austin construction news january 2015

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The family of John Krog Sr. and his wife, Joan, along with their young-est son, Karl, began the business

adventure of owning a contractor supply store in Orange, TX. In 2001, John and Joan moved to Lib-erty Hill, TX. Karl remained in Orange, and Marty Belt, who was working as the sheriff’s administrative assistant, began helping Karl with the business as needed. Belt said the Krogs were approached about buying a 10-year-old contractor tool store, Applied Tool and Supply, serv-ing the Austin area. “In Nov. 2004, they completed the acquisition of Applied Tool and Supply, Belt said. “Karl and I moved to Austin in Jan. 2006 and I began working in the business full time.”

After Applied Tool and Supply out-grew its facility, the Krog family pur-chased a larger building on Saint Elmo Road and moved there in 2006. In Jan. 2010, Applied Tool and Supply was changed from a limited partnership to a limited liability company, and be-came Circle K Texas Enterprises, LLC, op-erating under the dba of Applied Tool & Fastener. The company changed its name to Mar-teK Contractor Supply LLC in 2014 and occupies the same building today. “John and Joan wanted to remaining active in the business, but desired the freedom to spend more time with their grandchildren, great-grandchildren and

L-R: Randy Wymore, Craig Carpenter, Theo McHenry, Isaac Edwards and Angelo Navarro

Every structure has a story to tell and so it is with the historic Rabb House on Brushy Creek.

Donated to the City of Round Rock in the late 1980s by Virgil and Nancy Rabb, the walls gave audience to weddings, re-ceptions, family reunions, birthday par-ties, seminars, corporate and social gath-erings and community events. After more than 30 years of celebra-tions and happenings, and after endur-ing extensive damage from an over-whelming flood in 2010, John King Con-struction Ltd. and KAH Architecture teamed with the City of Round Rock to give new life to the beloved house. Nestled in a heavily wooded tract along Brushy Creek at 2109 E. Palm Valley Blvd., this redevelopment project includ-ed a complete rebuild of the original fa-cility and outdoor areas directly adjacent to the home.

Giving homage to the scale, aesthet-ics and character of the original Rabb House, the new 3,700-sf facility provides an updated layout and design that mar-ries history with modern convenience. The project manager and project su-perintendent was J.D. King, John King Construction. “The new split-level design keeps the main floor of the facility above flood plain and creates usable, inviting outside space,” King said. “A large entry vestibule greets guests upon entering providing ample space to meet and greet. Folding doors opening the entire back of the facility to views of Brushy Creek provide flexible entertainment op-tions and connect directly to the outdoor amphitheater. Patios and balcony areas surround the remainder of the building.

The Rabb House

Baldomar Hernandez has learned all he knows about the paving business from his father, Jesus,

owner of A & J Paving LLC. “The most important thing my father has taught me is how to work hard,” Her-nandez said. “My father works alongside the crews all the time. I look up to him.” Hernandez says his father estab-lished A & J Paving three years ago after working at a local paving and concrete company for 20 years. Jesus Hernandez always wanted to start his own company one day and eventually decided to go for it. “I have worked with my father the entire time,” Hernandez said. “I get out to jobsites on a daily basis and also han-

Baldomar Hernandez is happy to work with his family.

dle the paper work and estimating. I do anything I can to help the company grow.” Over the past three years, A & J Pav-ing has had more commercial jobs and added more employees. “Most of our crew are family mem-bers,” he said. “I am grateful I have the opportunity to work with my father, brothers and uncles. It is nice to be around my family every day. We help each other out. “Whenever we complete a large job, we celebrate by having a cookout at one of our houses.” When Hernandez has free time on

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Harvey-Cleary Builders hosted a Christmas breakfast at the Renais-sance Austin Hotel in the Arbore-

tum Dec. 19. Daniel Kieschnick won the Super-intendent of the Year Award and several employees received 10 Year Service Awards during the event. Harvey-Cleary Builders is a general contracting company. –ab

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L-R: Joe Cleary, president; Doug Losey, vice president and Daniel Kieschnick,

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The Austin Construction News (ISSN 1547-7649) is published monthly, by Construction News Ltd., dba Austin Construction News, and distributed by mail to selected construction-related companies in Austin 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 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.

