Fitness for guests Third time`s the charm Generation to generation
Transcription
Fitness for guests Third time`s the charm Generation to generation
Covering the Industry’s News P.O. Box 791290 San Antonio, Texas 78279-1290 Texas Style San Antonio Austin Dallas/Fort Worth PRSRT. STD. U.S. POSTAGE PAID DALLAS, TX PERMIT #1451 Change Service Requested Houston Austin CONSTRUCTION ™ The Industry’s Newspaper www.constructionnews.net (210) 308-5800 P.O. Box 791290 San Antonio TX 78279 11931 Warfield San Antonio TX 78216 AUG 2010 Vol. 10 No. 8 Third time’s the charm Generation to generation L-R: Zeb Robinson, Lori Bagliore and Tony Bagliore L-R: Colt McIntosh, Diana Ramos, William Biggs, Dan Seligman, Dave Phelps, Nikki Guinn, Ben Schennel and Heather Bishop. T ony Bagliore and his wife Lori Bagliore started their business, Tony Bagliore Concrete, in March. The couple says the saying ‘the third time’s the charm’ seems to ring true for them despite the state of the economy. The couple had tried their hand at entrepreneurship twice before and they feel like this time it is right. “It has been a great three months,” Tony Bagliore said. “We have been blessed.” Bagliore has 20 years of experience in Central Texas. He had his own company and then went to work for a general contractor as the concrete division manager. He left the general contractor company three months ago and felt like start- ing a concrete company was the natural thing to do. “Concrete is what I do,” Tony said. “We’re just thrilled that one door after another is opening up.” The company is located at Industrial Park Circle in Georgetown, but they have grown so much that the couple already is making plans to move into a larger office. The new company is not his only job or mission. He is also an associate minister and the couple is very active in their church. In his spare time, Tony also enjoys aviation. Lori enjoys gardening. “My hobbies are all on the ground and his are anything off the ground,” Lori continued on Page 17 W illiam Biggs is the second generation to manage the family business, Biggs Plumbing. His parents, Neeva and Bill, are still part owners. Neeva is the majority owner and works primarily in the finance department; Bill is partially retired; and William is also part owner and manages the dayto-day operations. William has been involved in the business since 1995. Though he earned his bachelor’s and master’s degree in anthropology from the University of Texas, he felt compelled to work for the family business. “I wanted to try out the plumbing business and here I am 15 years later,” Biggs said. Bill Biggs started the company in 1972 and Neeva joined forces with him in 1981. The business has been at their current location on Dungan Lane since 1988. William says he is glad he chose to join the family company. “The academic life is less rewarding in some respects. I have more opportunity to deal with people and be creative strategically,” he said. When not working, William enjoys spending time with his wife and two young children, ages three and one. Biggs has been married for six years. He met his wife through mutual friends and found they have a similar love for music, continued on Page 17 Fitness for guests N delivered on time and within budget. They worked alongside other key players including Moman Architects, JM Structural Engineering and Hoteliers, Inc.. “The working relationship between all parties involved went extremely well and we all look forward to additional upcoming opportunities to team up,” St. Martin said. The project was built utilizing a CMU shell, a light gauge steel truss system, north and west facing storefronts and a Berridge Copper-Cote standing seam metal roof system to match the hotel. The façade consists of a Leuder stone wainscot, a three-coat elastomeric stucco system, painted hardi-board soffits and fascia and decorative copper gutters and rain-chains. The interior of the building was finished with a white, level five drywall finish walls and ceilings, an East fac- ew Line Construction placed the final touch on the remodel of the local Wyndham Garden Hotel by constructing a new fitness center for hotel guests. The crew managed to complete the project in a relatively short period of time while being mindful of the needs of the hotel staff and guests. “This project was unique because it was considered the last major phase of construction that was to bring the remodeled hotel to the status of complete,” said Brian Conant and Devon St. Martin, New Line Construction. “The new building is more than 1,500sf and is located along the outside pool area.” Conant and St. Martin, New Line’s primary executives, personally handled the daily operations of the project related to project management and superintending to ensure the final project was The exterior of the new Wyndham Fitness Center continued on Page 17 Page 2 Austin Construction News • Aug 2010 Family friendly Construction News ON LOCATION Fence supply smiles L-R: Collin Lilley, Al Carter and Dan Woodworth, Jamieson Fence Supply, start their day with a smile. –km L-R: Assistant Manager Pat Messer and General Manager Todd White, Gajeske, Inc. T he father and son team, who started Gajeske, Inc. in 1986, Bob Gajeske Sr. and Bob Gajeske Jr., is keeping their legacy going in their locations of Manor, Houston, Grand Prairie, as well as Oklahoma. The general manager of the Manor office, Todd White, lives in Liberty Hill and has worked for the company since the Austin area location opened in 1996. He lived in the Dallas-Fort Worth area for many years, starting out after high school doing heavy equipment operating and eventually working for a contractor. Once he decided he wanted to move to the Austin area, he discovered the opportunity with Gajeske. White worked his way up the ladder with the company and says it feels like home. “We’re not just a number on the payroll. Everyone in the company knows the owners individually,” White said. “We are all like family.” When not working, White raises and breeds sport horses. He considers this to be his side business that he manages with his wife. Assistant Manager Pat Messer enjoys riding his motorcycle and spending time with his five children and one grandchild. As far as the job goes, White says he enjoys interacting with customers the most. He added that even though they have expanded and are incorporated, it still has a family atmosphere. “We still have the small company mentality and communicate well with each other,” White said. Gajeske, Inc. specializes in polyethylene piping products, environmentally friendly products. They are a full service company, which sells equipment for both gas and water use. –km Creative with concrete L-R: (front row) Michael Cox, Arturo Barriga, Dan Bishop, Stacy Bishop, Kelly Burns and Jesse Hester and (back right) Steve Dolezalik, Benji Durkop, Rafael Israelov, Carlos Rodriguez and Dustin Graham D an Bishop has been managing ModernCrete for almost 10 years. In the first seven years, he was the sole employee behind the creation of the concrete floors. To this day, he still can be seen on a regular basis working out on a job site. “I still run a lot of the jobs myself and I’m still out at jobsites all day. I like to make sure our customers are happy at the end of the day,” Bishop said. Since 2007, the staff has grown to 11. His wife, Stacy Bishop, is included among the staff members. She handles bookkeeping and office work. Dan and Stacy actually met in the industry when they were both working for a floor company. After they married, she continued working as a secretary for oth- er companies until Dan decided he wanted to include her in his new staff in 2007. Dan’s background is floor maintenance work. Originally from Brownwood, he moved to Austin in 2001. He started his own floor maintenance business, and soon after, decided he wanted to learn the art of stained concrete. This work expanded to the MondernCrete business. He also has a separate business called DiamonCrete, which focuses solely on polished concrete. He started it around the same time he hired his staff. When not working away, Dan and Stacy enjoy fishing, hunting and spending time with their four dogs. ModernCrete specializes in stained concrete, concrete counter tops and polished concrete. –km Austin Construction News • Aug 2010 Page 3 Food for thought Four-year success L-R: Brandon Foster, Kim Kudmore , Chris Dees, Brent Lewis and Carlos Juarez L-R: Neal Hagood, Bob Miller, Donnie Steele, Aaron Laine and Nick Gamble, G4 Spatial Technologies and Miller Blueprint T he north Austin branch of G4 Spatial Technologies sponsored an educational seminar, BBQ and customer appreciation day Jul. 1 to celebrate two years since opening at their location on Metric Boulevard, which they share with Miller Blueprint. The focus of the seminar was on new technology and networking. G4 also has a presence in San Antonio. Donnie Steele and Bob Miller are partners in ownership of G4 and Miller Blueprint. –km L-R: Vice President Donnie Steele traveled from San Antonio for the event and Austinbased survey sales representative, Aaron Lane, assist with greeting customers. S tandard Supply, based in Dallas Fort Worth, recently celebrated four years since opening an Austin office. Owned by Bill Shaw and his son Spencer Shaw, the family business has been around since 1946. “It is a very family-oriented company,” said Chris Dees, regional vice president for Austin. “We also consider people at work like family.” An Austin native, Dees is glad to be back in his hometown. He worked at the Dallas office from 1994 until opening the Austin office four years ago. His parents still own the same home where he grew up, which he enjoys taking his two children to visit. “I love it here. To be able to move back here and earn a living here is a blessing,” he said. Dees worked in various positions at the Dallas office. He always had the desire to work back in Austin. He is now over sales and operations for both Austin and San Antonio. “I have worked in multiple positions with the company and this is the best by far,” Dees said. “I get to interact with the customers and still have a hand in operations.” When not