August - Construction News

Transcription

August - Construction News
Covering the Industry’s News
Texas
Style
P.O. Box 791290
San Antonio, Texas 78279-1290
PRSRT. STD.
U.S. POSTAGE
PAID
DALLAS, TX
PERMIT #1451
Change Service Requested
San Antonio
Dallas/Fort Worth
Austin Houston South Texas
Houston
CONSTRUCTION
™
The Industry’s Newspaper
Water Wall at Gerald D. Hines
Waterwall Park
www.constructionnews.net


(210) 308-5800
Volume 12

Number 8

AUGUST 2014
Like father, like son
The sky’s the limit
Anthony Wendel greets customers at the counter.
Mike Brooks (second from left) and the Professional Welding Supply Tomball sales team
O
wner Anthony Wendel worked
alongside his father Robert at Alvin, TX-based Wendel’s Tool
Rental for 45 years.
“We started out in 1963 as a small
service station and in 1971, we went into
the tool rental business,” Wendel said. “I
took over the business from my dad four
years ago when he decided to retire. My
mother, Bonnie, keeps up with the daily
task of helping to run the store.
“My dad is 84 and still enjoys coming
to the store every now and then to work
with his hands. This summer, he dug post
holes with a post hole digger to repair
the fence in the back. He inspires me every day to work hard.“
Wendel’s father started a woodwork-
ing shop when he retired. He enjoys selling and building miniature farm wagons
in his free time.
Nowadays, Wendel runs the store by
himself. He assists customers, answers
the phones and does the counter work
on a daily basis.
“I am very busy this summer. If you
don’t make it in the summer, you don’t
make it in the winter,” he says.
Owning a business is a challenge, but
Wendel loves being his own boss. He gets
to meet a lot of people, especially the
new folks moving into town.
“I think to stay in business for more
than 45 years you have to be honest with
your customers and treat everybody you
continued on Page 13
T
he Professional Welding Supply
Tomball location opened in Nov.
2007. General manager Michael
Brooks says the building used to be a fire
station.
“We have grown quite a bit since
2007,” Brooks said. “We have had an exciting 2014 so far. I think the most positive thing that has happened lately is we
have very good sales people on board.
“Our sales people are enthusiastic,
attentive and they all love what they do
for a living. We have fun every day. We
met our sales goal last year and we will
exceed our sales goal this year.”
Brooks says he has more than 25
years experience in the welding supply
business.
“This is what I know, so I like coming
into work every morning,” he said. “Over
the years, I have met so many different
people who are looking for welding supplies. My favorite part about what I do is
interacting with the customers and working with a great group of people.”
Brooks says he has a fire pit and plans
to cook barbecue for employees in the
near future.
When the folks at the company
aren’t busy at work, they like to go hunting, shooting at a local gun range and
fishing near the Texas Gulf Coast.
“I am a bass guitar player on the
side,” Brooks said. “I play any kind of music I can with anyone, any time and any
continued on Page 13
Class in session
S
kanska recently completed a $35
million project to modernize and restore the Houston Community College System’s San Jacinto Memorial
Building in midtown.
The building, formerly Houston’s San
Jacinto Senior High School, has a long
history.
Built in phases between 1914 and
1936, the building is listed on the National Register of Historic Places, and has
alumni such as broadcaster Walter
Cronkite.
“The wall near the original entrance
is a plaque recognizing students and
teachers who served in World War I,” said
JP Chandler, project manager. “On the
back wall of the stage, students long
since graduated signed their names, and
their graffiti is still visible: “Cole 60”, and
“Juice 67” and “Lil’ Brooks” are a few of
the signings.
“Interior walls were taken down only
to find other walls behind the first, some
still complete with hallway lockers. In
other sections of the building, removing
walls has turned up long covered over
windows and doors dating back to 1914.”
Chandler says the project included
restoring an original 1914 fountain, reproducing the original railings from the
main staircase and spending much time
and effort developing a terrazzo pattern
to match the one installed in the original
building.
“Exterior coatings applied to the exterior brick over the years was removed
with a soybean-based solution and the
masonry restored,” Chandler said. “New energy-efficient doors and windows were installed reflecting their original look.
“In addition, embossed copper panels were removed from the façade to be
restored. Inside, the interior was demolThe San Jacinto Memorial Building
continued on Page 13
Page 2
Houston Construction News • Aug 2014
New name, same service
T
L
ong-time customers have known
the agency as Insurance Network of
Texas. But now, the family-owned
company is changing things up with a
new name, The Nitsche Group.
“It’s part of our growth strategy,”
said spokesperson Chris Lowder. “Customers, new and existing, can believe
they will get the same service they have
come to expect from us.”
Lowder said several things played into
the decision to update the name of the
company that’s been around since 1949,
when it was founded in Giddings, TX.
“Our name was limiting in the sense
of geography,” Lowder said. “We started
in Texas, but we also have clients outside
of Texas.”
The word “network” was also confusing, Lowder said.
“People thought we were an aggregation of smaller agencies, but we are
actually a family-owned, independentlyowned agency,” he explains.
The term “network” is also outdated
in that usage, Lowder said. And, in today’s terminology, it is more likely to be
associated with computers and communications.
The company has also unveiled a redesigned web site: www.TheNitscheGroup.com. The new site prominently
features the company’s focus on its relationship with clients as a business partner, using new technologies and years of
expertise to create business solutions,
Lowder said.
The company started as the Hannes
CEO Robert Nitsche has been involved with
insurance his entire life.
Insurance Agency, then changed to
Hannes & Nitsche Insurance Agency with
the addition of RJ Nitsche in 1971. Five
years later, David Ferguson joined the
team and the business became Nitsche &
Ferguson. In 1994, the name was changed
to Insurance Network of Texas.
Today, The Nitsche Group has more
than 125 employees at nine locations
across Texas.
CEO Robert Nitsche assures that this
name change will not alter who they are
as a company.
“We will still be us,” said Nitsche. “We
will maintain the core of our company
that has defined us since 1949; our
unique culture, outstanding customer
service and hometown values. We are
still family. In a way, our new name better
reflects and reinforces this. In a way, our
new name is a return to our roots.” –cw
Wright here
his little article is an introduction of
the newest team member at Construction News – me.
I’m Cyndi Wright and, in April, Buddy and Reesa Doebbler hired me as managing editor for their five publications.
I’m also the editor for the South Texas
edition of Construction News.
I graduated from Arizona State University’s journalism program and worked
my way up from cub reporter to editor.
During that time, I got married and produced the father of my three beautiful
grandchildren.
Even though I’m an Army brat, I consider San Antonio home since my dad
was an Army doc and we were stationed
at Ft. Sam Houston quite a bit.
My first real job as a reporter was in
Rockport, where I worked for a funky little paper called “The Toast of the Coast
Herald.”
I moved around Texas in order to
move up the journalism ladder. I’ve lived
and worked in Bandera, San Antonio and
La Grange. My last job was at the Bastrop
Advertiser and Smithville Times, where I
was editor of both.
Now that I’ve had a couple of months
to get my feet wet here at Construction
News, I am finding the people I work with
and for, and the people in the construction industry, to be great.
I want to encourage all of you reading this to please make your Construction
www.constructionnews.net
publishing the industry’s news
News the best it can be. We have five
publications – spanning Texas – so call us
and email us with any and all of your
good news.
We editors want to fill our pages with
the news that matters to you. So, blow
your horns, toot your whistles and raise
your flags – we are here to help you get
the word out.
You are always welcome and encouraged to contact me directly at cyndi@
constructionnews.net or 210-308-5800
ext. 148. Call me with your suggestions,
your critiques, your ideas or just to chew
the fat.
I’d love to hear from you.
Texas
Style





San Antonio
Austin
Dallas/Fort Worth
Houston
South Texas
Houston
CONSTRUCTION NEWS
Houston Editor . . . . . . . . . . . . . . Abby BeMent
[email protected]
832-595-0091
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 . . . . . . . . . . . . . . . Cyndi Wright
Production Mgr . . . . . . . . . . . . . . Sue Johnson
Sales Representative . . . . . . . . Kent Gerstner
Administration . . . . . . . . . . . . . . Kevin Hughes
If you are a construction-related company in
Harris, Ft. Bend, Galveston or Montgomery
counties and are not receiving a free copy of
the Houston Construction News, please call
for a Requester Form, or visit our website.
The Houston Construction News
(ISSN
1547-7630) is published monthly by
Construction News LTD., dba Houston
Construction News, and distributed by mail to
construction-related companies in Houston
and surrounding counties.
All submissions should be mailed to our
editorial offices. We reserve the right to
edit any materials submitted. No fees for
materials, copy or photographs submitted
will be due unless agreed upon in advance in
writing. Submissions will be published at our
discretion on a space available basis.
Construction News, Ltd. , dba Houston
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.
