mentality of going into anything with a lot of doubt,” Rucker says. “We try to be calculated when we make decisions so when we decided to go for something we went all of the way.”

Their confidence likely stems from their strong construction backgrounds.

Rucker grew up around construction and began remodeling after graduating high school in 2010. Vricella was raised in his father’s masonry business. After studying exercise science and physical therapy at Texas State, Vricella worked at a remodeling company with Rucker. As their friendship grew over their mechanical, electric and plumbing work, so did their belief that they could go into business for

engineered surfaces. Each of Allied Stone Inc.’s locations boast a state-of the-art facility, where waterjets, robotics, and CNC-enabled machinery are used to turn out hundreds of countertops weekly (among Texas stone fabricators, Allied Stone possesses the largest number of CNC machines). Allied Stone is the only granite stone fabricator in Texas that owns and stocks an inventory volume and range compar-able to local granite distributors. Beginning with the template, Allied Stone offers turn-key installation service and installs an average of 1200 counter-tops a week. Allied was honored as a 2018 Best of Houzz Service winner and the Designers Choice for a Slab Fabricator by ASID for their Dallas continued on Page 14

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f Jorge Bermudez wasn’t in construction, he could easily get work as late actor James Gandolfini’s double in The Sopranos’ prequel.

“People comment on the resemblance all of the time,” Bermudez says with a chuckle. “One guy came up to me and even said, ‘Hey! I thought you were dead!’ and it took me a minute to realize what he meant.”

Jorge, however, will not be quitting his day job, since business is good for his company, First Choice Framing and General Contracting. His brother, Emilio Bermudez, who acts as the company’s president, won’t be quitting either.

Construction has been a lifelong passion for the siblings, starting when they watched their father build homes in New

Orleans. Jorge continued the family tradition while Emilio served his country in the military. The brothers joined together and built their dream after the com-pany was founded in 2007.

“We do this because we love it. We’re serious about what we do and we love to build excellent products,” Jorge says.

“Right now, there are only three of us, and we stay busy. We love everything we do in the building field, and we are learning some new techniques that are coming out.”

Jorge, who used to work for TXDOT, says he loves learning ways of building.

As his company has transitioned from residential to a larger volume of commercial projects, he has enjoyed continued on Page 14

Into the Blue themselves.

Based in Round Rock, Blue Diamond M.E.P. offers mechanical, HVAC, electrical and plumbing service. Rucker runs the company’s HVAC division, while Vricella manages its electrical side.

“When we initially started, we wanted to be more service-oriented, to be able to jump on something the same day immediately, and that has really been our focus from day one,” Rucker says. “That has really developed in a way that we’ve been able to hire new technicians that can help us grow that department. We’ve also met a lot of great builders and contractors that we’ve been able to help with their service work, remodels and construction jobs, so we’ve evolved.

We’re getting our name out there to do great work.”

“It’s been an explosive growth,” L-R: Blue Diamond M.E.P.’s Marc Vricella and Maxwell Rucker

continued on Page 14

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Austin Construction News • FEB 2020

Teach them a lesson

Granite expansion

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L-R: Chris Gutierrez, Will Khale, Mitch Locey, Zach Todd, Zane Phillips, Shayne Holweger, Chuck Phillips, Jennifer Pickering, Dawn Conner and Tammy Overcast.

n 2019, Chuck Phillips became the new owner of AAA Countertops.

Once a prominent icon in the advertising arena, Phillips was no stranger to the construction industry and longed to have a family business he could grow with his children.

A few years before acquiring AAA Countertops, Phillips purchased Elite Granite and Marble. After a few years, the Phillips family wanted to expand and jumped at the opportunity to purchase AAA.

The family-owned company is operated by Phillips and his four children (Lance, Zane, Alex and Lauren) and they divide their time between AAA and sister company Elite which specializes in production builds such as those seen in homes built by builders like D.R. Horton Homes, who is one of their biggest customers.

AAA specializes in custom work for both residential and commercial clients.

50 percent of our business is builders.

Less than 50 percent is straight residen-

tial or remodels. “We do some commercial work. We worked in the Google Building.

We do commercial work, it’s just not the main part of our business.

“We’ve done a lot of growing. A lot of processes have been refined in our showroom and sales, but also in our production house. We have a lot capabilities to produce more now in a faster timeline. We are getting projects out a lot quicker now and with more precision,” says Office Manager Andrea Julian.

The folks at AAA Countertops are a really tight team. “We take a lot of pride in our work. Our main goal is to give all of our clients complete satisfaction. We want them to be 100 percent happy with everything we do. We are very customer service driven,” adds Julian.

AAA Countertops services clients from Pflugerville down to San Antonio and is a proud member of the National Association of the Remodeling Industry (NARI).

AAA Countertops is granite and marble supplier in Austin, TX. -cmw

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Hill Country Construction’s Jesse Ponce and Jesse Navarro

hen Jesse Navarro goes to the bank for his general contracting business, Hill Country Construction, bank managers usually want to know one thing: Would Navarro be interested in teaching a class on how to run a business?

Actually, he’s very interested. He earned an accounting degree and has owned or run several companies, including a San Jose commercial tire and automotive shop and his late father’s food processing business in Mexico.

Construction, however, is where Navarro shines. He loved working in construction as a youth and returned to it after an unsatisfying stint working for an avocado shipper. Realizing he was born to be a boss, he briefly partnered with a homebuilder before forming his own homebuilding company in 2008. He started building homes in La Vernia but soon offered commercial construction.

“I’m still building custom homes, but I would rather focus on commercial because it’s easier for me and much more profitable. I’ve built three locations for Behavioral Innovations. I finished up an office for a dermatologist, Skin Unlimited,

and I’m doing an office for MCOA, which is an ophthalmology group. I‘ve done many projects in San Antonio and offices in New Braunfels.”

Besides a great superintendent (Jesse Ponce is his), working on projects concurrently requires organization, something Navarro has mastered.

“I have six jobs right now, and every job has a separate checkbook and a separate folder where I keep all of the paperwork, invoices, permits, and draw requests. I can be driving down the road and know exactly how much money I have in every job that I’m doing in that given moment. The financial part of it is almost more important than the work.”

It’s just one of many lessons he wants to teach new business owners.

“What I’ve seen is that many people who are awesome at building start their own businesses, but no one ever taught them how to run a business. There’s a lot of discipline to it. If someone ever approached me about it, I’d take them up on it. I could teach it in an hour.”

General contractor Hill Country Construction is in New Braunfels. –mjm 1:

Austin Construction News • FEB 2020

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Insurance wrangler

Moving on

Plumbing Heating Cooling Contractor (PHCC) Texas Executive Director Alicia Dover addresses the San Antonio PHCC membership at its January membership meeting on Jan. 9. During her address, she announced her retirement. “It’s the right time.” -cmw Reginald Mahadeo’s insurance agency offers the construction industry a range of services, including bonds and evidence of insurance.

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ver 15 years ago, Reginald Mahadeo was recruited to interview to become an insurance agent. Since he was in the process of determining what career path to take, he figured an interview might be good practice for him. He soon realized that the practice made a perfect fit.

“I ended up realizing it was a great opportunity,” Mahadeo says. “I did that for about seven years, and then I sold my agency to Farmers Insurance and went on the path to become a district manager. I trained for about three years and became a district manager for four or five years. I sold that district back to Farmers and purchased one of the larger agencies in central Texas for Farmers back in April 2019.”

The office of Reginald Mahadeo Insurance Agency Inc. - Farmers Insurance not only offers life/home/ auto/recreational vehicle insurance and financial services, but also has a dedicated commercial department. Led by Gerard Galvan, the commercial department handles everything from construction bonds to the typical business owner policy.

“Clients in the construction industry usually need one of two things when they visit our office,” Mahadeo explains.

“One, they need to be bonded while they do a job. The second thing is they may need evidence of insurance (EOI) in order to be paid by a general contractor for the work that they’ve done. We have people in the office all of the time who can give them an evidence of insurance within 15 minutes or so. Deanna Koster and Kayla Norrell are customer service reps, but I think of them as in-house field underwriters, and they are always in the office. I want clients to know that we are there to serve them and take care of them. We want to establish that relationship.”

“I think the most enjoyable part is when people are happy with what we provide,” he adds. “When things go wrong and we’re they’re for them, they recognize it and are happy we provided it for them. When you get to stand on the promise that you made, and people are happy at the end, it feels good.”

Reginald Mahadeo Insurance Agency Inc. – Farmers Insurance is in Austin. –mjm

Introducing 2020 board

The Home Builders Association (HBA) Greater Austin announces its 2020 board of directors. Front Row L-R: Ross Britton, John Jones, Becky Collins, HBA President Joe Fowler, JHF Homes LLC; Chad Durham, Clare Branson and Hank Smith.

Middle Row L-R: Will Winkler,Lindsay Motley, Nancy Stroder, Miranda Hardin, John Glenn and John Endendyk. Back Row L-R: Charlie Coleman, Eldon Rude, Sean Chandler, Tommy Tucker and Andy Jacobs. -cmw

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Austin Construction News • FEB 2020

excitement of construction and building.

I think I was hooked. From there, I got recruited to PFV Supply, which back then was a pipe fittings supply warehouse, doing inside sales. I got to drive a company truck which had a huge pipe rack on it and learned to drive a forklift and could drive a gooseneck trailer to deliver pipe. I just always wanted to make sure I could do all facets. Eventually, I was recruited to the construction staffing industry in 2001 and in 2008 went out on my own.

Britanie Olvera

Founder/CMO Building Team Solutions Austin, TX

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ritanie Olvera discovered her entrepreneurial spirit at a young age, and founded two constructionrelated businesses as a result. One, Building Team Solutions, places workers who love construction as much as she does with construction companies. It’s full-circle for Olvera, who found her first job in construction through a construction staffing agency, just like the one she has now.