working, he enjoys water sports and spending time with his wife and two children. Dees met his wife while attending Texas Tech University. At the time, he thought he wanted to enter the hotel or restaurant management business. Instead, he found his niche at Standard Supply. Standard Supply specializes in both commercial and residential air conditioning supply. –km Construction News ON LOCATION At your service G4 customers enjoy an appetizing barbecue lunch. L-R: Paul Sauve and Pat Caughey, Austin G4 Spatial Technologies; Victor Seguin, Tritech Surveying Co.; Jeff Curci, Jacobs Engineering and Chris Albert, Hayni Construction. Austin CONSTRUCTION NEWS Kristin McLaughlin, [email protected] — 512-868-9710 Construction News Ltd. Home Office P.O. Box 791290 • San Antonio, Tx 78279 210-308-5800 Fax 210-308-5960 www.ConstructionNews.net Publisher . . . . . . . . . . . . . . . . . Buddy Doebbler Editorial/Production . . . . . . Reesa Doebbler Managing Editor . . . . . . . . . . . Debra Nicholas Production Mgr . . . . . . . . . . . . . . Sue Johnson Sales Representatives: . . . . . . Angela Potrykus Kent Gerstner Administration . . . . . . . . . . . . . . Kevin Hughes DFW Editor . . . . . . . . . . . . . . Michelle Hopkins Houston Editor . . . . . . . . . . . . . . Abby BeMent Reprints: Send email and indicate you would like to purchase a digital reprint (credit card only) [email protected] We will email an Order Form for you to complete and return. Extra Papers: Go to our website at ConstructionNews.net, and select Rack Locations for a location near you for pick up of an additional copy. 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Submissions will be published at our discretion on a space available basis. Construction News, Ltd., dba Austin Construction News, will not be liable for errors in copy or in advertisements beyond the actual cost of space occupied by the error. Publisher reserves the right to reject any advertisement at any time. © 2010 Construction News, Ltd. Kamla Moulder stands in front of one of the wooden doors showcased at Cowart Door Systems in Austin. –km Page 4 Austin Construction News • Aug 2010 difference in our business. We are a service-oriented business and it’s all about client satisfaction. Our success has been repeat work with clients that are happy with the work we’ve done in the past. We have people who have been with our company for 25-30 years. It’s all about how you handle your business and if people feel like they’re being supported. Jeff Hagar Rogers-O’Brien Construction J eff Hagar, Vice President at RogersO’Brien, spearheaded the start of the Austin office in 2004. He has been in the construction industry for more than 21 years, and most of that time has been spent managing construction companies. His major goal with Rogers O’Brien has been and still is to establish and maintain an excellent reputation in the industry and maintain consistent growth to create opportunities for their people. Hagar discusses his history and what he enjoys most about his job. Where are you from? I was born and raised in Missouri on a farm. I was driving a tractor at 8-yearsold. It was a whole different environment. We moved to Texas when I was about 10-years-old and lived in Irving. From then on, I’ve been in Texas. Did you always know you wanted to do construction? As a kid, I grew up doing a lot of different things: working on cars and working in construction with my dad. When I went to A&M, I actually went to the vet school. When I got over there, I realized it wasn’t a good fit. When I started looking for something else to pursue, construction was the right answer. What do you enjoy most about your job? My favorite part of my job is working with our people. You have to make sure you’re profitable, but people make the How did you meet your wife? My wife and I met in high school in Irving. We’ve been together almost 30 years. She was my high school sweetheart. We both went to A&M. We were working during school, so it took us seven years to get two degrees from A&M. We were at A&M from 1981-88. I’m on the construction industry advisor council for A&M. We do a lot of recruiting from A&M, so I keep in touch with the construction department. Do you have children? I have a daughter who is 20. She’s a junior at St. Edwards. She’s graduating in three years, which I’m very proud of. She’s also a musician. She plays piano and guitar and writes music. My son is 16 and he’s a tennis player. He plays at the national level and wants to go to college and play tennis. We’ve home schooled our kids their whole lives. Do you have any other hobbies outside of work? I enjoy spending time with my family. I enjoy boating. I like to spend time at Lake Travis. I like to fish. We enjoy the theatre. We attend shows often and do a lot of reading. With work and kids, it doesn’t leave a whole lot of extra time. I like working on old cars and things like that. It’s part of what I grew up with. You find as you grow older that you change, but there are certain things you enjoy doing that never go away. Do you still have family in Irving? My aunts and uncles are in the Irving area. The rest of my family is kind of spread out. I have a sister in Missouri. She lives in Jefferson City. We try to get up there every year. I have a brother who has been in the Army for almost 30 years. Jeff Hagar says great people make his job easier. Have there been any surprises with your job along the way? I’d say it’s probably what I expected. In our business, there are always surprises. The one thing I love about construction is that it’s something different every day. It’s not like we’re out there making widgets. Every building is unique and the people you work with are always unique. Every day brings a new set of challenges. In that respect, it’s what I expected. How many people did you first employ? I think probably 25 or so when we first started. We actually had some work right away. We’ve always had estimating and marketing in our Austin office. Dallas provides our accounting, human resources, and IT support. Everything else we do in Austin. We’re a little bigger than when we first started. We have about 38 salaried people now. Have there been many challenges? I think the biggest challenge is the fact that when you grow, you bring in new people. In a hot market, it’s really difficult to find good people. We pretty much exclusively work our network to find people who would be a good fit. The opposite side is when the market turns and you have to tighten your belt or don’t have enough work for everybody. You have to make some tough decisions. That’s one of the bigger chal- lenges. The market in construction is up and down. Building a consistent, profitable business is the real challenge. You want to be profitable in as many markets as you can, whether the market is hot or cold. If you keep the overhead low, you can survive almost any market. Did you always know you would eventually be running a company? I think so. I’ve always wanted to have my own business. Are there any other goals you have, professionally or personally? Professionally, my goal is to preserve our reputation, help our people grow, and build our business in a way that it becomes self-sustaining. I believe if you do these things well, it will happen. Personally, I want to spend more time with my wife and family. We look forward to traveling more one day. Is there anything else we should know about you? We have great people and that makes my job easy. I can’t say enough about the people who have helped make us successful along the way. Rogers-O’Brien Construction is a general contractor that specializes in both public and private work. –km FREE …. ROLLER COMPACTOR EQUIPMENT SAFETY TRAINING ABC Central Texas received an OSHA Susan B. Harwood Grant for Roller/Compactor Equipment Safety. This class will help prevention of injuries and fatalities to equipment operators through classroom discussion. Working on slopes, use of vibratory compaction, ROPS, seat belts and loading/ unloading and more will be discussed. Contact Janie Good or David Ford at 512-719-5263 to schedule this seminar at your site!! Central Texas Chapter Class available in English and Spanish Austin Construction News • Aug 2010 Page 5 Fire proof Meet the GC T he Central Texas chapter of Associated Builders and Contractors (ABC) hosted Meet the General Contractor Day July 14. Subcontractors and general contractors mingled speed-dating style as ABC director David Ford called it, alternating from table to table. About 48 construction professionals attended the event. –km L-R: John Wiley, Century Fire Protection; Roel Zambrand and William Feller, Titus Industrial Group; Duane Sees, Harvey Cleary; Mike Jaggers Jr., Century Fire Protection; and Nancey Anderson-Luth, Sprint. L-R: Robert Holcombe, Wes Smith, Marco Vargas, John Randolph, Robbie Ashworth, Sommer Roach and Christy Randolph C entury Fire Protection is a new name to the area – an office opened in Austin and Temple about a year ago. The Austin location opened in January and the Temple location opened last August. Executive Vice President John Randolph has worked in the fire protection field for 41 years. His past experience includes 35 years employed by Simplex Grinnell and five years working for Firetrol. Randolph didn’t always know he was destined to work in the construction industry. The Smithville native started out attending college at Sam Houston State University to pursue a degree in accounting. It was a car accident that slowed him down. He had to leave school and be confined to a body cast for four months. Shortly after, he began doing fire protec- tion work during the summer months. He eventually realized this was the field for him, especially after he found out a friend in accounting was making the same money as he was. “It is fulfilling to watch a project go from dirt to the inception,” Randolph said. “This has been a good, challenging field.” Randolph lived in other cities for a while, but he is now back in Smithville at the ranch he bought from his family. One of his favorite pastimes over the years has been raising longhorns and showing them with his granddaughter. He and his wife