© 2014 Construction News, Ltd.
Houston Construction News • Aug 2014
Page 3
Taking care of business
Five-day weekend
2014-2015 SCWCPA Officers L-R: Secretary/Treasurer Tanner Spears, Griesenbeck Distribution
Group; Vice President Todd Hunt, Trinity Drywall and Plastering Systems; President Rick
Blackburn, Blackburn Plastering; Immediate Past President Charlie Meador, Texas Stucco Supply
O
Timothy Webb says the company has more space for hardware
utgrowing your business location
is generally considered a good
thing – and so it was for Timothy
and Bonnie Webb, who relocated One
Stop Hardware from Main Street in
Hitchcock, TX to a larger location more
than a year ago.
“We had a garage full of hardware
and the hardware side of the business
started picking up,” Bonnie Webb said.
“The building became available so we
went ahead and purchased it and expanded. We have so much more space
now. We still operate the tool rental business on Main Street, too.
According to her, 2014 has been
good to the business.
“Sometimes things are slow and
there are some weeks where it gets very
busy,” she said. “It has been rollercoaster
ride for us.”
The Webb’s son-in-law, Matt Vonderatide, takes care of the hardware business
by assisting customers, and ordering and
stocking all the supplies and materials.
Daughter Cindy fills in when necessary by manning the counter when Matt
is filling orders and answering phones
and handling customers when Bonnie,
who handles tool rentals and propane
and concrete, is busy.
Webb says the last event the company had was a grand opening. She says
customers and people in the community
attended the event and there were balloons for the kids.
“We waited a while to have the grand
opening,” she said. “Folks toured the
building, browsed and enjoyed free food
and drinks. We had a great time. Several
people from our church came to the
grand opening, too.
Future plans incude offering boat
and RV storage.
“We own a few buildings down the
street and we plan to turn the building
into storage space,” Webb said. “We look
forward to exciting times ahead!” –ab
W
ednesdays are usually considered the hump of the week,
something to surmount to get
closer to the weekend – but not for a funloving group that chose the middle of
the week as a perfect partying point.
Guests that arrived Jun. 25-27 at San
Antonio’s La Cantera Hill Country were
treated to the kind of fun that makes people feel like it’s a Saturday. Included in the
activities were the president’s welcome
reception, an activity for the ladies, a silent auction and a casino night. A 50/50
raffle, won by George Adams, Adams
Supply in Dallas, was also held.
The grand finale happened Friday
night, with a dinner and awards banquet.
Trophies were given to the winning golf
team and members were honored at the
annual design awards competition. The
2014-2015 officers and board of directors
were also introduced, and Robert Cauble, R.R. Cauble Lath and Plaster in San
Antonio was presented with the lifetime
achievement award.
The end of South Central Wall, Ceiling and Plaster Association (SCWCPA)’s
62nd annual Convention and Trade Show
couldn’t have been timed better; after
guests left the mid-week wall-to-wall
ball, they could still count on using Saturday and Sunday to recover. –mjm
L-R: Immediate Past President Charlie
Meador, Texas Stucco Supply; lifetime
achievement award winner Robert Cauble,
R.R. Cauble Lath & Plaster; Executive Director
Eddie McCormick
What’s the most
adventurous thing
you’ve done?
Spending time in Cabos San Lucas, Mexico. It is my favorite vacation spot.
Perry Seeberger,
Seeberger Architecture
Purchasing my company seven years
ago!
Cory Malak
Climate Services of Texas
Starting my paint supply business!
Josh Clements
Texas Paint Supply
Moving to Texas!
Installing doors every day. Every project
is an adventure.
Jesus Sanchez
MJ & 4 Construction
Bass, bay and off shore fishing.
Jan Maly
J.M. Maly Inc.
Camping at the Grand Canyon with my
wife is one of my favorite adventures.
Billy McDonald
Southwest Equipment Rentals Inc.
and Atlas Equipment Rentals Inc.
Spending time at the Intercoastal Canal
in the back bays of Galveston.
W.C. Bill Blayney
Blayney & Associates
I’d have to say going fishing at Lake Amistad with my brother and a friend.
Doug Long
Power Vac America Inc.
Driving my race car!
Donny Kelly
Porter Glass & Mirror Inc.
Flying an airplane.
Mark Nelson
Gemini Plumbing Inc.
Mud truck racing!
Daryl Graff
Daryl’s Air Conditioning & Heating
Larry Melancon
Stoneco Inc.
SCWCPA’s 2014 Board of Directors
Front row, L-R: Mike Griffin, QUIKRETE/SPEC MIX; Tanner Spears, Griesenbeck Distribution
Group; Chad Dupree, Diversified Plastering; Andy Boyd, Galindo & Boyd Wall Systems Back
row, L-R: Charlie Meador, Texas Stucco Supply; Todd Hunt, Trinity Drywall and Plastering
Systems; Alex Cauble, R.R. Cauble Lath & Plaster; Rick Blackburn, Blackburn Plastering; Brent
Cannedy, Specified Products; Joe McClaran, Parex USA (not pictured: Josh Cagle, DMG Plaster
& Stucco; Bret Young, Marek; Larry Kushner, Sto Corp.)
Page 4
Houston Construction News • Aug 2014
job to work on a machine at an oil company.
The company had 35 floors of mechanical items I could work on. I stayed
there 16 years.
During this time, I learned about
commercial buildings, chillers, boilers
and was ultimately responsible for several programs and departments.
I decided to obtain my A/C contractors license and started planning my own
company.
Chris Walters, President,
Extreme Air Conditioning
Services Inc.
C
hris Walters had his own "General
Handyman" business cards when
he was 12 years old.
“I pushed my lawn mower around
the neighborhood and knocked on
doors to find new customers,” Walters
said. “I charged my customers $5 to mow
their lawns. The freedom of having my
own money was something I loved.
“I was raised in a home where we
were oblivious that repairmen existed.
My dad was very mechanical and we
fixed everything that needed fixing ourselves.
“I was interested in auto mechanics,
but my dad suggested air conditioning
and I took his advice.”
Walters opened Extreme Air Conditioning Services Inc. in Houston in 1996.
After high school Walters thought
he was ready to open his own business
and almost did at 18. He ended up not
starting the company until he was 33
years old.
“This ended up being a wise decision because the skills I had learned
about budgeting and operating several
corporate departments really helped
when I finally got started,” he said.
“Air conditioning knowledge is only
a small part of running an air conditioning company. Wisdom from being a little
older helps a lot, too.”
In addition to operating Extreme
Air Conditioning Services, Walters is
also director at Training Center of Air
Conditioning & Heating. He opened the
training center after five years of research
and program development.
Where did you grow up, Chris?
I was born and raised right here in
Houston and I have lived here my entire
life.
Where did you attend high school?
I attended a special technical program that was available in the late ‘70s in
Houston.
We could test for certain trades and
then attend those schools instead of our
regular high school.
What did you do next?
I worked at an ice machine service
company and after a year I was offered a
Did you have a mentor in the industry
when you first got started?
Yes, my instructor and mentor was
an ex drill sergeant. He taught college
A/C at night and Technical High School
during the day.
After I graduated, I got a call from
him and he was managing the ice machine service company in Houston.
He told me (basically ordered me) to
get over there and continue my training
under him.
I went there and ran commercial refrigeration service for a while and we became good friends.
His quote I use in my class at the
Training Center of Air Conditioning &
Heating is, "you must know the normal
before you can figure out the abnormal."
What types of changes have you seen
in your industry in the past five years?
Over the past five years money has
not gotten easier to get. Customers on
the residential and commercial side are
quicker to obtain several prices.
I see the r22 and r410 issues are slowly being normalized once everyone figured out that r22 was not going away as
quick as predicted. The fury settled down
some.
The technician shortage is worse
than ever and is now being predicted by
the government as vital to the economy
rebound.
What does it take to be successful in
the construction industry, in your
opinion?
You have to understand the buck
stops with you. Everyday you are responsible for how the day went and if you
were successful and got enough done to
pay the bills and your employees.
You must never forget nothing can
compare to hard work and dedication. I
tell employees all the time: no matter
what is happening in your life, it is going
to be worse without a job.
This type of thinking gets me up at
5am without an alarm clock and keeps
me focused. You cannot be lazy and you
cannot slack off.
This is a full time commitment that
many people are counting on your efforts and you on theirs.
I had pneumonia and the flu this past
Christmas and I typed proposals from the
hospital bed while connected to oxygen.
We are doing those jobs right now.
Are you married today?
Yes, I have been married to April, my
wife and business partner, for almost 20
years.
Walters enjoys teaching technicians at the Training Center of Air Conditioning & Heating.
Chris Walters established Extreme Air Conditioning Services Inc. when he was 33.
Do you have children and grandchildren?
Yes, I have four children and one
granddaughter. Nothing can melt a man’s
heart quicker than a 2-year-old telling
him she loves him so much.