Please share about your background.

When I was young, my mom and my grandmother had a construction final clean business; they cleaned newly built homes. When I was in high school, my dad had a construction company, but I watched that implode in the Savings and Loan recession in the ‘80s. So, I think I got the entrepreneurial gene from both sides, without even realizing it.

My grandparents however, whom I spent a lot of time with growing up, were the biggest influences on me, I think.

They just instilled hard work [and offered the advice] don’t give up, and if you get it wrong, try again until you get it right – just old fashioned values!

How did your career evolve?

I loved sales. I always had a sales job from the time I was 18. I loved landing deals and getting people to sign up or buy. I sold jewelry retail nights and weekends for five years.

But what interested me in my early 20s was construction. I went to a temp agency – ironic, because I now own one! ­– and signed up to get a clerical, or what I saw as a professional, job. They sent me to DSI – Dynamic Systems to the Motorola Moss 11 project in Oak Hill. I wore heels that first day, not realizing I was going to be in a job site trailer – again, the irony of it!

Those guys allowed me to see the

What motivated you to start your own businesses?

At the time in 2008, I was impervious to the recession. I didn’t give it a second thought; I just decided to do it and never look back. The first firm I started was B.I.T. Construction Services Inc.; I started out doing final cleans, and that was just because one of my clients from the staffing world called and said they had to fire their final clean sub, and they asked me if I could come do it on a time-andmaterials basis. I said “yes” without batting an eye. I eventually morphed it into very small interior build out work; the largest project as $250,000.

But I think the love of staffing and knowing how to be a matchmaker, and matching people to great companies, was really my love. So, in 2010, my team and I started staffing pipefitters, plumbers, and electricians out at Samsung. Then in 2012, the staffing piece had gotten so big that I needed to create a stand-alone company for it, so Building Team Solutions was formed.

What challenges did you face as you created and ran these businesses?

I think in any business, whether you’re a start-up or a seasoned business, the challenges are cash flow and managing people. It’s your staff, those you hire in your organization to execute the daily tasks that keep the machine going. I could properly teach someone more of what not to do, than what to do.

I think I have experienced every major hurdle you can imagine – and I did it wrong lots of times. But in doing it wrong, I learned, I try to correct it and do it better next time. I think it’s made me more resilient and definitely has increased my faith!

What lessons did you learn?

First, pray in the good times and the bad. Second, be grateful and thankful for each lesson. Third, budgets work if you work them. Fourth, don’t overextend your credit; don’t borrow too much. Fifth, know what your 12-week cash flow looks like; some companies might need to know the six- month cash flow. Sixth, don’t roll over every time someone tells

Britanie Olvera depends on faith and a strong business sense to run Building Team Solutions.

you they can get a better price; let them go get a better price. There is always someone willing to pay for quality and dependability. Seventh, don’t hire internal staff based on your budget; hire based on your need. Sometimes you pay more to hire someone more qualified – do it. It pays in spades to hire up! Eighth, give back. Don’t forget to help those in need and use your success to better others.

What advice would you give others seeking a career like yours?

Get your head checked first! No, I’m kidding. I have always told anyone wanting to get into the staffing recruiting field that you either love it or hate it. I think it’s the most rewarding and gratifying job you can have, but it’s hard work and has tough days. I have stories of people that got on through us as a tempto-perm employee and went on to become superintendents with those companies we staffed them with. This career pays you in spades! Research the industry; go to work for an agency as a junior recruiter, sales or admin. Learn the industry and get a mentor.

What do you enjoy most about your work?

Besides what I just mentioned, I enjoy helping someone make a connection with a solid company that they can grow with and watching that person evolve and grow in their career. I enjoy hearing stories from companies about how great an employee has been or how an employee really made the difference for that job or project.

Did you face unique challenges as a woman in a predominately make industry?

Of course, but you have to know your boundaries and set them. I chose a long time ago to set those boundaries and not veer from them. I think at the job

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sites I went to, the men I dealt with knew I was there to do business. I made great friends along the way and mentors who encouraged me and inspired me. I made it a point to know their wives’ and kids’ names, asked about their family and even invited them to bring their wives to lunch! I would give supers and PMs tickets to an event and tell them “bring your wife/spouse/girlfriend.” Again, I think it’s all in how you view yourself and how you carry yourself – but this is important in all situations for both men and women!

What do you enjoy in your free time?

I love to volunteer and have some really important organizations that I love: PEP Prison Entrepreneurship Program and EWOP (Empowering Women of Purpose) – think “Shark Tank” but in prison. I believe in second chances; we have all had them and needed them.

My second passion is old homes and restoring them! That will be my next career when I grow up.

What are your future professional and personal plans?

I recently hired a president, Bob Brown, to help take us to the next level and help us grow stronger and better. We are looking to really expand our direct hire perm placement (headhunting division) working with contractors across Texas and the nation. I think this is the first step in me handing the company off one day.

We have an amazing team, amazing staff and they really love what they do and care about our clients. I think 2020 will be our best year yet. We don’t need to be the biggest – we just want to be the best! Then one day, I will ride off into the sunset to go restore old houses in my golden years!

Building Team Solutions is a construction staffing agency in Austin and Dallas. – mjm

Texas Style

H San Antonio H Austin

Christmas at the Archer

oeris General Contractors shared photos from their Christmas Party held at the Archer Hotel near The Domain on Dec. 17. Employees enjoyed a festive meal and plenty of fellowship as they gave thanks for a wonderful 2019. -cmw

Austin Construction News • FEB 2020

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ackie and Gabe Gotsche started their business before they wed, which is how Jackie came to be the “S” in G&S Mechanical. Back then, she was Jackie Sopranski, a Buda native working in property management. She didn’t know much about the air conditioning world when Gabe, an air conditioning whiz from New Mexico, suggested they start G&S Mechanical in 2008.

“I had a lot to learn about running a business, but I learned as I went,” Jackie says. “Luckily, I had experience running offices even though I didn’t have a lot of air conditioning experience. We started it from scratch, just the two of us. He would do all of the service work. When we had a replacement, I would go be his helper. I helped to do the installs with him from the beginning and as we grew, we took on employees. We went from just the two of us to three people, then four people and now we have 15 employees. I

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Growing & Staying

The G&S Mechanical team

feel like we started growing slowly just because we didn’t want to take out loans.

We just did what we could do and it’s grown to what it is.”

Jackie says as the business has

grown, so has her skill set.

“Gabe’s very good at teaching. I learned a ton in the 10 years I’ve been doing this. Now, I can help diagnose things over the phone,” she says. “It’s

At your service

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traight out of college, partners Alfonso Masso, Francisco Burciaga and Andres Cardenas were looking for something to do. While attending college at Baylor University in Waco, Masso and Burciaga participated in an entrepreneurial presentation project prior to graduation. It was done so well that their professor reached out to the owner of Restoration 1.

Restoration 1 team

After touching base with Restoration 1’s owner, the young partners were on their way to becoming franchise owners of Restoration 1 of Austin. In three short years, they grew their franchise way beyond their own expectations.

Cardenas, who graduated with an accounting degree, went on to Houston to crunch numbers. After going to Austin for a

visit with his college buddies, the three started talking and a month later, Cardenas left his job in Houston and started Restoration 1 in San Antonio. While the company is very new to San Antonio, Restoration 1 of Austin won franchise of the year in 2019.

The company performs restoration and remediation services and works primarily with plumbing and insurance com-

been great.

“We’ve been in Hutto for about 10 years; we service the entire Austin area,” she adds. “For construction jobs, we’ll go to San Antonio, Houston, and pretty much anywhere in the surrounding Austin area. We do small residential service and preventative maintenance, residential new construction and commercial new construction.”

Hutto is where G&S is staying, but commercial construction is where it is going.

“This year, we’ve done a lot more commercial construction than we have in the past; that’s something we’ve been able to grow into recently. We have a daycare in Leander that we’re working on, jobs in the Cedar Park area, and an apartment remodel in Smithville. That’s a lot of what we’re venturing into.”

Subcontractor G&S Mechanical offers HVAC installation, sales and service. –mjm

panies. They help their customers, some of which are home owners and landlords, both residential and commercial with water damage, mold remediation, fire and smoke damage.

“We pretty much go in and save everything we can. Anything that is impossible to dry out, we take out. We do everything we can to keep the customer happy in their home or their business without delays,” says Cardenas.

Restoration 1’s franchise headquarters, located in Waco, has over 250 locations across the country. The company has been in operation for seven short years and continues to grow.

The new San Antonio location exceeded its first goal in a number of weeks securing 10 jobs.

Restoration 1 is full-service restoration/ remediation contractor. -cmw

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Austin Construction News • FEB 2020

Don’t go changin’

Industry FOLKS Donna G. Stewart Safety Manager, Austin Region

Big State Electric Austin, TX

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T

Asphalt Care of Texas’ Loma Cox and Bernie Smith

his year, Asphalt Care of Texas celebrates five years of operation.

Owner Bernie Smith, however, has worked in the industry for 30 years, first in Florida and now in Coupland, where he moved to help care for his fiancee Loma Cox’s parents.

Together, and with foreman Joshua Coleman’s help, the couple has grown the company to just the right size.

“We have grown as much as we want it to,” Smith says. “I’ve been there before [when growth became too much]. I like it the way we are. One, we have control because everybody knows what they have to do. We just go and do it and it makes all of our lives easier. I don’t want to get really big because we’re on every job together. It keeps problems down, not only for us but for our customers as well. If they have a problem, they can either come talk to Josh, come talk to me and if there is a problem, we fix it. Plus, I don’t want to change too much; I’m an older guy and I’m kind of a dinosaur!”

Loma, who is the head of operation who schedules the work, sends Smith

and Coleman to jobs as far as San Antonio, Temple, Dallas and College Station.

