International flavor Number three

Transcription

Covering the Industry’s News
P.O. Box 791290
San Antonio, Texas 78279-1290
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CONSTRUCTION
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The Industry’s Newspaper
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(210) 308-5800  P.O. Box 791290 San Antonio TX 78279  11931 Warfield San Antonio TX 78216  JAN 2011  Vol. 9  No. 1
International flavor
Number three
L-R: Camilo Carvajal, Lorena Garcia, Luis Machado, Martha Loya, Sarah McCready,
Casey Wenzel and Tatiana Hiri.
Top row: David Moore, Jose Varela , Middle row: Arron Tollison, Mike Swinney
Bottom row: Terry Webb, James Youngblood - not shown James Reed
M
arek Employment Management Company (MEMCO) is a
construction-based staffing and
payroll firm founded 14 years ago in
Houston and four years ago in the DFW
area. Other offices are located in San Antonio, Pasadena and Atlanta.
The company specializes in “tempto-perm” hiring services for commercial
contractors, and stays busy by providing
skilled, semi-skilled, unskilled and entrylevel workers on a temporary or long
term basis.
“An interesting aspect of MEMCO is
the cultural mix of our staff,” said account
manger Sarah McCready.
“We are like family, yet very diverse.
A league of nations with all of us being
from different countries: Bolivia, Colombia, El Salvador, Mexico and the U.S. This
makes for a very interesting and fantastic
atmosphere.”
The staff also has lots of interests. Tatiana loves to cook, travel & dance and is
pursuing bachelor’s degree in business.
Lorena is a mom of two girls, family oriented, loves to cook & travel. Camilo is an
ordained minister and was an extra on
Men In Black II. Casey loves the outdoors,
camping, hiking and backpacking; Martha loves to scrapbook and is currently
pursuing a degree in medicine; Luis
loves the outdoors especially fishing with
his children, and Sarah is an avid hunter
continued on Page 14
M
idwest Hose and Specialty has
opened their third location in
the Dallas-Fort Worth market
with a new 35,000sf location in downtown Fort Worth. The company specializes in industrial hose and fittings.
Located at 3301 Fisher Ave., the company chose this new location to make the
facility more accessible to customers on
the east side of Fort Worth according to
David Moore, district manager for both
Fort Worth locations.
“We also wanted to tap into the industrial market with this location. Our
original Fort Worth location is on West
IH20 outside of Loop 820 so this new location is more convenient if you are coming from the east.
“We have all the hoses, adapters and
fittings for tractors and big construction
equipment like Caterpillar, Deer, Komatsu and others and we make the hose assemblies while the customers waits. We
have anything to do with hose and accessories.”
Midwest remodeled the building
and designed it to be walk-in friendly
says Moore. “We provide a large, flat
screen television for customers to watch
and free sodas to make the wait a little
easier while their hose assembly is being
made.”
“We also have an experienced staff. I
have been with Midwest for 12 years,
J.R. would be proud
W
hen you say Parker, Texas most
people here and around the
world associate it with the
Southfork Ranch and the Ewing clan of
the television series Dallas.
Now this little town of 3,600 located
in Collin County has a new landmark to
look at, the Police Station/Public Works
Building.
The community needed bigger and
better facilities for the police and public
works departments. Since a new fire station had recently been completed the
availability of the old station created a
good opportunity for the project.
Brown Custom Building and owner
Bo Brown were selected as the general
contractor for the remodel.
The layout and flow of the building
needed to be redesigned for the new
tenants that were to occupy the space.
This resulted in some long hours using a
CAD program to provide them with a
workable solution for their needs said
Brown.
Also after review of the air conditioning systems we were able to cut down
the unit size and reallocate the savings to
build another restroom.
Typical metal framing and gypsum
board with dropped acoustical ceilings
were utilized in the construction of the
facilities. Flooring was mostly carpet except is restroom areas.
The police evidence room was specialized due to its usage and some of the
areas in the police department section
required bullet resistant panels and glass.
The timeframe given for the $150,000
project was six months but was completed in three months.
“This project allowed us to work
closely with the city manager, assistant
city manager and mayor on a daily basis,”
said Brown. “The trust we gained from
New Police/Public works facility
Page 2
Dallas/Fort Worth Construction News • Jan 2011
Construction News ON LOCATION
Tools a plenty
High voltage
L-R: Stuart, Will, Duane, Craig, John, Robert at the McKinney location
of Sunstate Equipment take a quick break for a photo op to let
everyone know who they are. –bd
Construction News met part of the fine staff of Elliott Electric Supply in McKinney.
L-R: Roch Correia, Royce Gant, Bob Milliren, Rich McFarland –bd
Submitted to Construction News
At your service
It’s a party
Mike O’Neal dishing out the chicken
The counter folks keep things moving at Landmark Equipment’s
McKinney location. L-R: Chris Ake, Danny Hill –bd
Employees of Supply Depot together at the Fort Worth location Dec. 16 to enjoy
a little Christmas spirit. Some good laughs along with plenty of fried chicken,
mashed potatoes and other items put everyone in a great festive mood. –bd
Page 3
Fall Golf Tournament a hit
Meeting friends
L-R: Steve Baker, Mary Jane Fogerty, Jim Hollis, Cathy King Lawson, Charles Raymond
I
t was another good year for the 13th annual Baker Triangle Raymond Golf Classic held at Woodbridge Golf Club.
This year 120 golfers were blessed
with a beautiful day to show their skill on
the course. Committed volunteers and
generous sponsors added to the mix to
make the tournament a great success.
This year $30,000 was raised to fund
the Dallas Pregnancy Resource Center.
The tournament is a partnership of Bak-
erTriangle and Raymond Construction
with Jim Hollis of Baker Triangle as chairman of the event.
Over the past thirteen years the tournament has donated more than $286,000
to the Center. –bd
Winners were:
1st Place Net: Carter Lyon, Brent Cannedy, Lindy Jones, Martin Wiarda
1st Place Gross: Tony Bailey, Brady
Ream, Jack Ream, William Goade
Time for the day
T
Dallas  Fort Worth
John Fill 2nd Place: Flooring Services, LTD / Pegasus Texas Construction, LP: Jorge Mendez , Matthew Mendez (Honorary Team
Member) , Casey Lavy, Berry Brock, Philip
Lightfoot 3rd Place: Chevrolet/General Motors:
Gloria Tostado, Otie McKinley, Bill
Reineck, Steve Thompson CONSTRUCTION NEWS
Editor — [email protected]
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AIA Fort Worth expressed its appreciation to members on Thur. December 16,
when they hosted a Holiday Party and Open House at the new Center for Architecture in Fort Worth. Approximately 75 members and spouses attended the event
and enjoyed food and drink during the 3-hour celebration. –bd
What is your
favorite food?
This time of year my favorite thing to
make and eat are comfort foods,
from casseroles to Crock-Pot recipes. Some of my faves are taco soup
with jalapeno/pepper-jack cornbread, pot-roast and roasted brussel
sprouts, and tomato-cream soup
with polenta croutons!
ple. It brings people together if you
know what I mean.
Kerrie Sparks
Communications Coordinator
AIA Dallas
This is Fort Worth so it’s got to be
Mexican food. Italian would be second. There’s a little place here Eileen
and I like to go to called El Rancho
Grande. I like the left side of the
menu especially if you are with a
group. Everybody orders what they
want but we get empty plates and we
share.
Soufflé. It is heavenly, especially at
the Rise. Fabulous place with great
service!
Julie Muenks
ROC Construction, Inc.
First place winners
he Regional Hispanic Contractors Association (RHCA) got up and running with their First Annual Sporting Clay
on Nov. 20. The event was held at the Elm
Fork Shooting Sport and 50 shooters participated. –bd
Winners were:
1st Place: Innovation Mechanical:
Adam Treviño, Pat Goldtorn, Mark Dahl,
L-R: Arthur Weinman, Jackie DeBolt, and Tom Holifield
Tony Troxclair
Director of Membership Development
TEXO
Dick Allen, Owner
Allen Construction Supply
Italian. My favorite is the Zuppa Tuscana at Olive Garden. I could have a
whole meal on just the soup, but
then there are breadsticks and the
salad…. It’s my favorite comfort
food.
Kay Schultz, Office Manager
Baker/Triangle
Italian. I pretty much like all Italian
food. I just like it.
Wow, probably Mexican food would
be my favorite. Abuelo’s or Joe T.Garcia’s. I like just everything they have
got. They have some good Habanero
hot sauce too.
Gary Mason
Construction sales manager
Equipment Depot
Fort Worth
Ruth Walter
Marek Brothers Systems Dallas
My favorite food? It would be a ribeye steak, a baked potato and a salad.
I like to eat it at Outback steak house.
Well I’m going to have to say a boiled
crawfish. Where ever I’m eating
boiled crawfish there are good peo-
Doug Ford, Store manger
RentalOne
South Dallas
Page 4
How did undertaking all of that responsibility pay off for you?
