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Early start
Wake making
MW3A LLC's Geoffrey Whittaker started in the construction industry at 16 years old.
L-R: Sean McElwrath, Dee Saladino and Rob Ecklund of Core Supply Central Texas
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eoffrey Whittaker started early in both the hands-on and business sides of construction, thanks to parents who had two very different career hopes for him. “My mother wanted me to be an accountant and my dad wanted me to be an engineer,” he says. “I started when I was 16 as a carpenter’s helper for my dad to learn the trades of interior finish out since he was a commercial building engineer. From the age of 16 to 19 years old I absorbed and learned what has now become a daily routine for me. When I was 19, I moved upstairs at the Wilson Plaza and became the bookkeeper for the property while assisting my mother with her bookkeeping as well. I was writing my dad’s payroll checks and
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hen Kyle Smith bought commercial, industrial plumbing, HVAC, piping and sheet metal company Capital Industries LLC in 2016, he had a clear goal. It wasn’t profit and it wasn’t growth. It was taking care of people. “I was really looking to establish a business that could do things a little different in the industry and focus on our people as opposed to our product,” Smith says. “We are very much a peoplebased company. We’ve rolled out a new tagline that says ‘We. Build. People.’ It’s based on ‘we’ being the teamwork, and the ‘build’ being based on all of our folks being builders. We’re not computer folks, or IT-type people, or paper pushers; we like to be out on the jobs building things. Our value proposition is not how we put in duct and pipe; it’s how we go to market with our people. Anybody can do what
cutting my mom’s check at 19!” He was a commercial property manager for 16 years before partnering a decade with Dimensions Contracting, another general contractor doing interior finish out. In 2014, he established and became sole proprietor of interior finish out company MW3A LLC, transferring from a prior company that he ran with partners. “When I was a commercial property manager, I didn’t get to be the judge, the jury or governor of the suites as I thought I was going to,” says Whittaker, who counts X Technologies, Lockwood, Andrews & Newnam Inc. and third-party management companies as clients. “Now, I am able to fulfill a client’s needs continued on Page 12
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n Core Supply leadership meetings, the word “wake” is generously used. As a prompt to use that word, founders (and brothers) Preston Amend and Phillip Amend, Executive Vice President Jason Beam and Vice President of Sales Stephen Bills each have a picture of a boat wake hanging up in their offices. Rather than it being a reference to a love of the water, it serves as a reminder to “leave a wake” beyond their business, such as contributing to employees’ kids’ college tuitions and helping employees secure U.S. citizenship. “We speak about our DNA and Core culture constantly. We want to be more than rebar and lumber salesmen; at the end of the day, if we’ve sold a lot of rebar and lumber but we haven’t made an
impact outside of Core Supply, then we’ve missed the mark for what we’re aiming for,” Bills explains. “Our goal is not just to be a rebar company that sells a lot of product. We want to make an impact in the lives of our customers, employees, suppliers, and vendors.” It’s a mission the founders shared upon establishing the company in Houston 10 years ago as Core Lumber and Rebar. “The strategy was to come into the market and specifically supply form lumber for the concrete industry. We cut our teeth on selling lumber to large trac home builders,” Bills says. “The customer base pushed us to move into other products such as rebar. Two years in, we continued on Page 12
For the people
Capital Industries LLC puts the focus on its people (shown here at a lunch the company hosted for SpawGlass)
we do – and many others do – but we try to differentiate ourselves with the team, how they interact, and how we grow folks that most other companies would treat as another number.” Smith says the company was six months old when he bought it, and it cut its teeth on K-12 work and grew into larger, more complex projects. “Starting out, there was a lot of solopreneur-type mindset of how do we sell it, execute it, collect it and go on to the next one as we’ve grown,” he says. “We now have more folks delegating more authority to those teams and I’m spending more of my time trying to build the people on those teams as opposed to building the projects. That evolution has been very interesting.” Before joining Capital Industries, Smith’s career in the industry experienced its own evolution. continued on Page 12
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Austin Construction News • OCT 2020
Child’s play
Young artists can win big by entering their Kubota equipment drawings into the company’s “Kids’ Orange Tractor Drawing Program.”
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t’s never too early to recruit the next generation into the construction industry, and companies are finding creative ways to grab kids’ attention. Texas-based Method Architecture created The Adventures of Archie, a new children’s book series containing activities, coloring pages, and puzzles focused on the fundamentals of architecture, engineering, and construction. Ten exercises are featured alongside a fun narrative about a local architect and her adventure to create a new community center. The series’ target audience is for kids 6-12, however, it can serve as a coloring book for younger children. These workbooks can be used as learning tools to supplement existing educational programs or as a fun activity for kids to try at home. The books were published in August 2020 and hard copies were made available in early September 2020. The activity book is available via a digital version on the Method Architecture website, as well as printed copies being distributed to local youth organizations and non-profits. For those organizations interested in getting copies, email info@methodarchitecture.com. The Kubota Tractor Corporation an-
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Not just another number
ust call him #10,084,298 … that is the number Austin Electrical - Alliance Training Director David Terwilleger was assigned for his patent, a self-measuring wall-bracket. Terwilleger’s clever creation was inspired by an on-the-job dilemma. “I noticed that our electricians were taking a rather long time installing these type brackets that are used to support outlet boxes in walls that are required to be at least 18 inches above the floor,” he explains. “They do make kickstands that can be added to the bracket to ensure the installation height of the bracket is 18 inches above the floor, but that is at an added cost. For some reason, my project managers did not want to pay the added price for the kickstand and were content that our electricians were doing a good job without it. But I saw wasted labor and figured there should be a more efficient
David Terwilleger
Training Director position. He was also selected in 2009 to be on a team who created a Foreman Development Series training program for the 7th District of IBEW.
Method Architecture's The Adventures of Archie draws kids' interest into the industry with activities, coloring pages and puzzles.
nounced its “Kids’ Orange Tractor Drawing Program.” Through Oct. 16, Kubota fans age 12 years and younger (entrant to be the parent or guardian) are encouraged to submit a drawing of their favorite piece of Kubota equipment for a chance to have it featured as the company’s Facebook cover photo for one month and a $200 Kubota Store gift card. Five winners will be chosen at random, with one winner selected from the following categories: construction, hay tools, tractor, turf, and UTV. More information can be found at www.kubotausa.com/ kidscorner. –mjm
Terwilleger’s invention: The self-measuring wall-bracket
way of doing things. My patented bracket aligns itself and pivots up to the 18 in. height without the additional cost of a kickstand. “I always look for something that can be done easier, faster, and cheaper,” he adds. “There are many, many companies that make similar brackets, but my unique method of installation is what has been patented.” His knack for finding solutions has been honed over 43 years of electrical industry experience. After completing his 4-year electrical apprenticeship in 1981, he became a Journeyman inside Wireman as a member of the International Brotherhood of Electrical Workers (IBEW), Local Union 415, Cheyenne, WY. He has worked on projects throughout the country in leadership positions such as Foreman, Area Foreman, General Foreman, Superintendent and General Superintendent. In May 2017, he was chosen for the
Terwilleger cheer on other potential inventors, but also heeds them to prepare for a difficult and costly patent process (See “Terwilleger’s Tips”). Only after numerous attempts spanning many years was his bracket finally issued a patent – but it was worth it. “I am glad the process is over and happy that I succeeded in creating something unique,” he says. “I believe everyone should have a hobby and they should strive to ‘create’ something – a book, music, art, design, a building, a boat, or even an invention. For years, I would tell my wife about ‘one of my ideas’ and she would always tell me ‘You ought to patent that idea.’ So, I took on the simplest design idea I had. I am #10,084,298. Just another number besides my Social Security number and my driver license to be identified by.” Austin Electrical Training Alliance is an electrical apprenticeship training program. –mjm
Terwilleger’s Tips There are two methods of getting a patent: 1.) Enter into a contract with a company like “INVENTECH” and they will take you through the process (I did not use this company in my patent process) 2.) Engage a reputable patent lawyer to do the work to secure a patent (this is the method I employed) Note: Sending a letter addressed to yourself is not a legal way of securing a patent or to protect your idea. The ‘sealed envelope’ method no longer works due to new patent laws instated in March 2013. After securing my lawyer, I met with him one time in person and showed him drawings of my idea. We communicated by phone and email from that initial meeting throughout the process. 1.) It is important to have good working Computer Aided Drawings (CAD) to illustrate your idea.
2.) Your lawyer also does a patent search to find anything that is similar to your idea.
