Building Savvy January 2021

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January 2021

San Antonio’s Homebuilding Industry Publication

The Savvy Builder Year In Review

Some of the Very Best in the Business


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Building Savvy

SAVVY’S A-LIST A-LIST SAVVY’S Air Conditioning Architectural Photographer

Classic Services AC Jason Roberts And Associates 830.358.1499 210.789.2033 www.classicairconditioningandwww.jasonroberts.biz heating.com Architectural Air Conditioning Photographer Jason Roberts and Associates Climate Control 210.789.2033 210.344.6266 www.jasonroberts.biz www.climatecontrol-sa.com

Building Materials BMC Materials Building 512.977.7400 Guido Companies www.buildwithbmc.com 210.344.8321

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Guido Companies 210.344.8321 www.guidoconstruction.com MG Building Materials 210.623.4770

Doors Doors The Front Door Company The Front Door Company 210.340.3141 210.340.3141 www.thefrontdoorco.com

Flooring Fireplace Installations Sunn Carpets and Flooring Integrity Fireplace Installations 210.349.7866 210.294.1383 www.sunncarpets.com

Electrician Drywall JPI Electric R. Hernandez Drywall 210.233.6638 210.733.6437 www.jpielectric.com

Flooring Doors Garage Sunn Carpets and Flooring Hollywood-Crawford 210.494.3434 210.349.7866 www.hollywoodcrawford.com www.sunncarpets.com

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Elevators Electrician Home Elevator of Texas JPI Electric 210.340.5702 210.233.6638 www.homeelevator.com

Home Warranties Garage Doors Centricity Hollywood-Crawford 727.385.7599 210.494.3434

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Plumbing Diamond Plumbing Pest Control 210.967.6100 Accurate Pest Control www.dptexas.com 210.495.0499

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Kendall County Roofing 830.331.2650 Plumbing www.kendallcountyroofing.com Diamond Plumbing 210.967.6100

Specialty Electronics and Appliances Dr.HomeWerks J. Plumbing Contractor 210.499.5760 210.681.7555 www.sanantoniocentralvac.com www.dptexas.com

Roofer Specialty Glass and Mirror

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Lumber Insulationand Millwork Roddis Lumber Klar Insulation 210.226.1426 210.296.5499 www.roddislumber.com

B&T Glass Kendall County Roofing

InsuranceIron Doors and Luxury Hotchkiss Insurance Interiors AMS Group 210.581.0420 210.366.0490 www.hiallc.com

Specialty Electronics First American Titleand Appliances

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Title Company 817.918.2323 HomeWerks www.firstam.com 210.499.5760 www.sanantoniocentralvac.com

Luxury Iron Doors and Interiors Solar inEnergy DISCLAIMER: Any articles included this publication and/or opinions

Serving Bexar County and Nearby Areas

AMS Group

expressed therein do not necessarily re ect the views of N2 Publishing but Smart World Energy

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within the Building Savvy magazine are not endorsed or recommended by N2

remain solely those of the author(s). The paid advertisements contained

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Publishing or the publisher. Therefore, neither N2 Publishing nor the publisher

R . H E R N A N D E Z D RY WA L L 210-733-6437 | Ralph Hernandez, Owner

may be held liable or responsible for business practices of these companies. NOTE: When community events take place, photographers may be present to take photos for that event and they may be used in this publication.

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[from the publisher]

As One Door Closes, Another Opens… With the start of each new year, we begin our Focus Section calendar all over again. It could be said that starting with a solid foundation applies to anything you do, but in new home construction, the saying cannot be emphasized enough. It’s a sobering statistic—In a typical year in the United States, expansive soils cause a greater financial loss to property owners than earthquakes, floods, hurricanes, and tornadoes combined.

We know this all so well in Texas! This month’s section

products. Next come our annual sections on surfaces,

underscores the critical need for builders to align with

kitchens, baths, and outdoor spaces. And we finish up

professional engineering services and obtain third-party

each year with updates on home tech and suggestions

structural warranties to protect against the unforeseen

on the final finishing touches.

things that can happen sometimes, even after the careful analysis is made and best practices are followed.

In this issue, we salute our Savvy Builders featured over the past year while preparing you for what to expect in

As we progress through the year, we’ll move on into

the year ahead. I wish each of you a happy, safe, and

framing and structural systems, then have a discussion

prosperous New Year!

on changing preferences in home styles as we explore designs and products that evoke curb appeal. From there, we’ll look specifically at windows and doors from a performance perspective, and at wall and roof assembly

Terry Kemmy

insulation and energy efficiency before getting into the

Publisher

latest HVAC, plumbing, and electrical practices and

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[savvy trucks & toys]

Caption: GMC Sierra Denali CarbonPro

Denali Is Key to GMC’s

Survival Among

1500 Pick-Up Rivals By Beverly & Steve Smirnis

Chevrolet and GMC half ton pick-up buyers appreciate the flexibility of engine choices, three cab styles, three bed lengths, and six trim levels with four-wheel-drive available across all the available configurations. The GMC Sierra 1500 is based on the Chevrolet Silverado 1500, sharing the same engine choices. These include a V6, a turbocharged four-cylinder, two V8 choices, or a 3.0-liter Duramax six-cylinder diesel engine. The frame as well as many of its interior appointments and available options are also very similar between the Sierra and Silverado.