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Administration. . . . . . . . . . . . . . Kevin Hughes OF AUSTIN, L.L.C.ALL YOU NEED TO KNOW ABOUT FIRE PROTECTION

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TruFast Construction Fastening Solutions southwest regional manager JohnDoan (Austin office) and southwest region technical/salesman Bradley Wilson

(Georgetown office) attended the Midwest Roofing Contractors Association (MRCA)65th annual conference in Grapevine in December. –ab

Fasten upSubmitted to Construction News

On Feb. 1, Construction News will be launching a brand new version of its website at construc-

tionnnews.net. “We are delighted to be able to up-grade our site for our readers and cus-tomers,” said Buddy Doebbler, publish-er of Construction News. “Additionally, we will bring in new readers from around the state and nation.” Construction News, with five papers in Texas’ growing areas, now enters a new age, taking advantage of technolo-gy to bring the content its readers have come to expect to the web. “The staff at Construction News has spent many months working on the new site,” Doebbler said. “What is really excit-ing about this is that now we can bring

our readers some of the late-breaking news as it happens. And while you will still look forward to receiving your Con-struction News monthly in order to get all the full news and advertising it contains, you can now expect to find photos and information quickly from the events we cover, as well as much more.” One thing the editors of the five pa-pers will accomplish is to bring news from home to those who may be far from their homes, such as military men and women. “We encourage our readers to check out our new web site. Please let us know what you think,” Doebbler said. “We will continue to work to upgrade the site to make it a better viewing experience for our readers, so your comments and sug-gestions are always welcome.” –cw

‘Web’-site construction

New Year’s transitions at HOLT

The New Year brought tremen-dous change to

HOLT CAT. One of the pillars of the company, Allyn Archer, presi-dent and COO, retired Dec. 31. Dave Harris, executive vice presi-dent and general man-ager of HOLT CAT, has transitioned into his role at company head-quarters. Archer started with HOLT in April 1971 on the shop floor as a mechanic, working his way up through the company. In 1987, the same year he became general manager of B.D. Holt Company, the company merged with Holt Machin-ery in San Antonio. After 28 years as president, Archer counts several highlights in his tenure, in-cluding the creation of HOLT’s Vision Mis-sion and Values that continue to guide the organization today. Since ’87, the company has grown from one of the smallest Caterpillar dealers to the largest Caterpillar dealer in the U.S. representing 118 counties in Texas. At 68, Archer plans to get more in-volved running his family ranching and farming business in Uvalde County, fish more at the coast, and spend more time with his three grandchildren. “I’m leaving it in the worthy hands of Dave Harris, my successor,” says Archer. “We have set the foundation for much growth in the future at his direction, and

For Howard Hicks, the New Year

brings a major life change with his re-tirement from HOLT CAT as the equipment deal-er’s vice president of public affairs of-ficial as of Dec. 31, 2014. For Jim Campbell, the New Year finds him transitioning into HOLT CAT as senior director of public affairs. Having earned his master’s degree in agricultural eco-nomics from Texas A&M University, Hicks, now 68, began his 38-year career at HOLT in May 1976. In re-tirement, he plans to be more involved in his church’s ministry, work on more proj-ects at his family’s ranch in the Hill Coun-try, and spend more time with his wife of 45 years, Helen, and their three children and six grandchildren. “While I’m still in good health, I want to do some different things,” says Hicks. “It’s been a great career. I love the com-pany. I love the people, but I don’t know how many years I’ve got left, so I thought I better take advantage of whatever time that is. To me, it’s more of a career change than it is a retirement. I don’t plan to slow down much. I just plan to devote my en-ergy to other things.” In the last few months of 2014, Camp-bell made his own career change joining

I’m very proud of that.” With the company since 1997, Harris started as regional manager at Peter Holt’s former dealership, Holt Ohio. In 1998, he came to Texas as general man-ager of the Machine Division, and three years ago, he was promoted to executive vice president and general manager. “I will continue to use our values as the basis for additional and stable growth going into the future,” says Harris, noting that a big job in the next few years will be continuing the transition to the fifth gen-eration Holts, Corinna Holt Richter and Peter John Holt, taking over as dealer principals. “Allyn has been a wonderful coach and mentor to me through the years, and that will serve me well as I take on his re-sponsibilities for a few years.” –mh

Archer stepping down after 43 years Hicks turns reins over to Campbell

HOLT. His previous role was consulting for public relations and marketing firm the DeBerry Group, and he had done consulting work for HOLT under contract with Hicks. He is excited to return to a public affairs role as he once held with the City of San Antonio and CPS Energy. Also an Aggie, Campbell holds a bache-lor’s degree in political science and en-joys being “one of those rare people that’s actually doing what I was trained for in liberal arts.” Campbell is already undergoing a sort of orientation program, meeting with 60 different individuals and familiar-izing himself with them and their roles at HOLT. He says this helps him better un-derstand the company and industry as well as build a rapport with people he will need to work with to be successful. –mh

L-R: Allyn Archer, president and COO of HOLT CAT, retired at the end of 2014 and passed the job on to his successor, Dave Harris,

who has previously served as executive vice president and general manager.

L-R: Howard Hicks, HOLT veteran team member, has now retired, and Jim Campbell is transitioning into his new position at the company’s

San Antonio headquarters.


