There’s nothing like Texas summers, arid in the west and humid in the east. Regardless, seeking comfort from the hot Texas sun is as common as hot dogs at a baseball game.
In early 2004, Eric Arnold, found an opportunity to expand a new product line of permanent shade structures and founded ShadePro, LLC.
“In the early years, ShadePro was just a distributor for a larger company called Trico, “ says Sale, Project Manager and Marketing Specialist Kyle Cocomise. “Since then, we have evolved into a fully turnkey service company and sole provider with no distributor partnerships. We design and sell high quality permanent shade structures throughout the United States.
Keeping Texas covered
ambient temperatures by 10-20 degrees, adds Cocomise. “And our shade fabric is backed by a 10-year manufacturer’s warranty so you get a high-quality, durable and functional product.
Family-owned and operated since 2004, ShadePro has grown from a company of two, Owner, Founder and President Eric Arnold and his son, Vice President Tyler Arnold to a company of 25 which includes Cocomise, the company’s sales, project manager and marketing specialist to office personnel and a talented team of installers and fabricators.
“We have a long-standing reputation in the commercial shade industry. We’ve been around for 21 years and have built the company from the ground up. It’s taken a lot of hard work, effort and dedication over the years but we have become a premier provider of these structures.”
Specializing primarily in the commercial market, ShadePro engineers and constructs shade structures for corporate covered parking, car dealerships, RV resorts, HOA pools, playgrounds, car
Raise the bowl
TNT Crane & Rigging & JE Dunn Construction took on a challenging project at the historic Cotton Bowl Stadium in Dallas. Using a Liebherr LTM 1400-7.1 allterrain crane and a cantilever bar, they were able to successfully maneuver precast sections into place, underneath the second seating section. This success was a true testament to teamwork and commitment to excellence. At TNT Crane, they take pride in delivering safe, efficient, and innovative lifting solutions for even the most complex projects.
washes and other recreational spaces using the highest quality materials like premium powder coated steel and durable commercial shade fabric. Residentially, ShadePro provides pool, patio, and driveway coverings.
“Our commercial shade fabric helps block up to 95% of UV rays and lowers
Headquartered in New Braunfels, TX, ShadePro recently completed the construction of their new offices on the company’s property, the same property where their fabrication shop is located.
In closing, Cocomise adds, “We are looking forward to continuing to grow and expand our product in the Texas market.” -cwr
Tailgate Time
The Bartlett Cocke General Contractors (BCGC) team participated in the annual Health and Safety Council (HASC) Tailgate Extravaganza and Cookoff Competition. Jimmy Church cooked up some mouthwatering chili and took home first place. BCGC would like to give a big shoutout and thank you to their partnering team, Energy Architecture for making this a great event. The day was filled with the networking of so many companies and delicious food!
Bartlett Cocke team
Jimmy Church
RED
Galaxy Builders is a proud supporter of the American Heart Association and the fight against heart disease. The Galaxy team goes red to raise awareness and take action. “Together, we can make a difference.”
Hot Project
The Koehler Company has been honored to serve Kyle Fire Department/Hays County ESD No. 5 in building another fire station for the County. This brand new 3 bay station is located in the city of Kyle and will serve their east side residents and community. The structure is a combination of metal building, CMU (concrete masonry unit) walls and wood framing. On the exterior there is beautiful masonry stone and metal siding. Nearing completion, Koehler is proud of their team who managed to keep this project moving efficiently and safe on a tight and challenging site. They are very close to bringing the station “online” and can attribute that to having an amazing team around.
Eric White Owner
Freedom Painters
New Braunfels, TX
In the heart of downtown New Braunfels, Eric White has been making his mark in the home improvement industry with his company, Freedom Painters. For six years, Eric has been transforming homes and businesses, building a reputation for quality and reliability.
Eric’s journey in the painting and flooring industry began in South Texas, near Corpus Christi. “I grew up working for my father’s construction company,” Eric recalls. “I learned various trades from him, but eventually pursued painting as a career.”
Before starting his own business, Eric gained valuable experience working for a large company in Austin. One of Eric’s most notable projects was working for Schlitterbahn, painting the exterior of their resorts. Freedom painting grew steadily and has expanded to offering epoxy flooring services.
What sets Freedom Painters apart is not just the quality of their work, but the tight-knit team Eric has built. “I’ve had the same small team for five years now,” Eric proudly states. “It’s important to me that my employees are happy and that we maintain a steady pace.” Eric’s wife,
Julie White, plays a crucial role in the business’s success. “My wife handles sales, marketing, and other administrative tasks,” Eric explains. Together, they balance the demands of running a successful company with family life, including raising their two daughters, Shanna and Madelyn.
When he’s not transforming spaces with paint and flooring, Eric has a passion for travel. “We love to take vacations to recharge,” he shares. With an upcoming trip to the island of St. Thomas, Eric is excited about family time and taking his daughters snorkeling.
Looking to the future, Eric remains committed to maintaining the high standards that have become synonymous with Freedom Painters. “We’ve been voted the number one painting and epoxy floor company in the area for the past five years,” he says proudly. “I’m satisfied with our current pace and don’t want to grow too big. It’s about maintaining quality and ensuring everyone on my team is happy. -ndw
Owner, Eric White
Welcome
The Texas Air Conditioning Contractors Association (TACCA) is proud to announce the installation of its 2025 Board of Directors and Executive Committee. The new board was sworn in during the first quarter 2025 board meeting last week, marking a historic milestone for TACCA with its first legacy state president.
Rob Elolf with Environmental Air was officially sworn in as TACCA’s 2025 Board President by his father, Bob Elolf, Environmental Air who served as TACCA State President in 2007. This significant event represents a unique moment in TACCA’s history and underscores generational commitment to the association.
“As a second-generation HVAC business owner and the son of a past TACCA president, I am deeply honored to continue my family’s legacy by serving as the 2025 TACCA President and representing the hardworking HVAC contractors of Texas. Our industry plays a vital role in keeping our state comfortable, safe, and efficient, and I am committed to ensuring that we continue to thrive. Together, we will influence
legislation to protect our businesses, promote education to elevate our trade, and support the dedicated contractors who serve our communities daily. It’s a privilege to give back to an industry that means so much to me and to Texas,” Rob Elolf, 2025 TACCA State President.
Joining the 2025 Executive Committee are:
• Robin Saunders, Chilly Air, Secretary
• Matt Wikel, Advent Air, Treasurer
• Matthew Cyphers, Cytech Heating & Cooling, Vice President
• Roland Arrisola, Stan’s Heating, Air & Plumbing, Ex-Officio
Roland transitioned to the roll after 30 months of exceptional leadership and commitment. The TACCA Executive Committee operates under a structured succession plan, ensuring a balance of experience, mentorship, and continuity in board leadership.
New board members sworn in for 2025 include:
• Kristoff Jones, C2 Mechanical, representing Region II
• Casey Yates, Associate Board Member from Robert Madden Industries
A steel passion
From conception to construction,
Nano Cube Industrial works directly with the owner, architect, developer and investment groups to provide commercial structural steel and turnkey pre-engineered metal buildings.