T

he main differences lie in Sierra 1500’s more premium

with the diesel engine rated at 9,300 pounds, (up from 7,400) and

experience and higher-end materials that help it better

the turbo-four capable of 9,200 pounds (up from 6,900). Indeed, the

compete with the premium models of the rival Ram 1500

bar must be continually raised in order for GMC to stand out in the

and Ford F-150.

inevitable comparison against Ram and Ford’s latest. Competition

With the Big Three automakers claiming that luxury level trucks

between the Big 3 rivals truly puts truck owners in the driver’s seat.

account for about 1/3 of their overall truck sales, and Texas dealers citing even higher numbers for premium level half ton pick-up sales, the Denali will continue to be key to GMC’s fight in a fierce segment. While the top-of-the-line Sierra Denali has a standard listing price of $55,200, we drove the Denali 4WD Crew Cab sporting the upgraded 6.2L EcoTec3 V8 with a 10-speed automatic transmission rated at 420 horsepower and 460 pound-feet of torque. The CarbonPro Edition had a full suite of exclusive GMC options with a price tag of $71,250. These included the upgraded V8, CarbonPro carbon-fiber composite bed option, retractable side steps that can move forward and back for easier access to the cab or bed of the truck, head-up display, rear camera mirror, high definition surround vision, 22” high-gloss black wheels and MultiPro Audio System by KICKER® integrated into the MultiPro six-position rear tailgate. The 2021 GMC will add Jack-Knife Alert, Trailer Length Indicator, enhanced Rear Trailer View with rear guidelines, an enhanced Rear Side View and Cargo Bed View and Hitch Guidance to Sierra 1500’s trailering technology suite. Towing capability is improved for 2021

Beverly & Steve Smirnis are members of the Texas Auto Writers Association and the Texas Motor Press Association, reviewing vehicles and casting their votes at driving events where the Truck of Texas, Car of Texas and Off-Road Truck of Texas are some of the titles awarded. Follow their automotive blog on TheSavvyList.com/TheSavvyDriver


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[savvy finance]

Relying on

Social Security Is Risky

By Steven Bankler, CPA

The maximum payout in 2021 has increased $1,644 a year for high-wage earners who meet the criteria and qualify for full-time retirement. But the payroll tax that funds Social Security is rising, too. In 2021, the maximum earnings subject to the Social Security payroll tax will be from $137,700 TO $142,800, an increase of $5,100. Making a plan on how and when to retire isn’t a one-and-done deal. Your plan should be revisited at least yearly with the help of tax and financial advisors who understand the many shifting forces that affect it (like Social Security). Use that time to consider: •

time work or independent consulting sounds appealing. Or maybe the pandemic

You worked your entire life for this. So why not

has forced you to consider early retirement options. Generally speaking, the

take full advantage of Social Security benefits the

longer you wait to take your Social Security payouts, the better. But there are

moment you can? There’s some merit to that way of thinking, but the reality isn’t as rosy. Relying on Social Security for the long haul--and to fund a

exceptions. •

their primary source of retirement support. But using these sources of income to

proposition.

It’s ever-changing. That makes it unpredictable and unreliable. Take the changes set for 2021, for instance. Approximately 70 million Americans will see a 1.3% increase in Social Security payments this year, which could mean about $20 extra each month. However, that amount is the second-smallest costof-living increase in the program’s history. And it’s no match for rising costs elsewhere, particularly when it comes to medical expenses. Fidelity estimates that about 15% of an average retiree’s annual expenses will be used for health care, including Medicare premiums and out-of-pocket expenses. They call it a ‘retirement cost gap,’ and it’s widening

Retirement accounts and investments. Many retirees rely on distributions from their retirement accounts like 401ks and IRAs and income from investments as

significant portion of your retirement--is a losing

Social Security acts like a living, breathing entity.

Your work situation. Perhaps you’re not ready to retire fully but moving to part-

supplement Social Security can result in surprise taxes. It’s essential to plan how and when you’ll use each source of income to reduce tax consequences. •

Your eligibility for Medicare, disability, and other health care options currently available and your health in general. Are you taking more prescription medicines than before? Has your health or your spouse’s health declined? How will those factors affect your costs during retirement?