Marie McGrathCEO

Demand Lighting

Working in the LED lighting busi-ness is exciting to Marie Mc-Grath because of the impact it

has on the environment. “LED’s significantly reduce our car-bon footprint on the earth by reducing greenhouse gas emissions and overall energy consumption when compared to traditional lighting technologies,” Mc-Grath said. “It is an industry that I can feel good about while passing on significant savings in the form of cost, reduced en-ergy usage and rebates offered by vari-ous governmental units to our customers which in turn makes them feel good.” Demand Lighting provides interior and exterior sustainable LED lighting fix-tures and bulbs to commercial, large-scale residential and industrial lighting users. The company recently received na-tional certification as a Women’s Business Enterprise by the Women’s Business Council - Southwest, a regional certifying partner of the Women’s Business Enter-prise National Council (WBENC). Demand Lighting has offices in Aus-tin, Houston, San Antonio, Ft. Worth, Dal-las and Atlanta, GA. They are opening new offices in December in New York, New Jersey and Raleigh, N.C. The nation-al distribution center and warehouse is located in Georgetown, TX.

Where were you born, Marie? I was born in Flushing, NY, a neigh-borhood in the north-central part of the New York City borough of Queens.

Where did you grow up? I grew up in Long Island, NY. My fam-ily and l lived in a very blue-collar resi-dential area. There were many kids in my neigh-borhood. I enjoyed growing up in Long Island. I met so many good people and families there.

What high school did you attend in NY? I went to Smithtown High School East in St. James, NY. During high school, I was on the drill team and I also played the flute in the high school band.

When did you learn how to play the flute? I learned how to play the flute in middle school. I took private lessons ev-ery week. I used to perform at the New York State Solo Music Association every

spring. I haven’t picked up the flute lately, but I am sure I could still play a couple of songs.

What was your very first job? I worked at McDonald’s after school while I was in high school. I got a lot of training there and actually became a crew chief for a little while before I went to college.

Where did you attend college? I earned my undergraduate degree at the University at Buffalo in Buffalo, NY and I earned my MBA at Pace University in White Plains, NY. Later in life, I earned my law degree from the University of Houston Law Cen-ter.

Did you work in college? During college, I began working as a financial analyst at the UPS corporate headquarters in Greenwich, CT. I stayed with the company for quite a while and moved to work at the Atlanta office after college. I was exposed to people who were thinking about the business instead of the operations. I did analyses about the best busi-ness decisions and presented them to a board of directors or committee. This ex-perience prepared me to think this way about a business and to how present to higher-level executives. In between working at UPS and go-ing to law school, I worked at a company called Choice Point. I gained the most significant experi-ence I needed to run a business there be-cause I worked directly for the CEO. I got a behind the scenes look of what it is like to run a business. I decided to go to law school be-cause it was something I had wanted to do after I got my MBA. I wanted to try something different and something more people oriented. What brought you to Texas? My husband got a job in Texas, so we moved here. We had a son and I took a few years off.

Where did you and your husband meet? We met while we were working at UPS in Greenwich, CT. We have been married for 20 years this month.

How many children do you and your husband have? We have a son, 15, and a daughter, 11. Lately, my husband and I have been busy attending their school activities and extracurricular activities on the week-ends. These days, my son is into baseball and my daughter is into dance and plays the clarinet.

What were the early days like at De-mand Lighting? In some ways I consider us to still be in our early days, but in other ways I feel we have evolved so quickly. We started with just two employees brainstorming around the computer in my home office and now we have a ware-house and 13 employees.

We did whatever we needed to do to get things done. We all answered the phones, packed the boxes, did the buy-ing and did the billing. We started out carrying only half a dozen different sku’s and now we carry over one hundred.

What advice would you give a young person interested in a career in your industry? Someone interested in the LED and lighting technologies industry should pay attention to the rapid changes in technology that are occurring in the in-dustry. A solid education in business and good people skills will serve them well.

In your opinion, what does it take to be successful? You have to have tenacity and you have to persevere. I recently heard a quote, “If I can take it, I can make it” and it really resonated with me. There are so many things that come up when you are running a business and you can’t let anything bring you down. You can’t give up.

Have you and your family traveled anywhere lately? My family and I took a short vacation to New Mexico in August. We rented a cabin near the mountains, did a lot of hik-ing and went zip lining for the first time. We went to New York City for Christ-mas last year. We went to the Radio City Christmas Show, went out to eat and vis-ited family. My sister still lives in New York, so we like to go visit her, especially around Christmas.

Why do you enjoy working and living in the Texas Hill Country?

I love the scenery here in Austin. The people are so friendly too. I feel like the people in Austin have a good work life balance. I have lived in lots of cities over the years and it seems like people in Austin have the most work life balance. People work hard here and still make time to stay fit and enjoy spending time outdoors.