Founded in 2017 by Matthew Cruz, Nano Cube Industrial started small doing small structural steel and metal buildings. As the company experience grew, so did their projects. In just a short period of time, Cruz began constructing barndominiums which catapulted Nano Cube Industrial into commercial work.
“One of my barndominium clients,” says Cruz, “actually wanted a small commercial building to be used for storage and warehousing for their feed business. That was the beginning of my commercial work.”
Today, Nano Cube Industrial constructs structures like that of a 108,000-sf church and other hybrid steel super structures. Mostly recently, the company was awarded a new TopGolf facility in New Braunfels.
Nano Cube Industrial is a small company with a true passion for turnkey, anything to do with steel, commercial construction and metal buildings.
“I, personally, have a true passion for engineering, fabrication and building for people,” adds Cruz. “Being able to execute and beat everybody else’s lead time, and then receive emails telling us we knocked it out of the park is such a rush!
“We are a small company and we’re growing really fast due to our network of AISC direct fabricators, AISC direct erectors, and for the past couple of years, our AISC engineers which do our engineering work. We have become a one-stop, truly turnkey conventional
construction, structural steel fabrication company as well as a turnkey design build PEMB contractor.
“I love what I do and I’m going to take care of our customers’ needs. Our main goal is to help as many people as possible with a quality product, beat timelines and securing repeat customers.”
Although headquartered in Alamo Heights, Nano Cube Industrial has built structures across the nation like a 50,000-sf hybrid structure in Topeka, KS. They have also completed structures in North Dakota, South Carolina, North Carolina, Florida, Oklahoma, Missouri, and across Texas.
Cruz adds, “I will go anywhere you send me. We are a small company. We have built buildings of every size and shape, and we will go anywhere you need us. We can fabricate direct from the manufacturer, an AISC fabricator. We have a Houston hub through my partnership with my AISC direct manufacturer and we can ship the structural steel or the whole metal building anywhere in the country, and then fly or drive to erect those structures.” -cwr
On Feb. 19, nearly 100 members of the Texas Aggregates & Concrete Association (TACA) visited with Texas legislators to discuss issues important to the aggregate, concrete and cement industries. Texas House Rep. Pat Curry (House District 56) kicked off TACA’s Capitol Day with remarks that set the tone for a day of legislative visits to the Capitol.
“The Texas aggregates business is a $10 billion dollar industry and is vital to everyone who lives and works here,” said Rep. Curry, who serves on the House Delivery of Government Efficiency Committee and the Transportation Committee. “Most people drive up and down these roads and do not realize how important they are and why the roads are in such great condition. That’s because of you. We all need to hear your story.”
TACA Holds Capitol Day
provides certainty and consistency,” said Arnold.
TACA members visited more than 74 legislative offices. During the meetings, members focused not only on meeting familiar faces, but also on making contact with some of the 31 new representatives and three new senators elected this past November.
Texas’ population surge – projected to increase from approximately 31 million residents in 2025 to 42 million by 2045 – has set the demand for substantial infrastructure development.
T“With Texas as one of the fastest growing states in the nation, the need for aggregates, concrete and cement has never been greater,” said TACA Board Member Matt Arnold. “We are
working with all stakeholders to ensure that we can continue to deliver the critical infrastructure materials required to build the roads, bridges, schools, buildings, homes and hospitals that sustain the state’s unprecedented growth, in a regulatory environment that
Members shared the association’s legislative priorities, which include encouraging certainty in the environmental permitting process, fiscally responsible funding for state transportation projects, practical, safe and reasonable regulations for transporting industry products, vocational training and workforce development programs and sensible practices that support the state’s growing population infrastructure needs – including roads, schools and hospitals – concurrent with environmental protection for all Texans.
New to town Trade Skills Granted
he National Association of the Remodeling Industry (NARI) Austin NARI Workforce Development Foundation is proud to support the Welding Program at Vista High School with two impactful grants.
These grants, totaling over $6,000, are helping shape the future of skilled trades in the community. NARI is also incredibly grateful to CenTex Engineering
(DeWayne Krawl & Shannon Wolf) for their generous matching donation toward the Miller 255 machine—your support makes a huge difference!
Finally, a big thank you to Leander ISD and Gary Adams for his continued dedication to the Vista Ridge Welding Program and its students. Together, we’re building a stronger future for the trades.
Compact Construction Equipment LLC , the authorized Bobcat dealer in south, central, and west Texas opened the doors of their 18th dealership, operating as Bobcat of Corsicana on Feb. 17, in Corsicana, Texas.
Located at 3000 S Business 45, the new branch in Navarro County offers customers dedicated equipment sales, rentals, parts, and service. As a fullservice dealership, they stock a variety of Bobcat equipment from compact track and skid-steer loaders to compact excavators, tractors, zeroturn mowers, and more. Bobcat of Corsicana will also carry an array of several attachment brands including Virnig Manufacturing, Belltec Industries and Fecon.
Bobcat of Corsicana will offer convenient parts availability, as well as
shop and field service business during their operating hours of 7:00 a.m. to 5:00 p.m., Monday through Friday.
CCE Chief Operating Officer Jason Rush had this to say about the expansion. “Expanding into Corsicana was a strategic decision to allow us to better support our customers with convenient, faster access to Bobcat equipment and support. We look forward to being a part of the Corsicana community.
Austin CONSTRUCTION NEWS
Publisher Haley Mathews
This means war
On Jan. 14-15, the best heavy equipment technicians in Texas went head-to-head in the “Tech Wars” Dealership Finals, hosted by HOLT CAT, and showcased their talent and expertise in troubleshooting and repairing Cat equipment, electric power systems and industrial engines. Last year, Caterpillar announced the first-ever Global Dealer Technician Challenge to celebrate the essential role technicians play in our communities. This challenge demonstrated how skilled technicians are part of a hightech, high-impact, high-demand career. By the end of 2026, it is estimated that Cat dealers may need to hire more than 44,000 technicians, highlighting the global opportunity for those who are interested in a hands-on career.
Below is a list of the top two technicians from each category that are advancing to the Multi-Dealer Competition hosted by Mustang CAT in April. Garrett Mahaffey will be advancing to the Global Dealer Technician Challenge in March 2026 in Las Vegas.
EPG (Electric Power Generation): 1st Jay Larson | 2nd Frank Flood
BCP (Building Construction Products): 1st Weldon Carter | 2nd Michael Ugarte
PSD (Power Systems Division): 1st John Bolinger | 2nd Conrad Kuipers
Railroad Luxury
Thanks to Alamo
Service, this old caboose has found a new home. The caboose, its wheel axles and rails will all be transported to its new location where it will be renovated and put to use as a luxurious get away home. But first, it had to be removed from its current location. Using their HTC3140, 140-ton Link Belt crane, Alamo hoisted the 47,000-lb caboose, its wheel axles and rails on trailers before making the long journey to its new home.