Christy, who also works at Century, have three children and seven grandchildren. Century specializes in fire extinguishers, fire alarms and more for commercial projects. –km Water works F Owner and founder of Aqua Structures, Ebbn Milks ounder of Aqua Structures, Ebbn Milks, has found a way to combine entrepreneurship, water and construction in one with his company. The Austin native obtained a degree in finance from Colorado State University in Fort Collins and moved back to Texas. He had worked for a pool company during the summer since he was 18. He also has a background in remodeling. Milks decided to make both construction and water design his career. When he came back to the area, he founded Liquid Assets Custom Pools and Landscape, which is still around. About two and a half years ago, he decided to partner with TechCrete Contracting, Inc. and Dingo Excavating & Demolition while starting Aqua Structures. Some of their work has included local water parks, water areas in zoos and even a dance floor in Austin with an aquarium below the glass floor. “I enjoy being creative and doing things I typically wouldn’t do on my own,” Milks said. Remodeling is a pastime for Milks even when he isn’t working. He also enjoys outdoor activities such as hiking and biking. “I am very passionate about what I do. I do a lot of construction and remodeling,” Milks said. He said one aspect he enjoys about his job is the scenery. “It is so much fun being able to work in an environment that usually has the most breathtaking views. They are million dollar backdrops,” he said. Aqua Structures specializes in water related construction for both commercial and residential projects. –km L-R: Matthew Knippa, Insurance Network of Texas; Jeff Hartnett, Fringe Benefit Group; Kyle Sangisnet, Flooring Solutions; Mike Miller, Flooring Solutions; Jeff Hagar, Rogers-O’Brien Construction; Chris Hill, Equipment Depot; Mike Clearley and Rick Slater, Slater Painting Page 6 Austin Construction News • Aug 2010 Protect yourself from identity theft How the health care reform law affects your company Dustin K. Gersch, AAMS Edward Jones Austin, TX George Stavinoha, CPA Weaver San Antonio, TX F irst, the bad news: There’s still plenty of identity theft out there. And now, the good news: You can do a lot to protect yourself from being victimized. If you’re not familiar with the concept of identity theft, it basically involves someone getting some pieces of information about you - name, Social Security number, credit card numbers, “pre-approved” credit card offers - and using this data to make purchases or withdraw funds from your accounts. Identity theft is one of the fastest growing crimes in the U.S. Over 10 million individuals become victims each year with over $50 billion in losses per year - 90 percent loss to businesses and 10 percent loss to individuals. In 2009, some 11.1 million Americans were hit by identity fraud - that’s a 12 percent increase over 2008 and a 37 percent rise since 2007, according to a study conducted by Javelin Strategy & Research. With the rapid increase in identity theft, more people should act to protect themselves. How can you reduce the chances of being victimized by identity theft? Here are some suggestions: Shield your credit card from prying eyes and ears. Thieves can now use camera cell phones to take photos of your credit cards while you’re making purchases. Don’t pull your credit card out from your wallet or purse until the moment you’re going to use it, and put it away after it’s used. If you’re making a contribution over the phone to a political or non-profit group, don’t give out your credit card number unless you’re sure the organization is legitimate. Use secure sites when shopping online. Before giving out your credit card number to make a purchase on the Internet, make sure you’re on a secure site - one that begins with https://. (The “s” stands for “secure.”) Also, the site should display a small lock or other security seal. Shred those documents. If you are purging old investment statements, tax returns and bank documents, use a shredder. And while you have the shredder out, use it on pre-approved credit card offers. Go “virtual.” Try to replace paper statements from banks, financial services providers and credit card issuers with online versions. Many businesses will be quite happy to save the cost and expense of mailing account statements to you. Check your bank statements. Whether you get your bank statements online or on paper, check them at least a few times a month. If you find a transaction that looks unfamiliar or questionable, call your bank to find out more details. Get your credit report annually. To request a copy of your credit report, you can call the three main credit bureaus: Equifax (1-800-525-6285), Experian (1888-397-3742) and Trans Union (1-800680-7289). Check your report closely for “surprises” or unaccounted activity. Guard your personal information. Don’t carry around your Social Security card in your wallet. In fact, unless it’s truly necessary, as when you’re filing official papers, don’t give out your Social Security number. Also, change the PIN number on your cash card once in a while. Identity thieves are clever – so do whatever it takes to keep them out of your life. Dustin Gersch is a financial advisor with Edward Jones. He specializes in individual and business retirement plans within Austin and surrounding areas. For more information, he can be reached at dustin.gersch@ edwardjones.com or 512.249.0934. –dn T he health care reform law—all 2,300 pages of it— is sweeping in its scope, sometimes confusing and many of the regulations governing employers are still being written. Still, the legislation will obviously bring considerable change to the way both small and large companies provide health care coverage to their employees. Construction companies of all sizes need to be aware of the broad contours of the bill so that they don’t get whipsawed by some of the penalties imbedded in the legislation. What follows is a brief synopsis of some of the issues that companies need to be aware of regarding health care coverage for their employees as well as some tax benefits available to small businesses. First, many business owners seem unclear as to whether their companies will even be required to provide health care coverage for their workers. Broadly speaking, the rule is this: Companies with fewer than 50 employees will not be required to provide coverage. This exempts these small businesses from the employer requirement. However, companies with 50 or more full-time employees are required to provide coverage by 2014 and will be subjected to a stiff penalty if they don’t. The penalty is $166.67 per month multiplied by the number of full-time employees over a 30-employee threshold. (For example, a company with 100 employees would be subject to penalties on 70 employees.) And just to add insult to injury, the penalty is not tax deductible. Secondly, companies need to be aware that they might be affected by some of the new provisions in the legislation that seemingly have nothing to do with health care. For example, one provision imbedded deep in the legislation, which has gotten little attention, might cause a serious paperwork headache for businesses. Companies in 2012 will be required to file 1099s with the IRS for payments made to another person, including corporations, for all goods and services purchased in a calendar year above $600. This means your suppliers, including office supply companies, may have to be issued a 1099. This may be a good time to get serious about streamlining and automating your bookkeeping processes. The new law does provide some tax credits for small companies with 25 or fewer employees starting in 2010. To qualify for the credit, the average annual salary of the employees must be no more than $50,000 and the company must offer all employees health insurance and pay at least half of its costs. For example, a company with 10 or fewer employees and average salaries of less than $25,000 will receive the full credit of 35 percent of what they spend on health care. Companies with 10 to 25 employees will get partial credit. Three revenue-raising provisions of the law (there are many more) include the following: • Higher taxes will be imposed on high income individuals, many of whom are small business owners. Beginning in 2013, the Medicare tax rate is increased by 0.9 percent for an individual earning more than $200,000 ($250,000 for couples). Also, there will be a 3.8 percent surtax on unearned income in excess of $200,000 ($250,000 for couples). • There is a penalty for larger companies whose health plans are too expensive. If 100 employees opt out of a company plan and purchased coverage cheaper somewhere else, say, from an insurance exchange, the company would be subjected to a penalty of $250 times 100 employees, or $25,000 a month. • Beginning in 2013, the amount of contributions to health FSAs under cafeteria plans will be limited to $2,500 per year. While companies must navigate through a myriad of new regulations, insurance providers and employers with self-insured plans will be responsible for a lot of the requirements. There are many other changes that will be affecting companies and their employees in the coming years. Hopefully, this will give you a little heads up so that you are prepared. George Stavinoha, CPA, is a senior manager in tax and strategic business for Weaver, an independent regional accounting firm with offices in San Antonio, Dallas, Fort Worth, Houston, Austin, Midland and Odessa. He can be reached at [email protected] or 210.572.3719. www.weaverllp.com. –dn Submitted to Construction News ABC in Washington, D.C. Representatives from the Austin and San Antonio chapters of Associated Builders and Contractors (ABC) are pictured at a meeting with Congressman Lamar Smith in his Washington, D.C. office. Members from all over the country attended the National Legislative Conference in Washington Jun 15-17. David Ford, Bob Duda and Brian Lofton represented the Central Texas Chapter. –km Austin Construction News • Aug 2010 Page 7 OSHA How to recoup your retainage Joe R. Basham, Partner Allensworth & Porter, LLP Austin, TX C ontractors frequently ask for advice about recouping retainage from the owners. In today’s economic climate, it can be difficult to get the retainage released, and it may not be the owner’s fault. More lenders are withholding retainage, for their own reasons, which causes frustration down to the subcontractors. There are not any “silver bullets” but here are several options to help in recouping retainage. Pre-Contract Options On private projects, the Property Code says an owner must hold 10% of the contract price or 10% of the value of the work until 30 days after final completion, which means all punch work has been completed. If the owner fails to hold retainage, it could be liable to subcontractors, and end up paying 110% for the project. This is one reason why owners (and lenders) are reluctant to release retainage. Before the contract is executed: 1. Negotiate less than 10% retainage. On large projects, owners frequently agree to hold 10% retainage until 50% completion, and then no, or possibly 5%, afterwards. This allows the owner to judge the contractor’s performance before deciding to release retainage, later. Some clients have given the owner two prices: one if retainage is withheld and one if there is no retainage. 