2.) It is really important that you explain clearly your intentions and the functionality of the idea to you lawyer.
3.) This drawing and information are reviewed by a person working for the U.S. Patent and Trademark Office in Washington D.C.
3.) It is really, really important to ask questions about the process so as to understand what each step of the process involves.
4.) From that Initial filing, it is determined whether or not you have a “unique” idea or process that can be issued a patent.
The process of securing a patent is lengthy because of the correspondence aspects.
5.) You may have to pay for sending your lawyer to Washington D.C. if necessary (I didn’t have to do this)
1.) Your lawyer needs to create a document and drawing describing and showing how your idea works.
6.) You will be asked if you want an “International Patent” (extremely expensive; I didn’t take this option)
Austin Construction News • OCT 2020
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Building better together
Industry FOLKS Myron Marshall Outside Sales
Red Ball Oxygen Company Co. Buda, TX
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yron Marshall used to have strong opinions about sales. As someone who studied Criminal justice at Fairmont State University with plans to join the U.S. Marshall Service, he preferred straight talk over schmooing. But after marrying and starting a family, years of traveling for loss prevention work for companies including UPS, HEB, CVS, Hughes Supply, and Bed Bath and Beyond, led him to reconsider his stance. Encouraged by people who thought his outgoing personality was a natural fit for a sales career, Marshall took a job as an outside sales account manager at Ahern Rentals in 2018. He soon realized that, not only did he enjoy sales, he enjoyed the construction industry. “I loved everything about construction!” he says. “I loved throwing on my PPEs, walking onto a job site and seeing our equipment out there and working with superintendents, project managers and supervisors. I really enjoyed the freedom of going from job site to job site, walking into a job site trailer making a cold call, and sometimes getting thrown out on my left ear!” He was completely content in his role when in January, Red Ball Oxygen Co.’s HR manager contacted Marshall about an open sales position in Buda. He wasn’t looking to leave but he listened to the pitch out of professional courtesy. The next day, he noticed a Red Ball Oxygen building and decided to pay an impromptu visit. It just so happened that the regional sales manager was in town and Marshall’s drop-in turned into a three-hour conversation. “I was just blown away by the histo-
ry of the company and the culture,” Marshall says. “I was really impressed.” Marshall was hired in February. He drove to Shreveport to attend the company’s five-week training program, only to find that, at the training’s end, COVID had shut down in-person contact with potential customers. “It was a heck of a way to start a sales career!” Marshall says, laughing. “Brand new job, my son and daughter are home doing Zoom meetings for school, and I’m trying to figure out this new world of industrial, specialty and medical gas! Actually, I think it made me better and it’s actually worked out great. That’s one of the vehicles that led me to work social media and online marketing since I didn’t dare knock on anyone’s door at the beginning.” Marshall credits the company for smoothing a tricky transition. “Red Ball Oxygen, I can’t say enough about them,” he says. “When you talk about a third-generation family-owned company that has been around for 51 years, we truly have a family mindset.” Marshall now embraces selling without reservation. “What I enjoy most about my work is that I provide customers with a quality product backed by a first-class company. We really pride ourselves on service and our commitment to our customer,” he says. “I go to bed every night and I can lay my head on the pillow and comfortably fall asleep!”
Builders FirstSource CEO Chad Crowe
BMC CEO Dave Flitman
wo of the largest and well-known names in building materials have merged to become a building supply and service powerhouse: Builders FirstSource Inc. and BMC Stock Holdings Inc. merged in late August Dallas-headquartered Builders FirstSource is the country’s largest supplier of building products, prefabricated components, and value-added services to the professional market segment for new residential construction and repair and remodeling. The company manufactures, supplies, delivers and installs a full range of structural and related building products. It also distributes dimensional lumber and lumber sheet goods, millwork, windows, interior and exterior doors, and other building products. Builders FirstSource operates with approximately 400 locations in 40 states and has a presence in 77 of the top 100 Metropolitan Statistical area. The company previously acquired ProBuild. Builders FirstSource CEO Chad Crowe will retire and be suc-
ceed as CEO of the combined company by BMC CEO Dave Flitman. Raleigh, NC-based BMC Stock Holdings is one of the leading providers of diversified materials and solutions to new construction builders and professional remodelers in the U.S. It’s products and services spans building materials, including millwork and structural component manufacturing capabilities, consultative showrooms and design centers, value-added installation management and an innovative eBusiness platform. BMC primarily serves the South and West regions in 45 metropolitan areas across 18 states. The merger creates a company that will become the nation’s largest supplier of building materials and services, with sales in excess of $11 billion and approximately 26,000 team members. Combined, it will operate a network of 550 distribution and manufacturing locations and have a presence in 42 states; both companies have Austin-area locations. –mjm
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Austin Construction News • OCT 2020
My father owns a business called Patriot Performance, and it’s located in the DFW area. He introduced me to the industry, because he sells products to construction and transportation companies. I was familiar with the industries but for me, I wanted to put a sustainable spin on my product offerings.
Erin Smith
Founder Smith Sustainability Austin, TX
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or much of her life, Erin Smith has been dedicated to protecting the environment. It made sense, then, that when she launched her own business, Smith Sustainability, she would provide innovative, sustainable products to companies and municipalities with heavy-duty equipment and truck fleets in Texas. Share about your background and introduction into the construction industry. I was born and raised in the Dallas area and following high school, I moved to Massachusetts to attend college and graduate school at Clark University. I was on the swim team there and completed my undergraduate studies in Business Management, and then received an MBA in Marketing and Sustainability. After that, I started my career in New York City working as a management consultant for a retail consulting firm. I did that for six years and really enjoyed the work, but I was ready to return to Texas and start my own business. I moved to Austin and I started Smith Sustainability.
Smith and her dog Chickpea enjoy all of the trails Austin has to offer.
Did starting your own business feel like a natural next step in your path, or did you experience any hesitation? I definitely was nervous, that’s for sure, but it’s always been an aspiration of mine, and I live by the philosophy of trying things once and pivoting if necessary. After I gained some valuable skills from management consulting, I thought it was the right time to go out on a limb and start my own business. What inspired your interest in sustainability? I think, for me, starting from a young age, the environment has always been something I have valued. I enjoy being in nature. When I was in college, business sustainability courses were a rather new concept back in 2008. My college was one of the first to offer a concentration in business sustainability. The sustainable principles resonated with me, specifically focusing on not just profit in business, but the triple bottom line: people, planet and profit. Describe what Smith Sustainability offers the construction industry. We provide sustainable products for companies with heavy-duty equipment. We serve construction, trucking, transportation, and solid waste industries. We offer a handful of products, but one of our primary products is Kleenoil Filtration, which is a bypass oil filtration system that’s unique in that it passes only a small portion of the total oil flow through this dense filter cartridge. What it’s able to do is remove even the very small contaminants from engine and hydraulic oil. With Kleenoil filtration, you have cleaner oil, so your oil lasts longer and you’re not disposing as much oil with extended oil drain intervals. Ultimately, you’re significantly decreasing your oil cost with this filtration system. Another added benefit is equipment health is improved because it’s operating with cleaner oil. From a sustainability perspective, your equipment lasts much longer with cleaner oil. Kleenoil is one of our products, but we have a handful of others. We are always seeking new innovative products that may be a good fit for the portfolio. How has this past year of business been for you? This year has definitely had its fair share of challenges. For me, the primary focuses this past year has been around building relationships by meeting as many people as possible. In terms of challenges,
Erin Smith launched Smith Sustainability to offer the industry environmentally-conscious products for heavy-duty equipment and fleets.
COVID has definitely forced me to rethink some of our sales techniques. We’ve pivoted quite a bit from in-person to more online and digital communications. It’s really shown me that, in order to be successful, adaptation is key. COVID has been an obstacle and has probably contributed to a little bit slower growth than I would like, but in the future, this will be something to look back at and be thankful that we persevered. You mentioned your dad’s influence on your work earlier. Is there anyone outside of the construction industry who influences your work? Outside of the industry, someone who influences me is Sara Blakely, the entrepreneur behind Spanx. I follow her on Instagram, and I’ve listened to quite a few interviews that she has completed. I really love learning about her path building her successful business. She has a ton of courage and determination so I try to emulate her and put myself in situations outside my comfort zone that can help me be successful. What skill sets have you had to grow within yourself? Prior to starting Smith Sustainability, I did not have much sales experience, and a lot of starting a business is selling. I’ve had to become a stronger salesperson, which is an ongoing process. One of the things that I use as a motivator is a sticky note on my desk that reads “rejection is progress.” I like to use this as a daily reminder that exposure is advantageous, even if the outcome is not as you had wished. What do you enjoy most about your work? The independence and flexibility of owning my own business, and I really enjoy meeting new people.