Garrett and Skeeter GDTC Finalists
Crane
Ken Milam’s
SThe Great Outdoors
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
pring at last! The lakes and rivers are already warming up enough to get the fish moving and feeding, so they can think about spawning soon. We have heard some good reports of blue catfish on jug-lines, Crappie are moving in and making for great fishing on sunny days, and the bass tournaments are off to a good start.
The white bass spawning run will be interesting this year. The lower water levels in a lot of lakes and rivers will make their spawning journey very different from the usual. White bass are tough and determined little critters, and they will do all they can to run upriver to spawn, even if it means skittering along on their sides across shallow mud flats to get there. If all else fails, they will spawn across sandy points where the waves create a little current that can mimic the stream flow they seek. White bass will make their run no matter what, they can’t help it. You might just have to work harder to find them this year.
Here on Lake Buchanan we are already seeing good striper and hybrid bass catches coming in and we expect the average size to be bigger than last year. We had plenty of fish that were not quite keepers last year that will have grown over winter. As long as you can get on the water between the last few cold fronts, the fishing is really good. The high pressure associated with
the cold fronts will usually slow down the fish’s feeding for a day or two, but then they bounce back hungry to make up for lost time.
We have been lucky to have a few little rain showers here and there. Not enough rain to help water levels much, but at least enough to keep some bluebonnets alive. Bluebonnets sprout in the fall and grow all winter so they can put on their spectacular blooms in early spring. We had a great sprout of them but may have lost a bunch of them due to it being such a dry winter. There are still quite a few of them holding out for whatever rain they can get. Bluebonnets may be a little late in the Hill Country this year, but if we can get a few more little showers, we will have something to look at after all.
With Spring Break and Easter holidays coming right up, this might be the time to start making your plans to get out and about. The local spring celebrations and festivals are just around the corner and there is plenty of fine barbeque to be enjoyed on the way. Don’t let the bad press about low river and lake levels scare you away. Your favorite getaways are still there for you to enjoy – they are just a little different this year. Like I always say, a low lake is one that just has fewer places for the fish to hide! The fish are still here and so are we. Come see us!
Athree days, one parade, nine bands and one helluva hootenanny! Craig Noto Quality Fence & Welding & his krewe know how to work hard and play harder.
Digital license and tag options for recreational hunting and fishing
Texas Parks and Wildlife Department (TPWD) is taking public comment until March 26 on changes to digital licensing and tagging requirements. The proposed amendments would expand digital license and tag options to all recreational hunting, fishing, combo license and tag types. TPWD introduced digital licensing and tagging in 2022 for harvested deer, turkey and oversized red drum. Options have since expanded to allow resident hunters and anglers to purchase a fully digital license for the super combo (Items 111, 117), youth hunting (Item 169) or lifetime combo (Item 990), Hunting (Item 991), or Fishing tags (Item 992). Customers can also purchase other products such as the exempt angler tag (Item 257), bonus red drum (Item 599) and spotted seatrout tags (Item 596).
Spring turkey season is upon us
Please send us your photos for next month’s issue. Good Luck!
Ken Milam
nother Bandera Cowboy Mardi Gras is in the books;
The Great Outdoors
Springtime Bass Fishing: A Guide to Success
Maximizing Your Catch During the Bass Spawn
Springtime is a much-anticipated season for anglers, and for good reason. As the weather warms and nature awakens, the fish start biting with renewed vigor. One of the most exciting aspects of spring fishing is the bass spawn, a period when bass are highly active and predictable, making it an ideal time for fishing enthusiasts.
The Significance of the Spawn
During the spring, bass engage in a critical reproductive process known as spawning. This period is particularly cherished by anglers since it offers a unique opportunity to catch bass in abundance. The spawn is characterized by bass moving to shallow waters to build nests and lay eggs. Understanding the behavior and patterns of bass during this time is key to a successful fishing experience.
Understanding Staging Locations
Throughout the spawning season, bass exhibit predictable movements between their offshore hideouts and their spawning areas. These transitional spots, known as staging locations, are prime areas for targeting bass. They are typically found in depths ranging from 8 to 15 feet and feature various types of structure such as rocks, grass, wood, or
sudden depth changes. These locations serve as rest stops for bass as they prepare for spawning or recover afterward before returning to their usual habitats.
Choosing the Right Baits
Selecting the appropriate bait for the structure present at the staging location is crucial. Different conditions call for different types of baits to maximize your chances of enticing bass. Here are some effective bait options for various structures:
• Grass: In shallow grassy areas (around 8 feet deep), chatterbaits and swimbaits work exceptionally well. The vibration and movement of these baits mimic the natural prey of bass, triggering their predatory instincts.
• Rocks: When fishing in rocky areas, crankbaits and Carolina rigs are excellent choices. Crankbaits can create a reaction strike by bouncing off the rocks, while Carolina rigs allow you to present your bait close to the bottom where bass are likely to be lurking.
• Wood: Texas rigs and drop shots are ideal for fishing around submerged wood. These setups allow you to navigate through the structure without getting snagged while effectively presenting your bait to bass hiding in the cover.
Adapting to Changing Conditions
While having a go-to bait for each structure is important, flexibility is key. Conditions can vary, and bass behavior can change rapidly. It’s essential to experiment with different bait presentations and observe how the fish respond. Pay attention to factors such as water temperature, clarity, and the presence of other fish species. By being adaptable and attentive, you can finetune your approach and increase your chances of a successful catch.
Conclusion
Springtime bass fishing during the spawn offers an exciting and rewarding experience for anglers. Understanding the behavior of bass, identifying staging locations, and selecting the right baits are essential elements for success. By employing effective techniques and adapting to changing conditions, you can maximize your catch and create unforgettable memories on the water.
Savanna Osborn , daughter of Heather Osborn , MEMCO placed 7th in her class at the Texas Elite Showcase! Congrats Savanna & Tequila Rose!
TNT Crane, Machinery Moving Superintendent, Mario Ramirez - Webb County, TX
Tom Emison is a nationally-recognized strategic planning advisor in the U.S. construction industry and author of the book “CHUNK: Unthink Everything You Thought You Knew About Strategic Planning.”
Construction News: Tell our readers a little about you, Tom. Where are you from?
Tom Emison: I was born in Huntington, Indiana, but mostly raised and educated in Minnesota. I attended Hamline University, in St. Paul, MN., and began my career in an advertising agency as a copywriter. Minneapolis-St. Paul is a very hot market for that. We fight way above our weight class when it comes to advertising and marketing communications, against cities like New York, London, Amsterdam, and Tokyo. I feel lucky to be from the “Twin Cities.”
CN: You’ve had quite a journey in your career. Tell me how you shifted from advertising to strategic planning in the construction industry?
TE: Straight out of college, I scored a great job as a copywriter and an account executive in a small ad agency. A few years later, I met Dick Ebert Feb. 1988, who truly changed my life. He and his business partner David Sebastian had a successful management consulting firm. I joined them and five years later felt I needed a bigger firm. I was becoming known nationally. So, in 1993 and then for several years, I worked at RSM McGladrey, which later was rebranded as RSM US. I was then named a Construction Consulting Director at the firm Eide Bailly After that, I became Vice President of Strategy & Innovation at The KrausAnderson Companies. “KA” is a large diversified construction management and general contracting firm. They also have a large portfolio of real estate and a successful insurance agency.