What are a few hobbies you like when you aren’t at work? I love spending time with my family when I am not at work. Our kids keep us busy. Do you have any family Christmas tra-ditions? My kids and I are looking forward to making gingerbread houses before Christmas Day this year.

Did Demand Lighting have a Christ-mas party this year? Yes, we all went to Travaasa in Austin for dinner and enjoyed a meal composed of organic and locally sourced ingredi-ents. We had a great time!

What are future goals for the compa-ny? Demand Lighting plans to surpass $5 million in revenue next year with plans to double revenue every year for the next five years. We will continue to invest in the growth of the company and our team with plans to pursue markets in other states. We will continue to educate custom-ers on the advantages of LED lighting uti-lization through the reduction of energy consumption, the positive impact on the environment and the increase in value to their bottom line. –ab

L-R: Matt Hagen sales partner, Marie McGrath, CEO) and Matt Rubino, director of sales

L-R: Henry, Hank, Zachary and John Foradory make things happen at H & H Foradory Construction Inc., a demolition, construction and drainage system specialist. –ab

Family mattersSubmitted to Construction News


Ladies in the local construction in-dustry took part in an annual Holi-day Party at Big Daddy’s Burgers

Dec. 3. The National Association of Women in Construction Austin Chapter (NAWIC) held the event. Sweaters were decorated

Merry and bright

in NAWIC Christmas ornaments for the Ugly Sweater Contest. Several door priz-es were announced during the party. Donations of canned goods and pro-ceeds will directly benefit Feeding Amer-ica. –ab

L-R: Jamie Denton, Mechanical Reps Inc. and Jamie Garrett, San Marcos Air Conditioning

L-R: Chaundra Callaway, Equipment Depot and Molly Drazic, Efficient Air Conditioning

& Electric

NAWIC members and guests celebrate the season.

One starry night

Austin area remodelers were hon-ored at the Contractor of the Year (CotY) Awards held at the Norris

Event Center in November. Judging was based on problem solv-ing, functionality, aesthetics, craftsman-ship, innovation, degree of difficulty and entry presentation. Austin National Association of the Remodeling Industry (NARI) held the an-nual event. –ab

Congrats to the winners!

Residential Kitchen Under $30,000: David Wilkes Builders & Alan Heine PaintingResidential Kitchen $30,000 to $60,000: CG&S Design-BuildResidential Kitchen $60,001 to $100,000: Avenue B DevelopmentResidential Kitchen $100,001 - $150,000: Realty Restoration, LLC & Twelve Stones Designs

Residential Interior Element Under $30,000: Realty Restoration, LLC & Twelve Stones Designs

Residential Interior Under $75,000: CG&S Design-BuildResidential Interior $75,000 to $150,000: Boozer Construction Inc.

Residential Historical Renovation/ Resto-ration Over $250,000: Avenue B Develop-ment

Residential Bath $25,000 to $50,000: CG&S Design-Build

Residential Addition $100,000 to $250,000: David Wilkes Builders & Alan Heine PaintingResidential Addition over $250,000: Da-vid Wilkes Builders

Landscape Design Over $60,000: Clark Richardson Architects

Entire House Under $250,000: Austin Im-pressions Inc.Entire House $250,000 to $500,000: Ave-nue B DevelopmentEntire House $500,001 to $750,000: Aus-tin Impressions Inc.Entire House $750,001 to $1,000,000: Clark Richardson ArchitectsEntire House Over $1,000,000: David Wil-kes Builders

Commercial Interior: Kitchens by Bell LLC

Green Project Award: Clark Richardson Architects

Avenue B Development

David Wilkes Custom Homes

Austin Impressions

CG&S Design Build

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If you have any questions, contact the SA home office at (210) 308-5800

The Flooring Solutions office staff volunteered at the AustinOperation Blue Santa warehouse Dec. 15. –ab

Men at workSubmitted to Construction News


Parks and recreationSubmitted to Construction News

Brookfield Residential broke ground on Phase 1 of Easton Park Dec. 3. The 1,500-acre urban master planned community is part of an overall 2,200-acre residential and commercial

development in Southeast Austin. Phase 1 will include the opening of a park. –ab

New standards for revenuerecognitionLance Trammell, Principal - Assurance ServicesLane Gorman Trubitt, PLCCDallas, TX

In May 2014, Financial Accounting Standards Board (FASB) released the new accounting standard on rev-

enue recognition with the intent to provide a compre-hensive, and consistent, method of accounting for reve-nue across entity, industry and geographical lines. While

there are some exceptions, most industries are subject to the new standard.