Austin
What kind of businessperson or employer do you hope to ultimately become? I definitely hope to become an employer who gives back to the community; that’s something that I value. Once my company grows and I’m able to hire more people, I would like to hire people that may not traditionally be interested in this industry and this field. I want to have people on my team that bring a unique set of skills and back-grounds that may not be traditional. What do you enjoy doing in your free time? I enjoy swimming and I enjoy going for walks on the trails here in Austin with my black Lab mix named Chickpea. My fiancée and I had planned to get married in August of this year, but we postponed our wedding to September of 2021. I’ll be one of those Corona brides! It’s definitely been some work, and we’re having to make some adjustments. Fortunately, it hasn’t been terrible; everyone has been very understanding, which I appreciate! What plans do you have for the business’ future? We hope to grow into more of Texas. Right now, we’re primarily central but we’d like to grow into more of Texas and eventually grow nationally. I really hope with Smith Sustainability, we’re able to provide more sustainable product options that can help construction companies become more environmentally conscious and ultimately reduce their natural resource usage. Smith Sustainability in Austin offers innovative, sustainable products for heavyduty equipment and truck fleets in Texas. – mjm
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Austin Construction News • OCT 2020
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Fore!
t was time to hit the greens as men and women around the construction industry gathered together for a fun day of golf. The National Association of Women in Construction (NAWIC) hosted their annual golf tournament, Sept 17. The event was held at Teravista Golf Club. After being cooped up for months due to restrictions put in place to combat COV-
ID, everyone had a great time enjoying the beautiful weather and the fellowship of one another. -cmw
Ten-ure
NAWIC golf tournament winners: 1st Place: Standard Drywall and MRI 2nd Place: CC Carlton 3rd Place: M Tech
L-R: Cervando Olmdeo’s 10 years at BakerTriangle was recognized with a special presentation by Shawn Provencal at an Austin job site. –mjm
1st Place: Standard Drywall and MRI
1st Place: MRI
NAWIC ladies.
Awe-stin
“Austin,” a culmination of artist Ellsworth Kelly’s career and a design-build collaboration between Linbeck Group, Overland Partners Architecture and Urban Design Arup, was the only Austin project recognized with a Design-Build Institute of America Project Award. Its unique shape earned the project a national merit award in the Civic/Assembly category. – mjm
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Austin Construction News • OCT 2020
JOB SIGHT
Paint she talented?
When SERVPRO of San Marcos/New Braunfels sponsored the Painting With a Twist WBA Mixer, the company’s Social Media and Marketing Coordinator Tina Almaguer couldn’t wait to create her own Texas-themed art via Zoom. We think she has Texas-sized talent! –mjm Miguel Fuentes, Allied Fire Protection, confirms measurements at the KIPP project. -cmw
Many thanks!
On Sep. 18, Flintco paused to thank their trade partners for their dedication to safety and quality construction at the George H.W. Bush building. Flintco’s HSE Manager (Austin) Tristan K. Landers GSP CHST expressed gratitude on behalf of the company’s client, the Texas Facilities Commission. –mjm Photo by Tim Garbutt
The Resource Guide Truck & Equip Dealers
Service Providers
Subcontractors
Suppliers
List your Company for Reference For Info, Contact: Buddy Doebbler Buddy@ConstructionNews.net 210-308-5800
Austin Construction News • OCT 2020
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ups and we landed six of them. Not bad odds, if I have to say so myself. Experts say that the tarpon populations are on the incline in our waters, and by the looks of our day, I would have to agree. If you’ve never had the opportunity to fight one of these acrobatic fish, add it to your bucket list. They are a blast to fight!! My 2021 fishing calendar is open, and I am starting to book trips for the upcoming year. My whitetail hunts are almost full for this season, I still have a few dates to book if interested. To schedule your next bay fishing trip or hunting trip give Capt. Steve Schultz a call at 361-813-3716 or e-mail him at SteveSchultzOutdoors@ gmail.com. Follow me of Facebook and Instagram at Steve Schultz Outdoors. Good Luck and Good Fishing.
Adventures Beyond the Bay by Capt. Steve Schultz Sponsored by:
Waypoint Marine, Shoalwater Boats, 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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any of you that read my column know that I always write about fishing the surf or beach front in late summer. As the year lingers on, our bays get so much pressure and a lot of the popular fishing spots get fished out. During August thru October, if the conditions are right, I like to change it up a little and venture out into the big water for trout and redfish action along the beach front. These days are limited, and it takes an experienced fisherman to be able to stand on the deck of a rocking and pitching boat and fight a fish. This August was limited to only a few days offshore due to the active hurricane season we had. September has been about the same, but I have been able to log a few more days in the blue water. On one of the days in late August I was fishing near the packery jetties with a couple of guys from San Antonio. We were steadily catching trout and redfish when we were surprised with a quick hook-up with about a 3-foot tarpon. As quick as it was on, it spit the hook after one jump.
Here are a few of the pictures from the tarpon caught last month. Bart and Debra Johnson caught and released six total tarpons ranging from 3 to 4 ½ ft. All fish were released after photos by Steve Schultz Outdoors. Fast forward to mid-September, the seas calmed down just enough to get out for one day. Fishing with my close friends Michael and Cheryl, we were having a pretty successful trip when I hooked up with another tarpon. This one made it to the net after about a 15-minute battle on our light tackle. After a few pictures and some quick measurements, the fish was released safely back to its habitat. This was my first Texas Tarpon that I have ever caught. I’ve caught big tarpon in Costa Rica before but never in my home state. Bucket list checked!! About five days later, as Hurricane Sally was moving to shore on the Alabama/Florida coastline, I was able to
Bart and Debra Johnson
catch another calm day in the gulf. This day I was lucky and had another good friend and client Bart and Debra Johnson of Brownwood, TX. They had heard the stories of my previous days offshore and were willing to give it a try. Needless to say, the day turned out to be one of the best days I have experienced on the water in my 22 years of guiding. The morning started off as soon as we cleared the jetties and encountered a school of tarpon. Bart was first to hook up and land his first ever tarpon as we watched the school ease down the beach front. Soon after the release, Debra hooked up and another fight was on. Debra ended the day catching five silver kings and Bart only had the one. A total of eight hook-
Tarpon
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Austin Construction News • OCT 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
How to get to be a Big Bass
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ne thing big bass are not is stupid. They may be slaves to their reflexes if you happen to drop a lure right on the top of their head, but if they get a chance to see something coming at them, they may just choose to pass it up. You can ask anybody who fishes for largemouth. They are territorial and they know what is out of place and they learn from their mistakes. Every once in a while, we will have bass in the local structure around our dock that we get to know. Max will play with them when he gets a little down time. I ask him about using different lures and the answer is “She’s seen it.”, or “She took it once, not falling for it again”. Fish can be smarter than we imagine. The smarter they are, the bigger they get. I guess that’s why we love chasing them! I swear that deer can be the same way. I don’t know how they know, but one day you see deer all over the place, can hardly get home without them running in front of you. The next day, and for several weeks, they just seem to disappear. It happens every year when deer season starts. Deer season ends and guess what? They’re back again! How do they know? I don’t think they carry a pocket calendar or get a text notification, because I never met a deer with pockets. Somehow, they sense the subtle changes that alert them that people are in the woods and they vanish out from under the feeders before the first ATV hits the dirt! Big bucks don’t get that way by being stupid. We are still dealing with Covid-19. How do we adapt so we can get on with our lives in times like these? We have holidays coming up before long. Halloween will be a challenge, but we better figure it out. I know my daughter is already building a sewer pipe chute that she can just dump candy straight from the sack from the store down into the waiting goodie bag of the little goblins without touching it. Someone else suggested that Halloween be done in
reverse. Kids stay on their porch in their costumes and people drive by and chuck candy at them! Christmas? Whole different can of worms. I bet you we see ugly mask competitions instead of ugly Christmas sweater contests! We need to revise our deer camp habits too. We probably don’t want to sleep a bunch of guys in the same little camper this year. Same goes for crowding in together to play cards or catch a ball game. We need to be smarter. We have already learned that things can take a turn for the worse if we get too comfortable with improving statistics and start to let our guard down. I heard one expert say that masking up properly, staying at least 6 ft apart and keeping our hands clean might even be more effective in stopping the spread of Covid-19 than any vaccine we come up with, if everyone would just do it. Go ahead and start enjoying things, but just be smart about it! Use your head and trust your instincts. Think about that old bass and don’t make dumb mistakes. That’s how you get to be a Big Bass!