CN: Can we dive into what a Vice President of Strategy & Innovation does on a daily basis?
TE: Certainly. Part of my year was divided into doing market research on construction project delivery innovations like Public-Private Partnerships, Integrated Project Delivery, DesignBuild, and Volumetric Modular Construction. My role was to bring these innovations to the management team and ask, “What are we going to do about this?” Then, I facilitated all of the meetings so we could act on these innovations as a collaborative team.
Another role I had was to design, facilitate, and document all of our offsite planning retreats, meetings, etc. Of course, I had been doing that for client companies for many years and then I was just doing it for KA. We had an overall strategic plan for the entire organization. We had a strategic plan for each of our companies. And, for one of the companies, we had five different strategic plans for each of the divisions of that company. There was a lot to coordinate and connect. I viewed my role as sort of an orchestrator/connector to make sure that all of the top leaders were on the same page, which was not hard because KA is a really solid company. I even performed strategic planning retreats for our Healthcare group, our K-12 Education group, Kraus-Anderson Insurance, and others.
CN: Are you just naturally an organized and motivated person?
TE: Yes! I mean, it is funny because my Dad was an officer in the U.S. Marine Corps and later was CEO of his own company. Mom was an artist! A weird combination, right?! But they made it work. So, I got a little bit of both, which is good. Because, ultimately, strategy is a creative proposition. It’s the company with the best, most creative solutions that’s going to win in the marketplace. But you also have to know how to execute those creative strategies with precision, like a Marine might. You have to combine creative thinking with accountability for execution.
CN: Your book “CHUNK: Unthink Everything You Thought You Knew About Strategic Planning” is making waves in the industry. What made you decide to put your ideas on paper?
TE: I wanted to write a book when I was ready. I probably waited too long, honestly. I had the experience, the knowledge, and the war stories… I had become an expert in strategic planning… I had written dozens of articles… I had given many speeches and workshops, webinars, and podcasts. So I guess during the Covid-19 time, I just committed to writing it. I had the self-confidence to sit down and stare at this idea head on and say, “Yes, let’s write it!” My Dad had always said he would write a book one day, but he was taken from this earth before he could do that. I did not want that to happen to me, too. It took me one week to write the Table of Contents, then one year to write it all. I looked at it like a project. Every week I wrote a little more. I never had a week go by when I didn’t write something in that book.
CN: You’ve developed something called a “Strategic Clarity Roadmap.” Can you break that down for us?
TE: I have trademarked the Strategic Clarity Roadmap. It’s a blueprint for the entire strategic business planning process, from concept to full implementation and beyond. The reason I put it down on paper is because in the 37+ years I have been doing this strategic planning work for construction companies, I had an unusual experience:
my clients implemented their strategic plans well. Instead of the stereotypical strategic plan that sits on a shelf collecting dust, my clients’ strategic plans got well executed. The question is why? Why did these CEOs and their leadership teams implement their strategic plans so well – the plans I helped them to put in writing? The answer is because they followed a proven process. And that process is what I spell out in the Strategic Clarity Roadmap. A construction CEO can look at it and say, “Okay, Phase One, then Phase Two, then we do Phase Three…, yes I think I get it.” By the end of Phase Eight, a construction company has not only researched and developed the plan but implemented it, and it is set up for continuous improvement.
Most consultants will admit in private that few of their client plans ever get implemented. They just sit on the shelf and gather dust. But, as I say in CHUNK, if you follow the right process, have a motivated team of leaders, and hold your retreats at outstanding offsite locations, you can really transform an entire leadership team. So, yes, I have a process, it’s professional, it’s challenging, and it’s anyone can understand it. Everybody can play a part in it. It’s uplifting, it’s motivating, and yet it’s all business.
CN: What is it about your recipe for strategic planning retreats that you think make them so impactful?
TE: Failing to plan is planning to fail. But, if what you want is a team of leaders who are all aligned, have a shared vision, and really want to galvanize change in their company, they have got to get away for offsite retreats that are compelling and engaging. They have to stop ‘nickel and diming’ the planning process. They have to do the hard work at those retreats and learn new ways to listen and understand each other. I just think a lot of companies do not want to do the hard work. They do a situation assessment, then don’t do anything about it. They craft a mission statement, then do not do anything with it. Some of them even develop an amazing strategic plan, then fail to communicate it internally to their own team members, let alone their customers and trade partners. But, I believe that with the right process, at the right retreat location, with the right people in the room, companies can blast through the impediments and really set a new pace for their construction business.
CN: Amazing. I can’t wait to read your book. I know you host these retreats nationwide and were recently hosted one in New Braunfels, Texas! How did you enjoy your time here?
TE: I’ve always loved Texas. What’s not to love? The weather, the food, the people. I plan to continue being active with the excellent companies I’ve had as clients in Texas, and hopefully making new connections for partnerships there. My wife and I would love to retire in Texas. So, I’m growing my business, and spreading my message through my book and hosting epic retreats.
CN: That’s great. Well, tell us all a few more things about you, Tom.
TE: We’re really engaged at Eagle Brook Church. I am a three time U.S. Master’s Swimming (USMS) National Champion. I’ve always enjoyed competition, I believe in competition. Through USMS, I met my wonderful wife, Pam. We’ve been together 19 years and married now for 15. We have three wonderful kids together, who are all grown up now (Emily, Mac, and Ashley), plus two grandchildren (Copelyn and Colt). My wife is… tough. She is a cancer survivor and was diagnosed with Multiple Sclerosis over 30 years ago. So my love for her, and wanting to be on her team and fighting alongside her, inspired me to get involved with the MS community. I’ve been very involved in the MS Society nationally, all over the country. We’ve ridden the bike rides, we take part in the fundraisers, the walks, and the charity events. I was Chairperson of the Upper Midwest Chapter of the National Multiple Sclerosis Society for many years. And yes, of course, I do some strategic planning work for them for free!
CN: Finally, how did you come up with the title, CHUNK?
TE: It’s funny. I was talking with my publisher during the book writing process and she asked some of my clients what was special about my approach to strategic planning. My clients said that “Tom chunks out the strategic planning process into small, manageable chunks that a leadership team can really manage. Even Tom’s retreat agendas are organized into small two and three-hour chunks.” So, I said to my publisher, “Maybe we should call the book CHUNK?” But I was kidding! She said that would actually be an awesome book title. So, it went from just an impulse to the title of a now respected book. Who would have thunk it? - ndw
Tom’s Book, CHUNK: Unthink Everything You Thought You Know About Strategic Planning , is available on Amazon.
To contact Tom Emison, CEO and Founder CHUNK Epic Retreats, LLC Call: 612-979-5740 mobile
Mission Golf Cars is fueling up the Mission way! The Buda team came together for a well-earned shrimp boil, proving that hard work and great food go hand in hand. Shoutout to the Buda crew for keeping things rolling—on and off the lot.