2. Secure a payment bond. An owner is not required to withhold retainage if a payment bond has been purchased and filed in accordance with the Property Code. And more often than not, the cost of the bond is paid by the owner, which liquidates the cost of withholding retainage. 3. At the very least, be sure the contract specifies exactly when retainage will be released. Although the Property Code requires an owner to withhold retainage until final completion, some owners are willing to release it early if everything has gone smoothly. Either way, both parties should know exactly when retainage is supposed to be released. 4. Agree to escrow the retainage. Although I know of no one that has employed this idea, retainage could be placed in escrow, giving the owner comfort that it has complied with the Property Code, and satisfying the contractor’s desire to “see the money.” Post-Contract Options After the project is completed, recouping retainage from the owner can be tricky. The most common method of coaxing money from the owner is to file a lien, which can lead to litigation in which case, the contractor may have some other statutory remedies available. Mechanics’ Lien. In order to perfect a mechanics’ lien claim, you must (1) send all required notices, if required; and (2) file an affidavit claiming lien not later than the 30th day after the work is completed. Numerous articles have been written on how to perfect a lien, but it is probably the most common, and arguably, the most cost-effective way to recoup retainage. Prompt Pay Act. Texas law requires owners to pay general contractors within 35 days of the request. Contractors must pay subcontractors within seven days of receiving payment. If payment is not received within that time, it may be a violation of the Prompt Pay Act, for which the contractor can recover interest at the rate of 1-1/2 percent each month (18% per annum). Trust Funds. Payments from owners to general contractors, and from contractors to subcontractors are considered trust funds. Recipients of these funds are trustees, and must use the payments for the benefit of the project. In other words, payments from the owner cannot be used on other projects. Misuse or misappropriation of these payments could result in civil and criminal liability. It is not uncommon for issues to arise at the end of the project and for the owner to withhold retainage. If those issues cannot be avoided, it may become difficult to recoup retainage. And it may not be the owner’s decision. Up-front negotiations over the amount of retainage to be withheld, whether a payment bond is to be provided, and when retainage will be released can improve your chances for streamlining final payment. If all else fails, contractors must resort to filing liens, and possibly filing suit, which does not guarantee the money will be there, at the end of the day. OSHA’s emphasis program for heat illnesses Joann Natarajan, Compliance Assistance Specialist OSHA Austin, TX O SHA has announced an emphasis program to prevent hot environmental temperatures from adversely affecting employees working outdoors. The emphasis program is targeted to keep employees from developing heat cramps, heat exhaustion, and heat stroke. OSHA will utilize heat advisories from the National Weather Service to identify dangerous outdoor conditions and make sure employers take appropriate precautions to address the associated hazards. The National Weather Service issue heat advisories on days when they determine that the predicted daily maximum temperature will be 105 degrees Fahrenheit or greater for two consecutive days and the night time minimum temperature will be at least 75 degrees Fahrenheit. OSHA expects employers to take precautions to address the hazard of heat stress on the job site. The heat stress precautions include training workers on the hazards of hot environmental temperatures, making appropriate first aid available, having drinking water available, and having made provision for prompt medical attention if a heat related illness occurs. Heat stroke, the most serious health problem for workers in hot environments, is caused by the failure of the body’s internal mechanism to regulate its core temperature. Sweating stops and the body can no longer rid itself of excess heat. Signs include (1) mental confusion, delirium, loss of consciousness, convulsions or coma; (2) a body temperature of 106 degrees F or higher; and (3) hot dry skin which may be red, mottled, or bluish. Victims of heat stroke will die unless treated promptly. While awaiting medical help, the victim must be removed to a cool area and his or her clothing soaked with cool water. He or she should be fanned vigorously to increase cooling. Prompt first aid can prevent permanent injury to the brain and other vital organs. Heat exhaustion results from loss of fluid through sweating when a worker has failed to drink enough fluids or take in enough salt or both. The worker with heat exhaustion still sweats but experiences extreme weakness or fatigue, giddiness, nausea, or headache. The skin is clammy and moist, the complexion pale or flushed, and the body temperature normal or slightly higher. Treatment is usually simple: the victim should rest in a cool place and drink an electrolyte solution (a beverage used by athletes to quickly restore potassium, calcium, and magnesium salts). Severe cases involving victims who vomit or lose consciousness may require longer treatment under medical supervision. Heat cramps, painful spasms of the muscles, are caused when workers drink large quantities of water but fail to replace their bodies’ salt loss. Tired muscles are usually the ones most susceptible to cramps. Cramps may occur during or after working hours and may be relieved by taking liquids by mouth or saline solutions intravenously for quicker relief, if medically determined to be required. [email protected] 512-374-0271 x232 Joe Basham is a partner with Allensworth & Porter, L.L.P. in Austin, Texas. He represents general contractors, subcontractors, owners, architects, and engineers, and can be reached at [email protected]. –dn Construction News ON LOCATION Settling in The staff at Powell Development Inc. have settled into their new location at 2007 Sam Bass Road. They were previously located near Volente Beach in Austin. L-R: Raye Ellen Johnson and Greg Powell. –km /(:46=,+ 9LZLHYJO)S]K (\Z[PU 0U[LYZLJ[PVUVM )\YUL[9K/^` Page 8 Austin Construction News • Aug 2010 DBIA officers announced T he Design Build of America’s (DBIA) Southwest Region has announced its officers for the 2010-2011 term. The board members will oversee the region’s education and certification program for individuals and practitioners of the Design-Build (D-B) method of project delivery, which embraces architecture, engineering and construction services under a single contract, thereby integrating the roles of designer and constructor. -rd Chair: Drew Yaggy, P.E., TDIndustries, Inc., Dallas Vice Chair: Douglas Herbst, Brown and Caldwell Constructors, Houston Secretary: Thomas Statzula, B & D Industries, Inc., Albuquerque, NM Treasurer: Hugh Sanford, LEED AP, The Beck Group, Austin Immediate Past Chair: David Bloxom, Speed Fab-Crete, Fort Worth Abstract ideas D Owner of Abstract Concrete, LLC, Dillon Roberts, looks forward to working with Austin residents and business owners. illon Roberts, Abstract Concrete, LLC is an artisan who has developed a passion for decorative concrete. Roberts grew up in Louisiana. He was born in Galveston and has family in the area. He moved back to Austin in 1999 and later returned to Louisiana in 2005. Prior to getting into the construction industry, he worked for non-profit organizations in Texas and Louisiana. After Hurricane Katrina hit, Roberts decided to help with flooring replacement. While in Louisiana, a friend requested him to do stained concrete in her home, which initiated his career. “I wasn’t scared to dive in and get crazy with it. It is a really fun way to be creative, be an artist and make a living,” Roberts said. Roberts said this incident during the hurricane actually inspired him to start his own business in concrete staining. He began doing commercial and residential work in Louisiana in 2007 and when he moved to Austin in March, 2010, started Abstract Concrete, LLC. From regular stained concrete to creating the look of an ocean floor, Roberts is able to use his artistic abilities. When not working on floors, he is also a sculptor and a musician. “Oftentimes, I can be creative and the client lets me take the project and run with it,” Roberts said. Roberts also hired a recent graduate from the University of Texas, Jon Lerner, to assist with the business and accounting side of the company. Abstract Concrete, LLC specializes in patch & seal, exterior acid stain, faux with design work, interior acid stain, stamped concrete and more. –km Austin Construction News • Aug 2010 Page 9 Hot summer action 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 ell, things are slowly getting back to normal around the Coastal Bend after the tropical weather we received over the past few weeks. The high water in the bays has slowly receded and our tides are getting back to normal. We were so blessed to get these timely rains and stormed surges to flush out bay systems and help keep salinity levels in check. I know there were a lot of folks south of us along the border that didn’t fare so well from these storms and our thoughts and prayers go out to them, but I’m optimistic that the long term conditions will improve fishing for everyone. Let’s move on to what to expect for the next few weeks of fishing. We will continue to work the areas in the Upper Lagoon south of the JFK Causeway to Jack Ballard of San Antonio caught this 25” speckled trout just south of the JFK Causeway on live croaker fishing with Capt. Steve Schultz. Baffin Bay. This stretch of the bay is still producing good boxes of trout and reds along grass edges and sand pockets with croakers and piggys. The key to catching these fish is to stay on the move. With the water clarity being so clear, you’re not going to catch as many fish in one spot as you would if it was a bit more off-color. Fish seem to be a little more comfortable in dingy water because they can’t see you and your boat. Another benefit to a successful fishing trip is to get an early start. Low light conditions have proven to be key factors in a getting a good start to your day, not to mention fishing some of the more popular spots before boat traffic scatters the fish in the area. Use cloudy days to your advantage when planning your next move. I’m always thinking Ryan Railsback of San Antonio caught this 30.5” speck during the ASA Fishing tournament last month with Capt. Steve Schultz. The fish will be sent to the taxidermist to be mounted. ahead for my next move. Study the area while the sun is bright and make sure you’re going to be set-up correctly. If you try to move while a cloud is blocking the sun, you’re probably not going to be in the right spot, therefore having to move again and fouling up the area. Another area not to overlook is the wells out in Corpus Christi Bay. These platforms scattered throughout the bays are good summer spots that produce specks and several other species of fish. With the lighter winds we have been having, a day on CC bay may prove to be a good move. Moving on further south, the Baffin Bay complex is still producing some good fish. The deeper rocks seem to be the most popular spots with water temperatures nearing 87-88 degrees by mid-day. Wade fishing can be very effective early mornings and late evenings in the shallower areas of east Kleberg and Starvation point. Another area not to be overlooked is the badlands at the mouth of the bay. Shallow grass beds and scattered rocks have been producing both reds and trout on live croakers. To schedule your next bay fishing trip give Capt. Steve Schultz a call at 361949-7359 or 361-813-3716, or e-mail him at [email protected]. Good luck and Good Fishing. Submitted to Construction News Hog heaven STEVE SCHULTZ OUTDOORS, LLC BAFFIN BAY –– LAGUNA MADRE –– LAND CUT SPECKLED TROUT –– REDFISH –– FLOUNDER FISHING AND HUNTING TRIPS (361) 949-7359 www.baffinbaycharters.com [email protected] Mark Schmidt, H&E Equipment, showcases the hog he recently hunted with his bow and arrow. –km U.S. Coast Guard & Texas Parks and Wildlife Licensed Page 10 Austin Construction News • Aug 2010 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. What a difference a year makes! I just came back in the house with both arms full of peaches the size of softballs! Last year that poor little tree only had three knotty little peaches on it. I look out the window and there is green everywhere I look, not like the winter on Mars landscape and blistering heat we endured last summer. The lakes may not be exactly full, but they are so much better that I do believe we will be able to finish out the season running fishing trips from our home dock, instead of wandering the empty lake bottom with our boats dragging along, looking for a safe place to launch like homeless gypsies. Good riddance to that drought! I know, it’s not gone for good, (in Texas it seems there is almost always a drought in the near future), but it’s gone for now and that’s good enough for me! Lake Buchanan is full of life again. We have schools of tiny fish where we only had dust and grasshoppers last year. When the lake first started coming up over the weeds and brush, all that vegetation soured and smelled awful for a while. As the process of decay progressed, the algae bloomed, turning the water bright green. The fish spawned and from the looks of it most of their babies made it. We even had a school of gar haunting the dock area for a few weeks that started out the size of a pencil and were about 16 inches long when they headed for open water. It was a sight to watch that pack of deadly hunters lying around sunning on the surface and lazily chasing baby shad. Fishing is steadily improving as the normal order of things returns. Fish find their way to their new homes and re-establish their schools and territories and begin to fall back into their normal seasonal patterns, but not without a few hiccups along the way. Consistent feeding patterns are still not strong yet. We are seeing good solid fishing with days when the fish just won’t bite at all sprinkled in. When fishing is good we get a preview of the kind of fishing we will have as our smaller fish feed on the bumper crop of shad we have and get some more size to them. The hybrid stripers that have been privately stocked to supplement the normal striper stocking program are finally getting to be keeper size and they are already putting up a good fight…just wait, it’s gonna get a whole lot better. Just look at lakes like Falcon and O.H. Ivie and the number of Share Lunker bass they are producing! I’m going to go have me one of those ripe juicy peaches and try to forget all about that drought. It is really nice to be on a lake that is in the process of rebuilding to become one of the state’s best fisheries! Submitted to Construction News Relaxation, celebration Sunrise on Lake Buchanan Ken Milam Guide Service (325) 379-2051 www.striperfever.com Greg Powell, Powell Development, and his wife Deborah Powell, enjoyed some time at Lake Travis on the Fourth of July while barbecuing with family and friends. –km Austin Construction News • Aug 2010 Page 11 Submitted to Construction News Submitted to Construction News Family fun Salmon king Steve Wilson, owner of The Pipe Ranch in Georgetown, reeled in a 16 lb., 34-in. King (Chinook) Salmon Jun. 30 on the Takeetna River in Alaska. –km Submitted to Construction News Chad Gallagher, Seretta Construction, had some fun with his wife and daughter at Canadohta Lake in Pennsylvania July 4. L-R: Amy Gallagher, Kinsley Gallagher and Chad Gallagher. –km Summer time Submitted to Construction News Fishing partners Dan Bishop and his wife, Stacy Bishop, ModernCrete Concrete Design, showcase the fish they caught on a recent trip. Stacy’s largemouth bass weighed in at 5 lbs. and Dan’s weighed 8 lbs. –km SEND IN YOUR PHOTOS . . . fishing, hunting, skiing, biking, racing, or any outdoor activity or sport. Robin De Haven, Binswanger Glass, shares a summer day with his son, Bryden. They visited the Austin Zoo. –km Page 12 Austin Construction News • Aug 2010 Austin Construction News • Aug 2010 Page 13 What fad do you remember most? A trend in the air conditioning business that I remember is electrostatic filter. People would put filters in their house that you could wash out with a hose. I remember it being really big the early 90’s and I don’t know what ever happened to it. Chris Dees, Standard Supply One fad I remember that cracks me up is the bellbottom jeans that everyone used to wear. Todd White, Gajeske Inc. Big hair is always big in Texas. I don’t think it’s necessarily a fad as it is a way of life for some people. Lori Bagliore, Tony Bagliore Concrete The bellbottom pants and the big afro hairdo. I was raised in the country, but everyone had the bellbottoms unless you were really country. John Randolph, Century Fire Protection I remember CB radios. Traveling to California in the 1970’s, I was able to witness the height of the CB radio craze. Another fad I remember is avocado colored toilets. Hopefully those won’t come back. William Biggs, Biggs Plumbing Slap bracelets. Kim Barnett, Platero LLC Shag carpets and lava lamps. I never had a lava lamp, but they were pretty cool. David Chalmers, Good Works Construction Bellbottom pants and hip huggers were big when I was in junior high school. Rhonda Dowdy, S&D Plumbing Acid wash jeans and rat tails (hair style) together. I did have a rat tail when I was about 11. I’m pretty sure I had acid wash jeans too. Dillon Roberts, Abstract Concrete Eight-track tapes and parachute pants. Laura Culin, Austin Lumber Company Mohawks. Austin Cykala, Martin Instrument I graduated in the class of 2000 in a small 3A high school in southeast Texas. A couple of fads that I remember during my school years are Trapper Keepers, Jansport backpacks and those little koosh balls everybody used to have. Jeremy Burrell, United Rentals American Girl dolls were extremely popular among all of the girls. That is probably the most memorable fad for me. I still have American Girl dolls and porcelain dolls that I collected as a young girl. Kristen McLaughlin, Austin Construction News Concierge, convenience, construction T he tagline for Platero LLC is ‘making convenience part of your lifestyle’. Owner Carlos Platero Jr. has been operating the company in Austin for three years and owned a similar business in his home city of Los Angeles for 12 years. He is an interior designer and licensed contractor by trade and director of the company, but all of the employees wear different hats. With their key word Owner of Platero LLC., Carlos Platero Jr., being convenience, they asenjoys helping people in Austin. sist both commercial construction companies and homeowners back riding, sports and