Have you traveled anywhere lately?
Yes, I recently visited Florida to observe a technician training school. It was
a great trip.
What is the best part about working
and living in the Houston area?
I love Houston. I love the heat and
the cold. We are close to woods if you like
to hunt and we are close to lakes and the
Gulf Coast if you like to fish. Regardless of
what excites you, it is usually close to
Houston.
Describe a few of your favorite hobbies these days.
I have a small weekend house on
Galveston Bay and I spend most weekends there. I have a small boat that I can
lower into the water and take off.
I go fishing every time I go to the
weekend house and I release everything
back into the water. Spending five minutes on the water can erase a weeks
worth of stress.
Does your company have any annual
events?
Every summer we get together at
Galveston Bay and enjoy an evening of
fishing and just visiting with each other.
It’s nice to get together offsite and
get the families together. We also have an
annual dominoes party during Christmas
holiday.
What was it like opening the Training
Center of Air Conditioning & Heating?
It was a chore to get through all the
approvals required to open a school, but
we succeeded and have the Certificate of
Approval from the State of Texas.
My class was designed to teach the
things that so many technicians never
get. I am just completing my first class
and it is amazing what the students have
learned.
My school even has a mock up house
with an attic and attic stairs. Part of the
final exam is to perform a complete installation in this attic.
I play the part of city inspector and
inspect it for compliance and proper operation.
It is a real joy to watch someone who
could not operate pliers correctly weeks
earlier now performing subcooling calculations while they charge the unit they
just installed.
What are your future goals?
I have plans to stay lean and mean,
keeping my best customers happy and
looking for new customers that are a
good fit.
Just getting customers is not always
a benefit. Getting rid of the tire kickers
and focusing your attention on those
who appreciate your knowledge and
dedication is much better.
I have had one truck and I have had
10 trucks. As I get older, I see the benefit
of less trucks, higher skilled technicians
and dedicated customers. –ab
Submitted to Construction News
Shaking hands
The Associated General Contractors Houston Chapter (AGC) Construction Leadership Council (CLC) member mixer took place at Luke’s Icehouse Jul. 10. Nearly
60 young industry professionals attended the networking event. –ab
Houston Construction News • Aug 2014
Page 5
ASU 2014-09 revenue from
contracts with customers,
finally!
The final countdown,
complying with
ACA mandates
J. Randy Vogel, CPA, Partner
BKD, LLP
San Antonio, TX
A. Scott Anderson
Sr. V.P. Employee Benefits
Delphine Spaniol
Integrated Benefits Specialist
IBTX Risk Services
A
fter years of anticipation and exposure drafts and
comments, the FASB finally issued the revenue recognition update we have all been eagerly awaiting. The
good news is that there were many groups that gave the FASB input including AICPA,
TSCPA, CFMA and others and the end result for the construction industry is that many
of the concepts that surrounded our old policies including percentage completion
remain with limited new terminology changes and several new twists. So here are
several of the items that have been codified!
• FASB made it clear that Percent Completion Accounting is appropriate for recognizing revenue from construction contracts
• FASB clarified that in certain circumstances, contractors will be allowed to recognize revenue for uninstalled materials
• The ASU allows for the use of Cost–
to-Cost to compute percent complete
The ASU applies to all contracts with
customers other than those within the
scope of other standards, such as leases,
insurance, financing arrangements, financial instruments and guarantees (other than product or service warranties).
The ASU does not apply to other parties
to a contract who are not customers.
Management will need to review partnership and collaborative arrangements
to assess if such arrangements will be
subject to the ASU.
The core principle of the new model
is that an entity would recognize revenue
as it transfers goods or services to customers in an amount reflecting the consideration it expects to receive. To
achieve that core principle, an entity
would apply a five-step model. Collectability will be an explicit threshold that
must be assessed before applying the
revenue recognition model to a contract.
An entity must evaluate customer credit
risk and conclude it is “probable” it will
collect the amount of consideration due
in exchange for the goods or services.
The assessment is based on the customer’s ability and intent to pay as amounts
become due. This is a significant shift
from the previous exposure drafts.
identify each party’s rights regarding the
goods or services to be transferred.
C. Determine the Transaction Price.
The entity can identify the payment
terms for the goods or services to be
transferred. This determination would
also include time value of money, noncash consideration, discounts, warranties, etc.
D. Determining Commercial Substance.
The contract has commercial substance
(that is, the risk, timing, or amount of the
entity’s future cash flows is expected to
change as a result of the contract).
E. Determining Collectability. It is
probable that the entity will collect the
consideration to which it will be entitled
in exchange for the goods or services
that will be transferred to the customer.
In evaluating whether collectability of an
amount of consideration is probable, an
entity shall consider only the customer’s
ability and intention to pay that amount
of consideration when it is due. The
amount of consideration to which the entity will be entitled may be less than the
price stated in the contract if the consideration is variable because the entity may
offer the customer a price concession.
The five steps associated with the
Revenue Recognition Model are:
With the issuance of this ASU, the discussions and interpretations are just beginning. As we progress through the implementation, many groups will continue
to develop information related to the impact on the Construction Industry. As it
develops it will become clearer that many
of the Construction Industry’s past concepts were retained in the new standard,
but our documentation and thought process will have to adapt to the new terminology and twists that are now in the
standard.
A.Identify the Contract with a Customer. The parties to the contract have approved the contract (in writing, orally, or
in accordance with other customary business practices) and are committed to
perform their respective obligations.
B. Identify the Performance Obligations in the Contract. The entity can
Randy Vogel is an audit partner with
BKD,LLP in the San Antonio Office. Randy
brings over 35 years of experience in the
Construction Industry where he has served
a variety of clients including general and
specialty contractors, real estate developers
and engineering firms. He can be reached
at 210.341.9400.
A
s we countdown to the end of 2014,
the Obama administration has not
yet revealed if there will be any delays to
the implementation of the Affordable
Care Act (ACA) for employers with 100+
employees. Currently, all the medical insurance carriers in Texas are jockeying for
the uninsured businesses with baited
breath. Although they may have solutions, the cost may be more than some
construction employers will be able to
absorb and still remain competitive. One
of the solutions to this price problem is to
offer an affordable option to ACA mandates with the Minimum Essential Coverage plan, also known as a MEC plan.
MEC plans, if placed properly, may
be a perfect solution. MEC plans are selffunded and cover the minimum coverage required for preventative services by
the ACA. If offered to the entire workforce and participation is met, the employer, in most cases, will escape the
$2,000 penalty for each employee. This
plan also qualifies the employee for the
individual mandate, once enrolled. However, this still exposes the employer to a
$3,000 penalty per employee if that employee applies and qualifies for a subsidy
in the Federal exchange.
A Minimum Value Plan, also know as
MVP, can can be partnered with MEC
plans to offer solutions to satisfy both the
$2,000 and the $3,000 penalty. These
complementary MVPs add benefits to
the MEC plans while at the same time, the
MVP meets the 60% actuarial value as set
by PPACA to qualify for the $3,000 penalty exemption for employers. Keep in
mind that both the MEC plan and the
MVP have participation and contribution
requirements.
Not all MEC plans are created equal.
Each MEC plan carrier has different requirements for their products. Some MEC
plans require 100% participation while
other MEC plans have a participation requirement as low as 10%. There are a few
MEC carriers requiring 100% contribution
by the employer, on the flip side, some
MEC carriers require no employer contribution. Participation is the key and one
can argue if the contribution is too low by
the employer, this could result in too little
employee participation thereby resulting
in a MEC plan not being in place. When
there is no MEC in place, there is no proof
that the employer ever offered the MEC
plan, leaving the employer facing penalties once again.
To be in compliance for the ACA, the
MEC plan must be self-funded. Be aware
however, there are a few MEC carriers out
there offering fully insured plans, it is of
our opinion, these MEC plans are not
properly following the guideline requirements as set forth by the ACA. Additionally, although the thought of self-funded
plans may sound intimidating to some,
finding the right MEC plan can provide
protection to the employer and eliminate these concerns.
The clock is ticking ever so loudly for
January 1, 2015. Will you be in compliance with all of the ACA mandates? There
is no guarantee, but clarification for employers may come as soon as Labor Day.
IBTX will keep you informed and updated, and if you have addition MEC or MVP
questions, you can contact us at
800.880.6689.
Scott Anderson works with clients and
prospects to educate them on the most up
to date information regarding the Affordable Care Act, HIPPA, COBRA, ERISA and
other federal and state compliance rules
and regulations. His more than 25 years’
experience in employee benefits strengthens client knowledge across the DFW metro
area, the state of the Texas and the Southwest region.
Delphine Spaniol has worked in the integrated benefit industry for more than 7
years. Her knowledge of benefits and services that are not covered by the traditional
health and benefits or property and casualty markets enables her to provide a wide
range of solutions.