You may believe Social Security will be your most reliable source of retirement income, but it won’t be. While the payouts generally rise each year, they don’t grow enough to cover living expenses. And there’s no guarantee those benefits will be around at all when you need them. When and how you retire, the other retirement accounts you contribute to, and the combination of benefits you choose are more within your control. Finding the right combination to offset taxes is critical. Revisit your plan often because as Social Security rules change, so might your perfect retirement blueprint.

as the full retirement age to earn Social Security benefits increases (this year, it will be 66 years and 10 months for people born in 1959). According to the firm, the average couple around age 65 may need approximately $295,000 in after-tax savings to cover health care expenses in retirement. Another change in 2021 is a mixed bag of good and bad news for wealthy retirees.

Steven Bankler has more than 44 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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[Savvy Legal]

Savvy Legal

PERSPECTIVE Builders are well-advised to take advantage of

be the “retail cost” not the “builder’s cost” to repair the item. In

the protections of the RCLA. The RCLA requires a

making an offer, a builder should be mindful of the following

claimant (complaining of a construction defect) to

elements of damage referred to in the RCLA:

provide the builder with written notice by certified mail, return receipt requested, describing, in reasonable detail, the construction defects of which they are complaining[1].

construction defect (unless repairs are offered); 2. the reasonable and necessary cost for replacement or repair of

by Gary Javore

U

1. The reasonable cost of repairs necessary to cure the

damaged goods in the residence (e.g. water damage to furniture); pon receipt of the notice, but not later than 35 days thereafter, the builder should make a written request for an inspection and request any evidence in the possession of the claimant that depicts the nature and cause of the defect and extent of

3. Reasonable and necessary engineering and consulting fees; 4. Reasonable expenses for temporary housing, if necessary, while repairs are being performed;

the repairs necessary to remedy the defect, including expert

5. The reduction in current market value if the construction defect

reports, photographs and videotapes[2]. Even if the builder

is a structural failure; and

believes the item is out of warranty, an inspection should be conducted if the condition could affect the habitability of the

6. Reasonable and necessary attorney’s fees.

residence, such as water leaks. The warranty of “habitability” is typically longer than the builder’s express warranties.

The homeowner must notify the builder, in writing, of any

Since the builder is obligated to make any offer of settlement

deficiencies in the builder’s offer as part of any rejection. Builders

within 45 days[3] after receipt of the notice, the builder is well

should be alert to any explanation as to why an offer is rejected,

advised to request an inspection sooner rather than later.

as the builder only has ten days to cure the deficiency in its

During the inspection, the builder is entitled to reasonably

original offer. If the offer is not accepted within 25 days, then it is

document the conditions in the residence.

rejected as a matter of law. Insurance companies pursuing subrogation claims are subject

The builder may offer to repair the construction defect

to these same obligations. If an insurance company repairs a

or pay the reasonable cost of repair. Any offer to repair

construction defect without giving the builder notice of the claim,

a construction defect must: (1) describe the repair in

it forfeits its right to recover.

reasonable detail; (2) affirmatively state that repairs will be

If a “reasonable offer” is rejected, then the menu of damages that

completed within 45 days; and (3) be sent by certified mail

can be recovered against the builder is significantly reduced. In

return receipt requested. It is not enough to say, “the item will be repaired,” the repair must be described. For example, a significant sheetrock crack may warrant the following:

addition, the claimant is not entitled to recover any attorney’s fees incurred after the offer was rejected.

“Builder will sand area of crack, tape and float crack, texture,

The RCLA has been around for many years but too few builders

and repaint the affected wall.” If the builder is inclined to

take advantage of its protection.

offer the cost to repair a construction defect, the offer should

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got pests?

Gary Javore is the president of the law firm Johnson, Christopher, Javore & Cochran, Inc. and has been writing contracts and representing builders in construction disputes for more than 30 years. He was the primary author of the course book for the NAHB course, Construction Contracts and the Law. This article is provided for informational purposes only, is not a substitute for specific legal advice, and is not intended to create an

attorney-client relationship between Mr. Javore, his firm, and the readers of this publication.

[1] The notice is a prerequisite to initiating an action (in court or

arbitration) and must be sent 60 days in advance of initiating the action, unless suit is filed to toll the running of limitations, in which event the initial pleading needs to describe any construction defect

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in reasonable detail.[2] The builder is entitled to this information but

On Initial Services

only if it makes a written request for it. This inspection is particularly important on subrogation claims. If the defect has already been repaired, then the contractor is not liable for any part of the cost of repairs.[3] If the builder receives notice of a construction defect resulting from work performed by the builder or an agent, employee, or subcontractor of the builder and creating an imminent threat to the

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[sales savvy]

Understanding the Pricing Matrix: Hard Cost + Daily Carrying Cost = True Hard Cost

Builders frequently ask me when the best time is to sell a home. What they are really saying is, “I have a good deal in the works and can close today, but should I wait for a better deal later?”