traveling. He even with landscaping, clean up and many occasionally enjoys his hobbies with his clients. other tasks. Platero has lived in Austin since 2006. The staff of 20 people, includes deSince then, he has been establishing his signer Kim Barnett and Will Lucas, who business in the area. Not only does he of- spearheads the concierge department. fer his services, but he believes in con- Platero said the office has a family atmosphere to it. The staff keeps in touch durnecting people to other services as well. “We are connecting people constant- ing all hours of the day, tossing ideas back and forth. ly. It’s what we do,” Platero said. Platero said his goal is to continue to They are in contact with subcontrac- tors and general contractors on projects connect with even more people in the and even list their partners on their web- Austin area. Platero LLC specializes in interior desite. “We all need to help each other out,” sign and architecture, design build and concierge services. –km Platero said. In his spare time, he enjoys horse- Location Location Location Location Publishing the Industry’s News . . . TEXAS Style New electricians Dallas/Fort. Worth Austin San Antonio Houston Home Office (210) 308-5800 www.constructionnews.net The 2010 IEC Graduates The Independent Electrical Contractors Association (IEC), Centex Chapter graduated 47 apprentices into the electrical workforce Jun. 30. This was the 10th annual graduation celebration and largest to date. IEC Central Texas has completed 246 apprentices since they started the training program in 1997. IEC honored Eleazar Trevino at the event with an instructor ring for 10 years of service to the chapter apprenticeship program. –km Page 14 Austin Construction News • Aug 2010 Two decades in business New state leadership T he Plumbing-Heating-Cooling Contractors Association (PHCC) elected new officers for 2010-2011 during their annual convention Jun. 26 at The Woodlands Marriott Waterway Hotel. –dn Owner of Good Works Construction, David Chalmers, is in his 20th year in business. D avid Chalmers, Good Works Construction, has kept himself busy with his business in Austin. Chalmers started his business in 1990 and his been working in construction for about 28 years. The construction professional grew up in Dallas and learned good work ethics since he was 11, always doing work of some kind. Shortly after high school, he worked on wooden boats at a marina. “I have always worked with my hands,” Chalmers said. He left construction for a short while to try his had in the restaurant business, but he realized construction was what he loved and does best. “I have always enjoyed building things over the years,” Chalmers said. Chalmers moved to Austin in the late 70’s but returned to Dallas during the 1980’s when the economy was suffering. He returned to Austin in 1989 and met his wife shortly after. When not working, Chalmers enjoys his woodworking hobby, and enjoys spending time with his wife visiting area lakes. They also travel back to his wife’s home state of Kansas and to California, where her father lives. Before starting his own business, he gained experience in drywall, tile and other areas of construction. He realized he wanted to own his own business and now provides a variety of services through Good Works Construction. Good Works Construction focuses primarily on dry wall in the commercial realm of construction. –km Officers and board of directors: President: Barry Bankler, Gibson Plumbing, San Antonio President-Elect: W.B. Maples, Cove Plumbing, Copperas Cove Secretary: Rob Jalnos, Steve’s Plumbing & Heating, San Antonio Treasurer: Ray Jones, Raven Mechanical, Houston Immediate Past President: Doug Turner, Doug Turner Plumbing, Sugar Land Zone Directors: Zone A:Frank Willburn, Frank’s Repair Plumbing, Amarillo Zone B: Rick Shelton, Shelton Plumbing, Waco Zone C: Milton Frank, Milton Frank Plumbing, Spring Zone D:Pat Freund, Primo Plumbing, San Antonio Zone E: John Lane, J.P. Company, El Paso Chapter Directors: Amarillo: Dickie McCurdy, MMM Plumbing, Heating & A/C, Amarillo Austin: Stephen Cox, Cox Plumbing, Austin Gulf Coast: Phillip Johnson, Air-Care Southeast, South Houston North Texas: Lee McFarland, Herndon McFarland Plumbing, Addison San Antonio: L.W. Tschoepe, Jr., Guarantee Plumbing, San Antonio Waco: James Urbanek, Lochridge Priest, Waco At Large: Craig Lewis, R.E.C. Industries, College Station Associate Director: Marty Kamerbeek, Moore Supply, Houston Austin Construction News • Aug 2010 Page 15 Service Providers Staying strong Keith Stanfield, Branch Manager Ahern Rentals Austin, TX H ow would you describe the state of the construction industry? I would say right now that it’s still coming back. The market is slowly climbing back up. We haven’t seen a major increase, but it’s a slow and steady rise. Have you seen an increase or slowdown at your company? We have seen an increase in the last two or three months and it actually wasn’t as bad as we thought it would be at the beginning of the year. What factors are driving this increase? I’m not really sure. For a while, we were hearing about jobs being put on hold. I’m not sure if maybe they have released the chokehold on that. On my side, I don’t hear as much about why it changes. Has this increase affected how you conduct business? For the company in general, it has made a big difference. Our utilization has gone up throughout the whole company. We’ve gone up between 20 and 25 percent in the last few months. We’re hiring more mechanics and starting to hire more drivers. We’re seeing the light. It’s just slow. What are some of the challenges you are facing? One of the major challenges we are facing is getting the rates back up. They have dropped drastically. We’re also trying to hire more people, but we’re not sure if the economy is going to continue at this pace. We’re still new to the Austin PEOs - Helping construction companies build a better future Mark Mettille, Owner M2PEO Solutions Dallas, TX P EO history. It is likely that many construction company owners and office managers may not have heard of a PEO (Professional Employer Organization). Although the concept originated as early as the 1940’s, PEOs didn’t become popular until the 1980’s. PEOs were developed out of the need to help small to mid-sized business owners increase profitability, maximize employee productivity, reduce time spent on human resources, share liability, and ultimately reduce overall labor costs. PEOs currently operate in all 50 states and are regulated by both federal and state guidelines. Core principals. Most construction companies partner with a PEO in order to streamline their operation. Owners who utilize PEO services spend less time “pushing paper” and more time focused on their bottom line. The PEO assumes many of the non-revenue generating tasks every company must perform to operate. This allows the company to do what they do best - focus on growing their business! Nonmoney making tasks such as weekly payroll administration, transactional HR, benefits administration, and government compliance are transferred to the PEO. Construction companies partner with the PEO to share employment liability of their W-2 employees. Owners no longer have to wear the “boss’ bulls-eye” on their back every day with total liability. Cash flow. Cash flow is the primary concern for most of the construction owners with whom I consult. A key advantage of working with a PEO is that there are no longer large down payments or audits on workers’ comp insurance. Owners aren’t forced to hand over any down payment to start coverage. They simply “pay as they go” for workers’ comp, which may keep tens of thousands of dollars in hand to grow their business. This can be extremely helpful in a down economy, especially for companies carrying expensive highrisk workers’ comp. Expertise. Most construction owners I advise openly admit they are unfamiliar with ERISA, FMLA, or ADA laws, or if they are in compliance with the most current labor laws. That’s because they are pulled in so many different directions each day simply trying to run their companies. They just don’t have enough time! Business owners are typically great at their given construction trade, whether it be pouring concrete, steel erection, roofing, etc., but they know they are not HR, Benefits, Payroll, or Tax experts. This is where they can lean on the PEO’s professional team and expertise to know they are in compliance and that things are being handled properly. Additional benefits. Especially in the recent difficult economic times, many owners have seen a dramatic difference in how a PEO can stabilize their overall labor costs. One piece of this equation is keeping the company’s SUTA (State Unemployment Tax) rate as low as possible. area. We’ve been here for about two years. We are still trying to hire new people, ride out the state of the economy and grow the branch. We have been riding away, but we’re just waiting to see what is going to happen. How do you deal with the challenge? We have to hire good sales representatives. That way, we can hopefully increase our customer base so we can continue to hire more employees. We just have to keep growing and ride it out. What are the major changes in the industry in recent years? The biggest change is the increase in rates. Everything else is about the same. We still have the same services. Even though they are getting better rates, customers still want the same services. You have to put out twice as much to get the same money you used to make. Are you seeing any labor shortages? No. We started lean when we opened the market. We didn’t come in and hire a bunch of people, but we are growing now. I think the biggest reward for us right now in this company is surviving the downturn. There are a lot of companies that haven’t been able to make it while we are seeing a turnaround. The biggest reward for us is that we still have jobs and have made it through one of the toughest times. In general, we also get the gratification of being able to make it happen when customers need something. We’re able to get everything done in the time frame we have. It makes us happy to see the customers