IBTX Risk Services is an independent agency delivering innovative strategies and relationships to manage risk and improve profitability. We provide multiple distinctive
Enterprise Client Services including commercial and personal insurance, employee
benefits, safety and loss control services,
surety bonds, wealth management, human resources consulting and claims advocacy. For more information, visit www.ibtx.com.
Marketplace of ideas
E
ngineers from across the state attended the Texas Society of Professional Engineers Conference and
78th annual meeting at Hilton Palacio del
Rio in San Antonio Jun. 25-27.
The event gave folks the opportunity
to meet other professional engineers of
multiple disciplines from all areas of Texas.
Attendees participated in three full
days of seminars at the conference that
addressed the professional, economic,
social aspects of engineering. –ab
L-R: Trish Hatley, PE,
and Young Engineer of the Year winner
Charles Stevens Jr., PE
L-R: Jim Winton, PE, Harold Cobb, PE, JR Reddish, PE and Bill Fendley, PE
Page 6
Houston Construction News • Aug 2014
A winning build
A powerful remedy for those
in construction
Jason Wagner Partner
Wagner Saenz Dority, LLP
Houston, TX
C
ompanies that sell and lease equipment for use in
construction projects, as well as those who manufacture that equipment, face a comprehensive indemnity scheme affecting the manner in which they defend lawsuits and allocate risk. Recent decisions indicate these indemnity benefits also flow to construction contractors
who use products of any kind in the course of their work. This indemnity system originates from a state law known as Chapter 82, although these rights can also originate
from contractual terms that comply with other provisions of state law.
Chapter 82 imposes indemnity requirements on product manufacturers, which
are broadly defined as designers, formulators, constructors, rebuilders, fabricators, producers, compounders, processors, or assemblers of products who
place those products into commerce.
Manufacturers owe indemnity obligations in “product liability actions,” defined as any claim against either a manufacturer or a seller for recovery of damages arising out of personal injury, death,
or property damage allegedly caused by
a defective product, no matter how the
plaintiff may assert the claim in the lawsuit. The indemnity obligation exists regardless of how the lawsuit is resolved,
which means a manufacturer owes it
even if the case settles.
But who gets the benefit of the manufacturer’s indemnity protection in a product
liability action? Those entities are called
“sellers,” even if they do not necessarily
sell a product or are not in the distribution chain of the product. Chapter 82 defines a “seller” as someone engaged in
the business of distributing or otherwise
placing a product, for any commercial
purpose, in the stream of commerce for
use or consumption. Under this definition, companies that lease equipment to
their customers – and even those that
combine the sale of any product with the
provision of a service in connection with
that product – qualify as “sellers” who are
entitled to indemnity.
A seller should trigger Chapter 82 by providing written notice of the claim as soon
as possible so that it can be indemnified
for “losses” arising from a product liability action. “Loss” is statutorily defined as
court costs, expenses, attorney’s fees,
and any damages awarded by a judge or
jury against the seller. A seller also is able
to recover court costs, expenses, attorney’s fees, and any damages incurred by
the seller to enforce its right to indemnity under Chapter 82.
To avoid the obligation, a manufacturer
must secure a final judgment from the
judge or jury that the seller was independently liable for the injury or damage.
Anything short of that is useless. Chapter
82 provides several ways for the manufacturer (or plaintiff) to meet this burden.
These exceptions range from a seller (i)
participating in the product design to (ii)
altering or modifying the product to (iii)
exercising control over warnings or instructions with the product to (iv) providing express factual misrepresentations
about the product to (v) failing to disclose a known product defect. Given the
influx of foreign manufactured products
now sold and leased in the United States,
the manufacturer’s statutory escape for
indemnity based on a foreign manufacturer who is not subject to the court’s jurisdiction is a frequently used exemption
to seller immunity.
T
he Texas Building Branch of Associated General Contractors (TBBAGC) held its annual convention
Jun. 9-12 at Hyatt Regency Lost Pines Resort and Spa in Bastrop.
Twenty-one projects were given
Outstanding Construction Awards from
the annual competition. –cw
The 2013 winners by category and
chapter were:
Building 1 ($0 – 2 M)
St. John the Baptist Catholic Church
NM Contracting LLC (Rio Grande Valley)
Building 2 ($2 – 5 M)
AT&T Performing Arts Center Box Office
Pavilion and Marquees
McCarthy Building Companies Inc. (Texo)
Building 3 ($5 – 10 M)
Carter BloodCare Central Texas Operations, Linbeck Group LLC (Centex)
Building 4 ($10 – 30 M)
First Baptist Pasadena
Fretz Construction Company (Houston)
Building 5 ($30 - 75 M)
Baylor Research and Innovation Collaborative, The Beck Group (Centex)
Building 6 (over $ 75 M)
Piano Pavilion at the Kimbell Museum of
Art, The Beck Group (Texo)
Design Build 1 ($1 – 10M )
Houston Methodist San Jacinto Ambulatory Surgery Center, Linbeck Group LLC
(Houston)
Design Build 2 ($10 – 30 M)
Trader Joe’s Cold Storage Warehouse /
Distribution Center, Bob Moore Construction (Texo)
Design Build 3 (over $30 M)
Veterans Administration Austin Outpatient Clinic, Turner Construction Company (San Antonio)
Health Care 1 ($0 – 10M)
Specialty Operating Room
MEDCO Construction L.L.C. (Texo)
Health Care 2 ($10 – 30 M)
Victory Medical Center – San Antonio
Linbeck Group LLC (San Antonio)
Health Care 3 (over $30 M)
New Patient Bed Tower and Expansion
MEDCO Construction L.L.C. (Texo)
Historical Renovation (no limit)
Dichotomy Coffee & Spirits, Mazanec
Construction Company Inc. (Centex)
Interior Finish-Out 1 ($0 - 500 K)
American Bank - Downtown Branch
Wm. Taylor & Co. (Centex)
Interior Finish-Out 2 ($500 K – 2 M)
Stonebriar Country Club
T&G Constructors (Texo) (not pictured)
Interior Finish-Out 3 ($2 - 5 M)
The Green Mountain Energy Finish-Out
The Beck Group (Austin)
Interior Finish-Out 4 (over $5 M)
Reunion Tower Remodel
The Beck Group (Texo)
Industrial/Warehouse 1 (up to $5 M)
Baylor Energy Complex, Mazanec Construction Company Inc. (Centex)
Industrial/Warehouse 2 (over $5 M)
PECOFacet Marney Dunman Perry Jr.
Technology Center, SEDALCO INC. (Texo)
Residential Multi-Family
LoftVue, Centerpoint Builders (Texo)
Specialty Construction
JFK Tribute & General Worth Square
AUI Contractors (Texo)
Fretz Construction Company,
First Baptist Pasadena
Linbeck Group, Houston Methodist San
Jacinto Ambulatory Surgery Center
Sellers should hire attorneys well-versed
in Chapter 82 to:
• review and change, if necessary, seller websites, brochures, and manuals to
avoid the likelihood of an exception to
indemnity;
• pursue their indemnity rights against
manufacturers promptly and correctly;
fight against efforts to find independent
liability or other exceptions to indemnity;
negotiate with manufacturers to secure
different and/or additional indemnity
terms; and
• in the cases where full indemnity is
not secured, defend sellers against all
claims asserted against them.
When used correctly, Chapter 82 is a
powerful vehicle for equipment sellers,
lessors, and even contractors to avoid liability in product defect lawsuits.
Submitted to Construction News
Bowling, food and fun
Jason Wagner, a partner at Wagner Saenz
Dority, L.L.P., in Houston, provides litigation and consulting services to individuals
and businesses in the construction industry
throughout Texas. He can be reached at
(713) 554-8450 or at [email protected].
Heather Kelly, Dominion Air & Heat LLC, (right) and friends attended the
Women Contractors Association (WCA) and National Association of Minority
Contractors (NAMC) Bowling Member Mixer at Dave & Busters Jun. 26. –ab
Houston Construction News • Aug 2014
Page 7
the September 1st regulation changes.
After the 1st of September, the five-trout
limit will extend from the Rio Grande
River to the highway 457 bridge near
Sargent. These changes have stirred up
lots of controversy along the mid coast
fishing communities, stating that the
Texas Parks and Wildlife Department
had no data to back these changes, and
based on the results of their own gill
net surveys showed that there was no
shortage of trout from Port O’Connor to
Port Mansfield. Although TPWD did put
a five-year sunset date on the changes, I
doubt we will ever see them reverse the
changes.
Fishing hotter
in August
by Capt. Steve Schultz
Premier Yamaha Boating Center, Majek
Boats, E-Z Bel Construction, Power
Pole Shallow Water Anchor, Aggregate
Haulers, Interstate Batteries, Pure Fishing,
Mirr-O-Lure and Columbia Sportswear.