By Paul Evans

A

Anyone selling a product should predetermine their drop-dead

Now what if your hard costs were really $180K and your

price, so they know where they are when an offer comes in. For

projected sales price included the cost of holding the house

example, a buildermight say, “This house cost me $200K to

for 60 days to get to your $200K in true hard costs? Then,

build, so I am going to put 20% on it, and my drop-dead is 17%.”

when you sell the house for $240K on the day of completion,

But when I ask them what the total cost is, including carrying

your real gross profit is actually $60K because you added

costs to date, they usually look at me like I’m speaking another

the carrying cost factor into your selling price originally.

language!

In this case, when you look at a $235K offer on the day of

For example, let’s say you spent $200K to build a home, which

completion, you know you would make $55K.

is on the market now, and you are building other homes. Every

Savvy builders price a unit with all these factors in mind: hard

day that finished house sits, it’s costing you money – insurance,

cost, inventory costs, utility costs, and estimated time on

taxes, electricity, and so on – racking up dollars that should be

the market. They take into account market health (what the

added to the hard cost. So, with all these costs compounding,

market will bear in that area and/or time of year or season)

what is the true cost of this house to date? That answer should

to set the opening price for the unit. To take the deal or not

be your drop-dead number.

becomes an easy answer if you know these costs before you

If your hard cost is $200K and you marked up your cost 20%, if

start the project.

you sell it on the day you finish it for $240K, you would make a cool $40K. Now let’s take the same house with $200K in hard costs and say the house sat in your inventory for 60 days before

Paul Evans is a graduate of Lamar University’s School of

you sold it. If you still sold it for $240K, you would not make

Engineering and the national VP of millwork for BMC. His book,

$40K.

Life’s Lost Art, offers practical advice for how to turn satisfied

So, back to the original question: If, on the day of completion, someone offers you $235K for that same house, would you take the deal? If you understand what your true hard cost is, you might think, “I may sit on this unit for 60 days (or more). With $235K in hand today, I can start building another house sooner.”

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customers into loyal customers by listening and responding to their needs. For more than 10 years, he has been an instructor for the NAHB, University of Housing, and the Home Builders Institute, teaching customer service, negotiating, and sales.


[savvy special report]

How COVID-19 is Affecting Liability for Employers In a previous article, we discussed several precedent-setting cases with respect to making claims on Builders Risk policies for business interruption due to Covid including the direct damages wording on some policies that states that in order to file a valid claim, your property has to have suffered direct damage. Courts have consistently failed to agree that COVID-19 constitutes “direct damage” to a facility or project. Besides watching out for Builders Risk policy loopholes, here are some other areas of potential liability necessitating additional risk mitigation tools that you need to take a look at:

By Colby Duke Hotchkiss Insurance Agency, LLC StrucSure_BuildingSavvy_Jan2022.pdf

1

11/9/20

2:49 PM

Employment Practices Liability Issues (EPLI) Wage and Hour claims are on the rise with respect to how furloughed and terminated employees are paid. Many employers across the country have been sued by employees alleging violations of the Minimum Wage Act due to their effective payment falling below the Federal Minimum Wage requirement in their particular state. EPLI insurance protection helps with defense costs in these situations. Wage and Hour damages are low but defending them is always expensive.

C

M

Work Comp

Y

How Work Comp carriers are treating Covid-related illnesses cre-

CM

ates another increased risk factor for employers. Since “ordinary

MY

CY

diseases of life” are not normally included under Work Comp

CMY

K

coverage, it is generally understood so far that Work Comp is

HOW THE NATION’S BEST BUILDERS PROTECT THEIR BUYERS

not the typical protection for employees who contract the Covid virus. However, if workers are deemed to be “essential” and they

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“get Covid in the course of employment,” then there could be

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a “presumption” of Work Comp coverage. Generally-speaking,

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most medical plans cover many of the expenses associated with COVID testing, treatment, deductibles and co-pays. But be sure to

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Cyber Security

General Liability

Be aware that cyber exposure is increased for employers due to

GL protection can come into play with Covid if a company is found negligent

the need to have remote access in place for employees so that

in an “occurrence” as defined in their GL policy, and others get sick as a result

they can work virtually from home. Each remote workstation

of its negligence. To protect themselves, all business owners need a written

creates an entry-point that potentially might allow hackers to

COVID Safety Management Plan that is in accordance with CDC guidelines.

access your company systems. One example is Zoom-bomb-

Holding your employees to this plan and following local guidelines for opera-

ing. The increased use of Zoom as an alternative to face-to-

tional hours and standards for your specific industry is key to reducing your

face meetings creates widespread exposure to hackers and

liability. Note that many carriers are adding the “CG 21 32 Communicable

Internet trolls, who exploit and work around the application’s

Disease Exclusion” to their GL policies to protect themselves against Covid

security features to disrupt Zoom sessions, often hijacking the

exposure claims. Look for a policy that does not have this exclusion.