The reasoning behind the change is to reduce inconsistencies and the risk of recognizing revenue incorrectly, to re-duce the options of industry-specific U.S. GAAP guidelines and to create a collabo-ration between FASB and International Accounting Standards Board (IASB) for improved and converged rules. The guidance is based on the overall premise that the entity should recognize revenue in an amount that reflects the ac-tual consideration that the entity expects to be entitled to. In order to determine the amount of consideration that the entity is entitled to, the standard provides for a five step pro-cess that includes:1) Identification of the contract2) Identification of the performance ob-ligations3) Determine the transaction price4) Allocate the transaction price to per-formance obligations5) Recognize revenue upon the satis-faction of performance obligations Contracts, whether written, oral or implied based on the entity’s customary business practice, create the enforceable rights and obligations. Consistent with the current standards relating to contract accounting, some contracts can be com-bined if they are negotiated together or if successful completion is interdependent on one another. Additionally, contracts can be modified due to change in scope or pricing. The performance obligations within the contract are the determinants for rev-enue recognition. The performance obli-gation is the promise within the contract to deliver goods or services to the cus-tomer. Revenue is recognized when or as the performance obligation is satisfied. Multiple performance obligations within a contract may have specific costs or may be satisfied at different periods in time, therefore, contractors will be required to determine distinct performance obliga-tions within the contract in order to prop-erly allocate the transaction price among the obligations. Transaction price is the actual amount that is considered probable to be collected from the customer upon satis-faction of the performance obligation. Transaction price is not necessarily the

stated contract amount, but instead the contract amount net of any variable con-siderations. Revenues are recognized upon satis-fying the performance obligation. This is considered to occur either 1) over a peri-od of time or 2) at point in time. These methodologies can be considered similar to the current percentage of completion and completed contract methods of ac-counting used by contractors. Revenues recognized over a period of time must meet one of the following:1) The customer simultaneously receiv-ing and consuming the benefits of the entity’s performance as the service is per-formed2) The entity’s performance creates or enhances an asset that the customer con-trols as the asset is created or enhanced3) The performance does not result in the creation of an asset with an alterna-tive use to the entity and the entity has a right to receive payment for performance completed to date If the above criterion is met, the “pe-riod of time” is measured based upon in-put or output methods. If choosing at a point in time, the ownership of the project under contract will transfer once the performance obli-gation has been met. The new five step process may not be so “new” to contractors, as many of the considerations regarding performance obligations, transaction pricing consider-ations and timing of revenue recognition are all points that many contractors cur-rently use in their bidding, estimating and performance activities. For public companies, the new regu-lation goes into effect on Dec. 15, 2016 and on Dec. 15, 2017 for nonpublic com-panies. Founded in 1950, Lane Gorman Trubitt PLLC (LGT) is one of the largest certified public accounting firms headquartered in the South-west. Dedicated to serving the middle market, the firm represents a broad range of clients, from individuals to public companies, in a variety of industries. LGT offers traditional accounting, au-dit and tax services, as well as various other spe-cialized services. LGT has launched three affiliat-ed companies, LGT Financial Advisors, LLC, LGT Insurance Services Inc. and LGT Retirement Plan Solutions.

Invisible exclusions, part ICharles E. Comiskey, Sr. V.P.Brady, Chapman, Holland & Associates, inc.Houston, TX

Many insurance policies today include “invisible” ex-clusions – exclusions that may not be brought to

the attention of the insurance buyer and that will not be declared on a certificate of insurance. This article will address three of the more dangerous such exclu-sions and what to do about them.

But first, a little background: Con-struction agreements include provisions requiring indemnification of the up-stream party (the party requiring the coverage). In Texas, it remains permissi-ble to require indemnification for the up-stream party’s joint, concurrent and/or sole negligence at least with regard to an injury to an employee of the downstream party (the party being required to pro-vide coverage) or their subcontractor, and for any municipal or residential work. General liability insurance customar-ily provides “contractual liability” cover-age applicable to such provisions, cover-ing liability for bodily injury and physical injury to tangible property arising from a contractual assumption of these expo-sures. Beware: This contractual liability coverage is being deleted or eroded in a variety of manners that are sometimes difficult to recognize. CG 21 39 10 93, Contractual Liability Limitation Endorsement Contractual liability coverage is pro-vided in a general liability policy through a series of six definitions of an “insured contract.” These definitions are applica-ble to an exception to an exclusion of the coverage provision. Confusing, right? What’s critical to know is that the sixth definition is the one that provides cover-age for liability assumed in an indemnifi-cation agreement. The Contractual Lia-bility Limitation Endorsement deletes that sixth definition, completely eliminat-ing insurance funding for that indemnity, and should be avoided at all cost.