Association Calendar
Content submitted by Associations to Construction News
ABC CTX
AGC
Associated Builders & Contractors Central Texas Chapter
OSHA 30 - Austin
OSHA 10 - Waco
First Aid / CPR - Austin Bidding 101 with Engen
2025 ABC Clay Shoot
Connecting Scheduling and
Superintendent Academy: Project Cost Control
Project Close Out
Bidding 101 with Rogers-O’Brien
HR Series - Davis-Bacon
Legal Series: Documenting
OSHA 10 Spanish - Waco
ACEA
Greater Austin Contractors & Engineers Association Coffee Chats - North, 7:309:30am, Jones-Heroy & Associates, 13915 N. Mopac Expy, Ste. 200 Coffee Chats – South, 7:309:30am, RDO Equipment, 17301 N. IH-35,
Membership Luncheon, 11:30am-1pm, Norris Conference Center,
Construction Expo, 9am-3pm, City of Austin Watershed Protection
Associated General Contractors
Austin
Mar. 6: 4th Annual Ladies 101 Sporting Clay Training, 12am, Capital City Clays, 8707 Lindell Lane, Austin
Mar 28: CLC 4th Annual Charity Kickball Tournament, 12am, Krieg Field, 515 S. Pleasant Valley Rd, Austin
ASA American Subcontractors
Association
Austin
Mar. 25: Contract Negotiations and Change Orders, Maggiano’s at The Domain, 10910 Domain Dr., Ste. 100, Austin
CTRCA
Central Texas Roofing Contractors Association
Mar. 18: Monthly Lunch & Learn, 11am1pm, Home Builders Association of Greater Austin, 7800 Shoal Creek Blvd., Ste. 225E, Austin
DACA
Drywall Acoustical Contractors Association
Mar. 6: Member Educational Meeting, 11am-1pm, Maggiano’s at The Domain
HBA
Home Builders Association
Greater Austin
Mar. 26: Sporting Clay Shootout, 12-6pm, Capital City Clays, 8707 Lindell Lane, Austin. loren@hbaaustin.com
Fáilte, Kennedy’s Tavern
From software engineer to real estate development, Kyle Kennedy is a jack of all trades.
Kennedy, who is not afraid of a little hard work, has been building luxury buildings from the ground up for the better part of 15 years. Through word of mouth, from family and close friends, Kennedy began to construct more and more projects and before long, what started as side jobs developed into an upscale construction business, Contractor Kyle LLC, in 2021.
“I’m actually a software engineer,” says Kennedy. “I went to Baylor. I have a software company and have always done contracting on the side. Over time, and through word of mouth, my contracting projects developed into a contracting business.”
Recently, Kennedy and his wife, Lalita Kennedy, have become the owners of the historic Voigt House in downtown New Braunfels. Together, and with business partner and bar operator, Joseph Collins, will be renovating the Voigt House into an Irish bar, Kennedy’s Tavern, in the heart of New Braunfels’ bar scene.
“Ironically,” says Kennedy, “I don’t do remodels but this will be a remodel. The Inside only. Outside, there will be a music stage and wrap-around tree bar around the heritage tree on the front lawn.
“I was born and raised in New Braunfels. Generally, buildings in downtown New Braunfels don’t go up for sale. So when the opportunity presented itself. We took it. This is my pet project. It is for me and my wife. With no official bar in New Braunfels that serves up Irish fare,
Mary C. Haskin
PHOTOGRAPHY
Specializing in catering to your individual needs!
drinks/beer, we are excited to bring that to New Braunfels.”
The exterior of this unique structure cannot be altered due to its Texas Historic Landmark title. The interior will be a clean and modern Irish bar finish out while preserving as much of the original architecture as possible.
“The structure is basically a house inside a house,” adds Kennedy. “The small adobe house inside was built in 1840 and was the home of New Braunfels’ first schoolmaster, Herman Seele. The house you see today from the outside was built around the tiny adobe house in 1870.
“I’m not sure what we might or might not uncover when we remove some walls,” he adds. “It will be interesting.”
The $750,000 renovation will begin in May 2025 and is expected to be completed in the fall of 2025.
Original renovation designs were created by Kennedy himself. The exterior site work was designed by Seth Reichenau, Dillo Development Services while Spencer Buisson, ArtArch LLC took Kennedy’s drawings from concept to stamped plans for the architectural aspect of the project.
“If you get down to it, I’m basically a real estate developer. I’m a software engineer with a passion for developing real estate and this is one of the biggest things I’ve done,” Kennedy concludes.
Kennedy’s Tavern, located at 308 E. San Antonio Street in New Braunfels will be an Irish gem in the heart of little Germany.
Contractor Kyle LLC is a licensed general contractor serving the Texas Hill Country. -cwr
Happy Anniversary!
The Cokinos Young crew had a knockout time and showed up in style for the Havana-themed evening for the Real Estate Council of Austin (RECA) KnockOut Night with clients and friends. KnockOut Night is RECA’s premier fundraising event that attracts more than 1,800 commercial real estate professionals from all sectors of the industry. The evening features RECA member boxing, entertainment, open bar, dinner and more. Cokinos Young is proud to be a sponsor and look forward to the next event.
Bar Operator, Joseph Collins with Owners, Lalita and Kyle Kennedy
Happy 7th Year Anniversary to Memco, Account Manager Heather Osborn
ACCOUNTING OSHA
TValuation of right-of-use assets for impairment purposes
Seun Olatoye-Ojo Director – Financial Consulting - Valuation Services
US LLP
RSM
Houston, TX
he valuation of right-of-use (ROU) assets has become a critical focus for lease-dependent businesses following recent updates to accounting standards. These assets, which reflect the value of lease interests, now appear on balance sheets across industries. When changes in business operations, market conditions or asset value occur, companies must reassess the value of these assets for impairment to ensure financial statements accurately reflect their economic reality.
This article explores the process of evaluating ROU assets for impairment, the importance of fair value in these assessments and the factors influencing valuation. Whether assets are utilized, subleased or abandoned, understanding these principles is essential for businesses to maintain transparency, comply with accounting standards and make informed strategic decisions. Although the focus here is on real property leases, the general concept applies to other leased assets.
Also noteworthy is that this discussion relates to the relevant Financial Accounting Standards Board (FASB) Topics 360, 842 and 820, alongside their International Financial Reporting Standards (IFRS) equivalents: IAS 36, IFRS 16 and IFRS 13. While IFRS treats all leases as finance leases, FASB differentiates between operating and finance leases. Nevertheless, the valuation of ROU assets under both sets of standards, as discussed in this article, remains consistent and applies to the U.S., Canada and other international countries.
Background on ROU assets
The FASB overhauled lease accounting standards through ASC 842. The updated standards require lessees to recognize operating ROU assets, in addition to capital (finance) leases on the balance sheet, and assess them for impairment when triggering events occur. Now that non-public entities have fully adopted ASC 842, all lessees must evaluate ROU assets under ASC 360 impairment guidance (Financial Accounting Standards Board, 2018), including determining fair value in compliance with ASC 820 (Financial Accounting Standards Board, 2012).