teleconferences and inserting material that is lewd, obscene,

Laws, regulations and agency guidelines continue to evolve and increase as

racist, etc. Twitter accounts have been used to advertise pass-

Covid lingers, and we must continue to watch and analyze new and different

words for sessions that are vulnerable to being joined without

types of claims arising as a result.

authorization. Regularly scheduled Cyber Security Assess-

It is an essential best practice for business owners and their insurance ad-

ments are vital to ensure that your systems are up to date, and

visors to anticipate potential exposure and be sure that the wording in their

Cyber insurance is now considered a necessity to handle first

policies are written such that they provide the best protection against ever-in-

and third party damages due to breaches.

creasing business risks.

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Savvy

Builders A Year in Review Guy Floyd Guy Floyd won’t ever win any awards for building the most homes in South Texas, and he’s quite okay with that. His objective is quality, not quantity, and, above all, giving each homeowner the experience of a lifetime in seeing their dreams come to reality. Floyd began his career in the construction industry over 30 years ago. In addition to homebuilding, during that time he has also been involved in residential remodeling, subdivision and land development, and at one time held his realtor’s license. In 2003 he formed Creative Custom Builders to focus solely on building custom, oneof-a-kind residential homes. “I started in the building industry as a teenager working with my uncles who owned a building/remodeling company,” says Floyd. “One of the things I enjoy most about what I do is finding innovative and creative ways to build beautiful, quality, luxury homes. Through proper planning and good communication, the building process should always be smooth, and just as enjoyable for both my customer and me.”

Oscar Flores, Designer Oscar E. Flores is originally from Piedras Negras, Coahuila, Mexico. He studied architecture in Monterrey, Mexico and later moved to San Antonio where he opened Oscar E. Flores Design Studio (OFDS) in 2007. OFDS provides their clients with a wide range of residential and commercial design services that range from pre-project planning services and conceptual design through to oversight. Many custom builders also choose OFDS to work as their custom home designer. “Ever since I was young, I always knew I wanted to design homes and buildings. For those perhaps just starting out in my field … I would advise them to be patient starting off. It’s not easy at first to convince your teachers or clients

preferences and allows them to try something traditional,

about your vision and designs, especially when your ideas are different. If you

transitional, or altogether out-of-the-box.

are really passionate about design, stick to your gut, and believe in your ideas. Sooner or later people will get it.”

Although design is the skill set, the focus is on client satisfaction and experience. Oscar delivers on the

Oscar and his team have grown as they set new design trends, which include

certainty that clients hire him to bring the highest level of

international and major metro preferences. Although Oscar favors modern

expertise, skill, knowledge, and service, all while respecting

design styles, he masters all traditional styles as well. He works with client

their time.

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Uptmore Custom Homes There are very few people who’ve been in the construction industry in San Antonio who aren’t familiar with the name Uptmore, specifically Jim, Jack and now Josh. This construction family – over several decades and now over three generations – has made a significant contribution to the landscape of San Antonio, to the building community, and to the quality of life for several grateful families. In 1956 Jim joined Zachry Properties and learned the real estate business from the ground up, becoming the president in eight short years. In 1974 he acquired the balance of stock in Zachry Properties and merged that with his own holdings and incorporated into J. H. Uptmore & Associates. Over the years he’s been a major builder and developer around San Antonio including the subdivisions of Churchill Forest, Churchill Estates, and Big Country; several buildings on Datapoint (including the old Turtle Creek Country Club); apartment complexes, warehouses and a myriad of other projects, both commercial and residential.

Sitterle Homes

A lifelong Aggie, Jim has served as president of the local Aggie Club, and was

Locally owned Sitterle Homes recently celebrated its

also one of the original pioneers of GSABA. Jim served on the Board of Directors

gold anniversary and is now led by Frank Sitterle, Jr. and

of the National Association of Home Builders; was President of GSABA (1966);

Jeff Buell. Frank, Jr., says that many of this father’s early

President of the Texas Builders Association (1971); and also named “Builder of

decisions about “doing things the right way” are key to

the Year” in 1971.

today’s continued growth. Sitterle earned the prestigious Avid Award for Best Customer Service in North America and has claimed more than 50 Summit Awards from

the Greater San Antonio Builders Association, numerous

Like his father Jim, Jack also received a college degree from A&M.

Grand Awards from the Texas Association of Builders

While in college he attained a realtor’s license, and during the summers

Housing Award and an Outstanding Achievement Award. In addition to San Antonio, Sitterle Homes builds in Austin and Houston.

drove a combine harvesting corn from sun-up to sundown. From 19821990 Jack worked for his dad learning residential and commercial contracting and property management.