Bernie calls her the “Boss Mom” and says that sometimes, she’ll let him wear the boss hat and run the show.

Coleman, who has worked for Asphalt Care of Texas for nearly three years, says the team is close-knit; he even lives in one of Bernie and Loma’s houses and vacations with them. He loves the freedom of the job, while Bernie enjoys improving something in disrepair.

“You come to a job that doesn’t look very pretty and when you leave, although it was hot and dirty, you actually did something tangible and it looks better.

Then, a couple of weeks later, you’re at another location,” Bernie says.

As for the future, the team plans to add chip sealing to the seal coating, line striping, asphalt crack filling and repair, parking lots and speed bumps they currently offer. For now, though, they like things just the way they are.

Subcontractor Asphalt Care of Texas is in Coupland. –mjm

rowing up in Lubbock, TX in the late 60s and early 70s was pretty much the same as growing up in any other medium-sized Texas city. Stewart went to school, attended church services and family was the biggest influence in her life. That is until her family moved to El Paso, TX her sophomore year of high school. That was an entirely new experience for Stewart.

“I absolutely loved the diversity in people, customs, language and culture.

It helped me become a more rounded person.”

Stewart’s professional career began after having children and going through a divorce. She went to college late in her adult life while working full time. She attended Phoenix University where she got a bachelor’s degree in construction management.

“Construction was my first job after my divorce. I’ve loved the industry so much that I never left it. I chose construction management to progress in the construction field. Construction is the only industry I had worked. As it turned out, I was able to move into safety management from there and have been in love with the safety industry from the start.

“I believe everyone has a calling and safety is mine. As area safety director, teaching our employees to think and live safety is my passion. If we teach them correct processes and policies and then hold them accountable, you have a safer workplace, fewer injuries and more people working and making a living for their families.”

Stewart has had a couple of mentors over the course of 23 years since enter-

Resource Guide

Associations and Construction Education General Contractors Service Providers

Service Providers

Suppliers

Truck & Equip Dealers

Subcontractors

Subcontractors

ing the construction industry. The first one, early in Stewart’s career, was a woman who taught Stewart everything about construction office management. She was strong but kind, articulate and never let you forget how important you, as an individual, are.

Her second mentor is a gentleman who is still one of her best friends. He is a superintendent who taught her more about the building and scheduling of construction projects, making her a more effective safety professional.

Stewart has four adult children: Tiffany, Amber, David and Lacey. Their interests are primarily family and career pursuits, which are as diverse as the four children they are. She is the proud grandmother to six granddaughters and three grandsons that range in age from 9 to 23.

Three years ago, Stewart bought a small farm. She has two dachshunds and one half German Shepard/Great Pyrenes, one cat, a baker’s dozen of laying hens and one amazing rooster. “I love living in the country.”

Aside from work, Stewart’s interests are all about building her little farm. “I have an aquaponics greenhouse planned for this year. Gardening and caring for my animals are among my interests and hobbies.” She crochets and quilts to relax, and spending time with her family is what she does for fun. “We were able to I-Fly together this last year, and it was so much fun. I will do that again!” -cmw

Suppliers Truck & Equip Dealers

List your Company for Reference For Info, Contact: Dana Calonge Dana@ConstructionNews.net Buddy Doebbler Buddy@ConstructionNews.net

Austin Construction News • FEB 2020

Page 7

Frightening IRS Notices

Understanding Liability Coverages in Construction Litigation

Kathleen Dvorak, CPA RidoutBarrett San Antonio, TX

Kevin McCarthy, Vice President Property & Casualty Insurance IBTX San Antonio/Dallas, TX

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h, that sinking feeling when you find an IRS envelope in your mailbox and you are not expecting a refund check. With high anxiety, you slit open the envelope knowing bad news lies therein. “The IRS says I owe how much?”

If a significant portion of what the IRS says you owe is for penalties, I may have some good news for you. There is a possibility you may qualify for penalty abatement. It may be worthwhile to work with the IRS in an effort to have the penalty abated. If penalties are successfully abated, interest related to those abated penalties should also vanish.

Some helpful IRS agents will actually work with you or your appointed representative to maximize the abatement of penalties and related interest. The IRS has a program allowing eligible taxpayers to receive a First-Time Abatement Waiver. Certain types of penalty assessments may be abated if the taxpayer has not been assessed the same type of penalty within the prior three-year period, and if the taxpayer is otherwise in compliance. If a taxpayer has an installment agreement in place, and he or she has been making timely payments in accordance with the terms of the plan, the taxpayer is in compliance and may still qualify for the abatement. However, before using this get-out-of-jail-free card, taxpayers assessed with penalties should first consider if they may be eligible to have the penalty removed “for cause” and save that First-time Penalty Abatement for a possible future need.

Tax practitioners have available to them, an IRS Tax Practitioner’s Hotline which allows practitioners to work on behalf of their clients with agents who are generally knowledgeable, helpful and frequently authorized to correct issues and grant certain penalty abatements over the telephone at the time of the call from the tax practitioner.

There are other options available to qualifying taxpayers with tax, penalty and interest assessments they are not able to pay in full. These include Installment Agreements, a status of Currently Non-Collectible or an Offer-In-Compromise. If a taxpayer is unable to pay a tax debt in full by the due date, he or she may be able to obtain an Installment Agreement and make monthly payments over time. Penalties and interest continue to accrue on the unpaid bal-

ance, so the best option is to pay it off as quickly as possible.

Taxpayers finding themselves unable to pay a tax debt in full over the time required by an Installment Agreement, may be eligible for a Currently Non-Collectible status, or an Offer-InCompromise. There are many issues involved with Installment Agreements, Currently Non-Collectible determinations and Offers-In- Compromise. Offers-In-Compromise have become very difficult to obtain.

Depending on the amount owed and the type of relief requested, taxpayers should be prepared to provide complete financial information to the IRS. Such information includes disclosure and support for assets and liabilities, copies of bank statements, and sources of revenue and monthly expenses. The IRS has established standard cost of living expenses for determining eligibility for tax relief programs. These standard amounts are often much lower than what the taxpayer actually spends and may greatly limit the availability of such relief programs.

If you find yourself caught up in such a predicament, please know that you may have options for some relief. My best bit advice is that you never ignore those IRS notices. The IRS will most likely pursue aggressive collection action if their warning letters go unanswered.

Such action may include liens on property, levies on bank accounts, wage and social security garnishments, putting a freeze on the taxpayer’s passport, and even contacting the taxpayer’s customers to require that the customer pay the IRS any money the customer owes to the taxpayer.

Kathleen Dvorak is a CPA and Shareholder at RidoutBarrett in San Antonio, TX. She obtained her CPA license in 1988 while working in private industry. Kathleen went into Public Accounting in 2001 and joined RidoutBarrett as a department manager in 2005. She became a Shareholder of the firm in 2011.

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notable trend in recent years has been the increase in construction litigation related to allegations of faulty workmanship, use of defective materials and breach of contract. These allegations present a unique challenge when it comes to insurance coverage, particularly when they are the only causes of action alleged in the pleading. In these cases, the lines between various insurance coverages begin to blend which makes it difficult to determine where coverage, if any, may exist. Let’s look a little deeper into specific lines of coverage to determine where we may find coverage.

If you receive a lawsuit or demand related to your work on a construction project, the Commercial General Liability (CGL) policy is typically the first place to look. Simply put, coverage is triggered via the allegation of bodily injury (BI) or property damage (PD) to a third party that resulted from your operations. However, coverage is excluded for “your work”. This means, if ABC Roofing installs a roof improperly (let’s assume the scope of the contract was only to install the roof), resulting in water intrusion to the building and causing damage to drywall, structural supports, and warping of hardwood floors. ABC Roofing’s GL policy would provide coverage to repair/replace the damaged drywall, structural supports, and hardwood floors (this is property damage to the work performed by a 3rd party). What it would not cover, is the cost of labor and materials to replace the roof, as it is technically “your work”.

What if there was an issue discovered with installation of the roof 2 years after the completion of the project (assume it is outside of the warranty period)? There is visual cracking to the roof membrane and the flashing is starting to pull up, but there has been no water intrusion to the building. ABC Roofing is sued for faulty workmanship, use of defective materials and breach of contract. While this feels very much like a general liability claim, there is no bodily injury or property damage to a 3rd party to trigger coverage. In this scenario, we will have to look elsewhere for coverage.

A professional liability policy is another potential place to find coverage in the scenario outlined above. For coverage to exist via a professional liability policy, the design of the roof would need to be part of ABC Roofing’s scope of work and a design error would have to be alleged as a cause of action in the pleading.

There are two critical elements of professional liability coverage. 1) The alleged damaged must be the result of a “wrongful act” and 2) the wrongful act was committed in the performance of “professional services”. The potential issue here is that it is difficult to determine without significant investigation. Whether the issues with the roof are attributable to faulty workmanship/use of defective materials or poor design would likely be a vigorous debate in a claims scenario.

A twist on the scenario above is that the roof design is within ABC Roofing’s scope of work; however, ABC Roofing hires XYZ Engineering to design the roof on their behalf. XYZ Engineers is experienced, well respected, and has adequate professional liability insurance. As a result, ABC Roofing decides not to purchase professional liability insurance. They have an airtight contract with XZY Engineer-

ing and ABC Roofing feels XYZ’s insurance will pick up any claims related to the design of the roof. The issue here is ABC Roofing has the direct contractual relationship with the prime contractor. The prime contractor is likely going after ABC Roofing, not XYZ Engineering, for alleged faulty workmanship and improper design. Unfortunately, ABC Roofing will have no coverage in place to provide a defense (GL will not cover faulty workmanship and they have no professional coverage). ABC will have to attempt to pass along the claim to XYZ Engineering and hope their professional coverage will provide a defense and not assert the true cause was faulty workmanship. Hiring an engineer to design your work on your behalf does not eliminate the need for a professional coverage, no matter how strong the contractual relationship may be.