When an ROU asset is impaired, the lessee must recognize an impairment loss—calculated as the difference between the asset’s carrying amount and its fair value—by exploring critical valuation considerations and practical steps for assessing ROU assets for impairment.
Fair value determination of ROU assets
The fair value of an ROU asset is the present value of the expected lease
payments during the lease term, discounted at a market-based rate reflecting market participants’ perspective and asset-based risk factors. Valuing ROU assets for ASC 360 impairment can be challenging because it requires the lessee’s financial statements to be precise and reflect the true economic value.
Key considerations include:
• Fair value: The price received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (Financial Accounting Standards Board, 2012).
E xit price concept: The price received to sell an asset or paid to transfer a liability (Financial Accounting Standards Board, 2012).
The underlying tenet of fair value for non-financial assets is the highest and best use, which accounts for the physically possible, legally permissible, financially feasible and maximally productive use of an asset (The Appraisal Foundation, 2022). The highest and best use also concludes on the use, timing of use and the most likely users (market participants for a specific use) considering the element of risk. Therefore, this use may range from the current use to an alternative one that passes the four tests listed above.
Factors contributing to the impairment of an ROU asset include:
A decline in the value of the leased asset
• A change in the lessee’s business or operations that makes the leased asset less valuable
• Financial difficulties affecting the lessee’s creditworthiness and financing options
Additional valuation influences:
Lease term and the contractual ability of the lessee to sublease
• Nature and use of the leased asset
• Lessee’s business operations
• Economic conditions and market dynamics
• The subject asset’s competitive market area
Held-for-use, sublease and abandonments
When determining whether an ROU asset is impaired, it is important to consider whether the asset is held for use, sublease-able or is being abandoned:
• Held for use: The asset is expected to be utilized in the lessee’s business operations throughout its useful life. The valuation of an ROU asset held for use will be based on the expected market rent for similar spaces in the subject future cash flows that the asset will generate.
TheLEGAL
FTC’s Noncompete Ban Status:
What Texas Construction Business Owners Need to Know
Thaís Dourado Litigation Attorney Champion LLP
Dallas, Texas
Federal Trade Commission (FTC) has recently issued a rule banning noncompete agreements across all United States. Such rule has faced important legal challenges by its opposers. One of these legal challenges resulted in a judgment by the United States District Court for the Northern District of Texas ordering that FTC’s noncompete ban was invalid and should not be enforced. Construction companies must understand the implications of a potential noncompete ban and stay informed about the status of the FTC’s rule. Although currently unenforceable, FTC can still win at an appeal level and be able to enforce its noncompete ban in the near future. Enforcement of FTC’s noncompete ban would expressively reshape the dynamics of employer-employee relationships in Texas and the U.S. as a whole.
What is the FTC’s Noncompete Ban?
On April 23, 2024, the FTC issued a final rule, to become effective on September 4, 2024, declaring that noncompete clauses are an unfair method of competition and banning noncompetes across the United States. Noncompetes are agreements between employers and employees restricting former employees from working for competitors for a specified period of time. Noncompetes are generally beneficial to employers as they protect the companies’ intellectual property, including trade secrets and their confidential and/or proprietary information.
Enforceability of FTC’s Noncompete Ban
The FTC’s Noncompete Ban would bind all U.S. states, regardless of any state laws, rules, or regulations. For example, Texas’ Covenants Not to Compete Act, which generally governs noncompete agreements within the state, would be superseded by the FTC’s Noncompete Ban. Similarly, the FTC’s Noncompete Ban would supersede all other states’ statutes, regulations, orders, or interpretations applicable to a noncompete clause insofar as such laws would otherwise permit or authorize a person to engage in conduct that conflicts with the terms established by the Final Rule’s terms.
Texas Court Set Aside FTC’s Noncompete Ban
On August 20, 2024, in Ryan LLC v. Federal Trade Commission, No. 3:24-cv00986-E (N.D. Tex.), the United States District Court for the Northern District of Texas granted summary judgment to the plaintiff and ordered the FTC’s Noncompete Ban to be set aside with respect to all employers nationally. The court also ordered that the noncompete ban shall not be enforced or take effect on September 4, 2024. On October 18, 2024, the FTC filed a Notice of Appeal to the United States Court of Appeals for the Fifth Circuit challenging the Northern District’s
order. As of November 22, 2024, the FTC has not yet filed an Appeal Brief, and the basis for the FTC’s Appeal is still unknown. On similar grounds, the United States District Court for the Middle District of Florida, in Properties of the Villages Inc. v. Federal Trade Commission, No. 5:24-cv00316 (M.D.Fla), issued a preliminary injunction enjoining the FTC’s Noncompete Ban from taking effect. The FTC appealed to the United States Court of Appeals for the Eleventh Circuit, and a decision will likely be issued beginning 2025.
Implications for Construction Businesses
As a result of Texas Northern District Court’s judgment, the FTC cannot currently enforce its noncompete ban. This means that noncompetes are not banned and may be enforced according to applicable laws. However, the FTC has appealed both Texas and Florida’s orders, and a possibility still exists that FTC’s Noncompete Ban will become enforceable. This generally means that if the United States Court of Appeals reverses the District Court’s judgments, employees and contractors will not be bound by existing noncompete agreements, and employers will not be able to include noncompete provisions in their agreements with employees and contractors. Some impacts of a noncompete ban on construction businesses are discussed below.
1. Notice That Noncompetes Will Not Be Enforced Would Be Required.
If FTC’s Noncompete Ban becomes effective, employers will be required to give notice to current and former workers who are not senior executives that their noncompetes are unenforceable. Notice will not be required for senior executives because their existing noncompetes would not be affected by the ban. Accordingly, employers will not be able to enforce existing noncompetes going forward for workers other than senior executives. Employers would still be able to enforce existing noncompetes with senior executives. Employers would also still be able to enforce a claim that a noncompete was breached before the noncompete ban’s effective date.
2. Employers Would Likely Face Uncertainty in the Workforce.
Without a noncompete in effect, employees and contractors are more likely to move to competitors. On the one hand, construction businesses would need to focus on offering competitive compensation packages, creating positive work environments, and providing career growth opportunities to retain workers. Compensation structure among the industry may be affected, as companies may choose to use financial incentives, such as retention bonuses or profitsharing, to keep key employees on board.
INSURANCE
8 Key Triggers for an Insurance Policy Review
From Growth to New Equipment: What Changes Demand an Insurance Check-Up?
Brigette Burttschell Media and Content Manager The Nitsche Group Austin, TX
Running a business in the construction industry comes with its fair share of challenges and risks. From job site accidents to equipment breakdowns, the unexpected can happen at any time. That’s why having the right insurance coverage is critical. Just as critical is ensuring that your policy terms are up-todate and align with your business operations.
An outdated policy can lead to coverage gaps, leaving you financially vulnerable in the event of a claim.