Austin Construction News • OCT 2020
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Have fun, will travel
Rock stars
hen AiRCO Mechanical's Stephanie Lloyd isn't at work, she's likely having an adventure, whether it's traveling out of state every other month, camping in her recently rebuilt teardrop, or hopping on her motorcycle. –mjm
Lloyd’s “adventure mobile” boasts every amenity imaginable, but she hops on her motorcycle when she wants to be one with the road.
In February, Lloyd and her brother/bestie flew to Colorado to hike, snowboard and explore.
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nvironmental Geophysics Associates President Dr. Mustafa Saribudak and his volcanic team recently visited south Austin’s Pilot Knob volcano. Since their 2015 visit, the team observed for the first time a pillow lava outcrop in this volcano, as well as intense construction activity around the volcano and basaltic blocks from the construction. This vol-
cano erupted mostly underwater, and its age is Upper Cretaceous (~60 million years). Dr. Saribudak and his team plan to do some long geophysical profiles of resistivity/SP and magnetic surveys at the site and share the results. The purpose of the geophysical study is to determine the volcanic vents/ craters and their relationship with the sedimentary rocks in the vicinity. –mjm
Austineditor@ ConstructionNews.net Lloyd’s Aussie Sophie and Shih Tzu Lupo enjoy outings like kayaking Lady Bird Lake.
Lloyd surprised her dad for his 60th with a Costa Rica trip. Highlights included hikes, rock scaling and waterfall spotting.
(210) 308-5800
Page 10
Austin Construction News • OCT 2020
SURETY BONDS Critical Steps for PPP Loan Forgiveness Steven Bankler, Owner Steven Bankler, CPA, Ltd. San Antonio, TX
Don’t Be Behind the Curve: Understand Today’s Construction Climate to Ensure Your Surety Program Can Withstand the Shifts in Construction
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Jeremy Pendergast, Surety Producer TSIB Inc. Austin, TX
f you were lucky enough to secure a Paycheck Protection Program (PPP) loan during the height of the COVID-19 pandemic, you may feel like the hard part is over. But now you need to apply for loan forgiveness or you’ll be on the hook to pay back your loan, with interest. To get 100% of the funds forgiven, you may need to jump through some critical hoops. Loan forgiveness applications are available online for download at the U.S. Small Business Administration (SBA) website at sba.gov. You can then submit your application to your PPP lender. A simplified 3508EZ form is available for small businesses that are a self-employed individual with no employees, a business that did not reduce employee work hours or salaries by more than 25%, or an entity that experienced reductions in business due to health directives related to COVID-19 but did not reduce the salaries or wages of employees more than 25%. As far as PPP loan forgiveness criteria goes, Congress amended the law in June and the SBA also issued rulings that clarified some important points. Some of these details weren’t available or have changed since you received your PPP loan, so be sure to review your terms and assumptions about how and when the money can be spent. Some tips to get started on your path to PPP loan forgiveness are to: 1. Keep the money in a separate account. If you haven’t done so already, move the money you received as part of your PPP loan into a completely separate bank account from your other finances. This will help you maintain the records you’ll need to prove forgiveness eligibility. 2. Double check your payment terms. For any funds that aren’t forgiven, you’ll need to pay back at an interest rate of 1%. If your loan was issued prior to June 5, you have two years to pay it back. Loans issued after June 5 can be repaid within five years. 3. Recalculate how much of the funds you can use if you reduced your workforce. The Small Business Administration points out that forgiveness is based on an employer maintaining or quickly rehiring employees and maintaining salary levels. If your full-time headcount declined, or if salaries and wages decreased, forgiveness may be reduced. 4. Understand your coverage period. The original eight-week coverage period was extended to 24 weeks or through December 31, 2020, whichever date arrives first. These options for using an “alternative payroll covered period” is meant to align with your payroll cycle, if needed. 5. Know the limits. As of early September, a $100,000 cap per compensated employee was in place. These payroll costs can include all forms of cash compensation paid to employees, including
tips, commissions, bonuses, and hazard pay, but only up to that limit. 6. Understand your owner compensation cap. Eligible owner compensation is determined differently for C Corporation, S Corporation, general partner, LLC owners, and sole proprietors. The formulas used are generally based on 2019 compensation, but can be confusing computations. 7. Carefully track how you spent the money. Nonpayroll costs like mortgage interest costs or rent/lease costs and other expenses may be forgivable if they amount to up to 40% of the expenses only. So it’s important to keep track of exactly how the funds are used. 8. Consider your timing so that it doesn’t interfere with tax deductions. Congress has explicitly stated that PPP loan forgiveness would not be treated as income, while the IRS issued a Notice that these funds offset “deductible” business expenses when forgiven in the same year the funds were borrowed. For this reason, you and your tax advisor might consider delaying filing your forgiveness application so that the loan is forgiven in 2021. Keep in mind, also, there may be more than loan forgiveness at stake. The IRS is actively auditing those who received a large amount of PPP funds and have already shown signs of misusing the money. One Texas business owner, for example, was caught using his $1.5 million PPP loan to pay off his personal mortgage. A safe harbor rule is in place to generally protect anyone receiving less than $2 million in PPP loans from an automatic audit, as long as they use the funds responsibly for the business “in good faith.” Outside those parameters, it’s not just a loan payback with 1% interest hanging in the balance. A misuse of the funds could result in heavy penalties and possible criminal prosecution. PPP loan forgiveness is out there, but it requires several hoops to jump through—perhaps even more than receiving the funds in the first place. Don’t delay in finding out what you need to do to receive the full forgiveness you expected. Steven Bankler has more than 43 years of experience in the accounting industry. Steven’s expertise lies in consulting, planning, tax, and asset protection as well as exit strategy services for closely held businesses. He also provides litigation support (both as a testifying expert witness and a consulting expert), business negotiations and estate planning. Visit www.bankler. com for additional tax strategy tips and to learn more about Steven Bankler, CPA, Ltd.