The last coverage option is Contractor’s Errors & Omissions. This coverage is typically only available to subcontractors. Similar to professional liability coverage, Contractor’s E&O will provide coverage for negligent acts by the insured or someone acting on their behalf while performing design services. Where this coverage differs from professional liability is it can provide coverage for faulty workmanship and the use of defective materials. A well designed Contractor’s E&O policy would likely provide coverage to ABC Roofing in all of the scenarios outlined above.

A word of caution, professional liability and Contractor’s E&O policies can vary greatly from carrier to carrier. Unlike the standard CGL policy, which has consistent “base” policy language that is then tweaked by each carrier with endorsements to make it their own, no two professional liability or E&O policies are exactly same. Even policies provided by the same carrier can vary depending on how the policy is constructed with various endorsement and exclusions.

I anticipate these types of claims to become more prevalent in coming years and they can be very frustrating to deal with. I would recommend discussing these coverages with your insurance advisor next time you meet. These policies are nuanced and coverage for any claim will depend on the individual characteristics of that claim. No two are alike. I learned early in my career, the most common phrases you will hear from a liability claims adjuster is “I don’t know, it depends”, “what does the contract say” and “maybe”. Please use this as a starting point to further conversations about how you can better protect your business and remove some of the uncertainly that exists when it comes to construction litigation.

As a Risk Advisor, Kevin works with companies to assess and reduce their overall total cost of risk by providing holistic risk management solutions. He has an extensive background in a variety of areas within the insurance industry including finance, reinsurance, and underwriting experience in professional liability, surety, and property & casualty. This allows him to bring a perspective on risk management and insurance to his clients that is unique from many others in the industry.

Kevin McCarthy (469) 858-1841 mobil Kmccarthy@ib-tx.com

Page 8

Austin Construction News • FEB 2020

Put it in Writing: Managing Risk with Construction Contracts

OSHA’s On-line Reporting Requirement

Nicholl Wade, Construction Attorney Allensworth & Porter Austin, TX

Joann Natarajan Compliance Assistance Specialist OSHA Austin, TX

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hen beginning a new project or trying to close a deal, it can be tempting to rely on another party’s contract or use a form contract from a prior project. It can also be tempting to avoid negotiating terms of a contract in an effort to move the project forward. Unfortunately, if something goes wrong, most parties will be quick to point fingers, and the clarity of the contracts’ terms will suddenly skyrocket into critical importance.

Thus, it is worthwhile to spend the time, and sometimes the money, to closely review and carefully negotiate the terms of the contract before signing, rather than litigating over those terms once a dispute arises. Even if each term is not negotiated to all parties’ satisfaction, a searching review of the contract before signing it can provide clarity on where their respective risks lie.

What follows are some key considerations to help you mitigate risk in construction contracts. While not an exhaustive list, it’s a good place to start when thinking about your next contract.

Use a Written Contract that is Executed by Both Parties Parties can sometimes rely on oral agreements, letter proposals, or quotes to set forth the terms of an agreement, especially if there is a tight deadline to begin construction or the agreement is with a returning client. The biggest danger in relying on an oral contract is that if a dispute arises, and the parties disagree over the terms of the agreement, the prospect of litigation escalates dramatically. In this type of scenario, the outcome will depend entirely on oral testimony. This creates a significant risk for each party because their claims will rest solely upon the credibility of their witnesses, who may not even be employees by the time trial comes around. Therefore, regardless of the relationship between the parties, an agreement should always be in writing.

Although written proposals and quotes will serve parties better than an oral agreement, relying on these agreements can still create a substantial risk if the proposal or quote does not address essential terms. Key terms may include a detailed description of the scope of work, when payment is due, handling of reimbursable expenses, insurance requirements, dates for substantial and final completion, notices for default/opportunities to cure default, changes in the scope of work or price, termination procedures, and the forum and process for dispute resolution. This list is not exhaustive, but it does illustrate some of the detail necessary to protect a party’s interests and define the parties’ responsibilities for the project—something that’s difficult to accomplish in a one-page proposal or quote. On a final note, because an agreement is much more easily enforced against a signatory to a contract, all parties should sign the agreement.

Use Detailed Consequential Damage Waivers

Consequential damage waivers have become more prevalent in the construction industry and work to define and limit the parties’ exposure for damages in the event of a breach. Because there is some debate over the definition of consequential damages, parties should define these damages as much as possible within the contract. From an owner’s perspective, these costs may include loss of use, business interruption, or lost profits. For a contractor or subcontractor, consequential damages might include delay-related costs, such as loss of use of equipment, acceleration, or loss of productivity. A specific definition within a consequential damage waiver may help in avoiding confusion for the parties because they will have an idea of the level of exposure in the event of a breach.

Supply a Framework for Termination Termination is a drastic step and should be used, if at all, only after exhausting all reasonable attempts to find another solution. Even though an owner has the common-law right to terminate a contract in the event of a contractor’s material breach, the parties will be wellserved by including specific termination procedures—very much including notice and cure protocols, if any—in the contract. A contract should also distinguish between terminations “for cause” and “for convenience.” Terminations for cause can usually only occur if a party cannot fulfill its contractual duties. On the other hand, termination for convenience allows for termination in the absence of a breach. Additionally, a contract can include a provision that converts a wrongful termination for cause into a termination for convenience. These provisions are generally enforceable and give some latitude in deciding to proceed with termination on a “for cause” basis.

Evaluate the Amount of Liquidated Damages Liquidated damages provisions frequently appear in construction contracts.

A liquidated damages provision in a contract will quantify the amount of damages a contractor will owe if it breaches a contractual obligation, such as a delay in reaching final completion. From an owner’s perspective, liquidated damages may provide an incentive for a contractor to complete a project on time. On the contractor’s side, liquidated damages may serve to limit liability. Parties should, however, consider whether the liquidated damages are appropriate for the project at hand. To protect themselves against under-compensation in the event of a delay, project owners should evaluate whether the liquidated damage amount is adequate to cover potential delay losses. Similarly, contractors should also evaluate the amount of proposed liquidated damages to guard against potential over payment. And if you want it to be enforceable, do not call it a “penalty.”

Summary A critical part of any construction project is the contract drafting and thorough understanding of the key terms of the contract. There may be no single “right” clause for every construction contract, but every project deserves its own agreement—and understanding the major issues and resulting responsibilities will help the parties tailor contract clauses and improve clarity. Thoughtful contract drafting is one of the most powerful vehicles available to allocate responsibilities and risks, so treat them accordingly.

Nicholl Wade is a construction attorney at Allensworth & Porter where she helps clients across the construction industry solve problems and put disputes to rest. To reach Nicholl, please contact nbw@aaplaw.com or visit aaplaw.com.

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mployers with more than 20 employees that are required to maintain the OSHA 300 occupational injury illness log are required to go to https://www.osha.gov/ injuryreporting/ and report the totals from the OSHA 300A summary between January 2 and March 2 for the prior calendar year. For calendar year 2019 and beyond, OSHA is collecting employer identification numbers in the submissions.

Many employers with more than 10 employees are required to keep a record of serious work-related injuries and illnesses. (Certain low-risk industries are exempted.) Minor injuries requiring first aid only do not need to be recorded.

Though employers in certain industries are required to maintain the OSHA 300, only those employers that are required to keep the OSHA 300 and have more than 20 employees at an establishment covered by the rule are required to submit data. Employers with multiple business locations doing different business activities are required to report those locations with a North American Industrial Classification Code that is required to maintain the OSHA 300 and has at least 20 employees. Each employee must be associated with a physical establishment location, so workers that do not report to a facility daily, must still be associated with an employer location for recordkeeping purposes. OSHA regards OSHA 300A data submitted by employers into the injury tracking application on the OSHA website as confidential commercial information and will not release it to the public.

How does OSHA define a recordable injury or illness tha is required to be recorded on the OSHA 300 log?

• Any work-related fatality • Any work-related injury or illness s

that results in loss of consciousness, days away from work, restricted work, or transfer to another job • Any work-related injury or illness requiring medical treatment beyond first aid • Any work-related diagnosed case of cancer, chronic irreversible diseases, fractured or cracked bones or teeth, and punctured eardrums • There are also special recording criteria for work-related cases involving: needlesticks and sharps injuries; medical removal; hearing loss; and tuberculosis.

The OSHA 300 log, 301, and 300A records must be maintained at the worksite for at least five years. Each February through April, employers must post the OSHA 300A summary of the injuries and illnesses recorded the previous year. Also, if requested, copies of the records must be provided to current and former employees, or their representatives.

OSHA has a recordkeeping advisor that can be used to determine if a workplace incident must be recorded which can be accessed at: https://webapps.dol.gov/elaws/OSHARecordkeeping.htm natarajan.joann@dol.gov 512-374-0271 x232

Submitted to Construction News

Round-Up

Phil Wooten, CPA has been named partner at Ridout Barrett.

Wooten has been part of the Ridout family for two years bringing 15 years prior experience to the team. He is a LSU graduate and a licensed CPA in both Louisiana and Texas and heads up Ridout Barrett’s Austin office. -cmw

Austin

Round-Up Submissions

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

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Austin Construction News • FEB 2020

Page 9

New Year Resolution: “Fish More”

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.

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ell, here we go crashing into the 2020 fishing season with unseasonably warm weather so far since the New Year. Weather patterns have been mild with temperatures hovering around the mid to upper 70s in the day and low 60s at night. We have seen a few days where the highs reach the mid 80s making it feel like winter is over. All of this is good news for the upcoming fishing season, but don’t count out colder weather for late February. I’ve seen bitter storms arrive late into February and into early March, so be prepared for the unexpected.

My 2019-2020 deer season has come to a close and I must say that I’m glad for that. The ranch that I guide on has been very dry and dusty due the lack of rainfall in 2019. As my hunting buddy and ranch biologist Chris Huey says, “The inconsistent rainfall is becoming consistently more inconsistent.”