When I graduated from high school, I
bought a $400 car – a ’55 Chevy - and I
had $4000 in the bank. Back then, you
could virtually buy a new car for a couple
of thousand dollars in 1966, but frugality
was so imbedded in me that I went and
bought a used car and fixed it up and had
$3600 left in the bank.
Mark L. Biebighauser
Precast Erectors Inc.
I
f Mark Biebighauser had been required
to submit a flight plan for his life before take off, it might have read something like this: Work, work and work some
more. Find the sweetest girl in Fort Worth
with the best smile and marry her. Enjoy
raising three outstanding children and
treasure 12 grandchildren. Humbly and
gratefully serve through church. Definitely enlist God as chief pilot. And learn from
every unique experience along the way.
Tell me about your family, Mark.
My dad moved from Minnesota during World War II. He was stationed at Carswell when he met my mom, who was a
West Texas girl. They had their first date
on New Years Eve, he proposed on Valentine’s Day and they got married in March.
So they had a three-month whirlwind romance.
I was the oldest of three. I had a
younger brother and a much younger sister – she came along when I was 9. Being
the oldest had its plusses and minuses. I
enjoyed it, but the expectations of a German father were much higher on the
firstborn son! I was the one that was always supposed to measure up.
Were you expected to work hard?
Yes. I threw newspapers for six years,
all through junior high and high school,
on the longest walking route in the city of
Fort Worth. No bicycle, no motor scooter,
certainly no car. Newspapers went behind the door, on the side where you
open it. I got up about 4:30 in the morning, walked the route, got home about a
quarter to seven and then ate breakfast
and went to school. I got an early dismissal from school and then would go
throw newspapers from about 4 to 6 in
the evening. I would come home and
study, and then I would get up the next
morning and do it all over again. The only
break I would get was on Saturday and
Sunday because it was a morning-only
paper. And I don’t mean to make this into
one of those “I walked two miles in the
snow” kind of stories; that was just the
reality of the situation.
How did that shape your work ethic?
Most people don’t really realize that
newspaper boys bought the papers from
the newspaper and then sold them to the
customer. So I would buy papers from
the Star-Telegram, and I would be very
judicious about how many papers I got. If
I had 275 people on my route, I wouldn’t
order 289 papers. I would guess that a
couple might get wet or torn, so I would
order 278. At the end of the month, I
would get a bill from the Star-Telegram
for 278 papers – morning and evening –
so that means a fairly large dollar amount.
And then I would go out knocking on
doors to collect the money to pay the
newspaper, and then whatever was left
over was mine. If someone didn’t pay, it
didn’t hurt the Star-Telegram, it hurt the
newspaper boy.
And keep in mind, it meant I was a
16-year-old boy walking around the
streets with $300 or $400 cash in my
pocket!
Also, I was making business decisions. If my family wanted to take a vacation, or if I was sick, I had to find a substitute to throw my paper route. So they
would throw it and I’d pay them.
Back then, that’s just what you did,
but looking back on it, that’s a lot of responsibility for a young kid.
How did you meet your wife?
When I met my wife, I was 18 and she
was 15. Since I threw newspapers, during
my senior year I got a job working for the
Star-Telegram in downtown Fort Worth. I
happened to be working with two kids
from another school who were her brothers, and I got to know them. One day, she
was candy striping at Fort Worth Osteopathic and came up to the Star-Telegram
to get a ride from her brother. I thought
she was somebody he was dating, so I
started cutting up and kidding with her.
When she said she wanted to go to a
movie that night, I said, “Well I’ll take
you.” I was just messing around. But she
said, “Okay!” I already had a date that
night with another girl I had been dating
for six months from my school and I had
to call the other date up and make up
some excuse, and take out my friend’s
little sister, who I didn’t even know!
Judging by the ring I see on your finger, you were able to come up with a
pretty good excuse!
Well, we had a date that night, and
the next night and the next, and we
wound up getting married when she was
17 and I was 20.
Were you working? Going to school?
I lived at home and went to UTA. I
studied aeronautical engineering and
worked as a co-op student at Bell Helicopter in research and development. I
had this grand vision that I would design
aircraft. But I learned [working at Bell Helicopter] that the ideas I had about what
it would be like to design an aircraft was
not reality. What would happen is you
would work for 10 years designing the
tail rotor-flapping hinge on the UH-1N
and then the government wouldn’t fund
it so nothing would happen. Basically, it
was a “cube” life. You’d get a cube as an
engineer and after 10 years you might
get a cube by the window. As an executive you’d get a cube with a door. That
just didn’t appeal to me.
Does this mean you let go of your
dream of being involved with aircraft
in some way?
Well, unintentionally, I had endeared
myself to some of the people in the research and development department by
working hard and staying late. When we
reached the end of a particular project,
they said, “We want to do a little something for you. Go down to the flight line,
and we’re going to have you go for a ride
in a Huey Cobra.”
Oh, wow.
The pilot I met asked if I had ever
been up before, and I said no. He asked if
I had ever flown in an airplane before,
and I said no. He asked if I had ever been
off of the ground before! I said “No, sir.”
And he got a big ol’ grin on his face and
said, “Hop in.”
Famous last words …
This was ’68 or ’69. We were flying a
Huey Cobra gunship. This [pilot] was two
months back from Vietnam flying hedgerow-type stuff. And he took me down to
the Trinity River bottoms and he turned
that thing inside out. We were flying
three feet off of the ground coming up
over barbed wire fences and back down
on the ground again and pulling straight
up over the river and coming back down
like we were in the Mekong Delta!
That your first experience in a plane?
What was your reaction?
There was a leather bag over the gun
sight, and I thought I might have to take
that off and throw up in it! But we got
A wing and a prayer: Mark Biebighauser is a big fan of both.
through and I thanked him for it, and
then somehow ended up making friends
with this guy. Then every day at lunch, I
would grab my sandwich and eat it walking from my office out to the flight line
and when I would find him we would go
flying.
So that first experience in the gun
bomber didn’t turn you off to flying?
Oh, no. In fact, I have my private pilot’s license now.
How did you come to leave Bell Helicopter and get your start in the construction industry?
During the semesters I was at Bell
and going to school 18 hours, I had to get
a part-time job because by this time we
had a baby. I stocked groceries at Safeway, and I ran a delivery truck. One summer, I sold bowling cards door to door.
My senior year of college, I dropped
out of UTA for a semester to earn extra
income. That one semester then became
two, and I started selling motivational
and personal development courses and
was sent to Oklahoma City. The business
closed and left us high and dry in Oklahoma City, and by this time we had our
second child.
One weekend in the spring, my wife
was homesick and wanted to go home
for the weekend. I think it was more, “I’m
going back to Fort Worth and I hope
you’re coming with me!” We were living
in a rent house and sleeping on the floor
since the company had gone out of business, we couldn’t afford a bed and the
house was unfurnished.
We went home for the weekend and
I decided to go through the want ads in
the Star-Telegram on a Saturday morning. I circled a few ads, but there was one
that said, “Engineer/estimator wanted,
will train.” I had a slight idea what an estimator was. I called the fellow on a Saturday and I happened to catch him. He told
me to send him a resume. I told him I
could get one but that I was living in
Oklahoma City and was just in Fort Worth
for the weekend, and would it be possible to come by and meet him? He
thought for a minute and said that I could
come by, and he gave me an address.
Thank goodness he was willing to see
you on a Saturday!
The truth is, I almost didn’t make it
because I couldn’t find the place. It was
out in Euless, on Tarrant Main, and to give
you a perspective, the airport hadn’t
been built yet. Finally down this little dirt
road I came to a gate, a big mesquite flat,
and a trailer, and in that trailer was E.L.
Derr Jr., as in Derr Steel Erection, and Derr
Construction Company. He was a steel
erector who had started a precast company the year before.
So we shook hands and he told me
about his business, and I told him I didn’t
know anything, but I worked hard. I told
him that as soon as I got back to Oklahoma City, I would send him a resume. Well,
of course, I had to go find a typewriter,
type it up, and there was no way to fax it,
you had to wait. About a week later, he
called and he said he had gone through
the resumes, and that if I still wanted the
job, he thought I would be a good fit.
Long story short, he offered me a job
making $200 a week and I sat in a trailer
and learned how to do steel and precast
concrete estimating.
And the rest is history. You worked
your way up from estimator to president!
[Derr] had two other partners. In the
late ’70s, one of them wanted out. I wanted to buy the shares, but it was $25,000
and I didn’t have the money. So Mr. Derr
said he’d buy the man out and would
give me the chance to buy his interest
through my earnings. Not too many years
later, the other guy wanted out, so we arranged a deal for me to buy him out. By
1983, I owned half of the stock of the precast company, and Mr. Derr owned the
other half. We maintained that ownership percentage for nearly 20 years until
2000 when I approached him about buying out his treasury stock.
A far cry from sleeping on the floor
and delivering bowling cards! Now
that we know how your career turned
out, what is your personal life like?
My wife and I have been married 42
years and we have 12 grandchildren – 10
granddaughters and two grandsons. We
are members of Gateway Church in
Southlake, TX and we are committed
Christians, hopefully in all aspects of our
lives.