happy. What are keys to being successful in the industry? First and foremost, communication is key. You have to communicate with your own team and with the customers in order to experience success. If you promise them a delivery time or a piece of equipment, live up to it. They are usually understanding if there is a change, but you have to communicate and be honest with them or you will lose a customer within a matter of minutes. Ahern Rentals specializes in equipment rentals and service. They have locations throughout Texas and the U.S. –km What are the rewards of the industry? Many construction companies experienced higher than usual lay offs in the past year. Those partnered with a PEO saw very small, if any, SUTA increases because of the PEO’s ability to weather the unemployment storm. On the other hand, many stand-alone businesses saw large increases and some had their SUTA rate double in 2010. PEOs not only assist in dealing with unemployment claims, they also provide employee handbooks and safety manuals specific to their clients needs. These are two critical items that are sometimes overlooked in the blue-collar sector. PEOs and their future in construction. The simple fact is that our current federal and state administrations are not making it any easier on business owners to run their companies. New laws are being passed every year, and the amount of red tape, government compliance, and timeconsuming HR tasks are only going to increase. In a PEO partnership, owners get back their time and can sleep better at night knowing one team of professionals is there to help them navigate the ever changing landscape of being an employer. Most owners realize that they don’t run their company exactly the same way they did five years ago or even two years ago. With new legislative changes impacting construction companies such as healthcare reform, new labor laws, and increased jobsite liability, it’s no wonder why so many owners are looking to partner with a PEO to gain a competitive advantage. Could partnering with a PEO benefit your company’s future? Mark Mettille is the owner of M2 PEO Solutions. M2 assists Texas construction and blue-collar companies with solving employment problems in the areas of payroll, HR, workers’ comp, and safety/risk management.. For more information please contact Mark at: 817-488-7020, mark@ m2peo.com, or www.m2peo.com. –dn Page 16 Austin Construction News • Aug 2010 Service Providers Filling construction staffing needs Casey Wenzel, Branch Manager Marek Employment Management Co. (MEMCO) Dallas, TX W hat services does MEMCO provide to the construction industry? We specialize in ‘temp-to-perm’ staffing, but also provide full-service direct hire recruiting, temporary labor, and payroll service. Between Dallas, Houston, and our new San Antonio office, we’re the employer of record for about 1,500 people who work for companies outside of the Marek umbrella. How do you view the current business climate? We are a lot busier than we were six months ago. In Dallas alone, we’ve added 200 more people to our payroll than we had working earlier in the year. It will be interesting to see if this renewed activity lasts after summer or if it recedes again. In times of economic uncertainty, the market tightens up. For a variety of reasons, it can make sense for companies to use third-party services like ours. For example, construction companies may find they have slimmed their crews so low to hold down costs that they need outside staffing assistance when they land a big project. Besides the business cycle, are there other factors that affect your business? Yes, certainly the availability of skilled craftsmen is one. Nowadays, just about any contractor will tell you the general level craftsmanship isn’t what it was 20 years ago. Did the economic slowdown affect your company’s internal staffing, administration or operations? It’s made everyone more aware of the decisions we make, that is, where and how we spend money. But, overall, we Consider the rental option Christine Wehrman, CEO American Rental Association Moline, IL. W hether or not you have rented equipment before, rental companies today offer an attractive option to consider as construction work in Texas strengthens this year and shows growth in 2011. At a time when cash flow and credit can be tight, renting offers contractors and construction companies access to a wide variety of equipment for added job versatility without the added financial burden associated with the by-products of ownership, including the cost of expenses such as warranties, regular maintenance and repair, transportation, insurance and storage. Construction companies and contractors are paying closer attention to the bottom line more today than ever before. Rather than buying equipment, the American Rental Association (ARA) encourages construction companies and contractors to take a look at how the fixed cost of renting equipment keeps the burden of capital investment, maintenance and selling equipment on the rental busi- haven’t had any groundbreaking changes in the way we operate. We’re pretty focused in our approach, and have always been relatively frugal. Are you the only game in town or do you have competitors? There are numerous staffing companies out there, but only a couple that we might truly consider competitors. We’re born from a construction company, owned by a construction company and the bulk of our business remains in the commercial construction industry. Are there any hot button issues in your industry? Immigration reform has been a persistent one. But, every time it seems to move to the national forefront, some other crisis or disaster pushes it to the backburner. Is there anything you can do about the deficit of skilled trades people? Dallas is fortunate because the Construction Education Foundation is so strong here. In Houston, we’ve partnered with a couple of clients and Lonestar Community College to offer a drywall course and ness balance sheet instead of yours. Renting allows contractors and construction companies to take on a wide variety of jobs and projects that may require equipment that they don’t have the capital to purchase, as well as specialized equipment for seasonal or large jobs. To help contractors and construction companies determine whether renting a piece of equipment is the right decision, ARA suggests the following rules: • Look at the cost of renting versus buying and consider the time value of money. Renting may be a better choice. • Estimate the time utilization of a piece of equipment. If you are not going to utilize the equipment, why pay to own it? Consider renting. • If your jobs are varied and require special equipment, consider renting. • If your fleet’s diesel emissions are controlled by regulation, consider renting. Equipment rental company trained professionals also are available to help assess and secure the right equipment for the job at hand. Equipment rental inventory is turned regularly, providing later equipment models with the latest safety features, emissions controls and better fuel economy that meet current governmental requirements. The state of Texas has independent and national construction and general tool rental companies located throughout all regions of the state with inventory that meets local and statewide equipment needs. Finding equipment rental stores in Texas is easy by using the ARA’s online rental locator, www.RentalHQ.com. Users can enter their zip code and the type of equipment they are in need of to get a a sheet metal course to students fresh out of high school. It’s a short, four-week course that provides a basic skill set to be a productive apprentice. The program is recognized by the U.S. Dept. of Labor. Generally, the industry needs to attract young people by providing a career path for skilled tradesmen as an alternative to college. What are the rewards from the services you provide? When we’re busy, we’re putting people to work. That’s always rewarding. It feels good to be able to connect folks with work. Our clients appreciate having construction employees they can count on and who are able to do the work. What are the keys to being successful? Being honest, and doing right by your customers and employees. We try to establish lasting partnerships with our clients. The Marek Family of Companies created MEMCO in 1996. MEMCO has offices in Dallas, Houston, and San Antonio, and provides skilled to un-skilled labor to about 200 external clients. –mh list of local rental companies that can help meet their needs. Equipment rental should be a part of your business decisions today and for the future. Top reasons to rent construction equipment 1. Supplement basic equipment with specific rental equipment that extends your opportunity to compete for more jobs. 2. Reduced workload on equipment warranties, maintenance and upkeep on your end. 3. Eliminate warehouse or storage demands. 4. Have the right equipment to compete for the job successfully. 5. Equipment meets regulatory specifications for all types of construction jobs. 6. Less transportation expense on your part to transport equipment. 7. Less equipment inventory that requires disposal. 8. Eliminate equipment tax, license and registration issues. 9. Free up capital for other demands and a stronger balance sheet. 