Expect the awards to continue! Sitterle Homes is currently working with Cary Kipp of Kipp Flores Architects and Rick Harrison Site Design on designing an entirely new model of housing for San Antonio. “We have taken several design methodologies and analyzed how to incorporate those principles within the streets and open spaces in order to enhance the overall lifestyle of the community,” says Frank, Jr.

and several Energy Star Awards, including a Leadership in

Jack went out on his own in 1990, remodeling a three-story hospital building. Later that year, with the economy in full-blown recession, Jack was hired back to diversify the company and run Property Management and Construction Associates (PMCA), which required oversight of a multitude of office buildings and warehouses. Shortly later Uptmore Custom Homes came into existence, and Jack got very involved with GSABA and participated in15 of their annual Parade of Homes events, served two terms on the board of directors, and was president. Jack was also the GSABA Builder of the Year in 2012. “I’ve been very honored to have worked with my dad, Jim Uptmore,” adds Jack. “To have his guidance, work ethic, support and counsel – his example – over the last 38 years has been an incredible blessing to me. And now with my son, Josh (also an A&M graduate), coming onboard with us in 2017, it assures our clients, friends and business partners that the Uptmore family legacy of quality homes will continue. And that is very important to us.”

19


Jim Leonard Most custom builders go after clients who can spend at least $500,000 on a new home, with many preferring to build homes no less than $800,000 in price. And repeat this 5-10 times a year, or more. Well, Greenboro Homes president Jim Leonard isn’t like most builders. “I’ve been here in San Antonio for several years, and I care deeply about building up our local communities…in all areas of town. Our goal is to design, construct, and renovate homes that delight our customers. All of our homes, no matter where they are at, are built with passion and backed by our commitment to excellent craftsmanship.” For years now Leonard has built affordable homes in the inner city as part of Greenboro’s business plan. Even though these are small homes that are usually priced below $150,000, they usually include granite countertops, tile floors, landscaped yards, stainless-steel appliances, and more. Leonard has been consistently involved with various mayors and city councils on a wide range of housing-related issues. And, because of this, he has seen a need for improved housing opportunities for residents in areas of town most builders wouldn’t consider.

Dennis Celsor Like most good builders, Dennis Celsor has a passion for home building and seeing his customers move into the house of their dreams. But Celsor’s approach to building is completely different than most others. In fact, his Built Green Custom Homes company is only a good fit for a small percentage of homebuyers. “Home building doesn’t have to be a mystery,” says Celsor. “Through education, building relationships and different ways to save money, homeowners can control the building process for their dream home.” Built Green Custom Homes lets the home buyer call the shots while essentially becoming their own home builder. They are encouraged to use good subcontractors to build the home and have the option of doing some of the work themselves. The allure is control of the building process, opportunities to save money, and getting the exact type of construction they desire. For nearly 20 years, Celsor has been showing people how to build their own homes, save money and get more for their investment dollar. Through the Built Green system, he teaches people from all walks of life how to take on custom home building projects … even if they don’t have any prior construction experience.

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Steve Davis Steve Davis walks softly but carries a big stick. His impeccable reputation of integrity and service commands respect throughout the San Antonio building community and virtually all the seasoned builders in town know him well. His venture into residential construction, however, almost never happened. Davis left the restaurant business in the early ‘80s and jumped into commercial development with a builder friend Mike Espensen. Th two set out to build several apartment complexes in North Carolina and South Carolina, but tax law changes in 1986 put a screeching halt to multi-family development. So, back in San Antonio in the late ‘80s, as the real estate crash was taking shape, they approached Laddie Denton, of Denton Communities, about a potential garden home development that dotted a cliff overlooking a quarry site formerly occupied by Alamo Cement. While most lenders at the time were very skeptical amount

And this is where Steve Davis became a residential builder in San Antonio and eventually completed over 300 garden homes in Lincoln Heights. Ironically, he’s back in here now where he started over 30 years ago – building town homes that overlook the back nine of the Quarry Golf Course and nestle up to the green on the 12th hole.

funding any new real estate developments (given the unfolding

Steve’s had a longstanding relationship with Denton his entire career.

recession), it looked as though the deal would fall through. Denton

Laddie’s parents, Lloyd and Bernice Denton, formed the Denton

however was instrumental in securing the financing needed

Development Company in 1946. Today it is known as Bitterblue, Inc.

(through the old NBC Bank) for the first phase of the Lincoln heights

and they’ve been in land development more than 70 years, longer

masterplan called The Park at Lincoln Heights.

than any other company founded in San Antonio.