I enjoy golfing. I don’t do it a lot, but
I enjoy it. I’m a deacon in the church and
my wife leads a bible study in our home
Wednesday mornings.
Do you still fly?
Actually, I haven’t been flying lately. I
got my private pilot’s license in 1979. Mr.
Derr was moving up to a bigger airplane
so he sold me the plane he had before. It
was a Cessna turbo retractable 182.
I was at a friend’s house and they had
a missionary who was a pilot talking
about the work he was doing in Africa. He
was doing some neat stuff but his aircraft
was kind of old, and I just felt impressed
to give him my airplane. Really, I haven’t
flown much since then.
What is your flight plan for the future?
There are a lot of guys in this industry
that just can’t let go – of the reins, of the
authority, of the responsibility. That will
not be me. In fact, I’ve got grandkids right
now that in five years will be going off to
college. I don’t want that to happen without me spending some significant time
with them. I want to be able to pour into
their lives some memories and some
mentoring. Not that my kids aren’t doing
a great job of it, but there’s something
about an old granddad …
Precast Erectors was founded in 1971
and is a significant subcontractor on large
construction projects. The company has
erected precast concrete from California to
Boston and from Guantanamo Bay, Cuba
to Toronto, Canada. The seating bowl for
the new Cowboy Stadium is a recent major
project. –mjm
Page 5
Avoiding debt covenant
surprises sustains credibility
with banks and surety
companies
Carter W. Rouse, CPA
Weaver
Dallas, TX
hroughout the year, the construction company made
T
its scheduled loan payments. It neglected, however,
to monitor whether it was meeting every one of the loan’s debt covenant provisions.
Upon examining the company’s
annual financial statements, an auditor
informs the owner that the company’s
capital/short term liquidity ratio violates
one of those provisions. The auditor
explains that violation places the
company in technical default on the
loan: The loan is legally regarded as due
immediately, with the remaining balance
considered a massive current liability.
The company agreed to those debt
covenant provisions when it secured the
bank loan. To monitor compliance, it also
agreed to annual financial statement
audits by a CPA firm.
The company owner has no choice but
to bring that violation to the bank’s
attention and ask if the debt covenant
can be renegotiated. Without the
banker’s help, the company cannot get
out of technical default, which could
result in classification of the debt as
current or even a going concern issue on
its financial statements.
Bankers do not like such surprises;
they do not like finding out after the
fact that a debt covenant provision was
breached. Surety companies do not like
such surprises either.
To resolve the debt covenant
violation, the banker might agree to a
one-year wavier for the provision that
was breached. The banker may add an
addendum to the covenant to address
that issue. On a larger scale, the entire
loan may be restructured.
Renegotiating loan terms incurs fees.
The company’s long-term credibility and
trustworthiness with the bank suffers,
as does the company’s ability to secure
favorable future loan terms.
Due to delays caused by the need
to renegotiate the debt covenant,
the financial audit’s completion gets
pushed back, causing auditor fees to
rise. Amidst such uncertainties, attaining
performance bonds from a surety
company may become more difficult, too.
How many new business opportunities
may be lost?
Broad economic downturns and
acute company difficulties increase
chances of a debt services default – the
failure to make a scheduled payment on a
loan’s interest or principle. A construction
company does not have to be in financial
distress, though, to place itself in technical
default.
A debt covenant violation often is
an unintended consequence resulting
from an acquisition, disposition, fixed
asset addition, implementation of a new
accounting standard, or some other
event. A large purchase of building
material right before a financial reporting
period closing, for example, may skew
crucial ratios used to determine whether
or not the company is meeting debt
covenant terms.
Company leaders need to be aware
of debt covenant provisions, and consider
whether various activities or events may
place the business in technical default.
In some instances, a violation may
be deemed unavoidable. Identifying
such possibilities enables a company
to determine whether or not a waiver,
addendum or restructuring of the note
would be the most appropriate course to
pursue.
Whenever a debt covenant violation
seems likely or inevitable, managers
should contact the lending institution
as soon as possible. Providing early
notification of a possible violation
helps maintain an amicable banking
relationship.
Promptly addressing such concerns
also means that debt covenant issues
get resolved before an annual financial
audit is scheduled to begin, thereby
avoiding costly audit delays. The auditor
is in a much better position to issue
an unqualified opinion regarding the
accuracy and completeness of the
company’s financial statements. The
annual financial statement subsequently
gets released on schedule, thereby
promoting confidence among surety
companies and other stakeholders.
Local and general economic
conditions fluctuate. Various government
entities introduce new accounting and
compliance standards. Material costs rise
and fall.
Numerous events influence a
construction company’s ability to meet
debt covenant terms. Being aware of the
impact that such events may have enables
companies to address potential note
violations and renegotiation needs as
soon as they emerge, thereby preserving
existing business relationships, credibility
and creditworthiness.
Carter W. Rouse, CPA is a partner in
Assurance Services for Weaver, the largest
independent regional accounting firm
in the Southwest, with offices in Dallas,
Fort Worth, Austin, Houston, Midland,
Odessa and San Antonio. He can be
reached at [email protected] or
817.882.7727. www.weaverllp.com –dn
Roofers gather
L-R: John Gibson, Susan Kittrell, Tom Rainey
North Texas Roofing Contractors Association (NTRCA) gathered to celebrate
the holidays Dec. 8 in Irving. 30 members attended and brought gifts
for Toys for Tots. –bd
A look back at 2010
Mark Murphy, Attorney
Oppenheimer, Blend, Harrison and Tate
San Antonio, TX
A
s we close out 2010, let’s see what new and interesting construction cases came out this year.
Contractors can be sued for construction “nuisance”
Can a homebuilder be sued for “nuisance” created by its construction activities? The court in C.C. Carlton Indus. Ltd. v.
Blanchard, 311 S.W.3d 654, 659 (Tex.App.Austin 2010, no pet.) said yes.
In this case, crews worked 24 hours a
day for months, using heavy equipment to
dig out 13 feet of limestone. Neighbors
claimed the work caused foundation
cracks, roof leaks and plumbing problems,
and sued for nuisance damages. The jury
awarded over $200,000 in damages.
The builder argued the city permit
allowed the construction, and therefore
it could not be liable for what the city
had, in effect, approved in advance. The
Austin court of appeals disagreed, and
upheld the damage award.
The lesson here? To the extent feasible, contractors should take documented steps to reduce annoyance or damages to neighboring properties caused by
construction activities.
Statute of limitations on performance
bonds starts on “substantial completion”
In the federal case of Hartford Fire Ins.
Co. v. City of Mont Belvieu, Texas, 611 F.3d
289 (5th Cir. 2010), the appeals court took
a strict interpretation of the deadline to
file performance bond suits.
A city hired a contractor to build a
large park. Though the project was beset
with problems, the city issued a certificate
of occupancy, agreed the project was substantially complete and took possession in
May 2001. The park opened in July 2002.
But the city and the contractor continued arguing over punch-list items and
change orders. The city eventually sued
on the performance bond in July 2007
and won a judgment of nearly $1 million.
The statute of limitations for suing
on public performance bonds is one year,
starting from “the date of final completion, abandonment, or termination of the
public work project.” Texas Government
Code section 2253.078(a). The appeals
court found that “final completion” really
means “substantial completion.” Since
the city had agreed the project was substantially complete in 2001, it waited too
late to file suit.
Lien waivers come back to haunt contractor
Lien waivers are a fact of life on most
projects. Contractors often feel they
have no choice but to sign them if they
want to get paid. But if a contractor signs
a lien waiver that states it has been paid
in full as of a certain date, can it later
claim it was actually owed more? The
federal appeals court opinion in Addicks
Servs., Inc. v. GGP-Bridgeland, LP, 2010 WL
4250054 (5th Cir. Feb. 8, 2010) says no.
The contractor periodically signed
agreements that “waive[d] and release[d]
its lien and right to claim a lien for labor,
services, or materials furnished through
[this date].” Although each waiver contained a blank space in which the contractor could have excluded outstanding
claims from the scope of the release, it
never wrote anything in the blanks. It
later sued, claiming it was owed more for
work performed before it signed some of
the agreements.
The courts found the waivers were
unambiguous and released all claims.
The contractor got nothing.
For contractors, the lesson is pretty
obvious – be careful what you sign,
whether a lien waiver or anything else.
Do not rely on verbal assurances otherwise, because those may not hold up in
court months or years later.
Indemnity for cladding applicator
Let’s say you are a painting contractor, and the customer later decides he
doesn’t like the paint job. He dislikes it so
much, in fact, that he sues you. If you
think the problem is the paint, not the
painter, Fresh Coat, Inc. v. K-2, Inc., 318
S.W.3d 893 (Tex. 2010) offers some good
news. This opinion from the Texas Supreme Court essentially makes the manufacturer the insurer of contractors in
products liability cases.