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Herman Hernandez was quick to set the hook when this 28-in. redfish hit.

Several reds came on the trip with limits out trout. Book your trips now with Steve Schultz Outdoors.

When drought occurs, ranchers must decide how best to manage their herds to avoid economic losses. This theory applies to both livestock and wildlife.

All and all, it was a very successful deer season. However, I’m ready for some salt life therapy. February weather should be the deciding factor on how spring will play out. A milder weather pattern will get us off to a great start on trout and

1, 2, and boom!

t was parachutes instead of party attire when G&S Mechanical celebrated the holidays last year. After owners Jackie and Gabe Gotsch gushed about going skydiving for their anniversary, their employees asked to be taken up, too. So the couple took their entire team to Lexington’s Texas Skydiving.

It was a thrill employees Tamie Lamme and won’t forget. Although both resisted jumping out of a perfectly good plane, they did it.

“John and I were partners,” Lamme says. “He said he was okay until I jumped because once they open the door, you stick your feet out and they’re dangling from the plane. At that point, you’re stuck; you’re already strapped, the door opens, and the wind is gushing. The instructor says, ‘I’m going to count to three,’ but he doesn’t get to three; it’s “One, two, and boom! You’re out, and you have an intense rush in your stomach. After that first 20 seconds, you’re floating. I felt like I was Buzz Lightyear! You feel like you’re flying.”

“It’s such a surreal thing to see your shadow above the clouds,” Grimes adds.

“It was gorgeous, and for anyone who hasn’t done it, I totally recommend it,” Lamme says. “When

John and I both landed we said, ‘That was the greatest experience of our lives!’ It was a high. Exhilarating. I’m ready to go again!’

“I’m doing it again, too – I have a coupon!” Grimes says. “It was fantastic.”

“We’ve done Christmas parties at Topgolf and other places and I ask Jackie, ‘How are you going to top this next year?’” Lamme says. “We’re just going to have to do it again.” -mjm

L-R: John Grimes and Tamie Lamme

reds, either out of the boat or wading the rocks in Baffin for some big girls. I’m hoping weather stays warmer because January fishing was off the charts. Limits of trout and drum were not uncommon on the charters I took out with live shrimp and soft plastics. Scattered reds came mostly on wading trips throwing Gambler Flappin Shads soft plastics and MirrOlure’s soft-dines in shallower water

outside of inlets where back bays drained.

Most common colors on the gamblers were, Laguna glass, Acid and Hopper and pink and pearl soft-dines. When fishing from the boat over deep structures, live shrimp under a popping cork has dominated in the bite department. Lures are catching fish also, but a live presentation gets more action. I’ve been using a new popping cork made by 4 Horsemen tackle in Louisiana. These handmade corks are tough as heck, made with a strong stainless wire and a coated cork. They have great sound and don’t get tangled up during the cast or when popping your cork. They are available in 3-in. and 4-in. poppers and oval style as well with several different colors. I’ve been using these corks since last summer, and I can attest that they are the best popping cork on the street today.

When planning your upcoming trip, one thing you can control is the time of the month when the moon phase is in your favor. First quarter and new moon or dark moon times are best, especially in cooler months. Anytime you fish near a full moon, you will experience dead times during the day that can be frustrating.

Fall and winter weather patterns are unpredictable at times, so you’re at the mercy of what mother nature throws at you.

Take time when planning your trips and call me for advise if needed.

My 2020 fishing calendar is open and I am steadily booking trips for the new season, so don’t hesitate to call. To schedule your next bay fishing trip or hunting trip, give Capt. Steve Schultz a call at 361813-3716 or e-mail him at SteveSchultzOutdoors@gmail.com. Follow me on Facebook and Instagram.

Good Luck and Good Fishing.

Page 10

Austin Construction News • FEB 2020

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

Quick . . . Where’s my Fishin’ Hat?

T

he fish are already going crazy out there! My catfishing buddy keeps coming in with good stringers, a 17 pounder on rod and reel is his best so far this year. Crappy are already showing up ready to bite, white bass are thick and about to do their run and the stripers and hybrids are coming on!

It has been a really weird “winter” so far. Looking at the garden, I see stuff that shouldn’t be waking up for several weeks yet trying to come to life. Was that cold snap a few weeks back all winter is going to do? No, probably not. Real winter will likely reappear in March… Who knows, its Texas weather and it’s getting wilder and crazier with each passing year.

That kind of weather makes fishing more challenging. When you have definite seasons you can know where the fish will be and why they are there and what they want to eat. With Texas pot luck weather, you don’t know from one day to the next how to dress, much less how to fish. The only thing that really matters is what the fish think is going on. The only solution is to be ready to try EVERYTHING.

We had a string of nice warm, sunny days; the fish start to think it’s time to move into shallow water to find dinner and a date. Uh-oh, cold front blowing in, high pressure settles in, they go deep and vow not to eat ever again…until the weather changes.

It’s not as impossible as it may sound for us fishermen. We got the big brains, we can figure this out, and the rewards can be amazing. For one thing, everybody won’t be after the same bunch of

fish because they are not necessarily in the same places or at the same times the other fishermen were expecting.

Probably the best tool you have for this kind of fishing is a really good weather report. This day and time you have no excuse for not having a really good reliable weather forecast app and a good clear weather radar app on your phone. I still can’t believe the people I see heading out on the lake in their boat like all is well when radar shows approaching storms.

Out on the water is the worst place to be ignorant of the weather. Watch your local weather forecast so you know what to expect, and then check out the forecast for the body of water you expect to fish.

Sometimes the weather can vary enough in the space of two counties to make or break a fishing trip.

The next thing you need is good fishing intel from a trusted source. Sadly, a lot of fishing reports you find in media are just generalized descriptions of what should be happening for a given time of year.

They may not be based on what people are actually catching in real time. Fellow fishermen and local bait shops can be helpful here. This is where the services of a good reputable fishing guide can really be helpful. Fishing guides fish because their life depends on it. It is their job to know what the fish are up to each day. Don’t expect them to give you free advice, just

I

f you see Bernie Smith of Asphalt Care of Texas proudly showing off photos on his cell phone and cooing about the new “babies,” he’s talking about the four new Longhorn calves that were recently born on his Coupland ranch. The bundles of joy bring his Longhorn count up to 22, and even Bernie is surprised how much he and his fiancee Loma Cox enjoy caring for cattle.

“When we bought the ranch, we had to raise our hand at settlement; they wouldn’t sell us the ranch unless we gave

book a fishing trip and see how much you can learn from him. It might save you a lot of trial and error cash on the long run!

Weather’s nice today, I’m outta here!

Gone Fishin’!

Baby pictures the cattle a forever home,” Bernie says.

“It’s been five years, and do we buy big bags of carrots at Costco because they love carrots? Yes, we do! We spend a lot of money on hay, too. When the cows see me, they run out mooing because they know they’re going to get the cattle cubes and the cotton seed. I can rattle a bucket of cattle cubes and they are stampeding. When we buy too many vegetables and can’t eat them fast enough, they get all of the vegetables.

The other cows in the neighborhood get

wet, and we have huge a barn just so our cows don’t have to sit out in the weather.

They are very spoiled.

“I always wanted a ranch,” he adds.

“And because I watched too many John Wayne movies growing up, and John Wayne never pushed Angus cows, we now have longhorns. Now I’ve turned into a really bad rancher and we have all of these pets!”

Smith is about to have more: He estimates that another four “babies” will arrive by spring. –mjm

Austin Construction News • FEB 2020

Page 11

Next-level expo

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ustin’s Palmer Events Center set the scene for the Austin Build Expo held Jan. 15 and 16. Attendees had access to more than 100 construction-related vendors offering the latest in goods and services. Guests also learned about industry trends at the more than 20 workshops offered at the event. –mjm

HOLT CAT

G4 Spatial Technologies

Alpha Paving Industries

Cantera Doors of Austin

2-C Equipment LLC

Clements Paint & Decorating

Pella Windows & Doors of Austin

Blue Diamond MEP/American Standard

Ram Jack

Lone Star Paving

Goodman Distribution

Pacific Shore Stones

Allied Stone Inc.

Your Granite Dream LLC

CND Signs

Electrosteel USA

Enchanted Rock & Landscape Supply

Legacy Glass & Mirror

continued on Page 12

Page 12

Austin Construction News • FEB 2020

continued from Page 11 — Next-level expo

Chemcore Industries Inc.

Leinneweber Services

Air King

Triton Stone Group

Asphalt Care of Texas LLC

Waterloo Outdoor Design Build

Redbox Plus Austin

The Chism Company

Camsolar

RenoRun Inc.

CMD Group

G&S Mechanical LLC

Gutter Tech

Austin Air Conditioning Inc.

Valiant Works LLC

San Marcos Iron Doors

Northville Cabinetry

Cardell Cabinetry

continued on Page 15

Austin Construction News • FEB 2020

Page 13

Happy hour with Santa

Industry FOLKS

M

Augustine Verrengia, PE

embers of the Greater Austin Contractors and Engineers Association (ACEA) were treated to a special guest appearance from the big man himself at their Holiday Happy Hour at The Flats on Dec. 12. Yes, Virginia, there is a Santa Claus and he was more than happy to take photos with the ACEA members. -cmw

Project Manager

Stantec

Austin, TX

E

arly in his life, Augustine Verrengia, PE had strong influences that laid the foundation for his interest and career in construction.

“Growing up in a house where both of my parents were heavily involved in residential real estate led to a fascination with architecture, construction and ultimately, civil engineering,” he says.