CG 24 26 07 04, Amendment of Insured Contract Definition This endorsement modifies that sixth definition, eliminating claims based upon allegations of the sole negligence of the Indemnitee (the upstream party). This is problematic for two reasons:

1. As stated above, most indemnifica-tion provisions do require that the up-stream party be held harmless for at least some portion, if not all, of its sole negli-gence. The downstream party will be held responsible for such protection, whether funded by insurance or not. 2. The most common type of claim aris-ing from ongoing work is what attorney’s refer to as a “third party over action.” This

occurs when an employee of a down-stream party is injured on the job. He can make a workers’ compensation claim against his employer, but also retains the right to bring litigation for that injury. That said, he cannot sue his employer due to the exclusive remedy rule of work-ers’ compensation, so suit is brought solely against the upstream contractor or owner, who then demands protection from the downstream party under the in-demnification agreement. That type of claim is usually funded by general liabili-ty insurance, but this endorsement elimi-nates coverage for the assumption of an-other party’s sole negligence.

Modification of the Employer’s Liabil-ity Exclusion Another way that insurance compa-nies eliminate cover for suits brought by employees of a downstream party is to change the wording of the Employer’s Li-ability exclusion. This provision, part of every general liability policy, excludes coverage for injury to an employee of the insured, but has an exception stating that the exclusion does not apply to liability assumed by the insured under an “insured contract.” Some insurance companies de-lete the exception to this exclusion, there-by eliminating the very provision that would otherwise provide coverage. Discuss these exclusionary endorse-ments with your insurance broker, and verify that they are not included in your insurance program. But what if you are the upstream party depending on a cer-tificate of insurance? Two steps can be taken:

1. In your insurance requirements, state that these endorsements are pro-hibited on the downstream party’s insur-ance program; and2. Require a copy of the Schedule of Forms and Endorsements page verifying that they haven’t been included in the underlying insurance program.Charles E. Comiskey, CPCU, CIC, CPIA, CRM, PWCA, CRIS, CCM, is Sr. V.P. of Brady Chap-man Holland & Assoc. and is National Chair-man of the Construction Insurance Practice Group of RiskProNet International, the 5th largest brokerage organization in the U.S. He can be contacted at 713-979-9706 or [email protected]

Just before the Thanksgiving holiday, general contractor Sabre Commercialprovided smoked turkeys to Operation Turkey in Austin. –ab

Gobble gobbleSubmitted to Construction News


Free transportationtraining resourcesJoann NatarajanCompliance Assistance SpecialistOSHAAustin, TX

Every 12 minutes someone dies in a motor vehicle crash, every 10 seconds an injury occurs and every 5

seconds a crash occurs. Many of these incidents occur during the workday or during the commute to and from work. Employers bear the cost for injuries that occur both on and off the job. Whether you manage a fleet of vehicles, oversee a mobile sales force or simply employ commuters, by implementing a driver safety program in the workplace you can greatly reduce the risks faced by your employees and their families while protecting your company’s bottom line.

Fatal transportation incidents accounted for about 2 out of every 5 fatal work inju-ries in 2013. Of the 1,740 transportation-related fatal injuries in 2013, nearly 3 out of every 5 (991 cases) were roadway inci-dents involving motorized land vehicles.Non-roadway incidents, such as a tractor overturn in a farm field, accounted for an-other 13 percent of the transportation-related fatal injuries. About 16 percent of fatal transportation incidents (284 cases) in 2013 involved pedestrians who were struck by vehicles. Forty-eight of these occurred in work zones.

Motor vehicle crashes cost employers $60 billion annually in medical care, legal expenses, property damage, and lost productivity. They drive up the cost of benefits such as workers’ compensation, Social Security, and private health and disability insurance. In addition, they in-crease the company overhead involved in administering these programs. The average crash costs an employer $16,500. When a worker has an on-the-job crash that results in an injury, the cost to their employer is $74,000. Costs can exceed $500,000 when a fatality is in-volved. Off-the-job crashes are costly to employers as well.1

The real tragedy is that these crashes are largely preventable. Recognizing the op-portunity that employers have to save lives, a growing number of employers have established traffic safety programs in their companies. No organization can afford to ignore a major problem that has such a serious impact on both their per-sonnel and the company budget.There are a number of free resources that provide training and written programs for driver safety. The National Safety Council in partnership with the Texas De-partment of Transportation is offering free training in Texas to employers and employees on driving safety. To sched-ule a free training session, contact Lisa Robinson at 512-466-7383 or [email protected]. Free resources are avail-able at http://www.txdrivingconcern.org.

Another resource for training resources is the Network of Employers for Traffic Safety. There is a free toolkit for employ-ers to download at http://www.traffic-safety.org/drivesafelyworkweek/. The tool kit has sample policies and training materials to educate workers on trans-portation safety.

[email protected] x232

Responding to worksiteaccidentsMarc Young, Founding PrincipalCokinos, Bosien & YoungAustin, TX

The construction industry routinely leads all other in-dustries in the total number of deaths per year,

therefore it is imperative to understand the role of your company and your legal representative in the event of a fatality or major incident on the construction worksite.