At issue was a Texas law requiring
manufacturers to indemnify product sellers for product liability suits. Fresh Coat
was the supplier of an exterior cladding
system manufactured by K-2. Homeowners sued both, claiming the system
caused property damages. K-2 and Fresh
Coat argued over whether the law required K-2 to indemnify Fresh Coat.
The Texas Supreme Court found
Fresh Coat was a “seller” under the law,
and was entitled to indemnity from K-2.
This opinion is good news for contractors, and bad news for manufacturers. Disputes arise frequently in construction projects, and plaintiffs cannot
identify whether the problems arose
from shoddy workmanship or poor materials. If they file suit alleging both, the
contractor can demand indemnity from
the manufacturer.
Mark Murphy handles construction disputes and trials throughout South Texas for
the law firm of Oppenheimer, Blend, Harrison
and Tate. You can reach him at
[email protected] or (210) 224-2000. –dn
Page 6
Lighting up the holidays
Currently not offering
medical benefits?
Britt Rusche, Corporate Benefits Advisor
IBTX Risk Services
San Antonio, TX
W
ith all of the financial concerns currently facing employers in the construction industry, a new program partly funded by the State of Texas may be a saving grace to many unable to afford healthcare benefits
for their employees or who had to drop coverage to curb
the costs associated with offering them. This program is hoping to cover many insureds and their dependents throughout the state.
Thus far, contractors and subcon- The fund will reimburse the carrier for
tractors have been plagued with meet- 80% of claims costs incurred between
ing the carrier requirements of participa- $5,000 and $75,000.
tion and cost. The majority of many orga- United Healthcare estimates that by
nizations in our industry are made up of using co-funding with both public and
young men who still decline coverage private funds, the costs should be 25% to
because they “never go to the doctor or 30% less than plans offered on the comget sick”. Older employees often decline mercial market. Another great feature of
coverage and opt to go to public health this program is no medical underwriting
systems which provide treatment to the associated with pricing of the plans, so
uninsured.
employees will not have to fill out medi Also, with all of the “noise” about cal questionnaires.
healthcare reform and costs associated Two plans will be offered. The first is
with complying, Texas continues to lead a $500 deductible with a $2,000 out of
the nation in helping employers and em- pocket and the other is a $1,500 deductployees obtain health coverage. For ible with a $3,000 out of pocket. These
many years, our state has been successful deductibles and out of pockets are the
in providing a high risk pool for individu- responsibility of the covered employee.
als declined by private insurance compa- Once a covered employee hits their denies. Now, with new legislation and fund- ductible, insurance pays 80% of the eming approval, Texas will again assist in ployee’s out of pocket. Once the employproviding affordable coverage.
ee’s plan deductible and out of pocket
In an effort to get more employer are met, insurance will cover all expenses
sponsored health plans to cover individu- at 100%.
als, Texas initiated a state run program Under this program, for example, if I
called Healthy Texas. This program is ad- were the employee who had to go to the
ministered by United Healthcare and was hospital for knee surgery, the cost of the
passed by state legislation to use a state procedure might be upwards of $30,000.
funded pool for reimbursement of medicontinued on Page 13
cal claim costs incurred by its members.
L-R: Bobby Tutor, Doug Green, Coty Owens, Steve Humphrey, Jr., Bob Leonhart, Gary Sodd
I
ndependent Electrical Contractors, Fort
Worth/Tarrant County (IEC) rolled into
the Stockyards Station on December 3 to
hold their annual Christmas party. The
evening included dinner, casino games, a
DJ and a toy drive to help Mission Arlington. Along with these festivities the incoming officers and directors for next
year were installed.–bd
Officers
President: Doug Green,
E-MC Electrical Services
1st Vice President: Wes Shahan,
Fox Electric, LTD
2nd Vice President: Coty Owens,
Coty Owens Electric Service, LLC
Secretary/Treasurer: Chip Bean,
Bean Electrical, Inc.
Directors:
Terry Browning, Cable Electric, Inc.
Steve Humphrey Jr.,
Humphrey & Associates
Gerald Jordan, Hurst Electric
Bob Leonhart, RISC, Inc.
Jack Martin, JBI Electrical Systems, Inc.
Alex Nantz, AB Electric Company
Gary Sodd, Sodd Electric Co., Inc.
Bobby Tutor,
Tutor Electrical Services, Inc.
Page 7
a shallow water anchor similar to the
Power Pole. Formally unveiled at ICAST
in July, the Minn Kota Talon shallow-water anchor utilizes a spike to telescope
straight-down to 6 or 8 feet deep. No hydraulic pump is needed on this electricalmechanical, cable-driven system—only
a 12-volt battery. The anodized aluminum base can be mounted straight to the
boat, or on a bracket away from trim tabs
or step ladder.
New products for
the New Year
by Capt. Steve Schultz
Sponsored by:
Trans Sport Boats, Yamaha Outboards,
Ronnie’s Marine, Minn Kota Trolling Motors, Power Pole Shallow Water Anchor,
Interstate Batteries, Pure Fishing,
Pflueger Reels, All-Star Rods,
Mirr-O-Lure, FINS Braided Line
and Columbia Sportswear.
W
ow! It’s hard to believe we are turning the calendar into another new
year. I hope everyone had a very Merry
Christmas and a great New Years. It
seems like just a few months ago we were
bringing in 2010.
I can attest that time really does fly when
you’re having fun. I am so fortunate to
have world class fishery in my backyard
and some of the greatest clients to experience it with. What started out to be a
great business venture has turned into a
Pictured above are a couple of the Broken-Back Corky lures that should be
one of the hottest lures for 2011.
network of people that I now call great
friends. I truly am Blessed!
I’m really excited to get back on the water
after the holidays and some much needed R & R with the family at the deer lease.
There are some new products out on the
market that I’ve got my hands on and I
can’t wait to put them to the test. One of
these new products is a Broken Back
Corky. Everyone knows that Paul Brown’s
line of corky lures are famous for producing trophy trout. Well now Mr. Brown has
teamed up with Capt. Bruce Baugh of
My lucky mug
did the trick
Feel free to call me and discuss some of
these new products on the market, or to
schedule your next bay fishing trip, give
Capt. Steve Schultz a call at 361-949-7359
or 361-813-3716, or e-mail him at [email protected]. Already
booking for the 2011 fishing season.
Good luck and Good Fishing.
Another new product that is out on the
market today is the Minn Kota Talon. It’s
STEVE SCHULTZ OUTDOORS, LLC
BAFFIN BAY –– LAGUNA MADRE –– LAND CUT
SPECKLED TROUT –– REDFISH –– FLOUNDER
FISHING AND HUNTING TRIPS
Sarah McCready , MEMCO Staffing
I
n the beautiful Texas Hill County, 80
miles northwest of San Antonio lies the
town of Utopia and the Duke Ranch.
It was Thanksgiving and I was excited about the hunting trip. We had just
bought a ton of apple-scented corn and
my whitetail deer mug. I said it was due
time, this was going to be my lucky coffee mug and that today was going to be
the day.
We were on the “Judges Stand”
which sat up pretty high, over looking
the Hill Country. Deer would come from
all directions, the wind was in our favor
and it was perfect.
We had put out the new corn, which
the deer loved, along with a corn block,
some Tink’s Doe Estrous, along with the
golden estrus leaves. The stars lined up
for us that evening.
This buck, which I now call “The
Judge”, walks out from our right and I got
so nervous. I was breathing so hard and
shaking and my adrenaline was rushing
out my toes. I pulled my shot and the
eight-point jumped as the bullet hit the
dirt wondering what the heck just happened.
I couldn’t believe it. Everything was
going our way and I missed my first shot.
I reloaded quickly to get a second shot as
he ran off, BUT, he didn’t run off! He
looked around for a minute, and then
Calcasieu, LA and modified the corky fatboy by adding a jointed tail to it. The lure
is similar to a Rubberback if any of you
anglers have used one of those, measuring about 4 ½ in. long and slightly smaller
than a super spook jr. They are currently
making three colors: pearl/chartreuse,
pink hologram & black/gold/orange.
These lures are not in tackle stores yet
and are only being sold by Capt. Baugh
from his home in LA.
Features include Auto Up/Down, AutoDrive (an automated sequence that uses
up to 80 lbs. of pressure to hold bottom),
Rough Water Mode (three-stage anchoring sequence with 10-second pauses to
hold the boat in place in rough water),
and even a deployment notification
alarm at engine startup. At 33 pounds,
the anchor can easily be removed from
the boat and kept in safe storage—four
bolts hold the anchor in place. The sixfoot model (6 feet, 4 inches) is expected
to retail for $1,299; the 8-footer (8 feet, 4
inches), $1,449. Included is a two-year
comprehensive warranty on parts and labor; plus the spike has an unconditional,
lifetime warranty. For more, visit www.
minnkotamotors.com.
(361) 949-7359
www.baffinbaycharters.com
[email protected]
U.S. Coast Guard &
Texas Parks and Wildlife Licensed
went back to eating the corn! I don’t
know what kept him there, but he gave
me my second shot, which was clean and
through the shoulder. He went down
right there at the feeder! I couldn’t believe it!