W
ell it’s August now in Texas
and that usually means it’s
HOT! It also means that it’s the
last month that anglers will be allowed
to keep a 10-trout possession before
In other changes to the saltwater fishing
regulations, the commission extended
the two-flounder per day bag limit
restrictions currently in effect for the
month of November, to include the first
two weeks of December. During these
first two weeks of December, however,
harvest would be allowed by any legal
means.
Getting on to fishing in the Upper Laguna
Madre area, the reports I’m getting
from local guides is fishing has gotten
consistent. Although we have had a few
days near the full moon where the bite
has been slow, overall it’s been reliable.
Last month I was able to get on the water
for a day just to get the cobb webs out
of the Majek and I was amazed to see
the great water conditions we have from
the JFK Causeway to the Landcut. It felt
really good to be on the water with my
two sons and brother, catching a few
trout for dinner, even though is was just
for a short time. By the looks of the water
conditions, we should have a banner fall
redfish run. Usually we start to see these
schools of reds in mid August through
the end of October. This is one of the
most exciting times during the fishing
season especially when you can get on
the schools and stay on them throughout
the day.
For those of you that are waiting for dove
season to come around, the San Antonio
Youth Center Charity Shoot will be held
on August 8th and 9th. This will be a great
time to sharpen your skills and get back
into the swing for wing shooting season.
This year will mark the 25th anniversary
for the event and it has been extended
into the two-day venue, which includes
a BBQ Cook-Off, fun games for the family,
and live entertainment along with a raffle
and live auction. I will be at the event and
look forward to see many of my friends
and clients there too.
The report from my last doctor visit is
to continue with physical therapy thru
September to loosen muscles in my foot
and leg. I am able to start putting weight
on my leg and my therapist says that this
will accelerate my healing. I can’t wait to
get back on the water when the doctor
gives me the ok, but until then, I will still
be booking trips thru other guides so
don’t hesitate to call with all your fishing
needs.
I can be reached at 361-813-3716, or
e-mail me at SteveSchultzOutdoors@
gmail.com. Good luck and Good Fishing.
Submitted to Construction News
Get sharp
Have an outdoor photo you’d like to share?
Send to:
[email protected]
or call Abby at 832-595-0091
Submitted to Construction News
On the run
Roger Pearce, from The Nut Place in Houston, spent a day fishing in Galveston.
He says this sharp-nosed shark was caught off East Beach on cut bait. –ab
HCSS employees took one last run with Steve Maliszewski (middle, in white)
before he left Texas to compete in the 135-mile Badwater Ultramarathon
in California that started in late July. The competition was limited to only 100 elite runners
from around the globe. Starting in the small town of Lone Pine, CA., at 3,727 ft. above sea
level, the race started with a 22-mile climb to 10,000 ft. and ended
at 8,360 ft. at the Whitney Portal, the trailhead to Mount Whitney. –ab
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]
U.S. Coast Guard &
Texas Parks and Wildlife Licensed
Page 8
Houston Construction News • Aug 2014
Ken Milam’s Fishing Line
Since 1981, Ken Milam has been guiding fishing trips for striped bass on Lake Buchanan in
the Texas Hill Country,. You can hear Ken on radio on Saturday and Sunday mornings, 6-8
AM on AM 1300, The Zone – Austin, or http://www.am1300the zone.com
What did you do
this summer?
Do you remember the first day of school
each year when you were a kid in school?
The inevitable “What did you do this
summer?” question would always get
asked and in keeping with the tradition
of campfire tales the tall stories would
follow. It was almost like we went
through summer vacation looking for the
best possible answer for that question.
After all, a great summer story was the
key to starting the year off right. It was
important to impress your buddies and
rivals and most of all, the teacher.
Even in adulthood I think we all still
keep that quest for the best vacation story in the back of our mind. Swapping
those stories makes having to go to work
on Monday morning just a little more tolerable. So what have you been doing???
I hope you have had the chance to
go fishing! It has been an unusual summer to say the least. In spite of the long
range forecasts trying to tell us to get
ready for a terrible hot and dry summer
like we endured in 2011, this summer
hasn’t been so bad. The 100 degree days
didn’t really get started until later this
summer. It is mid-July as I write this and
we never even saw 80 degrees today! I
know here on Lake Buchanan we were
still seeing good stringers of crappie
coming in a good two months later than
normal. There have also been reports
from several lakes that the female largemouth bass were still guarding their
nests in an unusually late spawn. We
have even seen a little more rain moving
through, at least enough to reassure us
that it can still rain. Little inflows of fresh
rainwater can do wonders for a summer
lake, keeping the water moving and cooling it down helps the fish keep moving
and biting. Here on Lake Buchanan we
are still bringing in good solid limits of
On 7/11/14 AM, Filmed an episode of “Hook, Line & Studdard” television show for the
Longhorn Network today, with Lifetime Longhorns
L-R: Annette Gardner with Lake Buchanan/Inks Lake C of C, Vince Young, Max Milam, Ken
Milam and Kasey Studdard.
stripers and hybrids.
If you still haven’t gone out and
found yourself a good summer story yet,
you still have time. Hire you a guide on
the lake of your choice and get in on this
summertime fishing. Book you an exotic
game hunt. Load the kids up and head to
the coast to sail in a pirate ship or go deep
sea or bay fishing. Go float down a cool
river or explore some of our excellent
Texas State Parks, they always have special events planned.
The main thing is to go do something before summer moves on into fall
and just leaves you feeling left out. You
still deserve to have some fun this summer! In just a few more weeks, school
starts; it will be dove season, then bow
season, deer season, football starts and
the Holidays start cranking up. Don’t let
summer get away from you. Don’t wake
up come November and realize you forgot to break out the flip flops and get in a
little sun time by the water when you had
the chance!
Here’s hoping you can find your own
summer bragging story soon!
Longhorn Trucking
Half or Full Day Fishing Trips
All Bait, Tackle & Equipment
Furnished
Your catch Filleted and
Bagged for You
Furnish your TPWD Fishing
License & Refreshments,
and WE DO THE REST!
Ken Milam Guide Service
(325) 379-2051
www.striperfever.com
Houston Construction News • Aug 2014
Fun on the water
S
pawGlass hosted the
second annual CJ Strnadel IV Memorial Fishing
Tournament May 30-31 in
Port O’Connor.
Fisherman tried their
luck from 36 boats during
the tournament. The event
included a silent and live raffle with Yeti coolers, weekend getaways and commemorative custom rods.
This year, the proceeds
went to an endowment
scholarship at Texas A&M
University
Construction
Science in CJ Strnadel’s
name. –ab
Page 9
Submitted to Construction News
Off the hook
L-R: Matt Elliott, Layton Muehr, Aaron Bradford, Melissa Wright
President Chris Fisher, Fisher Construction, caught this large Dorado
better known as “Mahi Mahi” off the coast of Ponce, Puerto Rico. –ab
Submitted to Construction News
Fine fishing
1st Place L-R: Kody Kmajstrla, Sledge Parker, Mike McKay, Donald McKay and Kelly McKay
Largest Trout: Tyler Carpenter, Mayur Sethi, Russell Rutledge and Mitchell Classen
L-R: Mid-West Electric Co.’s Mike Morgan, Garlon Evans
and Evans’ son enjoy an afternoon fishing in Galveston. –ab
Submitted to Construction News
Casting a line
Joe Ryan Mathis, The Mathis Group, caught a large trout in Galveston Bay.
He loves going fishing in the summer time. –ab
Page 10
Houston Construction News • Aug 2014
Learning to fly
Hurricane facts
P
resident and CEO Helen Hodges,
SSCI Environmental, Construction
and Consulting Services (SSCI) has
a passion for birding in her free time.
With more than 25 years of birding
and species study experience, Hodges
has been part of ornithological studies in
Panama, Peru and Costa Rica, as well as
the East Coast and Florida in the United
States.
“I regularly participate in Texas bird
counts,” Hodges said. “I am also on the
Foundation Board of Armand Bayou Nature Center, a 2,500-acre nature preserve
which includes wetlands, uplands, forests and grassland ecosystems.”
Hodges was recently appointed by
the Massachusetts Audubon Society to
participate in a 12-member study team in
Cuba to identify and count bird species
throughout the country.
Hodges leads SSCI in Houston with
David Klebieko, vice president. Victoria
Berger is an environmental scientist and
Kirstin McNeill is the marketing coordinator.
“We are a licensed engineering firm
capable of seeing a project through the
completion of construction,” she said.
“Over the years, we have worked on design-build projects with both public and
private sector and we have managed and
aided in several renovation and demolition projects.”
Site development projects the company has been involved with include
North Shepherd Parcels, Webster Commercial Park Development, Amateur Athletic Facilities in League City and TCEQ
Region III Brownfield Assessments, she
said.