Having a plan of action can assist your company and your legal team in preparing for, and handling, a major incident, should it become necessary.

BEFORE AN ACCIDENT OCCURS• Create an Emergency Response Plan (ERP)• Have your risk manager and safety committee review the ERP with your at-torney so there is no confusion during a response. • Your attorney should have in his/her vehicle a “go-bag” containing tools nec-essary to document and investigate an incident at a moments’ notice. IMMEDIATE STEPS IN THE EVENT OF A MAJOR ACCIDENT• The immediate response should al-ways begin with a 911 call at the first indi-cation of a major injury or fatality. • Remove all non-essential workers from the area. Secure an area around any continuing danger or hazard to workers.• Notify key corporate personnel as soon as the area is secured and individu-als are no longer in danger.• The attorney should be called to the scene to assist with the investigation and OSHA visit.• Notify insurance carrier.• Once your attorney arrives at the site, meet in the company’s work trailer as soon as possible. Confirm that Emergency Response Plan has been followed thus far.INVESTIGATION Your attorney should begin con-ducting the investigation before the site conditions change, witnesses leave and equipment is moved. Designate a private place to talk - typically the job trailer is the best place to perform interviews. Your attorney may need someone with technical expertise from your company to participate in the interviews. Some attorneys don’t pursue record-ed statements at this stage because any party in the subsequent litigation will be entitled to that recording. Your attorney may take photographs to document the scene and everything relevant to the in-cident, but avoid any conditions such as blood or medical waste. If equipment in-volved in an accident was moved prior to emergency responders arriving, it is im-perative to establish exactly where it was at the time of the accident. OSHA OSHA must be contacted within 8 hours of a fatality, or within 24 hours of a work related in-patient hospitalization, amputation or loss of an eye. OSHA has a 24-hour fatality contact number at 800-323-OSHA. However, it’s not uncommon for OSHA to hear about the incident through media accounts and drive di-rectly to the site. Before OSHA investigators arrive, your attorney may advise you of any ob-servable conditions that may result in vi-olations of various OSHA standards so they may be immediately corrected. An

OSHA investigator is not limited to the site of the injury when investigating an accident, and may identify numerous cit-able conditions unrelated to the acci-dent. Consult with your attorney about drafting and implementing a written policy regarding whether to allow war-rantless OSHA investigations before it is ever needed. MEDIA• Understand what deadlines the me-dia are under and advise them that you will get back to them after you have had an opportunity to conduct a reasonable investigation. • Answer questions as directly and as completely as possible. If you don’t know the answer to a question, be honest. False information can damage credibility and the public’s perception of your abili-ty to tell the truth and convey accurate information. • Avoid using “no comment” as an an-swer. • Never give “off-the-record” informa-tion.• Give the facts as you know them and cite sources. • If the emergency or disaster is long term in nature, it is important to hold fre-quent briefings or press conferences. • Advise all employees not to speak to the press or give statements. Provide em-ployees with a designated individual or telephone number to refer inquiries. While no plan can foresee every de-tail of a catastrophic event, being pre-pared with the basic elements and secur-ing legal representation before an event can mitigate further injuries to workers and protect the legal position of the company in subsequent litigation.

Marc A. Young is a founding principal of Cokinos, Bosien &Young, a full service law firm with offices in Houston, San Anto-nio, Dallas and Austin. For more informa-tion on our services, please visit www.cb-ylaw.com

Happy New Yearfrom everyone at

Construction News


Did you keep last years new year’s

resolution?Feelin’ festive

Austin area contrac-tors were in the holiday spirit at an

annual Christmas Party at Abel’s on the Lake Dec. 2. Folks brought new toys and non-perishable food items for Blue Santa. The Associated Build-ers & Contractors Central Texas Chapter (ABC) held the event. –ab

L-R: Suzanne Heimbuch, Sarah Bottlinger and Sandy Tingle, Chaote USA, and Corey Taylor, American Constructors.

L-R: Jeff Pulley, Clean Scape; Sean Cagle and Trevor Spring, Ryan Companies; David Smith, TDIndustries; and Rich Leisy and Kelly Malott, Ryan Companies

Walk this waySubmitted to Construction News

L-R: Jerome Rumsey, Rhonda Dowdy and Richard Tucker, S & D Commercial Services, attend the 2014 Red, White and YOU Veteran Recruiting event in Austin in November. –ab

Stan’s Heating and Air Conditioning hosted a Thanksgiving lunch before the holiday at the Austin office.

Owner Chris Strand says the em-ployees had fried turkey for lunch and pies, pineapple upside down cake and banana pudding for dessert. “We have an incredible team and ev-eryone is focused and simply enjoys each other and working together,” Strand said. Stan’s Heating and Air Conditioning provides air conditioning and heating ser-vices in Austin. –ab

Turn up the heat

Installation coordinator Kathie Hannahs has a chat with baby Enzo.