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n these unprecedented economic times, the ability for Contractors to have a Surety Bond program that both meets their need to bid work and sustain their overall capacity to build a backlog is paramount to successfully navigate this changing environment. Anyone who has worked with a Surety in the past understands that information and communication is King when it comes to maintaining a solid relationship between Contractor and Surety. This has never been truer than right now. Surety Companies are extremely cognizant of timely reporting of financial statements, job progress reports and the overall composition of their Contractor’s balance sheets. Recently during a conversation with a Surety Underwriter I was told, “Now is the time to be careful, dig in and understand what our Contractors’ plans are… not to do things on the come and take unnecessary risks.” There is no time like the present when it comes to taking the steps necessary to secure the ability to bond work and ensure that you have the support of your Surety. Below is an overview of trends from past economic cycles and the steps to take to successfully anticipate these changes and thrive. Subcontractor Requirement to Provide Bonds For a number of established subcontractors, bond requirements are often waived due to long standing relationships with GC’s or Owners, history of performance, and/or the ability to provide a proven track record. In times of economic uncertainty, GC’s and Owners become leery of subcontractor failure, and we begin to see Performance and Payment bond requirements on contracts that otherwise would have been waived. This is not necessarily due to the existing relationship having any doubts about a Firm’s ability. Rather, it may be the result of Construction Financing Lenders adding these requirements, GC’s tightening up their risk management strategies, or the General Contractor’s Surety becoming more stringent on their requirements to bond back subcontractors. Requiring bonds is a logical way for these entities to mitigate risk and feel more comfortable with the undertaking. We have already started to see this unfold in the marketplace and the likelihood of these scenarios continuing to play out make it important to start preparing your company now. Don’t let a requirement create “a fire drill”, which could put your Firm in a position where you are left getting bonds from a secondary market with less desirable requirements and rates, or simply being disqualified from participation on a bid. Increased Competition on Bid Lists Historically when we see signs of economic uncertainty or recessions areas such as residential and private construction project starts begin to diminish. As a result, an influx of Contractors, who would otherwise work in those sectors, begin to invade the Public Works space. Put simply, you can expect to see bid list double and triple. Although these contractors may have the technical know-how to build a
job, often times there are struggles with the office administration, paperwork, wage requirements, reporting, and delivery method on a public works project. As this starts to happen, we begin to see bid results that have not been estimated properly which result in the low bidders driving down profits for all involved. During these times we typically see an inverse correlation between the number of bidders on a project and the size of the project; meaning the larger the project, the fewer the bidders. With this in mind, those who have existing Surety relationships should begin to work with their surety broker to position themselves for bids that may be larger than their standard bonding capacities in an effort to separate themselves from the pack. Larger Contract Values in Public Works Projects for larger dollar amounts is another trend seen during economic down turns. This is an attempt by Project Owners to keep unqualified contractors from being able to easily bid on their work. In the past, we have seen this approach across different trades, whether it be adding extra scope to increase contract values, combining multiple sites under one contract or pre-qualifying potential bidders based on past completed projects of a minimum dollar amount. With this in mind, having the capacity to bond work of a greater size and scope should generally limit competition in bids and be an overall competitive advantage. Most indicators show the ability to bond work will be vital to the success for most construction companies. Take steps now with your surety broker and other trusted advisors (CPA, insurance agent, banker, and attorney) to ensure you capitalize your balance sheet, retain earnings within the company, secure lines of credit, cut overhead, and discuss your plans, both short and long term. It is important to make sure that everyone is on the same page so that you can navigate these times smoothly. You deserve it, your employees deserve it and your customers deserve it! Jeremy Pendergast has been a Surety Producer since 2006. In his current role at Turner Surety & Insurance Brokerage, Inc., he oversees new client acquisition and managing a book of existing Surety business in Texas that ranges from first time bond users to Firms with annual revenues in excess of 100 Million. He can be reached to discuss any Surety related questions at: Turner Surety & Insurance Brokerage, Inc. 12600 Hill Country Blvd, Suite R-275 Austin, Texas 78738 Phone: Office 512.329.2614 Cell 512.808.9601 Email: JPendergast@TSIBINC.com Website: TSIBINC.com
Austin Construction News • OCT 2020
Page 11
SURETY UNDERWRITING Five Opening Day Lessons for Legal Disputes
Common Risk Factors in Surety Underwriting
West W. Winter Attorney The Winter Law Firm, PLLC San Antonio, TX
Eric Schmalz, Principal Schmalz & Associates Surety Bonding Liberty Hill, TX
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eptember 1st marks the opening day of dove season in Texas, and dove hunting, along with the return of football, marks my personal favorite time of the year. Some of my fondest memories are from hunting trips with family and friends. As we look forward to opening day with enthusiasm and anticipation, there are a number of lessons that can be learned from opening day which are applicable to all legal disputes. Preparation for the Hunt While not everyone prepares the same way for opening day, some amount of preparation is necessary for all of us. We must usually get a license, make sure our shotguns are ready for action, pack a cooler, and get directions to the hunt. Like preparation for the hunt, preparation is essential for success in any legal dispute. If your business is new to a legal dispute, consult with your attorney and get a detailed roadmap of what you can expect during the dispute and its various phases, such as discovery, mediation, and final hearing or trial. Armed with this information, you will be prepared to assist your attorney and be in the best position to champion your position throughout the dispute. Whether your business is involved in litigation or arbitration, you will be required to provide documentation and other tangible things to your opponent in the discovery phase. It will assist your attorney, and be more cost effective, to gather and organize all relevant documents and evidence early on. The sooner you and your attorney know what the documents hold, including emails and text messages, the better. It is also important where claims have been asserted to let your lawyer know about any applicable insurance policies. If you are a Defendant and have a right to a defense, then your carrier should be picking up the tab for the defense. Significantly, by not timely reporting a claim or demand to your insurance carrier, you could be prejudicing your carrier’s rights and therefore waive coverage. Communication In The Field Communication with fellow hunters is crucial to ensure safety and to allow everyone the opportunity to shoot a limit. Similarly, it is essential during any legal dispute to quickly establish open lines of communication with your lawyer and your employees. Your attorney is an extremely important resource for you and your business, and you should not hesitate to contact your lawyer as the need arises. Additionally, the attorney-client privilege generally applies to confidential communications with your attorneys, so there is comfort in knowing that, subject to some exceptions, what you and your attorney discuss will remain confidential. Your employees with personal knowledge of the dispute should be contacted and such communications, if made during or in anticipation of litigation, may also be privileged. It is also important to communicate expectations which you may have relevant to any particular matter for which you are represented. In litigation, where fees and costs can increase quickly, it is important that goals, costs, and any change in circumstances be fully discussed throughout the representation. If there is any confusion or uncertainty, ask lots of questions. Legal issues are often complex, and if you are not fully informed, you may not make the correct decisions for your business. Given the opportunity, your attorney will help you understand the complex issues at hand
and help you make the best decisions under the circumstances. Patience Is Essential We all miss a bird or two. Despite these misses and the resulting frustration, there’s almost always another opportunity. Remaining calm, staying focused, and sticking with your routine are key to a successful hunt. Legal disputes, as they meander through the process from initial filing to final resolution, pose many challenges for the litigants. While frustration is a natural reaction, remain patient and trust in your counsel and the process. Losing a battle or two along the way is not unusual. Staying focused on winning the war is essential. Watch Out for Snakes This age-old admonition remains important for every hunter as a snake bite can have deadly consequences. Remaining vigilant and not letting your guard down mitigates the chances of a bad outcome. Construction disputes, by their nature, are often document and expert intensive which leads to increased fees and costs. Ending up as the victor, only to learn that the cost of the battle exceeded the prize is not the outcome most seek. And while you may view your side of the dispute as black and white, rest assured that your opponent will likely view its side of the dispute with the same sense of clarity and conviction. The truth is that many gray areas typically exist which allow for credible arguments to be made on both sides. And since most construction disputes involve counterclaims, risk is always part of the equation. Given these circumstances, litigants should remain vigilant throughout the dispute. By knowing the costs and making a candid assessment of the risks involved throughout the process, your business will be able to make a sound business decision of whether to continue the fight or to settle. Enjoy the Hunt Shooting a limit of birds is always exciting, but even on days when the birds just aren’t flying, hunting provides golden opportunities to spend quality time outdoors. While legal disputes will undoubtedly be a source of frustration, there is much to take away from the process as a participant. Involvement in a dispute will reward you with first-hand experience with the legal process and result in your business being better prepared for future disputes, should they occur. You may also be able to implement changes in your day-to-day operations to reduce the risk of future disputes. Happy hunting! West W. Winter, a LEED Green Associate, serves on the board of the Construction Law Section of the San Antonio Bar Association and has been listed as one of the Best Lawyers in San Antonio for Construction Litigation. The Winter Law Firm represents general contractors, subcontractors, and suppliers in all phases of the construction process, from contract formation through dispute resolution, litigation, and collection. West can be reached via email: west@ thewinterlawfirm.com.