My adrenaline really started pumping and it was unbelievable. This was my
second buck ever and I was ecstatic! I was
shaking more then, my knees buckled
and I could barely move. I almost fell out
of the stand trying to get down. I couldn’t
get down quick enough. He was beautiful and that stand is now my favorite. The
Judge will be on my wall soon.
Page 8
Ken Milam’s Fishing Line
Sponsored by Tropical Marine and Honda Marine
My name is Ken Milam and, for the past 26 years, I have been guiding fishing trips for striped bass on
Lake Buchanan in the Texas Hill Country. Over the years, I’ve had the opportunity of getting to know
a good many folks in the construction trade.
I don’t like these old short days of winter!
A
bout the time I get something going,
it just gets dark on me and I have to
quit. I know winter is sort of nice after
the warmer months with their long days
that’ll let a man work himself to death. It
makes a nice break from the heat, and
I do admit enjoying a nice evening of
football. I have to say though, I am glad
for the change of seasons because I for
one tend to lose patience with extreme
seasons.
I am writing this in the fall, and you
will be reading it in the winter. When the
winter solstice occurs next week, I for one
will feel just a little better knowing that
the days will quit getting shorter and
start getting longer again. I know, we will
have a bunch of old cold weather to get
through before we get to anything that
really feels like spring, but I’ll take it.
I can’t wait to see how spring fishing
will be this year. With the water level of
Lake Buchanan being 10 to 11 feet from
full, we have a lot new structure in the
upper end of the lake. In addition to all
the willow trees and weeds that grew
up when the lake was lower, (dry), we
now have second year growth of swamp
smartweed growing in the shallow water
of the upper end of the lake. Not only
is this stuff excellent habitat for fish and
invertebrates, it is also a favorite food
for ducks. We have seen quite a bit of
duck hunting this winter as more and
more people are finding out about it.
Just think what a great place this will be
for spawning fish in the spring. Warm
shallow water and lots of cover are just
what newly hatched fish need to survive
until they are large enough and fast
enough to move to open water. This
can’t help but benefit Lake Buchanan as
a fishery.
Already we are getting good reports
of blue catfish up to 25 lbs. coming in
from up the lake. Sunny days are getting
better and better for crappie fishing, and
10 - just count them!
Juan Trevino, H & E Equipment in
Grand Prairie, shot this 10-point in late
November at his lease in Throckmorton County. He was a happy camper.
the white bass are beginning to ease
their way upriver for the spawning run.
No telling when the actual spawning run
will occur though because it depends on
how mild or severe a winter we end up
with. If it stays on the mild side, we might
see them spawning around first half of
February.
Best of all, stripers and hybrids are
looking good too. This year we have seen
so many fish that were just not quite big
enough to be keepers. As they grow
through winter and then start to reap
the benefit of the good shad population
we have, well, let’s just say a whole lot of
them will be coming home with us this
year!
Yep, I’m just going to finish this old
ball game on TV and take me a long
winter’s nap. I’ll be dreaming of fishing
trips to come!
The Life of the
Game Warden
by TJ Greaney
F
ew job’s require that a very large percentage of the
time when you encounter your customer they will
have a loaded gun. Not many will have you sit in a mosquitoe infested swamp or in the hot midday sun monitoring your customers and their use of the product you
service. How many folks could sit in a hot bug infested
batch of timber, hungry, sweating profusely then mosey
on up to meet their customer and be cheerful and professional? A Texas Game Warden has to do all this and
more.
Game Warden’s have been called the most powerful
lawmen (and women) in the state. They investigate drug
deals, theft, murder and every other kind of crime you
can think of. Like most lawmen, they work long hours
for low pay if you do the math per hours worked. They
work hard to do a good job, they participate in all types
of outreach programs when they are not on patrol, and
swatting bugs on stake outs or serving warrants. They
are a very special breed of law enforcement.
Here are some of the things a few of the Texas Game
Wardens had to deal recently that I found amusing.
These are courtesy of Texas Parks and Wildlife and are
direct incident reports from actual calls they investigated.
Nothing accidental about it: On Nov. 12, Refugio
County Game Wardens Pinky Gonzales and Danny Kelso
received a call from a Refugio County deputy concerning a vehicle he had stopped with a white-tailed buck
deer in the back of the vehicle. The two subjects in the
Page 9
vehicle told the wardens that they had accidentally hit
the deer with their vehicle. But the wardens found a receipt showing they had purchased a box of bullets
about an hour earlier. Checking the deer, the wardens
found one shot to the head and one in the neck. Confession, confiscation, impoundment, citations, and a trip to
jail followed. Cases pending.
Then, there was that little deal last year: Morris County
Warden Michael Serbanic interviewed a suspect on Nov.
11 after a Morris County deputy stopped him and found
a gun and spotlight in the vehicle. The suspect would
not admit to road hunting but decided to tell warden
Serbanic about the 8-pointer he killed last year and
didn’t tag. After looking at the man’s old license and
finding no tags missing and getting the deer head from
his residence, citations were issued.
Unwise poaching in Wise County: On Nov. 5, Wise County Game Warden Chris Dowdy and Tarrant County Game
Warden David Vannoy were patrolling Wise County on
the eve of the rifle season opener. While investigating a
call about a possible poacher, warden Dowdy received
another call from a landowner about a deer that had just
been shot from the road. After the first call was cleared,
the wardens responded to the second call. When they
arrived, the wardens found two very upset landowners
and one dead white-tailed doe. Darkness had not yet
fallen, and the wardens figured that the poachers would
soon be back for their take. They didn’t have to wait
long before the poachers returned. As a pickup truck
crept to a stop on the county road, the driver got out
and gleefully ran through the field laughing and shouting back to his buddies, “I got it, I got it!” As the driver
attempted to return to the truck with the deer, wardens
Dowdy and Vannoy surprised the two men and one juvenile. In the truck, the wardens found a rifle, spotlight,
headlamps, and beer. Another doe poached from a
neighboring county also was found in the bed of the
truck. Multiple cases are pending.
who are wearing that badge, working the long hours
and making sure that when my kids grow up, the resource of the outdoors will in some way have been protected for their generation, amen.
I am always honored to meet a policeman, soldier or any
other public warrior or servant. However, for some reason I have always thought the Game Warden was the
coolest of the cool. Thanks to all my friends out there
TJ Greaney is writer, speaker and Founder of The Kids
Outdoor Zone Youth Outdoor Adventure Ministry. www.
kidsoutdoorzone.org – contact: tj@kidsoutdoorzone.
com.
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Page 10
So you want a real hunting partner
by Terry and Wayne Carter
O
ut in the fields with your hunting
buddy is the best – exciting, intense, relaxing, and mostly, fun.
Upland game bird hunting is never as
joyous without your pointing dog; for
many hunters, anything else is just not
hunting.
After the decision to have a dog is
made, and that it should be a Pointing
breed, there is a breed to fit just about
anyone. There is a wide variety of hunting opportunities, and terrain types; and
there is a breed that can be counted on
to satisfy your individual personality and
hunting style. A field working pointing
dog can and should also be your pet, if
that is what you want. The pointing
breeds are not your usual lap pets,
though for us, they make the best pets.
When looking at all the breeds you
would consider, most importantly choose
one that pleases your eye – what you
want to look at and interact with every
day. Some want the hard, shorthaired
type, like the English Pointer, or the larger
longer-haired Setters. For us, we choose
the smaller, lightly coated Brittany. We
look for forward run, great noses (the talented scenting abilities), nice to have a
propensity to retrieve, and are playful
and happy-hearted. The most important
factor of all is that a bird dog should have
the insatiable desire to find game.
Once the breed is chosen, a good
breeder found, and you have picked the
best in the litter for you, there are a few
basics for your hunting buddy to learn in
addition to the usual house manners. In
general, we watch Cesar Milan for ideas
and inspiration. All dogs must be respectful and follow the humans’ house rules.
But unlike the usual pet, your hunter
must be “in charge” of his nose to find
game. He must run out there in front of
wherever you say to go, with that important insatiable desire to find game. Here
is an opportunity to encourage the dog’s
English Pointer
Gordon Setter
Brittany
innate abilities that can only be created in
the good breeding. Your dog (of any
age) will start with both a controlled introduction to birds and also the opportunity to run in the large open fields to allow the excitement of the hunt to “trip his
trigger,” and to ensure hunting enthusiasm. You guide how the dog behaves
during the hunt, but you cannot create
that motivated forward moving search,
or the ability to scent wild game birds
from many yards away. You and your dog
really are a partnership.
Command training is done at home,
on a long rope, aptly called “yard work”.
Here, separate from the excitement and
possible distraction of the field, commands of Come and Whoa are learned
and perfected. Both of you will then be
confident of few ‘wrecks’ in the field,
from busted coveys to retrieving away
from you.
A special note of caution: Gun shyness is all man-made. It is not useful to
test a dog for gun shyness if he has never
successfully been around gunfire; in fact
that is what will create gun shyness.
Don’t bang feeding pans or visit a gun
range, only avoid it, and later introduce a
low-level firing far from the dog when he
is doing something fun with birds like
running after them in the field.