Why staying current with your insurance is so important—
As your business evolves, so do your risks. With change comes new risks, making it essential to reassess your insurance coverage. Regular insurance policy reviews ensure that your coverage aligns with your current operations, protecting you from potential coverage gaps and costly losses.
Avoid Coverage Gaps: Changes like hiring more employees, purchasing new equipment, or offering new services increase your exposure to risk. If your policy doesn’t reflect these updates, claims related to these changes might be denied, leaving you responsible for the costs.
Ensure Accurate Premiums: If your business has grown, your premiums might need adjustment to cover increased risks. Conversely, if you’ve downsized, you might be overpaying for coverage you no longer need. Regular reviews help you pay only for what’s necessary.
Comply with Legal Requirements: Certain changes, like workforce growth or new locations, may trigger legal insurance requirements, such as updated workers’ compensation or liability coverage. Staying up to date ensures compliance and protects you from fines or penalties.
Protect Business Assets: New equipment, vehicles, or property acquisitions should be insured immediately. If these assets aren’t included in your policy, you won’t be reimbursed for damage, theft, or breakdown.
Maintain Business Continuity: If an uncovered incident occurs, the financial strain can disrupt operations or even force a shutdown. Proper coverage ensures you can recover quickly and continue running your business smoothly.
Accurate Claims Processing: If your policy doesn’t reflect current revenue, staff size, or service offerings, insurers may deny claims or underpay them. Keeping your policy updated ensures claims are processed accurately and fairly.
Key business changes that should trigger an insurance policy review—
Any significant change in your business should prompt a coverage review. Remember, insurance coverage should reflect a company’s current value, workforce, and scope of work. Being
underinsured can leave you paying for losses out of pocket; while carrying more insurance than necessary can leave you paying for coverage you don’t need.
Here are eight events that should trigger a policy review with your agent.
1. Growth or Downsizing of Business
Whether your business is expanding or downsizing, changes in size directly affect your insurance needs. An increase in projects, employees, or assets means higher exposure to risk, while downsizing may allow for adjustments to reduce unnecessary costs.
• Why It Matters: If your business grows without updating your policy limits, you risk being underinsured. On the other hand, downsizing without adjusting coverage could mean overpaying for insurance you no longer need.
2. Location Changes
Opening new locations, whether an office, warehouse, or job site, changes the scope of your operations and risk profile. Each location may have different exposures based on geographic factors and building conditions.
• Why It Matters: Without updating your policy to include new locations, damages or liability claims at the new site may not be covered.
3. Changes to Workforce / Employees
Hiring new employees or reducing staff affects your insurance requirements, particularly when it comes to workers’ compensation and employment practices liability.
• Why It Matters: Failing to update your workforce count can lead to inaccurate premiums and potential coverage gaps if an employee gets injured on the job. Improper employee classification can also lead to fines and penalties for a company.
4. New or Upgraded Equipment Investing in new machinery, tools, or technology increases the value of your business assets and the potential risk of damage or breakdown.
• Why It Matters: Without proper coverage for new or upgraded equipment, repairs or replacements after damage or theft may come out of pocket.
5. Vehicles & Fleet
Adding or removing company vehicles from your fleet affects your commercial auto insurance needs. Each vehicle represents a new liability and potential for claims.
• Potential Coverage Impact: Commercial Auto
• Why It Matters: Unlisted vehicles aren’t covered in case of an accident, leaving your business vulnerable to significant financial loss.
6. Changes to Business Revenue
Significant increases or decreases in revenue should trigger a policy review to ensure appropriate coverage limits and premium calculations.
• Potential Coverage Impact: Business Interruption, General Liability, Professional Liability
• Why It Matters: Underreported revenue can lead to claim denials, while overestimated revenue may result in inflated premiums.
7. Changes to Products or Services
Expanding or modifying your services can introduce new liabilities not covered under your current policy.
• Potential Coverage Impact: General Liability, Product Liability, Professional Liability, Umbrella
• Why It Matters: Offering new services without updating your insurance could result in claim denials if something goes wrong.
8. Changes in Ownership or
Structure
Ownership changes, mergers, or restructuring can affect your insurance policies, including who is covered and how claims are handled. If there are changes in ownership, such as new partners or shareholders, update your business insurance policies to reflect these changes. Depending on the changes, policies may have to be rewritten.
• Why It Matters: Failure to update policies after structural changes can lead to coverage gaps and potential disputes during claims.
Conclusion: Protect Your Business with Regular Reviews
The construction industry is dynamic, and as your business evolves, so do your risks. Reviewing your insurance coverage shouldn’t be relegated to once a year.
Regular insurance policy reviews are a proactive way to manage your business’s evolving needs, keeping your coverage aligned with your actual risk profile while avoiding unnecessary expenses.
By staying proactive and working with your insurance agent, you can safeguard your business against the unexpected and focus on what you do best—building success.
March
3 – Craig Noto / Quality Fence & Welding
4 – Alex Bennet / Comfort-Air Engineering
5 – Ted Dunnam / Dunnam Safety Management
6 – Lauren Guido Tew / Guido
8 – Burton Hackney / Joeris
8 – Chris Blanton / Alterman
8 – Josh King / You Name It Specialties 11 – Jessica Quintanar / Q-Safety 17 – Kelly Wilson / ASA San Antonio 18 – Tyler Johnson / White Rock Construction Services 19 – Ray Garcia / Dunnam Safety Management 21 – Debra Kraft / Comfort-Air Engineering 22 – Michael Moore / Aprio 23 – Mike Sireno / Baker
Industry FOLKS
Jacob Beard Owner Whitestone Inspection Company
Austin, TX
Jacob Beard is the owner of Whitestone Inspection Company, a young entrepreneur who’s bringing fresh energy to the home inspection business in the greater Austin area. Born and raised in Cedar Park, this Leander High School graduate has set his sights on becoming a home inspection expert. After completing eight months of classes at Champion School of Real Estate while working full time, he launched his career in residential home inspections about a year ago.
“I’m kind of a car guy,” he explained, “Houses are much like cars - different systems all working together. It’s really cool getting to learn how another complex structure works.” His services cover a comprehensive range of home elements, including roofs, interiors, exteriors, and major systems like electrical and plumbing. He typically works with homebuyers, providing thorough inspections before property purchases. “Plus, my brother was going to school for construction at the same time, so we got to kind of talk about what we’re learning. That was a
fun experience, getting to do something in the same field as my brother, and being able to share things we’ve learned.”
Despite the current market slowdown, Jacob remains optimistic, focusing on building connections and establishing his reputation. His company, Whitestone Inspection Company, launched in October 2024, serves a wide area from Kyle and Buda to Temple.