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hen I began my surety underwriting career in 2002 as a trainee, one of the foundational books I was given to read was “Construction Contractors’ Survival Guide” by Dr. Thomas C. Schleifer. The book was written for construction contractors to learn from, but the parallels to surety underwriting make it a tremendous asset in learning about elements of contractor failure that remain unchanged over time. The underlying theme Thomas points out across the various risk factors is that the project will likely get done, but will it get done profitably? This is a very important question. I will focus on two of the most common risk factors outlined in this book and I highly recommend visiting Thomas’ website letstalkbusiness.net for many more helpful resources. to hear how the local government and Increase in Project Size residents view the project. There may be Most contractors can build a project some unfair treatment by locals who do that is two, three, or even four times their not like or want the project built. The largest project to date. But it is easy to regulatory oversight and inspection prounderestimate the strain a very large cess can be very different than with ownproject puts on the companies’ resourc- ers you are used to working with. A prues. A contractors’ balance sheet that is dent course of action to expand geoset up to handle their normal project size graphic footprint would be to operate on and backlogs, can be strained signifi- the fringes of current territory and branch cantly if slow pay occurs on a much larger out further in a measured fashion. In the surety industry we have expeproject. This large project is often longer rienced contractor failures as a result of a in duration, which creates a heavier imcontractor taking on a job with one or pact on cash-flow from retention held both of risk factors, amongst other reaand is more complex to finalize. A large sons. If you are exploring a job that will project requires greater management surequire a surety bond and the job is sigpervision and likely requires an increase nificantly larger than anything you’ve in oversight from owners, engineers, and completed previously or in a new geoarchitects. The last point I’ll note is the opportunity cost – the very large project graphic location, you can expect queswill require dedicated management from tions to be raised. These issues can be key people who could have otherwise overcome with proper planning and managed a couple of smaller projects, good communication with your surety and your bonding company may be fairly agent and surety company. Often this conservative in supporting additional communication is no more than letting projects of size until the large project is your bonding agent and underwriter see complete. The best advice is to take mea- the planning and risk management prosured, incremental increases in project cess a contractor would undergo even if a size while expanding your company re- bond wasn’t required. Dr. Thomas C. Schleifer has vast exsources to meet those demands. perience in the construction industry and serves as a turnaround expert for sureties Change in Geographic Location and contractors. He has written exten A change in geographic work loca- sively on a variety of construction related tion can change many risk variables for a issues. I would highly recommend pickcontractor. Travel, housing, site condi- ing up one of his books or reading some tions and weather are just a few factors of his articles. that add cost, risk, and require a well thought out plan. Finding local subcontractors, labor, equipment, and material supply can all present challenges not dealt with in your normal operating territory. At a minimum you may not receive the best pricing quotes available and less than optimal service. Bidding and winning a project in a small town that is new to you can also present political and bureaucratic challenges. You are not around
Schmalz & Associates is an agency exclusively supporting contractor’s bonding needs. Eric Schmalz was an underwriter and manager for over 15 years working for Top 10 surety companies and now helps his contractor clients establish and maximize their surety bonding. Please call 512-640-6444, email eric@schmalzsurety.com or visit the website at www.schmalzsurety.com
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Austin Construction News • OCT 2020
continued from Page 1 — MW3A LLC
Portable Fire Extinguishers Joann Natarajan Compliance Assistance Specialist OSHA Austin, TX
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orkplace fires and explosions kill hundreds and injure thousands of workers each year. One way to limit the amount of damage due to such fires is to make portable fire extinguishers an important part of your fire prevention program. When used properly, fire extinguishers can save lives and property by putting out a small fire or controlling a fire until additional help arrives. A fire is the most common type of emergency for which small businesses must plan. A critical decision when planning is whether or not employees should fight a small fire with a portable fire extinguisher or simply evacuate. Portable fire extinguishers apply an NFPA No. 10A-1970. extinguishing agent that will either cool If fire extinguishers are available for burning fuel, displace or remove oxygen, employee use, it is the employer’s reor stop the chemical reaction so a fire sponsibility to educate employees on the cannot continue to burn. When the han- principles and practices of using a fire exdle of an extinguisher is compressed, tinguisher and the hazards associated agent is expelled out the nozzle. All por- with fighting small or developing fires. table fire extinguishers must be apUsing a Fire Extinguisher: proved by a nationally recognized testing laboratory to verify compliance with • The following steps should be folapplicable standards. In construction, fire extinguishers lowed when responding to incipient rated at least 2A or greater, must be pro- stage fire: vided for each 3,000 square feet of the • Sound the fire alarm and call the protected building area. The travel dis- fire department, if appropriate. • Identify a safe evacuation path betance to reach a fire extinguisher must not exceed 100 feet. One or more fire ex- fore approaching the fire. Do not allow tinguishers with a rating of at least 2A, the fire, heat, or smoke to come between must be provided on each floor of the you and your evacuation path. structure. In multistory buildings, at least • Select the appropriate type of fire one fire extinguisher must be located ad- extinguisher. • Discharge the extinguisher within jacent to a stairway. effective range using A fire extinguisher rated 10B or its greater, must be provided whenever the P.A.S.S. technique (pull, aim, squeeze, more than 5 gallons of flammable or sweep). combustible liquids or 5 pounds of flam- • Back away from an extinguished mable gas are being used on the jobsite, fire in case it flames up again. and located within 50 feet of the flam- • Evacuate immediately if the extinmable r combustible. Fuel tanks of motor guisher is empty and the fire is not out. vehicles are an exception to this require- • Evacuate immediately if the fire ment. Portable fire extinguishers must progresses beyond the incipient stage. be inspected periodically and maintained in accordance with Maintenance natarajan.joann@dol.gov and Use of Portable Fire Extinguishers, 512-374-0271 x232 s
Submitted to Construction News
Round-Up
Molly McShane has been named as Chief Executive Officer of The McShane Companies. McShane previously held the position of Chief Operating Officer and as Chief Investment Officer was the first woman in the firm’s history to rise to c-suite leadership level. Since joining the company in 2002, McShane has spearheaded major strategic initiatives across its portfolio of services. During her tenure as COO, the organization posted record growth. -mjm
Holley Higgins RID LEED AP ID+C joined Method Architecture as a Designer. From the Austin office, Higgins will lead and expand the firm’s tenant interior division, focusing on corporate interiors and education projects. With over 15 years as a designer, Higgins has led noteworthy projects for clients such as General Electric, Comcast, and Fort Worth Independent School District. She will continue to expand the firm’s corporate interiors and K-12 portfolio in Central Texas. -mjm
Ross Smith has been hired as a Senior Project Manager at MW Builders. With 15 years experience, Smith is responsible for over-seeing operations of multiple projects from preconstruction through closeout to ensure successful outcomes and achievement of critical goals on every project. Smith advocates for continuous improvement and lean construction methods to exceed expectations. -mjm
Steve Pascuzzi joins Rosendin Electric in Austin as a Senior Project Manager. Pascuzzi has more than 20 years of electrical industry experience managing multimillion-dollar projects. In his new role, Pascuzzi will draw from his work in commercial/industrial, renewable energy, data centers, mission-critical, utility divisions and infrastructure upgrades. -mjm
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because of what we do and how we are able to self-perform and maintain the quality control I require. I’m in a niche for third-party management real estate companies that I saw the need for and created my company specific to tenants’ interior finish-out needs.” In 2015, Whittaker moved from South Austin with his team to their new location in North Austin. The growth continues
but that isn’t his goal. “I don’t want to be the biggest in the market, I just want to be well-known for our quality control and fulfilling our tenants’ needs and wishes,” he says. “My true drive is not to become the biggest and the best, but to maintain what we have and grow as we need to.” MW3A LLC is an interior finish out firm. –mjm
continued from Page 1 — Core Supply started selling straight bar to the customers and a few accessories. We operated that way up until 2015, when we moved into rebar fabrication in the Houston location. I came on board in 2016 and opened up the East Texas location and we started fabricating rebar out of that location. In 2019, we switched the name to Core Supply. We were looking for a name change; Core Lumber and Rebar pigeon-holed us as a lumber company and we’re really a rebar fabrication company. We were moving into other lines of offerings to our customer base. We changed the name as we opened up the Central Texas (Hutto) and North Texas (Fort Worth) locations to make a seamless change.” Opened July 2019, the Hutto branch is overseen by General Manager Dee Saladino. With the help of Salesman Sean McElwrath, Rob Ecklund, transportation driver David Holley and warehouse helper Ray Ventura, the team fabricates rebar, and supplies concrete accessories and form lumber. “We’ve been grinding; we dove into this without looking back,” Saladino says. “My team has each other’s backs and go to bat for each other. We’ve come