Beginning hunters can go with you
surprisingly early in the relationship. If
you have not already taken the plunge,
the search for that perfect-for-you bird
dog is another stellar activity. Good luck
at home and in the field. No matter the
breed, talent and ability, or level of training, it’s all a good day’s hunt with your
bird dog.
Wayne works for the U.S. Corps of Engineers and Terry is an independent educational sales rep. In his spare time, Wayne
enjoys training hunting dogs. Terry is his
faithful assistant. –dn
Terry and Wayne Carter
Page 11
Construction Forecast
Texas construction in 2011:
Year of the turnaround
Kenneth D. Simonson, Chief Economist
Associated General Contractors of America
Arlington, VA
T
exas has long been out of step with the national construction industry. That was not a good thing in the
middle of the last decade, when homebuilding and
nonresidential construction were a year behind the rest
of the country in adding jobs. In contrast, Texas added or held onto construction jobs
in 2006 through 2008 while the industry was shedding workers at an accelerating
pace. By late 2009, however, construction in Texas was shrinking at the same stomachwrenching 17 percent annual rate as in the nation as a whole. Will Texas lead or trail
the pack in 2011?
Based on the most recent employ- employers, the declines totaled just 0.2
ment data, the answer is “lead.” Construc- percent and 0.5 percent, respectively.
tion employment rose by 2 percent in “Construction” really comprises a vaTexas from November 2009 to November riety of separate industries, each with its
2010 while dropping by the same per- own driver. In Texas, military construction
centage in the U.S. Texas was #1 in terms associated with the base realignment
of jobs added over the past 12 months, process and the expansion of Fort Bliss
with 13,400, and one of only 13 states, has been a major source of work. These
plus the District of Columbia, that had an projects are supposed to wrap up in 2011.
increase of any size.
In their wake, however, will be an influx of
However, all of the growth occurred additional military and civilian personnel
outside of the state’s four biggest metro who will add to demand for housing—
areas, each of which lost modest num- especially rental properties, retail and
bers of construction jobs. In Houston- consumer services.
Sugar Land-Baytown, the drop amount- Another category that will have ups
ed to 2 percent; in San Antonio, 0.7 per- and downs is highway construction. Texcent. In Dallas-Fort Worth-Arlington and as was second only to California in the
Austin-Round Rock-San Marcos, where amount of federal stimulus money for
construction data is combined with min- highways, with $2.2 billion, which the
ing and logging to prevent disclosure of state spread among 527 projects. All of
information about industries with few the funds were obligated by mid-Sep-
Policymakers press gas pedal again, and that may mean
good news for Texas
Anirban Basu, Chief Economist
Associated Builders and Contractors
Arlington, VA
C
oming into the summer of 2010, the nation’s economic prospects remained decidedly dim. Many of
the factors inducing the U.S. economy to expand appeared to be temporary, while forces suppressing economic expansion were associated with a greater degree of permanence. Among the
temporary factors were the rapid rebuilding of inventories in response to their slashing during the worst of economic times in early 2009; the federal stimulus program;
housing tax credits and the satisfaction of a certain degree of pent-up consumer demand.
In contrast, more permanent, negative factors included underperforming
commercial real estate; weakened community banks; large state and local government fiscal shortfalls; excess consumer leverage; massive federal budget deficits; large trade gaps; excess housing
supply; slow household formation; the
specter of additional European debt crises and tight credit. The thinking several
months ago was that without additional
support from Washington, the forces of
economic strength were set to succumb
to the forces of economic weakness in
2011, elevating the risk of another recession.
To be sure, the risk of recession remains somewhat elevated. But thanks to
both congressional and Federal Reserve
policymakers, the twelve-month outlook
has become considerably rosier. For example, in August, the federal government made more funds available to the
states to finance education ($10 billion)
and Medicaid ($16 billion) expenditures.
A month later, the U.S. Congress passed
the Small Business Jobs Act, a $30 billion
infusion into community banks to spur
small business lending.
But these actions paled in comparison to what Federal Reserve Chairman
Ben Bernanke had up his massive sleeve.
The chairman recently announced the intention to purchase another $900 billion
in Treasuries – $600 billion in new purchases and $300 billion to repurchase
maturing positions.
Among the most interesting aspects
of ongoing monetary policy is that it is
engineered with the national economy in
mind and cannot fully consider regional
tember; that has kept many highway contractors from going under in 2010. However, as of December 13, 54 percent of the
money had been paid out in the state
(and 63 percent nationally). Most of the
remainder will be spent by mid-year. After that, funding for highway construction is likely to taper off sharply.
The Associated General Contractors
of America estimated when the American Recovery and Reinvestment Act (the
“stimulus bill”) passed two years ago that
it contained 61 separate programs with
funds for construction. Some programs,
such as the General Services Administration’s renovation of federal office buildings and courthouses or the Environmental Protection Agency’s contracts for water and wastewater treatment upgrades,
have obligated all of their stimulus funds
and will experience a sharp drop in new
contracts in 2011. But other categories,
such as “smart grid” electrical system improvements and broadband access for
underserved areas, should benefit more
contractors in 2011, both in Texas and nationally.
Private nonresidential construction
appears poised to turn positive in stages.
Already, many hospitals have broken
ground on new projects or announced
fundraising campaigns. Warehouse and
hotel construction, two of the hardest-hit
categories in 2010, should turn around
soon. But there is so much vacant office
and retail space, especially “shadow
space” in businesses that have laid off
employees but stayed in the same offices, that spending in these segments is
likely to be limited to remodeling to ac-
commodate new tenants.
Texas has been a leader in power
construction, including wind and transmission work as well as traditional coaland gas-fired plants, and these projects
should do well in 2011. Transportation facilities, such as truck terminals, rail and
port improvements, will also be helpful.
On the downside, there are unlikely to be
any manufacturing projects on the scale
of the refinery, auto and cement construction of the last decade.
Contractors will have renewed worries about materials costs, a non-issue for
the past year and a half. Recently, copper
futures broke the records set in mid-2008
and diesel prices climbed back to levels
last seen late that summer. Steel, aluminum and plastics prices have also moved
up, though not so sharply. While runaway
price increases are unlikely, there may be
simultaneous spikes in several materials.
On the other hand, prices should remain
tame for concrete, asphalt, gypsum wallboard and lumber.
Thus, there will be changes in the activity level of nearly every construction
segment. In short, 2011 won’t be heaven
but nor will it be the hell many contractors have been through.
As chief economist for AGC, Ken Simonson provides insight into what is happening to the economy and what it implies
for construction and construction related
industries. He is sought out by local and national media for his expertise. –dn
variations. For example, expansionary
monetary policy is hardly needed to support states like North and South Dakota,
which as of this writing boasts the nation’s lowest unemployment rates at 3.7
percent and 4.4 percent, respectively.
The same goes for Texas, which continues to boast an unemployment rate of
roughly 8 percent, well below the national unemployment rate of nearly 10 percent. A number of Texas communities
are approaching full employment, including Midland at 5.1 percent, Amarillo
at 5.4 percent, Lubbock holding at 5.9
percent and College Station coming in at
5.9 percent. The big four metropolitan
areas, Houston, Dallas, San Antonio and
Austin, all boast unemployment of 8.2
percent or less. Texas managed to add
nearly 173,000 jobs between October
2009 and October 2010, which represented nearly a fifth of all jobs added nationally. In contrast, Arizona, California, Florida, Michigan and Nevada need all the
support they can get.
However, the bigger issue revolves
around the future trajectory of interest
rates. In the minds of many economists,
Chairman Bernanke and the Federal Reserve are gambling with the sustainability of the recovery by leveraging their balance sheet even more dramatically.
Their thinking is that by insuring
against deflation, the Federal Reserve is
sowing the seeds of inflation, and at
some point in the not-too-distant future,
monetary accommodation will have to
be reigned in faster than the Federal Reserve would prefer, and more rapidly
than the broader economy can handle.
Because policymakers have placed
so many of their eggs in the 2011 basket,
the year is poised to be a good one for
the U.S. economy. Economic and employment growth is likely to be better than it
has been for several years, but there are
also some serious drawbacks to the policymaking.
As of this writing, interest rates are
beginning to surge and the federal package will add roughly another $900 billion
to the national debt. Moreover, the extension of the tax cuts runs out after two
years and one wonders whether the
economy will be strong enough to deal
with a combination of higher taxes and
interest rates two years from now.
It may be that the current recovery
that began in June of 2009 may not be as
lengthy as the recovery that began in
March of 2001 and ended in December of
2007. The expansion cycles of the 1980s
and 1990s were far more durable, but
looking back at those times, there were
generally far fewer economic imbalances
jeopardizing economic prospects then
compared to today. But for now, most
Texas contractors can take comfort in improving economic prospects in 2011 and
beyond.
Anirban Basu is chief economist for Associated Builders and Contractors (ABC).