When he’s not in the field inspecting houses, he enjoys working on his truck, hiking, and fishing. Some of his favorite spots include Balcones Canyonlands Reserve northeast of Marble Falls and trails around Lake Georgetown. As he approaches his first full year in business, this home inspector embodies the spirit of young professionals in the industrycombining technical knowledge with a genuine passion for understanding how things work. -ndw
Round-Up
SpawGlass would like to congratulate Joey George on his promotion from Operations Manager to Vice President of Operations for their Austin Region. Joey began his career with SpawGlass nearly 30 years ago as a carpenter. Based on his many years of working in the field, Joey developed a passion for building people, especially craft professionals, foremen and superintendents. The dedicated effort he has poured into developing their team members is evident in the quality workmanship delivered by their self-perform team. In his relentless pursuit of operational excellence, Joey gets in the trenches to coach their teams on their ZeroDefect Process and scheduling. He has a gift for truly understanding and visualizing the workflow of a construction project to properly sequence the many steps it takes to propel a project from start to finish. Under Joey’s leadership and commitment to building people and investing in their development and career growth, SpawGlass has delivered on their guarantee of providing the absolute best construction experience in Austin. Congrats Joey!
Submissions
is a section for brief company announcements of new or recently promoted personnel, free of charge as space allows. Email with “Round-Up” in the subject line (w/digital photo, if available) by the 15th of any month, for the next month’s issue. Andi@constructionnews.net
Innovation in Construction
Bartlett Cocke is inspiring the next generation of builders! They had the privilege of hosting students from Cedar Creek High School’s Construction Technology I class at their high school expansion project. During the tour, students met with members of the Bartlett Cooke site leadership team and got hands-on exposure to cutting-edge construction technology, including drones, 360-degree cameras, and cloud-based project management software. Construction is more than just manual labor; it’s also innovation, problem-solving, and teamwork.
3. Companies’ Intellectual Property Would be More Vulnerable.
Without noncompete agreements, the risk that a former worker could take intellectual property to a competitor increases, especially for workers in key technical or managerial roles. This would negatively impact small businesses in particular, as they often rely on noncompetes to protect their customer lists, software tools, proprietary protocols, trade secrets, and other confidential information. Construction companies would have to adopt other strategies to protect their intellectual property, such as by using Non-Disclosure Agreements (NDAs) and non-solicitation agreements, which would not be affected by the FTC’s Noncompete Ban.
4. Employers May Adopt Different Worker Training Programs.
If noncompetes are not available, construction companies may be discouraged from investing in training workers. Training workers can be a costly investment, and if skilled workers can easily take know-how to a competitor, employers would need alternative
training solutions related to safety protocols, specialized skills, protocols, and other training common to the construction field. To avoid investing in training workers who will soon leave and use their training at a competitor, construction companies would have to focus on developing good talent retention policies.
Conclusion
Although the FTC’s noncompete ban is currently unenforceable by court order, a risk still exists that the FTC’s appeals will be granted and noncompetes become illegal. Construction businesses should be aware of the implications of a noncompete ban and be prepared to promptly comply with federal rules in case the FTC’s noncompete ban becomes effective.
It is crucial for all businesses to seek legal advice to help them navigate the implications of a noncompete ban and to stay informed about the status of FTC’s appeals. There is still a lot of legal uncertainty around the enforcement of FTC’s noncompete ban, but, together, we can guarantee that all companies have their rights and interests protected within the bounds of any in-force law.
Sublease-able: The ability to sublease an asset is based on a combination of market and contractual factors.
Ab andoned: The asset being abandoned reflects the estimated cost of disposal, as the asset provides no recoupable benefit. The valuation of an ROU asset that is being abandoned will be based on the estimated cost of disposal of the asset.
Sublease situations and valuation implications
Since the ROU asset is considered a non-monetary asset, typical benefits are the utilization of the asset rather than some cash flow return. To help alleviate the loss of benefits, a lessee may sublease a leased asset, transferring their right to use it to another party. While the lessee remains responsible for lease payments to the lessor, they receive rent from the sublessee.
The impact on the ROU asset’s valuation must be considered when subleasing. This valuation is determined by the present value of the sublease payments with considerations for:
• D owntime: Periods of vacancy between subleases or unexpected terminations.
• Free rent: Waived rent payments by the (sub)lessor to attract (sub) lessees, reducing the effective rent payment.
• E xcessive tenant improvement allowance: Contributions made by the lessee to improve the asset for the sublessee, reducing sublease income.
• Sublease costs: Expenses incurred by the lessee to facilitate subleasing.
The lessee’s lease obligations to the landlord remain unchanged, reflected in the lease liability, which is the present value of the expected head lease payments.
Market rent as a measure of utility
In economics, utility measures the satisfaction derived from a good or service with “utils,” representing a hypothetical unit of measurement for this benefit. Applied to market rent, when a head lessee uses an asset as intended, they are assumed to derive the full benefit of that asset, measured as the market’s willingness to pay for the asset.
However, if the lessee ceases to utilize a space and subleases it, the utils should now be measured based on the sublease rate the head lessee (the sublessor) is able to get for the space, recognizing that the highest and best use may have changed. This concept underpins the traditional valuation of leasehold interests: when a tenant’s measure of utility (market rent or utils) is higher than their contract rent, they have a net asset value; when the utils are lower than the contract rent, they have a net liability value.
The takeaway
A strong grasp of current accounting standards helps lessees accurately value ROU assets for precise financial reporting. Consulting a knowledgeable financial advisor can enhance transparency, ensure compliance and support informed business decisions.
Connections at your fingertips
Mercator.ai, the leading AI-powered business development platform for commercial construction, today introduced its Construction Industry Events Directory, a comprehensive resource connecting construction professionals with industry events, trade shows, and networking opportunities.
The free directory serves as a centralized hub for construction industry events, from major construction expos and build conventions to local networking meetups and professional development sessions.
“The construction industry thrives on relationships and the ability to stay informed,” said Chloe Smith, CEO and co-founder of Mercator.ai. “With this events directory, we’re making it easier for professionals to find and connect with the right opportunities across Texas— whether for learning, networking, or exploring new partnerships.”
Key features of the Construction Industry Events Directory include:
• Free event submissions and listings
• Searchable calendar of construction trade shows, expos, and networking events
Email notifications for upcoming events by region and category
• Filtering by event location, cost and membership requirements
The directory features upcoming events such as regional build expos, construction conventions, and professional development seminars from organizations. The Construction Industry Events Directory addresses a crucial need in Texas’s $137 billion construction industry for better connection and community-building resources.
“This directory is another way we’re helping construction professionals stay ahead,” added Smith. “Whether you’re a general contractor looking for the next major expo or a specialty trade seeking local connections, we’ve built this resource to simplify the process and bring more opportunities to the table.”
Construction professionals can access the directory at www.mercator.ai/events. Event organizers can submit their construction industry events for free through the online submission form.
Cokinos | Young knows Austin construction and commercial real estate law – it’s what we do. With over 100 of the nation’s most knowledgeable legal professionals, we’ll guide your disputes and transactions and back you every step of the way. We are renowned for our experience and success across commercial, industrial, pipeline, offshore, heavy highway, civil, and residential sectors. For over 30 years, clients have depended on us across Central Texas. Savvy. Tough. Dedicated. And Austin to our core. That’s Cokinos.
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