Founded in 1986, SSCI provides environmental consulting, construction and
field remediation. –ab
 Location
 Location
Austin
 Location
 Location San Antonio
 Location
Publishing the Industry’s News . . .
TEXAS Style
Dallas/Fort. Worth
Houston
South Texas
Home Office
(210) 308-5800
www.constructionnews.net
Hiding under a lace curtain, like editor Cyndi Wright’s 80lb black lab Little Anne,
will not save you from a hurricane. Little Anne is terrified of thunder.
W
ith hurricane season upon us,
it’s important to know the truth
about these dangerous storms.
Here are some helpful “truths” about hurricanes from the National Weather Service (NWS):
Myth: Only coastal areas are at risk of
hurricanes.
Fact: Strong winds, heavy rain and flooding can spread inland hundreds of miles
from the coast, devastating homes and
properties.
Myth: Slightly opening the windows
during a hurricane equalizes the pressure
inside your home, preventing the roof
from collapsing or exploding.
Fact: No home is airtight, so the pressure
inside will equalize on its own. Opening
windows only provides a way for rain and
debris to enter the home.
Myth: Taping windows with duct tape
will prevent them from breaking or shattering.
Fact: Tape will not prevent debris from
shattering windows. It will only make the
glass fall in large chunks rather than small
shards, which is even more dangerous.
The best means of protection is boarding
up windows or installing hurricane shutters.
Myth: The weather doesn’t look bad, so
there’s no need to evacuate until the
storm hits.
Fact: If told to evacuate, leave immediately. Waiting for the storm to hit before
leaving is inviting unnecessary danger,
and it could leave you stranded in your
home in the middle of the storm. Have an
evacuation plan and destination in place,
and follow it immediately when alerted.
The NWS reports that there have
been very few hurricane-related deaths
over the past five years – 16 from 2009
through 2013. By understanding the
truth about hurricanes, you can stay safe
from these storms and help make sure
that statistic stays low. –cw
Gaining a new perspective
TACA members say the Pledge of Allegiance.
T
exas aggregate, concrete and cement industry professionals attended the Texas Aggregates & Concrete
Association (TACA) 60th annual meeting
at Four Seasons Las Colinas in Irving, TX
in June.
The event featured a combination of
informative sessions, activities, networking opportunities and more. –ab
Photos by Tim Mummey, Holcim Inc.
Joel Galassini, Capitol Aggregates, Inc., gives
a report on the latest sustainability trends.
Greg Hughes, Cummins Southern Plains, LLC
discusses transportation.
Pat Strader, CEMEX
Houston Construction News • Aug 2014
Page 11
Service Providers
Construction in a digital era
Steve McGough, Chief Operating Officer
HCSS
Sugar Land, TX
W
hat does it take to be a successful in your industry, Steve?
To be successful in construction today you have to have
firm control on your daily job cost and have an organization that believes that safety is priority one.
With margins on jobs razor thin, it's
imperative that you know your job costs
daily and make adjustments as needed to
get back on track.
Providing a safe work environment
with a progressive safety program benefits all stakeholders.
To be successful you must manage
your safety program with the same rigor
and intensity that you put into the rest of
your business.
In your opinion, what are a few challenges in your industry in recent years?
The biggest challenge facing Texas
and the nation is the lack of a long-term
surface transportation program.
The Highway Trust Fund used to pay
for our roads and bridges is insolvent.
There has been no increase in the gas tax
since 1993 and its not indexed for inflation.
With vehicles becoming increasingly more
fuel-efficient, the math doesn't work.
There has to be a new dedicated revenue
source or an increase to the gas tax.
Passing long-term transportation
legislation allows states to better forecast, plan, fund and build the infrastructure projects we need.
What is your opinion about the current state of the construction indus-
try?
While the rest of the nation struggles
to get back on its feet, Texas is a shining
star.
The commercial real estate market is
red hot with tower cranes up all over the
city, making way for new and expanding
businesses.
Single-family homes are moving
very quickly as builders struggle to keep
up with demand. Given the friendly business environment of the state, I believe
Texas will be the place to be in construction for the next decade and beyond.
What are the major changes in recent
years relating to the type of work you
do?
Mobile applications for tablets and
smart phones are changing the way we
do business. The key is to keep the information relevant and useful to the end
user.
Another major change is the immense amount of job site data that needs
to be collected and organized to help
contractor's be able to respond to owner
requests, government regulations, and
frivolous lawsuits.
Early efforts from some contractors
to digitize this centered on scanning paper. However, that puts them at a serious
disadvantage to the contractors who go
completely electronic to begin with, using computers, tablets and phones to
collect and organize the data right from
the start.
What is rewarding about working in
your industry?
The most rewarding part of construction is seeing the finished product.
Regardless of whether you were part
of the group that designed, estimated,
built or inspected the project, ultimately
there is a bridge, road or building that
you can show to others with a sense of
pride and accomplishment.
What do you think is on the horizon
for your industry?
Mobile technology will be pushed
past the foreman level and into the hands
of everyone.
Tablets and smart phones will allow
everyone on a project to report safety issues, see where they are supposed to be
tomorrow, what trucks they should be
expecting and a whole host of other job
related items within a few clicks. –ab
Consider the rental option
Tom Hubbell, Vice President of Marketing and
Communications
American Rental Association
Moline, IL
T
otal equipment rental revenue growth in North
America continued to more than triple the growth of
the general economy with a 6 percent gain in the first
quarter of 2014, according to the latest American Rental Association (ARA) forecast
from the ARA Rental Market Monitor.
The forecast projects total equipment
rental revenue in North America to grow
7.5 percent in 2014 to reach $40.8 billion,
10.4 percent in 2015 to reach $45 billion
and another 9.3 percent in 2016 to $49.2
billion. The growth rate is expected to be
7.7 percent in 2017 and 7.2 percent in 2018,
with total revenue of $56.8 billion.
In the U.S. alone, total rental revenue
in 2014 is forecast to reach $35.9 billion,
up 7.7 percent, led by an 8.2 percent increase in construction and industrial
rental revenue and a 7.3 percent increase
in general tool revenue.
Both those segments are expected
to hit double-digit growth in the U.S. in
2015 with construction and industrial revenue projected to increase 11.0 percent
and general tool 13.2 percent, and again
in 2016 with increases of 10.0 percent and
11.4 percent, respectively, with high single-digit growth expected in 2017 and
2018.
Whether 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
through 2018.
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 business 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
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 nearly 9,000
rental businesses and nearly 1,000 manufacturers and suppliers. –cw
NEXT MONTH
September 2014
Support Your Industry’s Feature Issue
Green Building Trends
2014
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 • Houston
Dallas/Fort Worth
South Texas
July:Electrical Industry
Aug:Service Providers
Sep: Green Building Trends
(210) 308-5800
Oct: Specialty Contractors
Nov: Architecture & Engineering
Dec: Construction Equipment
Page 12
Houston Construction News • Aug 2014
South bound
F
ire sprinkler contractors from
around the state gathered at the
Skins & Fins event Jun. 12-14 at
South Shore Harbour Resort & Conference Center in League City, TX.
The Fire Sprinkler Contractors Association of Texas (FSCATX) held the event.
Carol McCain, FSCATX executive director, says fire sprinkler contractors had
a great weekend participating in a shotgun start golf tournament, a bay fishing
tournament, continuing education classes and a vendors table top show.
Classes included “Understanding
Killer Contract Language” presented by
Buddy Dewar, National Fire Sprinkler
Association; “Pre-Action Systems & Corrosion Resistance” presented by Alan
Larson, Reliable Automatic Sprinkler
Co.; “Residential Sprinkler Head Design/
Good eats
Corrosion Resistant Coatings for Sprinklers” presented by Martin Workman,
Viking Supplynet; “Foam and the Environment” presented by Skip Westbrook, Chemguard; “Sammy Standard
Application” presented by Jim Mathis,
ITW Buildex and “Fire Pump Basics” presented by Bob Head, Ferguson Fire Engineered Products. –ab
Golf Tournament winners:
Ist Place: Luke Morrow, M. McDuff, S. Cain
and J. Warner
2nd Place: Derick Wickersham, J. Open, T.
Landry and M. Landry
Dead Ass Last: C. Ivey, K. Rohrs, B. Head
and E. Gill
Long Drive: Conner Carberry
Closest to Pin: Sean Cain
Longest Putt: Eric Gill
L-R: Commissioner Jack Morman, Wayne Ahrens, Jeremy Phillips and John Saavedra
H
ouston area civil, mechanical and
electrical engineers attended an
annual barbecue fundraiser at the
Northeast Harris County Community
Center May 29.
Senior associate Megan Siercks, PE,
Walter P. Moore, says Commissioner Jack
Morman spoke at the fundraiser. Proceeds will benefit educational programs
and college scholarships.
The Texas Society of Professional Engineers Houston Chapter (TSPE) hosted
the event. –ab
Local engineers enjoy a plate of barbecue.