together to build this branch.” Going all in is a common trait among the Core Supply team members. “The rebar market is not a young industry, but we’re a young, aggressive company,” Bills says. “The two brothers who own it are in their late 30s. We don’t take a retail approach. We don’t have retail showroom with a counter and a guy taking your order. All of our product is sold through outside salesmen. We know our product line-up and what kinds of projects Core can execute, and what projects we can’t. We’re able to communicate that to our customer.” Bills says the company is in 100% growth mode, with an eye on opening a San Antonio location. They are also committed to growing the Central Texas location and impacting the industry. “There’s nothing better than going out to a completed project and knowing that you were a part of something bigger than just supplying the rebar,” Bills says. ”You see a finished product and you were a part of that job. There is a value there that is long-standing.” Core Supply fabricates rebar and supplies concrete accessories and lumber. –mjm
continued from Page 1 — Capital Industries LLC “I’ve been in the mechanical world for 20 years,” he says. “I had a family friend who was an electrical contractor in Oklahoma City. I got into the electrical trades through high school and college. I studied construction management at the University of Oklahoma and then joined a firm in Dallas doing mechanical and electrical work. I’ve kept with the mechanical business ever since.” With the help of Senior Account managers Mike Cantieri and James Shaw and Production Managers Shane Hilton and Nathan Silver, Smith’s company has grown to employ 60 team members. “We’re on a very aggressive growth plan,” Smith says. “We’re looking to continue that, but again, we’re not after the fame and notoriety as much as we are making opportunities for our team. If we can grow and get the right people that fit the culture, then we’ll continue to grow the business.” Capital Industries is completing the Events Center and water park at Kalahari Resorts and Conventions in Round Rock
and is meeting deadlines despite COVID. “We had jobs on the UT campus that shut down for a few weeks. Then, we had others actually accelerated, like the ICU expansion at North Austin Medical Center; they wanted those done earlier so we put those on the fast track. We did work at the Department of Health and Human Services lab for the State of Texas while their labs were testing for COVID viruses and vaccines. Not only did we learn about COVID and how to keep our people safe, we also wrapped up several projects in weeks rather than months.” Smith takes pride in watching the care he invested in his employees manifest in their own pride in their work. “It goes back to the people, seeing folks be proud of the work they put in. Years ago, it was me showing people the projects I did early in my career. Now, it's more about listening to folks share the pride they have in their projects.” Capital Industries LLC in Austin offers commercial/industrial plumbing, HVAC, piping and sheet metal. –mjm
Austin Construction News • OCT 2020
Page 13
If you could be anyone/switch places with someone, who would it be and why? I would choose my grandfather. He recently passed a couple of months ago. He taught me a lot of things growing up, and I was very close with him. I was able to learn a lot of real-life situations from him. He taught me a lot about not only working hard but taking pride in my work. I feel like he was fortunate in his generation to see a lot of life and how things have evolved, coming from the ’30s, when there wasn’t a lot of resources to all the way in this day and age. It would have been neat to see all of the evolution of technology, especially in the world of construction. Dee Saladino, Core Supply I think if I was to trade places with someone, since I’m getting into politics now, I would like to trade with somebody who can make an impact on the pandemic to see if I can make a difference, even things like the school systems that are being lost through this pandemic. I had COVID, fortunately I didn’t end up in the hospital. I lost my sense of taste and smell. I love to cook and consider myself a home chef, but now I couldn’t even tell you if I was eating onion or garlic. I have a little saying around the house that COVID is killing chefs around the world! Geoffrey Whittaker, MW3A LLC I would trade places with my father. Dad has passed, but he was the most evenkeeled, never excited, one point, very deliberate, very methodical, great dad. When I was I was teenager and thought I was the smartest person in the world, I struggled with why we couldn’t do certain things, why we had to do certain things and then as I got older and
because a parent, I had that a-ha moment. I admire my dad, just the way he loved us, the way he cared for us, the way he taught us. He made me the man I am today, and I still take little bits and pieces, and in these tough, trying times, I stop and think, “What would Dad do?” So if I could trade places, I would trade places with my dad. He was rock solid, never faltered. Myron Marshall Red Ball Oxygen Co. I immediately thought of Ruth Bader Ginsburg. [I want to] hear the stories that she had been through over the last decades and how she persevered through all of the struggles in her life to quite literally change the world. Kyle Smith Capital Industries Sometimes, I wish I was my dog! I would be able to go explore and take naps on a regular basis. I was just looking at my dog, and she’s always sleeping so soundly. I thought that would be so nice! Erin Smith Smith Sustainability If I could trade places with someone, it would have to be with myself at the age of 17. The reason behind this is so that I could have listened to my educators and counselors about them telling me I would be involved in construction and not waste time – four years studying and five years working as a legal assistant – thinking I would be an attorney. I would have definitely been a little farther ahead in the construction industry. Fernando Villareal Villareal Commercial Coatings
Association Calendar
Content submitted by Associations to Construction News ACEA
Greater Austin Contractors & Engineers Assn.
Oct. 5-16: Reel it in: Online Auction, Bidding for Good Virtual Auction Platform, 8am-9pm. Oct. 8: October Membership Luncheon – City of Round Rock Atlas 14 Implementation, Norris Conference Center, 2525 W. Anderson Ln. #365, 11:30am-1pm. Oct. 26: Fall Golf Tournament, Balcones Country Club, 8600 Balcones Club Dr., 8am-5pm. Field is limited, Register now. For more info, go to www.aceatx.com or call 512-893-7067. AGC
Associated General Contractors
Oct. 1: Annual Fish Fry & Auction, Texas Disposal System Exotic Game – CANCELLED. For more info, contact Toni Osberry at 512-442-7887 ASCE American Society of Civil Engineers
Oct. 9: Designing for the future, Virtual CE Conference, 8am-1pm. $60 per person, $40 students & government employees. For more info, call 512-472-8905 CTSA Central Texas Subcontractors Assn.
Oct. 16: Central TX Subcontractors Clay Shoot, Reunion Ranch, 850 CR 255, Georgetown, TX. For more info, contact Wendy Lambert at 512-255-6373 DACA
Drywall Acoustical Contractors Assn.
Oct. 1: Top Golf Tournament, The Domain, 11410 Century Oaks Terrace. For more info, email Eddie McCormick at eddie@dacadfw.org
NARI
National Assn. of the Remodeling Industry
Oct. 10: Golf Tournament, Teravista Golf Course, 4333 Teravista Club Dr., Round Rock, TX, 8am. For more info, call Kayvon Leath at 512-997-6270 or email kayvon@ austinnari.org RCAT
Roofing Contractors Assn. of Texas
Oct. 1: RCAT PAC Golf Tournament, Bear Creek Golf Club, 3500 Bear Creek Ct., Dallas, TX, 11am Registration, 1pm Shotgun Start. $150 per play includes lunch, drink tickets & door prizes. For more info, 512251-7690 or email rcat.pac@rooftex.com SEAot
Structural Engineers Assn. of Texas
Oct. 22: Chapter Meeting, Maggiano’s Little Italy, 10910 Domain Dr., #100, 11:45am. For more info, call 512-301-2744 TSA
Texas Society of Architects
Oct. 29-31: Catalyst-81st Annual Conference and Design Expo, Hilton Anatole, 2201 N. Stemmons Fwy., Dallas, 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
Oct. 7: TSPE Online Luncheon, Watershed Protection Dept. and Planning for the Future, Zoom Webinar, 12-1pm, Preregistration required. For more info, email TSPE.travis@gmail.com or go to www.tspe-travis.org
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3M Silicon Hills @ Four Points
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illarreal Commercial Coatings in Austin specializes in drywall finishing, coatings and painting, servicing commercial, hospitality and multifamily projects. The company’s expertise made it the perfect choice to transform a building that needed a fresh start. The company was enlisted to perform a complete remodel of 3M Silicon Hills @ Four Points at 6801 River Place Blvd in Austin. Interior work included installing drywall with a Level 5 finish and completely repainting new and existing walls, doors and trim. A complete exterior repainting was performed with Sherwin-Williams’ Sherlastic Elastomeric paint. In fact, Sherwin-Williams products were used throughout the project: SW High Build Drywall Primer and ProMar 200 low-gloss topcoats in Eggshell were used on the interior, while SW Pro Industrial Waterborne Acrylic Urethane semi-gloss was used on the doors and trim. Villarreal Commercial Coatings superintendent Erik Castro oversaw the project,
Boom lifts and scaffolding were used to perform work on the building’s exterior.
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3M Silicon Hills @ Four Points needed a facelift to prepare it for a brighter future.
which began in May and was completed in July. Villarreal Commercial Coatings Director of Operations Fernando Villarreal says the project was unique because the building owner, who was coordinated with directly, adhered to a sort of “build-asyou-go schedule instead of a direct finish
schedule. Both exterior and interior challenges presented themselves during this project. Exterior painting was performed with the help of boom lifts up to 150ft in the air, with uneven landscapes making it difficult for boom lifts to navigate around the building.
A array of Sherwin-William products were used exclusively on the project.
The interior height of the building proved to be a drywall, finish and painting challenge.