View Homes In 2019, View Homes – the nation’s 35th largest homebuilder – purchased the assets of Armadillo Homes, a top 15 San Antonio builder and Laredo’s biggest. Merging the operations of two builders can be a huge challenge. From IT platforms to management reports to people and culture, it is often very difficult, and occasionally frustrating, to make two become one. But for Brian Nanney, the newly promoted Division President of Armadillo Homes, this was a labor of love. Nanney has worked in the residential construction industry in Central and South Texas for over 23 years and had worked with Armadillo Homes since 2000. He worked his way up from superintendent to Vice President of Construction and had gained experience in project management, strategic planning, and operational oversight. In 2016, he left Armadillo to join View Homes as a Division Manager tasked with helping the company expand into the San Antonio market. As View Homes began to buy land, Nanney was able to bring on two more successful Armadillo Homes leaders: Victor Mendoza, an experienced Vice President of Sales, and Brandon Rogers, a construction peer who would manage the construction team. Together, Nanney and his team launched the San Antonio division and opened five communities by 2018.

21


Dustin Franckowiak

Maggie McCarthy

Dustin Franckowiak grew up in and around the construction

Early on Maggie McCarthy developed a love for horses, hanging

business, surrounded by examples of hard-working men. His

around them as a toddler with her mother. By the time she

grandfather worked civil services at Kelly AFB in the woodworking

turned seven she had her first horse. The equestrian life quickly

division upon returning from WWII. After retirement he opened

became a passion and soon her and mom were traveling

a small shop to build custom cabinetry & millwork and do

around the country training and competing in horse shows.

remodeling. Dustin’s dad started selling building materials in the

Maggie graduated from Boerne High School a year early,

early 1970’s and still does to this day.

deferred her admission into Texas A&M, and hired on working

“My summers and weekends growing up were spent at either

for a horse trainer in northern Alabama in return for lessons. She

grandad’s shop or on a jobsite with my father,” he said. “Being

entered A&M in Equine Science but after summer internships

around a lumber/millwork company and construction sites

with dad and John Merritt Homes, McCarthy added a major in

almost my entire life is what inspired me to enter the construction

Construction Science to earn double degrees.

business.”

“When we moved here from Houston dad started building

While going to school he worked at a small local lumber company

homes. I remember walking homes with him and helping mom

near his hometown of Poth, pulling orders and selling materials.

with making finish out selections,” she said. “I think I’ve always

After college Franckowiak started working for a local builder

really loved this business.”

as a superintendent and then moved into a couple of different

After several internships with JMH, McCarthy began working

construction management positions with two other larger

full time in 2008 supervising field operations. As she took on

building firms in the early 2000’s. After 7 years Dustin decided

additional responsibilities, dad began cutting back his time

it was time to hang out his own shingle and launch his own

before moving into full retirement seven years ago.

residential building enterprise. In the summer of 2009 Marquis Builders was formed.

A defining moment in McCarthy’s leadership of John Merritt Homes was her entry into the 2017 Parade of Homes in the

He’s not only the president of Marquis Builders, but also an

Canyons at Scenic Loop (photos featured throughout this

everyday, hands-on homebuilding manager who is sincerely

spread and on the cover). If there ever was a doubt whether she

excited about his job and delivering more than what his customers expect.

could hold her own in this male-dominant, testosterone-fueled

“I feel for me it really boils down to the good ol’ boy

industry she quickly dispelled any skepticism by walking away

approach and having boots on the ground. When customers buy

with the prestigious People’s Choice Award for best Parade

Marquis Builders they are not only purchasing a great product,

home. She also won Best Floor Plan with the sprawling single

but also the sense of having their largest investment entrusted

story horseshoe plan wrapping around a negative edge pool

to someone who is passionate about what he does. I strive to be

taking in 180-degree hill country views. Yes, the 2017 Parade

patient, stay focused on the task at hand, always treat folks right,

House signaled her arrival in this business and she’s never

and remain true to the core value of delivering quality. I also work

looked back.

hard, and expect those on my jobsites to do the same.”

22


Don Craighead San Antonio has its share of excellent home builders and craftsmen,

So Don headed off to College Station. After he graduated from Texas

and it is not uncommon for sons to follow their dads into construction.

A&M he immediately went to work for Proctor & Gamble as an account

But rarely do you find a family that for more than three generations –

rep. Eleven years later, with his fill of the corporate grind and traveling

over nearly 100 years – that has been consistently creating high-end

too much, Craighead left P&G in 1980. Much to the dismay of B.L.,

custom homes for folks in South Texas.

Don could no longer stay away from the career that had been calling him since he was a young lad. He formed a partnership with his father

Well, the Craighead family is that exception.

and four short years later started his own residential construction enterprise, Craighead Custom Homes.