Round-Up
HOLT CAT recently
named
Elaine
Hicks as senior vice
president and chief
information officer.
In her new role,
Hicks will be responsible for strategically leveraging
information technology to achieve business goals. Previously Hicks served as senior director of
information technologies. Prior to joining
HOLT CAT, she served as director of information services for C.H. Guenther & Son
Inc. Hicks received a Bachelor of Science
in Economics from Texas A&M University. James C. Helm II, AIA, LEED AP BD+C,
joins m ARCHITECTS as an associate principal. Helm brings more than 20 years of
experience in education, commercial,
recreation, industrial, hospitality and institutional building types. Over the past
four years, he served as senior project
manager on K-12 and higher education
projects, including 5 LEED Silver projects.
He is a graduate of Texas Tech University
with a Bachelor of Architecture.
Sara C. Patton has also joined the
firm as architectural intern. Patton graduated from the University of Southern
California with a Bachelor of Architecture. Since 2006, she has worked summers in New Haven and Houston.
Bob Devillier, PE,
has joined LJA Engineering Inc. as a
senior project manager in the land development division.
Devillier
brings
more than 27 years
of experience in design engineering,
project management and client relationship development. He will be responsible
for the design of water distribution,
wastewater and storm water collection,
and storm water detention systems, as
well as paving and grading design. He
will also work closely with clients and
project teams throughout project progress. Devillier graduated from Lamar University with a B.S. degree in Civil Engineering.
JE Dunn Construction Co. has hired
Emre Ozcan as the
new Houston office
leader. His past 17
years of experience
have been in the
Houston construction market, focusing on development
and execution of healthcare, biopharmaceutical and commercial projects across
the country. After graduating from the
Middle East Technical University in Turkey, Ozcan worked at his family’s construction firm in Ankara for several years
before receiving his B.S. in Civil Engineering and master’s degree in Construction
Management from Northeastern University. He received his MBA degree from
Boston College.
AMEC has appointed Jeff Reilly as
group president of
strategy and business development.
He will be a member of the AMEC
group
management team, reporting to chief executive Samir Brikho, and will be based in
Houston. Reilly has a B.S. degree in
Chemical Engineering from the University of Texas at Austin and an MBA in Finance and International Business from
the University of Houston.
Submissions
This is a section for brief company
announcements of new or recently
promoted personnel, free of charge
as space allows.
––––––––––––––––––––––––––––––
Email with “Round-Up” in the subject
line (w/digital photo, if available)
by the 15th of any month, for the
next month’s issue to:
[email protected]
Houston Construction News • Aug 2014
Page 13
Mechanical family affair
T
he Mechanical Contractors Associations (MCA) of Texas held the annual MCAT Conference & Products
Show Jul. 9-13 at Hyatt Regency Hill
Country Resort & Spa in San Antonio.
“Our philosophy is [that this is] a
business derived of contracts and contracts are built on relationships,” explains
Glenn Rex, executive vice president of
MCAT. “So, we try to do a relationship
building and networking opportunity for
everybody that participates in our end of
the marketplace.”
He emphasizes that those relationships include the contractors’ or vendors’
families, too.
“This is very much a family-oriented
business and most of the contractors that
are here are second- and third-generations in their family businesses,” he adds.
“They remember coming to these conferences as children with their parents. So,
we’ve always tried to stress the summer
vacation aspect and to make sure that we
give it to them in a location where it encourages them to bring their families.”
With 35 exhibitors and sponsors this
year, Rex believes this year’s conference is
the largest product show in this industry
in this part of the country.
As a vice president attending from
corporate for Morrison Supply Company, Jack McKendrick is one of those exhibitors, and he observes that this is the
biggest MCAT conference yet as far as the
exhibitions go.
“The summer conference is a family
event,” says McKendrick. “So, it gives us an
opportunity to meet wives and children
and to bond that way, and we’ve done it
for a long time. I feel like I know most everybody’s family here. It just gives us a different platform to discuss business.”
This year’s conference featured several social events for the contractors, exhibitors and families, including a dessert
party, breakfast buffet, casino night and
golf tournament. –mh
Milwaukee
Morrison Supply
Consolidated Crane and Rigging
Anvil International
All-American Rigging Company
Pepco Sales & Marketing
Marking Services Incorporated
Kitz
continued from Page 1 — Like father, like son
meet like you want to be treated,” he said.
Living close to the Gulf Coast, Wendel likes to spend time at the beach and
at the fishing piers in Galveston when he
has the opportunity.
“My dad and I used to go fishing all
the time,” be said. “Since the business is
open six days a week, I am limited to what
I can do on my off days. I like to go fishing
when I can. I’d like to retire in about five
years and then I will go more often!”
Wendel’s Tool Rental rents tools and
equipment to contractors and homeowners. The company also offers U-Haul rental
trucks and trailers. –ab
Submitted to Construction News
Mix and mingle
continued from Page 1 — The sky’s the limit
where. I love it. Nowadays, I play the bass
guitar in a band called “Braid.”
Looking ahead, Brooks says he looks
forward to continue leading the Tomball
location and he’d like to eventually retire
one day.
Professional Welding Supply sells welding supplies and steel. The company also
has a location in Houston. –ab
A Happy Hour event for the Gulf Coast Green Symposium and Expo, a green
building conference presented by the American Institute of Architects Houston
Chapter (AIA), took place at Mongoose Versus Cobra in late June. –ab
Mike Brooks and the sales team
will exceed their sales goal in 2014.
continued from Page 1 — Class in session
ished to the perimeter walls, which were
saved for historical features.
“The pool was filled in and replaced
by classrooms and offices. The gym and
its original wooden floor were also restored.”
Some new elements were introduced too: Six 5,000-lb. beams were installed, an elevator tower and four stair
towers were added to the rear of the
building.
“One of the biggest challenges we
faced during the project was the building
has settled over the years,” Chandler said.
“We measured an elevation and then
went to the other end of the floor, and
there was a two-inch difference.”
Skanska provides construction services
for healthcare, higher education and government projects. –ab
Page 14
Houston Construction News • Aug 2014
Stepping up
Performance Contractors Inc.
Structure Tone Southwest Inc.
T
he Associated Builders and Contractors Greater Houston (ABC) presented the Safety Training and Evaluation Process (STEP) awards at the ABC
Membership Breakfast in July.
Forty-five contractor member companies participated in STEP, including 31
Diamond and Platinum level recipients,
the highest of the program’s accolades.
The breakfast also featured an expert safety panel to discuss current issues and trends in the construction industry concerning employee safety and
risk assessment. –ab
Congrats to the winners!
Platinum Award Level:
Aggregate Technologies Inc.
Burrow Global Services LLC
CB&I
Craig & Heidt Inc.
Enterprise Commercial Paving Inc.
Evergreen Industrial Services
Griesenbeck Architectural Products Inc.
Haley-Greer Inc.
Karsten Interior Services
MB Western Industrial Contracting Co.
RUS Industrial LLC
SpawGlass Construction Corporation
Structure Tone Southwest Inc.
TDIndustries
Teal Construction Company
Silver Award Level:
Oxford Builders Inc.
Gold Award Level:
Craig & Heidt Inc.
Force Corporation
Performance Electric LP
Ref-Chem LP
Slack & Co. Contracting Inc.
The Gonzalez Group
Trio Electric
Turner Industries Group LLC
Diamond Award Level:
Brock Services Ltd.
Burton Construction
Cherry Demolition Inc.
D.E. Harvey Builders Inc.
E.E. Reed Construction LP
Fast Track Specialties LP
Holes Incorporated
ISC Constructors LLC
Jamail & Smith Construction
JAMCO Inc.
KBR
L-Con, Inc. Engineers and Constructors
Miken Specialties Ltd.
PCL Industrial Construction Co.
Performance Contractors Inc.
S&B Engineers and Constructors Ltd.
Saulsbury Industries
Skanska USA Building Inc.
STARCON International Inc.
Tetra Tech
The Mundy Companies
TNT Crane and Rigging Inc.
W.T. Byler Co.
Raising safety awareness
Fast Track Specialties LP
W.T. Byler Co.
Haley-Greer Inc.