ABC is a national trade association with 77
chapters representing 25,000 construction
and construction-related firms with two
million employees. –dn
Page 12
Construction Forecast
Construction lending going
back to fundamentals
A conversation with
Bob Barnes, President and CEO
IBC Bank
Austin, TX
B
ob Barnes is an established leader in
the Texas banking industry with more
than 30 years experience. As president
and CEO of IBC Bank-Austin, Barnes oversees the bank’s activities throughout the
Austin region. He also serves as president
of IBC First Equity, IBC’s mortgage division, which specializes in home equity
lending and second lien mortgages.
The pendulum in construction and
development lending is swinging back
toward traditional underwriting, according to Barnes. Commercial and land development is now trending away from
the local, thinly capitalized developers in
favor of the larger, institutional developers with solid track records. The same
trend is happening with homebuilders.
In other words, credit will be available
only to the credit worthy.
What is the outlook for construction
financing in 2011?
“Before the recession, many lenders
provided credit based upon historically
high loan-to-value ratios that made them
more like equity partners than lenders.
That has fundamentally changed. Be it
commercial or residential construction,
traditional upfront cash equity injections
by the borrower are now the norm with
any commercial loan facility.
“In today’s world, real estate investors can no longer be optionees, they
have to actually own the property. When
you put 10 percent down, you’re an optionee. When you put 35 percent down,
then you own the project.
“That’s causing a shift in the marketplace, both commercial and residential,
toward large, institutional players who
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have the capital to meet those requirements.”
What is the mood in the marketplace?
“Lender’s have little appetite for
speculation; speculative construction,
speculative investing. I don’t see that
changing anytime soon.
“Personal guarantees of debt are
again the norm. Let’s say you have the 35
percent equity contribution that is required for you to go build your shopping
center. You, personally, are also going to
have to guarantee that loan I’m making.
It’s not the old, ‘I’ll put up the equity but
I’m not going to guarantee the loan. If it
doesn’t work, the lender just takes back
the property.’
“Today, personal guarantees are required. In the past many lenders allowed
them to be negotiable, but no more.
“Where the market once supported
low down payments and no personal
guarantees, now we’re in a place where
you have to make a significant down payment and a personal guarantee. Over
time this will have a very stabilizing effect
on the marketplace because it will cause
borrowers to only sponsor well-founded,
quality developments with very high
prospects for success, ridding the marketplace of poor-quality fringe developments.”
What are you looking for in borrowers?
“Inexperienced developers without
a historical record of success and start-up
homebuilders are very difficult to finance. We’re looking for developers and
builders that are currently profitable and
well-capitalized with experienced, successful management. Specifically for
home builders, they have to execute very
well in every phase of their business or
the market will be very unforgiving. It’s
the same for commercial building. You
can’t just build something and say, ‘Well,
here’s my cost, just add in my profit and
that’s the sales price or corresponding
lease rate.’ Those days are over.
“Marginal locations are out, overly
optimistic sales prices or lease rates are
out, land development deals going over
so many years that they could end up in
different economic cycles are out. Again,
it’s fundamentals, common sense and
equity.
“These changes are running head-on
with developer and builder equity return
expectations. There are still many more
equity funds looking for a return than
there are quality projects and investments available. I definitely see investment returns trending down in the coming years.”
How have your products changed?
“Our products haven’t changed a bit.
We have always been fundamental underwriters and have continued to lend
throughout the recession.
“Although the market as a whole deviated far from historical norms, the fundamentals of lending and borrowing
money are now reverting back to the
mean. Many lenders are now trying to
find themselves as they pick up the pieces and evaluate if, or how, they move forward with real estate lending. This phase
of the recovery will go on for some time.
“For Texas a gradual recovery based
on sound fundamentals is where the
market is headed. Texas is clearly recognized as the strongest state economically
in the country and Central Texas is the
healthiest metro market in the state.”
IBC–Austin is a member of International
Bancshares Corporation (NASDAQ: IBOC),
a $12.1 billion multi-bank financial holding
company headquartered in Laredo, Texas,
with 279 facilities and 440 ATMs serving 107
communities in Oklahoma and Texas.
Last party of the year
:H5HQW6HOO
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3DUWV
9LVLWRXUERRWKDW&21(;32
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Austin, TX
MEDCO Construction, LLC’s Denward
Freeman and wife Elizabeth
888-643-2372
[email protected]
www.NieceEquipment.com
William Wright, H.E. Wright & Company
and date Victoria Ellefritz
Gaylord Texan Resort and Convention Center was the selected venue for this
year’s TEXO Annual Construction Industry Holiday Gala.
Approximately 500 TEXO members and guests attended the event
which was held on Friday, Dec. 3. –bd
Page 13
High voltage party
Boot scootin’
Electrical contractors and associate members of Independent Electrical
Contractors Dallas (IEC) held their annual Christmas/Las Vegas Night at the
Brookhaven Country Club. Music, great food and gambling casino style
was in store for the 134 guests. –bd
Association Calendar
Content submitted by Associations to Construction News
ASA North Texas
American Subcontractors Association
Jan. 20: Happy Hour at Cool River, Irving,
5-8pm
Jan. 27: Board meeting, 3pm, Las Colinas
Country Club, Irving; Dinner program:
5:30pm Cocktails; 6:15pm BPI & Legal
message; 6:45pm Dinner & program,
Reservations required, Las Colinas
Country Club
Jan. 31: TCA PAC Roundup & Walk on the
Capitol, Austin, TX
ICRI - NT
Int’l Concrete Repair Institute
Jan. 28: 4th annual Casino Night, Happy
Hour 5-6pm; Dinner Buffet 6-7pm;
Gaming 7-10pm; Prize drawings 10:15pm;
Dave & Busters, 10727 Composite Dr.,
Dallas, $30 person includes dinner, $100
chips; Advanced ticket sales ONLY, NO
tickets at the door, cash bar, proceeds
benefit the scholarship fund; Tickets &
Sponsorships available from Mark LeMay,
event chairman, [email protected]
IEC - Dallas
Independent Electrical Contractors
Jan. 8: Continuing Education Course,
9am
5pm
Jan. 15: Master Prep course, 9am (10 week
course/meets Saturdays); Journeyman
Prep course, 9am (8 week course/meets
Saturdays
9am
Jan. 28: Executive Committee meeting,
7:30am breakfast
NARI
Nat’l Assn. of the Remodeling Industry
Jan. 11: General meeting at Capital
Distributing, 6:30pm, please RSVP by Jan.
7 to 214-943-6274 or [email protected]
NAWIC - Dallas
Nat’l Assn. of Women in Construction
Jan. 17: Chapter meeting, 6pm, MCM
Elegante Hotel, 2330 W. Northwest Hwy.
At Stemmons, visitors welcome, RSVP to
Brenda Corbett, McCullough & Assiciates,
972-385-3158
or
Brenda.Corbett@
mccullough-group.com
Visit www.nawic-dallas.org for more info
NAWIC - Fort Worth
Nat’l Assn. of Women in Construction
Jan. 20: Monthly meeting, Colonial
Country Club, 3735 Country Club Circle,
FW, $32, dinner begins at 6pm, visitors
welcome. RSVP to Traci Robinson, traci@
midwestwrecking.net
NTRCA
One hundred fifty members and guests of United Masonry Contractors
Association Dallas/ Fort Worth (UMCA) went down to the Fort Worth Stockyards
Dec. 4 to kick up their heels and have a lot of fun. The Stampede Room was the
location for the annual Christmas Party. –bd
continued from Page 6 — IBTX Risk Services
I would pay my deductible (either $500
or $1,500) and 20% of the remaining
costs (up to $2,500 or $4,500 respectively). In this instance, I would spend a total
of $2,500 or $4,500 and insurance would
pay the remainder.
Nat’l Roofing Contractors Assn.
Jan. 29: 11th annual Awards Banquet,
The W Hotel in Dallas, 6:30pm cocktails,
7:30pm Dinner and awards, 9pm Dancing
and Casino; $95 person includes 2 drink
tickets, 3 course meal with wine, casino
and raffle prizes. Register online: www.
ntrca.com
RHCA
Regional Hispanic Contractors Assn.
Jan. 27: “Construction Terms from English
to Spanish” Class for English speakers to
learn construction Spanish vocabulary
and pronunciation, 8am-noon, RHCA,
2210 W. Illinois Ave., Dallas
SAM
Subcontractors Assn of the Metroplex
Jan. 6: Dinner meeting, 6pm, Speaker is
Diann Sanchez of DAS Consulting and
she will be giving a presentation on what
subcontractors need to do to stay in
compliance with all government mandates, in particular HR issues.
Other features of these plans include:
• $25 dollar physician office co-payment
• $50 dollar urgent care co-payment
• $125 dollar emergency room co-payment
• 100% coverage for a preventive care
• 80% coinsurance after meeting deductible
In network benefit only
• $10/$25/$50 three tier prescription drug
card
The qualifications an employer must
meet to be eligible for the program includes:
• Two to fifty eligible employees
• Must not have provided group insurance in the past 12 months
• At least 30% of employees must receive
wages at or below 300% of federal poverty level ($32,490 in 2010)
• 60% of eligible employees must enroll
• Employer must contribute 50% of the
cost
This is great for employers throughout Texas as it offers leniency on requirements to obtain coverage and costs less!