The Craighead family, starting with B.L. Craighead, Sr., has been designing and building luxury homes in San Antonio since 1923. In

Don and his beloved wife Nell raised three daughters, while raising a

1946 B.L. Jr. hung out his own shingle and in 1980 Don Craighead

lot of roofs in prestigious neighborhoods and winning their share of

joined the family business, partnering with his dad.

construction awards. Craighead served on the Greater San Antonio

“I literally grew up going to job sites as a little boy with my dad,” says

Builders Association Board of Directors for several terms over three

Don. “But dad didn’t want any of us to be builders. He wanted us to get

decades; received the James I. Campbell Lifetime Achievement Award

a college degree and a career that offers job security, company car,

from GSABA in 2011; and in 2008 was elected a Lifetime Director

paid vacation, paid holiday, and profit sharing. All of the things he knew

of GSABA as only the third builder to receive this designation in the

that the home building life did not offer. I listened to my dad, but only

association’s 65 year history.

temporarily.”

23


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[focus section]

A Sustainable

Home Starts With An Engineered Foundation By Beverly Smirnis

T

he American Society of Civil Engineers estimates that

An engineered foundation is defined as one for which design is based on

one quarter of all homes in the United States have

three phases:

some damage caused by expansive soils. In a typical year in the United States they cause a greater financial

loss to property owners than earthquakes, floods, hurricanes and tornadoes combined. State building codes provide general guidelines, minimum footing requirements and presumptive soil-bearing values for various soil types, bearing capacities, material requirements and estimated lateral loads. But a building code cannot accurately predict your building project’s specific needs. Savvy builders in Texas understand that with subsurface soil conditions ranging from solid rock to highly expansive clays (oftentimes in the same community), construction can be high-stakes and expensive if not handled correctly. A structural engineer’s stamp of approval on a foundation plan is the only way to assure foundation integrity.

1. Geotechnical Engineering Information Load conditions are very “area specific.” The Texas State Historical Association’s division of land resources recognizes over 1,300 different types of soil in our state, each with its own distinct attributes and characteristics. It is important that your structural engineer is familiar with your area’s weather conditions and soil types because every soil has a unique capacity to bear the intensity of a load per unit area. For example, sand or gravel may have a bearing capacity of 3000-4000psf (lbs/sq/ft) while clay only has a support capacity of around 1500psf. The higher the bearing capacity of a soil, the smaller the footing you need. Soil testing is also essential in assuring a foundation’s essential role to act as a barrier keeping water from penetrating the living space. Certain soils, specifically clay-like soils prevalent in many areas of Texas, expand and contract more rapidly when exposed to moisture.

26


2. The design of the foundation is performed by a licensed engineer. Structural engineers use science and math based information to understand various relationships between soils, hydrostatic pressure, water flow, and other factors which affect foundation walls’ long-term structural strength. Areas with expansive soils, organic deposits, landfills, or underground springs require particular attention. Steep sloping land areas will require extra engineering or specialty foundation designs. In addition to the soil analysis, foundation engineering calculations will include: •

Dead load analysis--the weight of the permanent equipment and construction materials in the building.

Live load analysis--created by human use of a building such as physical bodies, vehicles, storage, furniture, and construction and maintenance activities.

Wind uplift pressure analysis-- pressures from wind flow that causes lifting effects.

Soil pressure analysis—the pressure exerted from soil mass (backfill) onto a wall in a lateral direction throughout its depth.

a well constructed drainage system to address moisture which affects not only the integrity of the foundation but also the piers, beams, joists, and shims supporting the structure.

Your engineer will also check that the plumbing design is solid and consider large tree roots on the site that could lead to severe issues in your foundation.

3. Construction is observed with written documentation. Third-party, insurance-backed new-home warranties usually require foundations to be engineered and stipulate that a series of inspections be

The Bottom Line: There is no need to pay for needlessly

performed at pre-pour stage and after the concrete pour. Note that ASTM’s

over-designed foundations, but under-designed, under-

concrete and concrete aggregates committee is developing a proposed

performing slabs are a recipe for distress and litigation.

international standard that will be used to evaluate the tensile performance

Make sure your team includes essential engineering

of fiber-reinforced concrete (FRC) using cylindrical specimens with a

professionals versed in residential foundation design and

double-punch testing method; this indirect tensile test method shows

that you purchase a third-party warranty to protect against

much less variability and is more time efficient than typical beam-type

the unexpected.

testing and can be used for investigating various properties of FRCs such as strength, stiffness, ductility, and mix quality. The compacting soil process is another dire step to evaluate in ensuring foundational integrity to prevent the foundation from sinking under the load bearing weight of the structure. Next, a framing inspection occurs when framing is complete and after the installation of the electrical, plumbing, mechanical and ventilating systems prior to the application of interior wall coverings such as sheetrock. And finally, a final grading survey and slab floor elevations survey may also be required to establish that lot grading and drainage, including porches and driveways, directs drain surface water away from the foundation.

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Beverly Smirnis is the co-founder of Building Savvy magazine and publishes its flagship Dallas/Fort Worth edition. She and her business partner and husband, Steve Smirnis, have served as judges for the International Builders’ Show Best of IBS Awards and judged numerous homes for builders association parade events across the country.


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