M
Pieper Houston Electric LP
ABC
IEC
Associated Builders & Contractors
Independent Electrical Contractors
Aug. 4: Casino Night: Shotgun Willie Celebration
Aug. 7: EIC How to Submit Seminar
Aug. 11: Breakfast
Aug. 15: Open House
For more information call 713-523-6222
Aug. 4: MC PLCs, 6-9pm, Members $400/
Non-Members $475
Aug. 2: Electrical License Renewal Class,
8am-noon
Aug. 4: Electrical License Renewal Class,
6pm-10pm
Aug. 14: Motor Controls Class – Level 1,
6-9pm, Members $400/Non-Members $475
Aug. 16: Electrical License Renewal Class,
8am-noon
Aug. 20: Monthly meeting
Aug. 21: Electrical License Renewal Class,
9am-1pm
Aug. 27: Electrical License Renewal Class,
6pm-10pm
For more information call 713-869-1976
AGC
Aug. 5-6: Project manager Development
Program Module 1: Estimating/Job Costing
Aug. 5-8: OSHA 501-Trainer Course
Aug. 7: 1st Thursday Member Mixer
Aug. 8: CLC Golf Tournament
Aug. 12: OSHA 2045 – Machinery and
Machine Guarding Standards
Aug. 19: Raising Safety Awareness
Aug. 19-22: OSHA 510 – Standards for
the Construction Industry
Aug. 19-22: MC 101 – Management System Design – Session 2
Aug. 20: Raising Safety Awareness (Spanish)
Aug. 26: OSHA 3015 – Excavation,
Trenching & Soil Mechanics
For more information call 713-843-3700
NECA
National Electrical Contractor Assn.
Aug. 7: Coastal Sabine Division meeting
Aug. 12: Houston JATC meeting
Aug. 19-21: Southern Region Managers
Conference
Aug. 26: Houston Division meeting
For more information call 713-977-2522
AIA
NAWIC
American Institute of Architects
Nat’l Assn. of Women in Construction
Aug. 2: RDA Design Charrette
Aug. 16: Architecture Merit Badge Workshop
Aug. 21: Full Day CE Opportunity
Aug. 22-23: 2014 ArCH Film Festival
For more information call 713-520-0155
ASA
American Subcontractors Association
Aug. 5: Small Business Peer Group, 10am
Aug. 6: Membership Committee mtg 9am
Aug. 7: Associate Member Peer Group, 2pm
Aug. 13: Board of Directors meeting,
9am and Schmooze & Mingle, 4pm
Aug. 21: BPI Session, 11am and General
Lunch meeting, 11:30am
Aug. 22: 40th Anniversary Party, 7pm
Aug. 26: Safety Committee mtg, 10am
Aug. 26: TCA PAC Clay Shoot, 6pm
For more information call 281- 679-1877
Slack & Co. Contracting Inc.
Burrow Global Services LLC
Association Calendar
Associated General Contractors
eeting at jobsites throughout the city, American Subcontractors Association
Houston Chapter (ASA) members participated in OSHA’s National Fall Prevention Stand-Down week in June. The Safety Stand-Down is a voluntary event
for employers to talk directly to employees about fall hazards and to reinforce the importance of fall protection. –ab
MB Western Industrial Contracting Co.
Aug. 27: Top Golf Tournament
For more info: www.nawic-houston.org
MCA
Mechanical Contractors Assn. of Houston
Aug. 13: Membership meeting, 11:45am,
The HESS Club
For more information call 281-440-4380
PHCC
Plumbing-Heating-Cooling Contractors
Aug. 13: Membership Lunch, Saltgrass
For more info: www.gulfcoastphcc.org
TSPE
Texas Society of Professional Engineers
Aug. 12: August meeting, The HESS Club
For more info: www.tspehouston.org
WCA
FPA
Women Contractors Association
Foundation Performance Assoc.
Aug. 7: Networking Luncheon: Building
a Nimble Company, 11:30am, Grotto,
4715 Westheimer, For info: 713 807-9977
Aug. 13: Presentation, 5pm
For info: www.foundationperformance.org
Houston Construction News • Aug 2014
Page 15
Submitted to Construction News
Submitted to Construction News
All smiles
Future is so bright
A ribbon cutting took place at the Cy-Fair Chamber of Commerce
for the recently completed Universal Smiles project Jun. 24.
HM General Contractors was the GC. –ab
Congratulations to the Independent Electrical Contractors Texas Gulf Coast
Chapter (IEC) graduating class of 2014. A graduation ceremony was held at the
Crowne Plaza Houston in mid July. –ab
Job Sights
Industry FOLKS
Larry Melancon
Salesman
Stoneco Inc.
O
riginally from Lafayette, LA, Larry
Melancon moved to Texas a year
ago to work with his uncle at Stoneco
in Manvel, TX.
“I loved spending lots of time in
the country,” Melancon said. “Lafayette
was a great place to grow up. “When
my uncle presented me the opportunity to work at Stoneco, I jumped on it
and never looked back. He has taught
me so much about the stone business.”
Melancon’s uncle can now take
some time off if he wants.
“I have grown so much as a person
over the past year,” Melancon says. “I
am now able to handle the business, so
he doesn’t have to worry if he went out
of town for a few days. It has been a
process. We all have to start at the bottom and work our way up.”
Melancon does a little bit of everything at the company these days, including sales, driving and maintaining
the office.
“I also answer the phone, but I really like to be face to face with the customer so I can show him or her in detail
what they are purchasing,” he said.
Melancon says the best part about
working at the company is having the
satisfaction of getting the job done every day.
“I really enjoy living and working in
Texas,” he said. “The only thing I don’t
like is the heat. Everything else is awesome. I like the people and the culture
here.”
Melancon says if a young person
wants to be a salesman in the stone
business, his advice is to follow their
dreams and work hard.
“When I am not working, I love
working with horses, going on trail
rides, cooking, pencil drawing and listening to Zydeco music,” he said. “I can
also play the guitar, drums and accordion.”
His uncle’s daughter, Erica Honore,
is currently teaching him how to play
the guitar.
“She is a great guitar player and
singer,” he says. “Every now and then,
she will sing at local venues.”
In the future, Melancon says he
looks forward to continuing working
with his uncle at Stoneco and learning
as much as he can about the stone
business. –ab
The Keystone Concrete crew does concrete work at the Gulf Coast Educators project
on Broadway Street in Pearland, TX. –ab
The Hoar Construction crew reglazes windows
at the Greenway Plaza office complex in Houston. –ab
Submitted to Construction News
Sharing knowledge
Representatives from Cherry Demolition in Houston talked with a Texas A&M
University construction science student about careers in the demolition industry
in May. They discussed the latest demolition and recycling techniques. –ab
Page 16
R
Houston Construction News • Aug 2014
Building relationships
ogers-O’Brien has been active in
the Houston area for a decade,
building healthcare, assisted living
and renovation projects. The company
also has offices in Dallas and Austin. Now,
the company has opened a Houston office on Richmond Avenue and regional
vice president Gregg Lynch will lead the
office.
“In Gregg we found the right person
to achieve our long-term expansion strategy of serving all Texas regions,” said
Preston McAfee, president and CEO. “He
is also highly respected among his peers.”
The Houston team includes Lynch,
Gray McCracken, preconstruction manager; Scott Kittrell, project manager;
Wilfred Mensah, assistant project manager; Zulema Granie, executive administrative assistant; and Mitch Kennedy,
project superintendent.
“Our goal for the future is to build a
Houston team of motivated individuals
to expand construction operations,”
Lynch said. “We want to continue to
build long-lasting relationships with the
communities we serve.”
Houston-area
projects
Roger’s
O’Brien has worked on include Magnolia
Heights Assisted Living & Memory Care
in Spring and Kindred Rehabilitation Hospital in Humble. A project currently under construction in the area is Oceans
Behavioral Hospital in Katy.
Submitted to Construction News
Making an impact
Gregg Lynch has 27 years of experience
managing teams.
Rogers O’Brien employees participate in annual events such as a family
Christmas brunch, 5K race events and the
CANstruction competition.
In addition, the company has holiday-themed activities throughout the
year, such as red white and blue day, a
chili cookoff, an ice cream social, Mother’s day, team spirit day, Father’s Day, a
bakeoff and Mardis Gras.
Established in 1969, Rogers-O’Brien is a
general contractor and provides preconstruction and construction management
services. –ab
A construction groundbreaking ceremony was held at the Chevron
Phillips Chemical Company LP U.S. Gulf Coast (USGC) Petrochemicals project
in June. The engineering, procurement and construction is being executed
through Gulf Coast Partners, a partnership between
Technip USA Inc. and Zachry Industrial. –ab
Submitted to Construction News
Soccer fans unite
Construction News ON LOCATION
Cool and collected
The Kirksey Architecture team cheered for the USA Men's
National Team during the World Cup. –ab
Submitted to Construction News
Top notch golf
L-R: Adon Garcia and Kevin Mohammadian, Master Air, get ready to go to an installation job in Pearland, TX. The company does air conditioning and heating. –ab
The Associated Builders and Contractors Greater Houston Chapter (ABC) held a
TopGolf Tournament at TopGolf Houston North Jul 17. Hundreds of construction
professionals and golf enthusiasts attended the event. –ab
Construction News ON LOCATION
Electric times
L-R: Theo Crawford, Mike Kelly, Fred Tristan and Mike Bauman take
care of inside sales at the Elliott Electric Supply Tomball location. –ab