The University of Texas at San Antonio grad began his career in Austin, where he was introduced to commercial land development at Doucet & Associates. He then explored the single-family residential side with other firms, including Carlson, Brigance & Doering Inc. and Austin Civil Engineering Inc. Relocating to the Houston area in 2013, Verrengia focused mainly on public and municipal land development and infrastructure projects for PGAL. There, he honed his skills on projects such as the Holocaust Museum, the Fort Bend County Courthouse, Park West and the Space Center Independent Plaza, before coming to Stantec in 2018.

Verrengia says the best part of his role as a project manager at Stantec is seeing his projects’ impact on the livelihood of the communities they serve, especially in cases that include the revitalization or redevelopment of areas once thought to be unappealing.

“My role at Stantec has evolved over the years to include a mixture of engineering, project management and business development,” he says. “Building on my experience as an engineer, I spend about half my time working directly with a team of engineers, EITs and drafters on project related tasks

including site planning, utility design, storm water management and, most importantly, permitting. The remaining time is divided between project management duties, such as planning, scheduling, budgeting and financial management, and business development outreach which includes my involvement in numerous local and regional organizations.”

Verrengia serves as the American Society of Civil Engineers (ASCE) Texas Section Government Affairs Committee chair and the ASCE Austin Branch Sponsorship Committee chair. He also serves on the Greater San Marcos Partnership Vision 2025 Steering Committee and maintains active membership in organizations such as Real Estate Council of Austin and Urban Land Institute of Austin. He enjoys running at Lady Bird Lake, swimming at Barton Springs, doing yoga, reading and spending time with his wife.

Verrengia was recently honored as his office’s ‘Employee of the Year” which is determined by votes from all of Stantec’s employees.

“Winning an award that is decided on by my peers is extremely fulfilling and brings a whole new level of satisfaction to my job and my role as a manager,” he says. “I look forward to building on this with my team and ensuring that they are enabled to be the best that they can be and achieve great things.” –mjm

Splatter-free tees

The Ashley Custom Painting team will surely add some splashes of color to their pristine company tees when they paint their many upcoming projects. –mjm

Page 14

Austin Construction News • FEB 2020

What are your superstitions?

Haha! No. 1, I will never walk under a ladder. No. 2, I don’t like doing potentially dangerous tasks on Friday 13th. I’m going to stop there, because the others are “old wives’ tales,” not superstitions.

Donna Stewart, Big State Electric It’s not a superstition, but I don’t ever say something hasn’t been broken in a while.

And, in this business, you don’t chew your fingernails.

Royce Courts, Leinneweber Services Never do a big job on a Friday, because if something can go wrong, it will.

John Grimes, G&S Mechanical I went to A&M, and it’s not really my superstition, it’s just one of the things we do.

Everybody has the 12th Man towel that they will twirl at the game, and tradition says that if we win, we’re not supposed to wash the towel. I haven’t washed it in a while. It’s a yellowish-brown color right now, and it’s supposed to be white!

Reese Atkinson, HOLT CAT I’ve had a black cat run across a four-lane highway while I was on the way to a casino.

I stopped and turned around and I did not go that night. What are the odds? I was like, “Alright, God, I heard you: Do not go to the casino tonight!”

Bernie Smith, Asphalt Care of Texas I’m a big OU football fan (my brother graduated from OU) and I’ll start the season wearing a shirt. Usually, we’ll start the season pretty well at OU, but as soon as we start having a bad season, I don’t wear that shirt for the rest of the year. I’ll change immediately and the shirt will be put in the back of my closet & will not be touched until the next season!

Trent Sidle, Legacy Glass & Mirror I don’t have any; I happen to love black cats!

Jorge Bermudez, First Choice General Contracting I wouldn’t say I’m superstitious … but I’m not going to actively stomp on cracks or walk under a ladder!

Marc Vricella, Blue Diamond M.E.P.

If I’m walking with someone and we’re walking toward something in our way that we need to get around, I won’t split and walk around the other side; I’ll take the path the other person does. I do like the radio or the TV channels to always be on an even number. And I always see the numbers 911 and 343 on clocks and things, without trying to. There were 343 firefighters who died in 9/11; I was a volunteer firefighter for three years and it runs in my family. I’m Irish and we’re a superstitious people, although I’m religious, too, so that makes it interesting!

Ryan Mowell, Allied Stone I’m not sure if this is a superstition, but I tend to be too trusting of people, so now I ask for references!

Jesse Navarro, Hill Country Construction I have a philosophy that it’s very important to only talk about the things that you want. We joke around here; my employee will say, ”You know, that time of year … in August …I won’t say the words [“when it slows down”]”, and I’ll say, “Don’t say it!”

We really try to keep a positive spin on things as much as possible.

Marian Mayer, Waterloo Outdoor Design Build I’m a firm believer in karma. I do believe that whatever you do comes back to you, good or bad.

Tim Bowen,

Austin Roofing and Construction I don’t like starting a project in the middle of the week. I like starting projects on Mondays. I think they go smoother. If I start in the middle of the week, it’s too close to Friday and we won’t get anything completed, and I don’t like starting excavation on Fridays because if something breaks, it’s a mess.

Manny Trinidad, Alpha Paving Industries LLC If I lend anything to anybody, like gear or tools, I’m really particular about it. I always think when I’m giving it to them that I’m never getting it back!

Clayton Porter, ATX Thermal Solutions

Association Calendar

Content submitted by Associations to Construction News ABC

Associated Builders & Contractors

Feb. 18: Lunch & Learn Factory Fabricated Mechanical Systems, ABC Offices, 2600 Longhorn Blvd. #105 11:30am-1pm.

Feb. 19: 2020 Economic Forecast, UT Club, President’s Room 6th Flr., 2108 Robert Dedman Dr., 7:30-9:00am. For more info, call Tracey Littlefield at 512-719-5263 or email tlittlefield@abccentraltexas.org ACEA

Greater Austin Contractors & Engineers Assn.

Feb. 13: Membership Luncheon, Norris Conference Center, 2525 W. Anderson Ln. #365, 11:30am.

Feb. 24: Frostbite Golf Tournament, River Place Country Club, 4207 River Place Blvd., 12pm Tee Time. For more info, go to www.aceatx.com or call 512-893-7067.

more info, call Kayvon Leath at 512-9976270 or email kayvon@austinnari.org NAWIC

National Assn. of Women in Construction

Feb. 5: Chapter Dinner Meeting, Hensel Phelps Construction Offices, 8326 Cross Park Dr., 5:30-8:30pm.

Feb. 22: Girl Day, UT Austin. For more info, email austinnawic@gmail.com RCAT

Feb. 4-6: International Roofing Expo, Kay Bailey Hutchison Convention Center Halls B-E, 650 S. Griffin St., Dallas, TX. For more info, 512-251-7690 or email registraton@ TheRoofingExpo.com

Texas Society of Architects

Feb. 11: Lunch & Learn, Maggiano’s in the Domain, 10910 Domain Dr. #100, 11:30am1pm. For more info, contact Wendy Lambert at 512-255-6373 NARI

National Assn. of the Remodeling Industry

Feb. 12: General Membership Meeting, Austin Sunshine Camp/Zilker Lodge, 2225 Andrew Zilker Rd., 11am-1pm. For

continued from Page 1 — First Choice Framing and General Contracting finding new ways to wow his customers.

“We’re starting to get more and more commercial projects; we’re doing two right now,” Jorge says. “We’re doing some law offices in Bee Caves to house new attorneys; we’re taking an old building and bringing it up to modern specs.

“I like both old and new,” he adds. “I really enjoy the old; some of the old structures, the architecture is second to none. Many times, if we’re allowed to, we recycle the old wood into our building and the customer gets a really outstanding quality product that is really strong. I also love building everything out of concrete.”

Regardless of the type of project, Jorge and Emilio strongly believe there are no problems, only solutions, and they’ve made this their motto.

“We have customers who change their minds. I ask them how they would like it to look, and then we fix it right on

the spot,” Jorge says. “When an inspector comes up and says we can’t do something, we ask what we need to do and we can compromise. As long as my customer comes out the winner, I’m good with it.”

If that means he has to roll up and work alongside his crew to accomplish it, Jorge doesn’t play the star.

“We don’t mind getting dirty,” Jorge says. “If we see somebody having a hard time digging a ditch, we’ll go over and help them out. We’ll dig the ditch, break the concrete, we’re helping to frame all of the time. We’re double checking the quality of the window installation and the siding. We really care. We build like we are building them for our families. We want to make sure the customers are happy and they are getting a good quality product.”

First Choice Framing and General Contracting is in Round Rock. –mjm

continued from Page 1 — Blue Diamond M.E.P. Vricella adds. “It really has. Austin is an amazing market.”

While both profess to be laid-back and easy-going, each contributes something unique to the business.

“I would say my strengths are more business-oriented,” Rucker says. “I love the accounting and business aspect.”

“I like going out there and interacting with all of the customers and clients,” Vricella says. “I’ve always considered myself a people person. Really outgoing and also laid back.”

In these early days of business ownership, Rucker and Vricella are learning what it takes to be effective employers.

“Each day is a new experience. I’m learning every day, and Marc learns every day. I think there is two sides to the coin and I always say there is a two-way street for employer and employee. Both are important and both perspectives are important. I

always try to keep that in mind.”

They are also keeping in mind the future plans for Blue Diamond.

“We want continued and controlled growth,” Rucker says. “We always want to provide a high-quality service. As long as we can maintain and control that growth, we want to get as big as we can. One of our builders said a particular project turned out awesome and he thanked us for our service and attention to detail, not just finishing the job but coming out two or three more times after that with small items and taking care of him and his clients. Even from one contractor to another, they just appreciate that. The service goes a long way. That’s our main focus; we just want to provide that highest level of service.”

Blue Diamond M.E.P. is a full-service mechanical, electrical and plumbing contractor in Round Rock. –mjm

Paint love grand?