10. Offers a more cost-effective option all around. Christine Wehrman is CEO of the American Rental Association (ARA), the international trade association for the equipment rental industry. The ARA’s core purpose is to promote the success of its members and advance the growth of the equipment rental industry. ARA’s current membership includes more than 7,000 rental businesses and more than 1,000 manufacturers and suppliers. –dn NEXT MONTH SEPT 2010 Support Your Industry’s Feature Issue Green Building Trends 2010 Schedule Jan: Construction Forecast Feb: Construction Safety Mar: Construction Education Call for Ad Space Reservations Apr:Women in Construction May:Concrete Industry Jun: HVAC & Plumbing • • • • San Antonio Austin Dallas/Ft. Worth Houston July:Electrical Industry Aug:Service Providers Sep: Green Building Trends (210) 308-5800 Oct: Specialty Contractors Nov:Engineers & Architects Dec: Construction Equipment Austin Construction News • Aug 2010 Page 17 Round-Up STG Design announces: Raba-Kistner announces the following: PollyAnna Little is promoted to principal. A graduate of the University of Texas at Austin, Little joined the firm in 2003. She has extensive experience in interior projects ranging from the Texas Culinary Academy, Dell, and Lakeway Inn and Resort. As principal, Little will be responsible for managing major interior design projects and production activities. Elizabeth “Christy” Rhone recently joined the firm as business development professional for the Central Texas Region. Rhone has a B.A. from The University of Texas at San Antonio. She will be coordinating consulting efforts in the Central Texas market. Jeff Ervin is promoted to associate principal. Ervin has over 10 years of experience at the firm in architectural design projects including corporate, public, education, and hospitality. He received his Bachelor of Architecture Technology from Memphis State University and Master in Architecture from the University of Tennessee. He is currently working on Austin Children’s Museum and the Lance Armstrong Patient Navigation Center. Jason J.L. Smith, CEM, has joined the firm as environmental geologist. His responsibilities include geoscience and environmental consulting. Smith earned a B.S. in geoscience from the University of Nevada and is a registered certified environmental manager. He currently serves as the vice president of the Board for the Texas Association of Environmental Professionals (TAEP) Austin Subchapter. continued from Page 1 — Third time charm said. Lori is the owner of the company, with 51 percent ownership. Tony Bagliore Concrete completes a variety of concrete work solely for commercial projects. –km continued from Page 1 — Generation to generation reading and good food. “We went to so many little food and wine events together,” he said. Though they don’t have much time for traveling, it is one of their pastimes as well. They still travel back frequently to his wife’s home state of New York. Work is like family as well. William says he tries to implement activities that bring them together, such as an indoor soccer team that plays in the winter. Biggs specializes in commercial plumbing, including new construction, commercial remodel and more. –km Submissions Todd Blenden, PE, RPLS, founder and chief engineer at Commercial Engineering PLLC, recently passed the Texas Board of Professional Land Surveyors exam to become Registered Professional Land Surveyor. Blenden has an extensive background in civil engineering and land surveying. This is a section for brief company announcements of new or recently promoted personnel, free of charge as space allows. –––––––––––––––––––––––––––––– Email (w/digital photo, if available) by the 15th of any month, for the next month’s issue Email info to appropriate city issue, with “Round-Up” in the subject line: –––––––––––––––––––––––––––––– San Antonio [email protected] Austin [email protected] Dallas/Ft. Worth [email protected] Houston [email protected] continued from Page 1 — Fitness for guests “For All Your Lighting and Power Needs Call The Pros” Commercial • Residential • Aerial Lighting 210-651-5204 24/7 Service FAX 210-651-7598 www.dausinelectric.com The interior of the fitness center ing mirrored wall and a light wood colored sport flooring. The team had their share of obstacles that they overcame, including several revisions, dealing with difficult weather and working around hotel guest traffic. They also had to work in a strict time frame to finish the project before a long series of planned weekends that were booked at the fitness center. “Several times this project has been through design revisions and re-pricing in order to accommodate the owners budget for construction,” St. Martin said. The fitness center was completed in March and was stated as being a grand success. Through all of the hard work, the team and the project owner were ex- tremely happy with the completed project, “We have had commending reviews from all parties,” St. Martin said. New Line Construction, currently based in Austin, was started by Brian Conant in 2002 in Colorado, and is now solely at their office location in Austin with a team of eight. The company specializes mostly in private projects, but is always speculating new ventures and opportunities. New Line Construction has grown into a full service construction company, completing projects ranging from commercial tenant improvement to ground up, restaurant and retail. Their website is newlineconstruction.com. –km Page 18 Austin Construction News • Aug 2010 Association Calendar ECAT reaffirms leadership Content submitted by Associations to Construction News ABC CTSA Associated Builders & Contractors Central Texas Subcontractors Assn. Aug. 13: Fall clay shoot, Capital City Skeet Club, noon Aug. 30: Fall golf tournament, Onion Creek, TBD Aug. 31: Meet the Experts, ABC office, 11:45am – 1pm Aug. 10: HIPPA and ADA seminar, Embassy Suites North Austin, 5:30 – 8pm. Call (512) 255-6373. AGC Associated General Contractors Aug 12-13: OSHA 10-hour class in Spanish, AGC Boardroom Aug. 26: Scaffold competent person in English, AGC Boardroom, 8am – 4pm Aug. 27: Scaffold competent person in Spanish, AGC Boardroom, 8am – 4pm AIA American Institute of Architects Aug. 12-13: Annual summer conference & product expo, Norris Conference Center. Visit aiaaustin.org for information. CSI Construction Specifications Institute Aug. 14: Construction Document Technology (CDT) exam prep classes begin. Call Viola Hall at [email protected] for information. Aug. 16: Chapter meeting, Texas Land and Cattle on S. Mopac, 11:30 am – 1 pm IEC Independent Electrical Contractors Aug. 16: Chapter birthday and mixer, Call (512) 832-1333 for information. NAWIC Nat’l Assn. of Women in Construction Aug. 5: Beat the Heat happy hour, Third Base on West 6th Street, 5 – 7pm Attention Energy Users ! Wind Man Energy Bringing Alternative Energy to Texas Farm • Ranch • Schools • Hospitals & Small Village Wind Turbines 210-651-5673 888-946-3020 10 KW - 100 KW Authorized Polaris Wind Turbine Dealer Made in the USA www.windmanenergy.com L-R: Marty Caston, ECAT president, wife Alice Frerich, and sons John and Charles Frerich T he Earthmoving Contractors Association of Texas (ECAT) held their 52nd annual meeting in Fort Worth Jun. 25-26 at the Marriott Hilton. During the event the family of Arnold Frerich, past president and longtime ECAT director, received an award in his memory for his service and dedication to ECAT. –dn Officers and board of directors elected for 2010-2011: President: Marty Caston, Caston Company, Robert Lee Vice President: Dennis Foerster, Foerster Custom Service, Giddings Secretary: Chad Ottmers, Chad & Ronnie Ottmers Construction, Fredericksburg Directors: District 1: Lawrence Krause, L.D. Krause Construction Co., New Braunfels District 2: Edmund Jenschke, Edmund Jenschke, Inc., Kerrville Did you know? District 3: Eddie Leatherwood, C.E.L. Contractors, Dublin District 4: Bobby Watts, Watts Excavating, Decatur District 5: Ed Smith, Ed Smith Dozer Service, Fairfield District 6: J.D. Godby, J.D. Godby Construction, Clifton District 7: Galen Weber, Weber Construction, Uvalde District 8: Thomas Watson II, Watson Dozer Service, Cuero District 9: Wayne Saur, Saur Construction, Comfort District 10: Edwin Eckhardt, Eckhardt Bros. Dozer & Crane, Fredericksburg District 11: John Frerich, Frerich’s, Rowena District 12: Clint Krause, L.D. Krause Construction Co., New Braunfels At Large: Tommy Watson, Watson Dozer Service, Cuero Associate Director: David Sund, Insurance Concepts of San Antonio, San Antonio Past editions can be downloaded at www.ConstructionNews.net Austin Construction News • Aug 2010 Job Sights L-R: John Steele, project manager for Arrow Mont Constructors, and Blake Overmyer, building official for the City of Pflugerville, work at the future site of Panda Express in the Stone Hill Town Center in Pflugerville. –km Page 19 Jack-of-all-trades R yan Reynolds primary job is the project manager/chief imagineer for Moman Architects, but he also owns a business called Ryan Reynolds Design. He is known by his coworkers at Moman as ‘the door man’. His primary service is door installations. He also takes on other projects involving design. Reynolds is originally from Austin. He graduated from Westlake High School and obtained an undergraduate and master’s degree from Texas Tech University in architecture. After graduate school, he lived in San Diego for five years. Reynolds decided to move back to his hometown in 2007. The Austin native says he has the creative side of his mother and the business mind of his father. Ever since starting the architecture program at Texas Tech, he has fallen in love with the field. “You’ve got to love this to do it because it’s not simple or quick,” Reynolds said. “You usually work on something for two or three years before the grand opening. It is almost like raising a toddler, but you give the building away and start a new one.” Foustino Rodriguez, Central Texas Tiltwall, works at the site of the new Walgreens west of FM 685 in Pflugerville. –km )RUNOLIWV %DFNKRHV 6FLVVRUV 6NLGVWHHUV /RDGHUV &RQWDLQHUV /RFDO /RQJ 'LVWDQFH 7UDQVSRUW Larry Sladovnick, superintendent for general contractor PTP, Inc., supervises the work at the building that will house Health & Human Services Commission (HHSC) and the Texas Department of Assistive and Rehabilitative Services (DARS). The building is slated to be complete and occupied by Sep. 1. –km Eric Collette, Sun Coast Resources, provides the fuel for the future site of the 24 Hour Fitness, slated to open in the spring of 2011, at the Stonehill Town Center in Pflugerville. The property developer is New Quest Properties. –km The door installation however, is a much faster project. It takes about four to six weeks for the whole process, he said. “It is a fun little process,” Reynolds said. He partners with Crestview Doors on the door installations. Ryan Reynolds design specializes in door installations and other design projects. –km Page 20 Austin Construction News • Aug 2010