To remedy this, swing stage scaffolding was brought in for certain areas of the building. Dealing with different groups of workers inside the 1,000,000sf project was also a challenge, but workflow was controlled early on by Castro to prevent difficulties. “Another challenge for the interior of the building was the height of the courtyard or common area walls – five stories – and not being able to bring in equipment big enough to safely reach the height of the walls, so swing stage scaffolding had to be used,” Villarreal says. In the end, the challenges were overcome, the client was pleased with the result, and the building is was transformed inside and out and ready for a new future. -mjm 3M Silicon Hills @ Four Points Villarreal Commercial Coatings Austin, TX
Georgetown ISD: Tippit MS Tennis Court Resurfacing
t’s good to switch things up, which is what The KYA Group did for Georgetown Independent School District’s’ Tippit MS Tennis Courts. The industry specialist in surface solutions, sports fields and athletic courts was recruited to make over the school’s 50,700sf of playing surfaces. KYA Group Regional Manager & Project Lead Jeremy Gauche, Superintendent Weston Ready and Project Management Tina Ramirez knew that switching the existing red/blue color scheme, in addition to repairing the court surface, would be transformative. “We ended up reversing the court and surround colors, taking it from blue courts and red surround to red courts with blue surrounds,” Gauche explains. “The blue in the playing area adds a nice contrast to the ball and enables players to track the ball easier. It doesn’t seem like a big difference, but the new colors did give the courts a new ‘pop’ of color and a more modernized look.” To achieve this result, Gauche and his team carefully prepared the existing surface before applying California Sports Surfaces’ Plexipave and Sportsmasters to the courts. “We started by pressure washing the entire surface before filling and grinding
Georgetown ISD’s Tippit MS Tennis Courts were showing the effects of years of play. The faded color and court damage needed correction.
down cracks over the existing asphalt surface, followed by grinding the entire surface to remove any loose debris or areas the existing surface was chipping,” he says. “We used an acrylic resurfacer, sometimes applying multiple coats in rougher areas to ensure coverage of repairs and create a consistent base coat before proceeding with the new layout. Two coats of court paint were applied, blue for the court itself and red for the surrounds. Then we measured out, taped off, primed the tape for a The blue in the playing area provides a nice contrast with the tennis balls, which makes ball tracking easier. Reversing the ➤ red/blue color scheme gave the courts an instant facelift.
crisp/clean line and proceeded with two coats of white court paint for the lines before installing new nets and any other touch up work required.” The KYA Group had to perform within a tight deadline, as all work had to be completed before the start of the school year – a unique challenge during these uncertain times. “It was an interesting summer to say the least due to everything the country was experiencing with COVID,” Gauche
says. “Labor demand is always challenging, especially in areas where construction Is booming and with the risks of COVID. Furthermore, we experienced some shipping delays in getting materials but then we also had weather delays in the last week as we were trying to hit our deadline of finishing before students and teachers return to campus. Luckily, we planned well and even with the delays, we were still able to deliver a beautiful project on time and on budget. “Both of us, the KYA Group and the client Georgetown ISD, are very pleased with the outcome of the project,” Gauche adds. “We at KYA are grateful for clients like Georgetown ISD and the opportunity to work with them on projects such as these.” The KYA Group specializes in sports fields, athletic courts, resilient surfacing, classroom beautification and sustainable plantscapes. through general contracting, design, project management and maintenance services. The company has four locations, including Round Rock. –mjm Georgetown ISD: Tippit MS Tennis Court Resurfacing KYA Group Georgetown, TX
Austin Construction News • OCT 2020
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Williamson County Juvenile Detention Center
The gym was The Williamson County Juvenile Detention Center’s largest space – and its biggest embarrassment at functions due to worn out flooring.
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he Williamson County Juvenile Detention Center in Georgetown has a dual purpose of housing juvenile inmates and serving as a day school for expelled students from surrounding schools. The gym is a key part of this center’s rehabilitation programs as well as its largest space, which means it is used for functions. The flooring of this important area, however, was showing signs of age and wear, and also became a safety issue as well as a source of embarrassment for the center’s staff. Vector Concepts Inc. was enlisted to remove and dispose of the old, unsafe floor and replace it with a new Gerflor Taraflex “Sport M Plus” pure vinyl, rolled, cushioned backed sports floor. Territory Sales Manager Chad Warthan and Project Manager Jon Noel and the Vector Concepts team worked to make the 6700-sf space brighter, safer and low maintenance. “We used the Gerflor “Drytex” high moisture resistant installation system,” Warthan says. “The existing gym had some age to it, and we did not want to have to worry with costly and time-consuming RH concrete moisture testing or with a future moisture related floor failure. With Drytex, we used the Gerflor “Gerpur” full spread adhesive and “Gerpatch” concrete patch. Gerflor provides a 15-year, 100% RH, moisture warranty on the complete system (including the Gerpatch) with no RH moisture testing required. “The new Taraflex system has a permanent, factory
The exercise area before was old, worn and unsafe. No longer an eyesore, the gym’s flooring can now serve many purposes with style, thanks to Vector Concepts.
applied finish that never needs to be waxed or refinished,” he adds. “The floor will be easy for the maintenance staff to take care of. Sport M Plus is rated a “Class 3” for shock absorption according to ASTM F2772 U.S. Indoor Sports Flooring Standard. The old floor was much harder so the Taraflex system will greatly reduce strains and injuries during sports activities.” The new Taraflex floor is in the “Maple” wood design which gives the gym an instant makeover compared to the old floor’s solid green color. New basketball and volleyball lines were painted on as well as a new custom logo. The exercise area flooring was replaced as well as with Ecore “Motive” rubber fitness flooring in the color “Navy” to give that space a higher performing surface as well as an updated look. Both Gerflor and Ecore were able to provide materials on schedule so that the team could meet the small window of time the center had for completing the project. The job went smoothly with no real unforeseen challenges, and the installation teams finished the entire project in five days. “The updates in floor safety and performance as well as the brighter, more modern look will be a big benefit for the center,” Warthan says. “The paint and equipment in the gym had already been updated so the new flooring
Ecore “Motive” in the color “Navy” freshened up and delineated the exercise area from main gym floor.
now makes the inside of the gym look brand new.” Best of all, the center’s staff and students now have a space of which they can be proud. “The team at the detention center were very pleased and excited about their new gym flooring,” Warthan says. Vector Concepts Inc. is an independently owned floor covering company. –mjm Williamson County Juvenile Detention Center Vector Concepts Inc. Georgetown, TX
The Uplands Phase II Office Building & Parking Garage Expansion Project
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ounded in 2006, Structura’s founders, Rusty Morgan and Kevin Jones, built Structura on four core principles: true collaboration, flexibility, mindful innovation and commitment. These principles influence not only how they choose to do business but also whom they hire to execute our work. “At Structura relentless accountability is a hallmark of our team’s successes. As our clients will attest, and you will very quickly learn, you can absolutely count on us to be very responsive, understanding of your needs and dedicated to exhausting all resources and avenues to meet the most demanding schedules, obtain the most competitive pricing and exceed your highest expectations. Our organization fosters high-performance team behavior which creates trust, diversity, rapid response, mutual respect, shared responsibility, open communication and performance measurement,” says Structura Marketing Manager Tara Kirkland. Structura has three offices throughout Texas, including Austin, San Antonio, and Houston. Over the past 13 years, Structura has created a foundation that provides a full scope of services and covers a wide range of construction sectors, including corporate office, industrial, healthcare, education, retail and entertainment, technology, and restaurants, to name a few.
Uplands Phase II Office Building under construction.
Uplands Phase II Office Building under construction.
The Uplands Phase II Office Building and Parking Garage Expansion project encompassed the construction of a new three-story, class A, 126,000sf office building shell and a 651-space parking garage expansion located on Southwest Parkway in Austin, TX. The building construction type is conventional steel and concrete composite construction with a masonry, metal panel and glass façade. The building interior will feature a finished class A first level lobby, common corridors, finished restrooms and passenger and service elevator lobbies. The office building will be LEED certified with the intent to be well certified after construction has been completed and building occupancy is filled. The exterior glazing will feature an electrochromic “smart window” system in which exterior window blinds can be eliminated with the use of automated window tint based upon the position of the sun relative to the building. The parking garage expansion consists of six levels of new parking with three levels subgrade and four above-grade. The foundation and perimeter basement walls are cast-in-place and the parking structure consists primarily precast construction with topping slabs. The project location and size presented the largest overall challenge on the building. With one entry into a
project site that is over 1,300 ft. long yet only 200 ft. wide, the phasing and scheduling of project delivery and building erection was critical. Since the parking garage expansion was at the back of the property, the precast erection and crane placement were the critical path of a successful project. With the parking garage having three subfloors, it was necessary to create a crane path with ramps 50 ft. wide by 150 ft. long to walk the crane incrementally into the subfloors. At the same time, scheduling was carefully followed to allow the office building structural steel to take place simultaneously. When erection was completed, the office building and parking garage cranes met in the middle of the project site in an area 80 ft. wide by 200 ft. Structura is known to excel at technically challenging, time sensitive projects. As a team, they openly collaborate with both owners and design professionals to flush out the best value possible for their clients. Because of this, 85 percent of their projects come from repeat business and word-ofmouth referrals. -cmw The Uplands Phase II Office Building & Parking Garage Expansion Project Structura Austin, TX
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Austin Construction News • OCT 2020