SEAot

Feb. 7: Construction Awards Banquet, AT&T Conference Center, 1900 University Dr., 6-9pm. For more info, contact Toni Osberry at 512-442-7887 CTSA

into the office, it’s nice to get hellos from everyone. We do monthly team meetings in the showroom and do challenges to win prizes. There are always Halloween and Christmas contests and we’ll go out and do events. Company culture is probably one of the top reasons to work here. That, and the state-of-the-art facility.”

Mowell’s favorite part of his job is seeing the beauty of the product that surrounds, and never fails to, inspire him.

“It blows my mind, some of the inspiration and design I’m seeing nowadays; it’s really far out,” he says. “We, and everyone, have come a long way, and I’m proud to be a part of some of the masterpieces.”

Allied Stone Inc. offers granite, quartz and marble and installation. –mjm

Structural Engineers Assn. of Texas

AGC

Central Texas Subcontractors Assn.

location every year since 2015.

“We started in Durant, OK as a very small granite shop. Now we’re one of the biggest in the state of Texas,” Mowell says.

“We provide all countertop materials, from porcelain to exotic marbles, quartzite, countertops, walls, floors – I’ve pretty much done anything you can do with natural stone.”

At the moment, most of Mowell’s work is focused on Austin’s downtown luxury condos and penthouses, but the demand for Allied Stone has taken him to Houston, Dallas and Oklahoma. Besides the travel and his work, Mowell says he enjoys being a part of “a great company.”

“We have some great leaders in place, and Allied Stone is fun to work for; everyone is friendly,” Mowell says. “I’m out in the field quite a bit, but when I get

Roofing Contractors Assn. of Texas

Feb. 27: Chapter Meeting, Maggiano’s Little Italy, 10910 Domain Dr., #100. For more info, call 512-301-2744

Associated General Contractors

continued from Page 1 — Allied Stone Inc.

TSA

Feb. 28-Mar. 1: Passage 2020 Design Conference, The Plaza Hotel at Pioneer Park, El Paso/Ciuadad Juarez, TX. For more info email Jennifer Hicks at jennifer@texasarchitects.org or go to www. texasarchitects.org.

TSPE

Texas Society of Professional Engineers Travis Chapter

Feb. 27-29: PE Leadership Institute – Class 9 Session 3, Canyon of the Eagles, 16942 Ranch Rd. 2341, 1pm. For more info, go to www.tspe-travis.org

Plumb Masters employee Jennifer Wilson (center) had a (paint) ball with her kids, Kalley (left) and Kolby (right) at the company’s Jan. 20 team building event at Leander’s Texas Paintball. –mjm

Austin Construction News • FEB 2020

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Blooming where planted

continued from Page 12 — Next-level expo

LeafFilter

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Bath Fitter

Skyline Cabinetry

Waterloo Outdoor Design Build’s Marian Mayer

or much of her 20s, Marian Mayer tried to find a place to plant herself.

She pursued a career in software, took a sabbatical, then tried other paths.

After a succession of what some would consider upsetting losses, she marveled at her sudden freedom rather than wallow. She gave software one more shot before teaming up with a pal who was cleaning houses and mowing lawns. It turned out to be the thing that took root.

“I was 30 years old with a degree, but I said, ‘I’ll do that with you. I’ll learn how to start a lawn mower!’ I got out on nights and weekends and started doing this with her. That’s how I realized how much I really wanted to be outside, and how much I liked being in nature; it’s therapeutic. To change properties in our community is amazing. I decided that’s what I wanted to do. For the next year and a half, I built a crew and got a system together and resigned. Over the years, things have grown and grown.”

Waterloo Outdoor Design Build soon bloomed as a business and, when COO Mayer became a busy mother of two, she

recruited reinforcements. Holly Delmonico joined the company as an administrator and Christina Hausle was added as landscape designer. Today, Waterloo offers commercial and residential landscape and garden design, deck design and installation, outdoor living spaces, bbq, kitchens, patios, pergolas and water features.

“When we drive around the city, we see that we’re changing the landscape of our community, and really seeing these amazing buildouts,” Mayer says. “We did a big retaining wall on East 6th, and when you turn on that street, your eyes go right to it. It doesn’t’ matter how far we design a project, by the time it goes in, it looks more incredible than we had imagined.

It’s a cool feeling.

“We want to become a household name. We want to become one of the companies in Austin that when people think landscaping or outdoor construction or design, we’re one of the first they automatically think of because of our reputation.”

Waterloo Outdoor Design Build in Austin offers commercial and residential landscaping and hardscaping. –mjm

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City of Austin ADA Ramps and Bus Stop Project: Walmart – Norwood Mobility Hub

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Capital Metro two-bus bus stop situated at 1030 Norwood Park Blvd. was showing its years of heavy use.

Situated in a Walmart parking lot near the store’s gas station, it had seen its share of comings and goings. When the City of Austin decided to transform it into a sixbus bus stop, it turned to Alpha Paving Industries LLC. “This particular project was part of a larger contract that we had with the city, in conjunction with Capital Metro, which was the public transportation in the City of Austin,” Alpha’s Concrete Division Manager/ Project Manager Manny Trinidad explains. “They had a two-bus bus stop in the Walmart parking lot to service the neighborhood. The scope of work was to improve that to a

Alpha provided nearly 95% of the services for the Walmart – Norwood Mobility Hub project.

Working in a Walmart parking lot by a gas station necessitated safety measures, including fencing.

new six-bus bus station. The scope of our work was to remove the old bus stop and install the new one. Alpha provided all the site work and concrete construction, including 14in-thick concrete paving, sidewalks, retaining walls, bus shelter foundations, storm sewer pipes and inlets, light pole and sign foundations, asphalt work and pavement markings and landscaping. We did about 95% of the work, other than the tree planting. It took us right at 90 days. We had six to seven Alpha employees and when we did the landscaping, we had four guys from our landscaping contractor.”

Although Alpha completed the pro-

ject in an impressive 90 days, the team, which was included Superintendent Juan Beltran, navigated a range of challenges on the project.

“We had some rain. We finished right before Thanksgiving and we had some days that we lost but we made it up on the weekends,” Trinidad says. “Also, this was an active bus stop, and they had to reroute the buses while we were doing the work. They wanted to get the station open as soon as possible because of the upcoming Christmas holidays. It was in the parking lot, which services Wal Mart and the gas station that was right between. We were in a hot spot in there with the delivery trucks and the customers. We were well-signed, though, and had the area barricaded, protected and fenced off, so we protected ourselves in the little hub we worked in.”

Trinidad says The Walmart – Norwood Mobility Hub Project was completed on

A ribbon cutting marked the new six-bus bus stop

After demolishing the old two-bus bus stop, new concrete was poured.

schedule and to the great satisfaction of both the City of Austin and Capital Metro.

“It made the news; they had a big ribbon cutting ceremony the week after in December. The media and City Council members, Capital Metro executives, and the local County Commissioner for that precinct came out,” Trinidad says. “We got great satisfaction reports, both from the City of Austin and Capital Metro. They said it was some of the best work they had ever seen. We’re pretty proud of that.”

Alpha Paving Industries LLC in Round Rock was incorporated in 2012 by Andrew Kim and Scott Sneed. Originally offering asphalt and seal coating and pavement markings, the company now provides concrete and fog seal. –mjm City of Austin ADA Ramps and Bus Stop Project: Walmart – Norwood Mobility Hub Alpha Paving Industries LLC Austin, TX

Popeyes

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This Popeyes was built last year with a TPO roof installed by Austin Roofing and Construction.

ustin Roofing and Construction had performed work on a few previous Popeyes Restaurant locations. So, when President/Project Manager Tim Bowen and his team were asked to apply their expertise to a new location under construction at 2101 W. Ben White Blvd., they were happy to be of help.

“We installed a TPO (thermoplastic polyolefin) material on the roof deck and the parapet walls and provided them with a 20-year no dollar limit warranty,” Bowen explains.

Before the team could get to work on the 4,100sf space, however, they had to address the Tyvek applied by another subcontractor.

“They thought that the walls would be stuccoed and Tyvec vapor barrier was put on the walls, but we had to remove it,” Bowen says. “Our glue works well with the plywood and the TPO. If we would have glued it to that, it likely would have come loose. We went in and installed a coversheet, a one quarter inch DensDeck over the wood deck. We fully adhered, or glued, the TPO to that, and then we glued

it to the plywood on the parapet walls.”

The team also had to accept their materials delivery with a little extra care.

“The delivery was probably a little more difficult with the material because the walls are so high; I think they were about 9ft. tall on this one. In communicating with the driver and landing material, we had to do it by telephone versus hand signal since we couldn’t see each other.”

Even with these small challenges, Bowen says the project was smooth and the materials were perfect for the project.

“TPO is a single-ply membrane so it’s a pretty simple product,” Bowen says.

“We really like it because once you get it on and you get a good rain on it, you can test it and if you have any issues, you can

fix them. It’s pretty much a once-anddone kind of roof. The only issues you run into are other contractors if they are working on the roof and they puncture it; that’s when you typically see a leak.”

It took a crew of five only three days to finish the project, and Bowen says both he and the client were happy with the results.

“We met our deadline and we were absolutely satisfied with the project,” he says.

Austin Roofing and Construction, founded by Tim Bowen in 2012, provides commercial and residential roofing, seamless gutter installation and metal roofing fabrication. The company serves within a 50-mile radius of downtown Austin. –mjm

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Applying DensDeck under a TPO roof provides stability for foot traffic, superior fire resistance and hail damage protection.

This TPO roof came with a

20- year NDL warranty. ➤

Popeyes Austin Roofing and Construction Austin, TX

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301 Congress Avenue

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hen an interior wall of the structure located at 301 Congress in Austin began to collapse, people in nearby businesses grew concerned for their safety. The city’s concern was evident as well and soon it became indirectly involved to ensure that not only was the failing interior wall addressed, but that the work would be safely, efficiently and quickly done.