It also provides protection to carriers by
shifting “high claimants” to the state.
This helps relieve many underwriting
concerns for ongoing and surprise large
claimants. This, in theory, should significantly reduce a carrier’s exposure to large
financial losses.
If you currently do not provide coverage for your employees, it may be a good
time to revisit your options. Along with
affordability, all employer contributions
and the employee’s contributions to the
premiums charged are tax deductible.
Healthy Texas offers a way to affordably
invest in your employees and lower your
contributions to Uncle Sam.
With 10 years experience in the employee
benefits industry, Britt Rusche specializes in
plan design, implementation, risk and financial management focused on reducing
employee turnover while controlling plan
costs. He can be reached at brusche@ib-tx.
com. –dn
Page 14
Round-Up
Food, fun & toys
Corgan announces the following promotions to associate:
Kirk
Johnson
joined Corgan in
2005 and has been
instrumental in developing sustainable practices for
the firm that have
produced over nine
million square feet
of design and construction. Johnson also
serves as editor of North Texas Green
magazine.
Tara Lenney is a
registered interior
designer in the
state of Texas. She
is LEED accredited.
Lenney and her
team won the Antron Legacy Design
Award in 2007 for
their use of materials in the design of the
Ren-A-Center headquarters. They have
also received awards for the Cigna Pointe
office headquarters.
Lance Lewis joined
the team in 2006
and has had the opportunity to work
on projects in China
as well as in the Midwest. He previously
worked with the
firms’ aviation team.
Paige Murphy is a
registered interior
designer in the
state of Texas. As a
result of her hard
work and dedication, she received
an internal Corgan
award in 2009, given to only one selected person. Murphy
is also active in volunteer community
programs.
Stephen
Park
joined the firm
three years ago and
is part of the design
team. He has 20
years experience as
a design architect
on notable projects
in the U.S., Europe,
Central America and Africa. Park is LEED
accredited.
Enrique
Avina
joins Mayse & Associates Inc. He holds
a Bachelor of Architecture, with a minor in Construction
Management, from
the University of
Houston. Avina was
also a Division 1
Football athlete.
By design
L-R: John H. Martinez, Mike Trevino Sr., Luis Spinola, Adam Trevino, Chris Escobedo
The Regional Hispanic Contractors (RHCA) celebrated the season Dec. 16
with their annual Holiday Fiesta and Toy Drive. Over 500 attendees came
to J. Pepe’s restaurant in Dallas for the event. –bd
continued from Page 1 — International flavor
(see outdoor section), has a masters degree in criminology, has been in commercials and films and is a soccer mom.
“We are a very outgoing, energetic
team and like to stay extremely active,”
says McCready. “We love to attend and
put on BBQ’s and we love to take clients
on Top Golf outings.
“We also participate in and help
sponsor association events for many of
the local chapters in the DFW area as well
as other events hosted by our clients like
luncheons, dinners and fund raisers.”
Earlier this year a new company was
created called MEMCO Solutions, Inc.,
which is an E-Verify company to assist clients who are working on federal contracts.
“One of the nice things about MEMCO is that we are still family owned, even
though we have the resources of a large
corporation,” said branch manager
Casey Wenzel. “And because we were
spawned from a commercial construction company, many of these available
resources are of great benefit to our clients. Particularly in the areas of safety &
risk management.” –bd
continued from Page 1 — Number three
Jose joined the company four years ago and Mike Swinney has 21 years of hose experience.”
In addition to hose and fittings the company also sells pipe and tube in ¼ inch to
4-inch sizes. It also has the ability to thread and groove. The grooving is primarily for
the numerous sprinkler companies needing such modification. –bd
Midwest Hose and Specialty with its corporate office in Oklahoma City was founded in
1983. The company has 13 locations in five states.
continued from Page 1 — J.R. Would be proud
L-R: Jonathan Kraatz, David Zatopek, AIA and Mechele Rittenberry
Photo by Cooper Smith Agency
The AIA Dallas Holiday Party was held Dec. 2. Current president, Joe Buskuhl,
FAIA, awarded three chapter awards, three presidential citations and the
president’s medal. Following the award ceremony, Buskuhl carried on the tradition
of “passing the hat”- an actual cowboy’s hat with past president signature - on to
incoming 2011 president, David Zatopek, AIA.
the City of Parker and the quality of our work enabled us to acquire several more projects from them.”
Bo Brown acted as superintendent for the project. Subcontractors included
Lugedi Drywall, Corona Electric, Jen-Rite Plumbing and HOUK A/C. –bd
Brown Custom Building was founded in 2001 by Bo Brown. The company specializes in
commercial new construction and tenant finish-out projects. Clients are both private and
public.
Improved workspace for the departments
Job Sights
Page 15
Decorating contest a big hit
E
very December
to get into the
Christmas spirit
the different departments at McQueary
Henry Bowles Troy
Ins. (MHBT) enter the
annual
decorating
contest to determine
who is the best and to
make it more interesting the company gives
monetary prizes. –bd
This years winners
were:
1st place Benefits Department
PCI crew member starts work at the 121 Animal Hospital in Frisco.
1st place Benefits department with the theme of “Christmas Movies” 2nd place - Construction team with the theme “Let it Snow”
3rd place - Marketing department with the theme “Christmas in the Woods”
All the staff
Pancho and Danylo take a break from welding a railing at the Mayhill Plaza
shopping center. General contractor is RBC Construction.
The brothers Taylor, L-R: Charlie Taylor, Clyde Taylor working on steel erection for a new
CVS Pharmacy in McKinney. SUNTECH Building Systems, Inc. is the general contractor
with superintendent Dennis Johnson running the show.
For rent
John and Annette Smith are the owners of Volvo Rents in McKinney and
a rack location for Dallas/Fort Worth Construction News.
Page 16
Spirits were high
Industry FOLKS
I
Julian Roane
Ahern Equipment Rental
Fort Worth
R
oane was born on a dairy farm in
Grand Saline, TX and attended
Midlothian Christian School in Midlothian, TX.
When he left home, he went to
work as a grounds man at a cemetery.
“I was leaving the dream, traveling and
playing semi-pro baseball and working
on the side,” said Roane.
It was the season of 1996 and he
had come back from his last trip of the
year and stopped by the cemetery.
His supervisor approached him, gave
him a note and said, “Someone said to
give you this.” A bit confused at the request, he went ahead and gave Lynn a
call, and here they are, 14 years later,
married with two children, Camden
and Keilee. His supervisor was Lynn’s
dad.
For the past 11 years, Roane had
enjoyed coaching baseball and football, to include his nephews and his
son Camden. He said Camden is a son
that would make every father proud.
His daughter, Keilee, “is the rebel of the
family, a very strong minded person.”
After his son was born in 1999, he
said he was that guy that jumped from
job to job, looking for that perfect
place to be. He started at Moody Day
Equipment during the time Crescent
Machinery took over. After Crescent,
he went to Mango Equipment, then
continued his rental career as a driver
with SunState Equipment.
In 2001, Roane said he finally found
that “family” feeling company at Ahern
Rentals.
“Don and Evan Truly show how
when hard work and dedication are
put in, a person has so many opportunities to grow with the Ahern family.”
Roane started as a driver at Ahern
at the Garland location and helped
open the Fort Worth location. Since
then, he has worked counter sales, dispatch and is now the branch manager
in Forth Worth, as well as a mentor for
new managers within the Ahern family.
“I would like to personally send
out a ‘thank you’ to the Ahern family
and all of my supporting VPs and managers. I also have a few mentors of my
own: Rob Golden; Dan Greenhaw;
John Tribulla; and Chris Yorek. Thank
all of you for the time you took out of
your time to show me what could be
possible.
“Last, but certainly not least, maintaining the Fort Worth branch is something very big, and I must mention the
21 special teammates that make it happen every day. Every one of you guys
hold a special place in my heart. I
could not be the manager or mentor I
am without your support. I look forward to seeing each one of you grow
and choose the path you would like to
travel.” –rd
t was a festive occasion
on Dec. 11 as employees
of Baker Triangle met
for their annual Awards
Banquet & Christmas Party.
This year the event,
with 180 guests in attendance, was held in downtown Dallas at the Edison’s
Building. The company also
collected over 150 toys for
the WFAA Santa’s Helpers
Toy drive this evening.
Steve Baker CEO of
Baker Triangle awarded 5
employees with Baker Triangle engraved Rolex
watches for reaching their
25 year-milestone of dedicated service: David ShellSteve Baker addressing guests
man, Virgilio Jimenez, Michael Kirk, Jesse Shaw and
Rodney McClaran.
Two long-time employees, Orval Moore and Perry Gonzales were retiring this
year and each were presented a travel voucher for a cruise. –bd
Perry Gonzales and wife Alline receiving travel voucher from
Johnny Barnes, president-Dallas

International flavor Number three

Transcription

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