Attempts had been made by a foundation company with a system of repair that could not accomplish the stabilization or pass the standards of the engineer of record that the city had quickly assigned to the project. When that contractor was removed, the general contractor called foundation repair com-

pany RJT Commercial/Ram Jack. The team was on site within 24 hours to install the correct commercial system of repair.

When their subcontract was approved with the contractor the following day, Ram Jack’s technicians were on the site that evening.

Because professionals worked in and around the building during business hours, Ram Jack could only work on the structure between the hours of 6pm and 6am due to noise concerns. Steel pilings driven to rock were installed to repair the foundation under the interior wall of the banks. All of the work was performed inside an adjoining below-ground level business establishment which had been closed down by the City of Austin until the

RJT Commercial/Ram Jack was called to repair an interior wall at 301 Congress Avenue that was failing.

bank could be stabilized.

After the second night on the job, the repair was complete. The engineer of record was pleased and the businesses in the immediate area, as well as the City of Austin, were breathing a sigh of relief.

Through more than 50 locations, Ram Jack offers foundation repair services. –mjm

All work was completed during evenings due to noise.

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The team worked installed steel pilings driven to rock to stabilize the wall.

RJT Commercial/Ram Jack completed the work by the second night.

301 Congress Avenue RJT Commercial/Ram Jack Austin, TX

Brookwood in Georgetown (BIG)

ast November, ATX Thermal Solutions LLC’s division manager Clayton Porter and his team had the opportunity to play a part in an inspiring project. Brookwood in Georgetown (BIG), a vocational community that provides meaningful work, a sense of belonging and respect for adults with functional disabilities, had added a 20,000sf community-style recreational space, gym and offices to its campus. When the general contractor enlisted ATX to insulate the building, Porter and his team were honored to work on it.

“This was a meaningful project to me because of what BIG stands for,” Porter says. “They help adults contribute back to the world through crafts, cooking, baking, arts and crafts. They have a shop that they sell things out of and they have a vocational program.”

The ATX team insulated every exterior and interior wall and ceiling of the building for sound. Because the building’s height was 25ft. to the peak, a scissor lift had to be utilized instead of the usual scaffolding.

A team of four (and sometimes six) crew members worked daily for nearly two weeks to complete the project.

“The only challenge that we ran into was

ATX spayed foam insulation in the 20,000sf edition to Brookwood In Georgetown’s campus addition.

the exposed ductwork that was left in the open, so we had to cover that up. It’s 20ft in the air and it just took a long time, probably two days of prepping. We cover anything that doesn’t have foam on it so that sprayed or falling foam doesn’t get on it.”

Porter is a believer in spray foam’s benefits for a space of this type.

Because of the 25 ft. peak to the structure’s height, a scissor lift was used.

“The biggest reason people are moving to spray foam, including for commercial properties, is the efficiency side of it. We foamed to the outer walls and to the roof deck. The foam actually seals the building up completely, so no air is passing through. On the roof deck, the same is true, but it is also blocking out the radiant heat and radiant cold that can pass through. It insulates like the coolers made by an Austin company – essentially, we’re making a cooler out of the building. We’re encapsulating it with foam, which has the ability to get into cracks and joints between the studs and outer sheeting on the walls, and also on the roof deck where the rafters are and the roof decking to kind of seal it. It also ties it all together; it’s bonding the sheeting and the stud with the rafter to each other with the foam. There is a complete seal so that no air can pass through. That’s the efficiency of it.

“It also absorbs sound very well,” he adds. “There are no off gases to it, it has a lifetime warranty from the manufacturer,

it’s approved to be used in American Lung and American Asthma Associations’ builds. It’s also a great overall product for the general contractor because we can insulate a larger building faster than we could hang fiberglass batts because of the way that it’s applied.”

ATX Thermal Solutions LLC is a division of veteran-owned LCR Contractors LLC, which was bought by Buddy Spicer and is now majority-owned by Buddy’s son, Clay Spicer. The company has offered spray fire resistant materials for more than three decades and also offers spray thermal and acoustical material applied to commercial projects.

Porter says ATX Thermal Solution’s part of the project “came out great,” and says his client felt it did as well.

“The general contractor informed me how great we were to work with because of communication from me, our guys on site were easy to work with, they were very respectful, clean. They want to work with us in the future. An overall satisfied customer.”

ATX Thermal Solutions LLC in Hutto offers foam and fiberglass insulation and radiant barrier services and serves all of Central Texas. –mjm

Spray foam insulation, an excellent heat, cold and noise barrier, is perfect for large spaces

Brookwood in Georgetown (BIG) ATX Thermal Solutions LLC Austin, TX

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Austin Construction News • FEB 2020

Business is flush

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Santa pays a visit

or the past 18 years, the Greater Austin Contractors and Engineers Association (ACEA) has provided holiday gifts for the children at the Mainspring School in South Austin. Once again, ACEA’s Santa delivered gifts to all the good little girls and boys at Mainspring. -cmw

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The Leinneweber Services team

onna and Royce Courts were running an oilfield rental equipment company when another business opportunity was practically delivered right to them. While accepting a portable toilet delivery on his site, Royce chatted with Carl Leinneweber, who had started his company, Leinneweber Plumbing, with his wife Nita more than four decades earlier. Carl wanted to retire and asked Royce if he was interested in buying the business. Royce remembers having a strong first reaction to the question.

“Portable toilets? Absolutely not!” he remembers with a chuckle.

Soon, though, Royce and Donna started seriously considering the idea.

While the couple was initially turned off by what Royce calls the “nastiness” of the job, they knew that oil field work was on the decline, and a pivot into a more lucrative business was needed.

“When we started looking at the numbers, we knew we had something here,” Royce acknowledges.

The couple put their hesitation aside and bought the company in 2015, changing it to Leinneweber Services. The first year was so rocky, however, that the couple was sure they had made a mistake.

“Three weeks after we bought the business, we had the Halloween flood in Wimberley right after the Memorial Day flood, and it did about $300,000 worth of damage,” Royce says. “Within the first two months of owning the business, besides the flood, we endured an employees’ house catching on fire, which burned him really bad. We also had a fatality accident – thank God it wasn’t our fault – but unfortunately someone did lose their life. It was a very rough start.”

Despite the business’ unfortunate beginnings, circumstances soon improved and rapid success followed.

“We have almost tripled it in the four years since we bought it. At the time, [the previous owner] had about 200 on rent, and now we’re over 750 on rent,” Royce says. “We do portable toilet rental for construction and holding tanks for construction trailers and RVs. We also do septic pumping and grease trap pumping.”

Royce and Donna have also successfully transferred their strong business partnership to Leinneweber Services. Royce says their “headstrong” personalities and different contributions to the company are what make it all work.

“I do everything except paperwork. I do not do paperwork! Donna does it,” Royce says. “She is the majority owner, the big boss. She does all of the inside sales, marketing, billing, and payroll. She is the heartbeat of this business. She is a control freak and is good at it! Also, my stepdaughter, Emily Gutowski, just graduated high school and started community college. Now, she’s in the office helping out during her break.”

Despite the couple’s initial doubts, the company’s success affirms they made the right decision. Leinneweber Services has grown so much that it will soon move to a new location.

“Our lease will be up in a year on the place we are at, so we’re building a new facility in Wimberley about two miles from where we are right now,” he says. “It is going to be bigger, and since there is no privacy where we’re at, the new space will have more offices. We’re going to have a wash rack, and a bigger mechanic bay. We hope it will be complete in the next 12 months. That would be a good Christmas present.”

Leinneweber Services in Wimberley specializes in septic pumping and portable toilets. –mjm

All the feelings

DPR Construction’s Matt Lockwood and ISEC Inc.’s Lauralynn Arellano feel the love for construction and DPR’s new Austin office. –mjm

Austin Construction News • FEB 2020

Page 19

JOB SIGHTS

Wilmer Figueroa with O.R. Steel finishes up his work at the Buddy’s Burger Shack. -cmw

Americase Fabrication & Construction installs new partition structural support in an Austin office. –mjm

Change is gonna come

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L-R: Legacy Glass & Mirror’s Trace Sidle and Trent Sidle

his year promises to transformative for Legacy Glass & Mirror owners (and brothers) Trace Sidle and Trent Sidle. First, 2020 ushers in the weddings of both Sidles; Trace married dental hygienist Jasmine Cazares on Jan. 25, and in November, Trent is marrying Cathrine Gustafson, who will also join the Legacy team. Second, the brothers are breathing easier as their company enters strong into its third year.

“It’s going to be a great a year, not just for Legacy, but for us personally,” Trace says. “A lot of big changes.”

The Sidles are used to change. They decided to start their business over a round of Baby A purple margaritas, after Trent lamented that his glass company training role wasn’t valued, and Trace decided he should stay near family rather than move for a government position in D.C. They applied for a dba, and, thanks to a hailstorm that broke most of the windows in Odessa, immediately paid off a modest business loan from their mom.

After returning to Austin, they had no connections other than the suppliers

they knew through their dad’s glass business. Undeterred by concerns about their youth (Trace and Trent were 25 and 22, respectively), they knocked on doors and built a client base.

“I knew that, once we got our foot in the door, we’d prove ourselves. We’ve proved and believed in ourselves enough to start our own business. We believe in ourselves enough to bust our butts and make something of ourselves,” Trent says.

Legacy initially serviced residential projects, but there is an increasing demand for their commercial work. With the help of foreman Ruben Deunez, they plan to meet it.

“We definitely want to grow,” Trace says. “We want to be big but we’re not going to put getting there at a faster rate than our customers’ satisfaction. We have a ten-year plan instead of a three-year plan. We want to grow and we’re still building towards that but we won’t skip steps three and four to get to five.”

Commercial and residential glass company Legacy Glass & Mirror services the greater Austin area. –mjm

Austin Construction News • FEB 2020

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