Lead installation technician Jorge Aleman holds his daughter Mila.

Roland Arrisola and James McGheefry the turkeys outside.

Project manager Mike Levin claims the turkey cake.

My goal for the year was to call more peo-ple, reach out more, get new contacts and sell fence. I made that happen in 2014!

Gene Calloway, ATX Fence Supply

My New Year’s resolution was to go fish-ing more in Port Aransas. I kept my reso-lution because I went three times this year! Port Aransas is my happy place.

Jesse Berry, Berry Plumbing

Yes, I worked on more commercial jobs in the Austin area in 2014. It was a great year.

Mike Sides, Sides Construction

My resolution was to spend as much time as possible at Lake Travis. I enjoy going boating and water skiing often with my family on the lake, especially during the summer time. Richard Johnson,

Tex-Tar Waterproofing Inc.

No, not this year. My resolution was to retire in the Texas Hill Country. Maybe someday soon!

Steve Faught,Skinner’s Custom Screens & Windows

Yes, I did keep my New Year’s resolution. I wanted to spend more time with my two sons and we have spent lots of time to-gether this year. They come to the shop with me on Saturdays. They work with me just like I worked with my father. They love piddling around the shop.

Doug Moore, General Sheet Metals

Yes and I will have the same New Year’s resolution in 2015. I’d like to continue to expand the business.

Dan Bishop, ModernCreteConcrete Design & Polishing

Artisan Group countertop fabricators participated in the 4th annual “Counters for A Cause” event to help Homes for Our Troops build specially adapted homes for U.S. veterans. –ab

Submitted to Construction News

Building together


BAFFIN BAY –– LAGUNA MADRE –– LAND CUTSPECKLED TROUT –– REDFISH –– FLOUN DER

FISHING AND HUNTING TRIPS

STEVE SCHULTZ OUTDOORS, LLC

(361) 813-3716(361) 334-3105

www.baffi [email protected]

U.S. Coast Guard &Texas Parks and Wildlife Licensed

STRUCTURAL CONCRETE & FLATWORK

COMMERCIAL &RESIDENTIAL

• FOUNDATIONS• DRIVEWAYS• RETAINING WALLS• CONCRETE PAVING

Jeff Passell 512•663•[email protected]

Looking into theNew Year

by Capt. Steve Schultz

Sponsored by:Premier Yamaha Boating Center,

Majek Boats, E-Z Bel Construction, Power Pole Shallow Water Anchor,

Aggregate Haulers, Interstate Batter-ies, Pure Fishing, Mirr-O-Lure and

Columbia Sportswear.

Well I hope everyone had a won-derful Christmas and a great New Year holiday. I am very ex-

cited to start the year off on a good foot, or should I say a good leg after missing out on most of last years fishing. I was able to get in some trips in September and October as the fishing seemed to pick up after a mediocre summer. Hope-fully things will be much different this season with the new changes on speck-led trout regulations implemented by Texas Parks and Wildlife that took effect on September 1st last year. I am also

looking forward to seeing all my clients and friends this season and continue making memories in the outdoors that seem to last a lifetime.

As most of you already know, winter fish-ing is by far the best time of the year to catch trophy size specks. Although our winters sometimes may not feel like win-ters you see up north, there is definitely an inconsistency in the weather that trig-gers fish to feed as the barometric pres-sure changes. Most of the larger specks tend to feed up before major changes in weather and may go for several days be-fore feeding again. Larger trout don’t do real well in colder water temperatures; they tend to stay in deeper water and in soft mud bottoms trying to keep warm and conserve energy. As water tempera-tures progressively warm, they will ven-ture out in search of their next meal. Larger mullet, menhaden and other fin-fish typically are the choice of diet for hungry specks, subsequently keeping them satisfied until the next cold snap ar-rives. This is the reason so many anglers use larger baits and plugs in winter trying to imitate a wounded fish that make easy prey for lethargic trout.

I’m by no means a psychic knowing when fish will eat, what they will eat and how big they will be. There is also no way any-one can guarantee you will catch a tro-phy trout on any given day. I have many clients that have fished many days each year and have never caught a trophy quality speck. Then there are the clients that catch one on their first outing, and say, “That’s the biggest fish I’ve ever caught.” I can tell you that your chances are better if you put in some sort of an effort during the prime months.

Every month this year in my column I will feature a product that I believe will help make you a better angler. From boats, tackle apparel or electronics, I will discuss the advantages you will gain by using these products. While we are on the sub-ject of winter trophy trout fishing, let’s start with the lures of choice this time of the year.

Starting with the most popular will be the Corky line of lures by MirrOlure. There are several styles of Corky’s avail-able, Original, Fat Boy and Devil. All are slow sinking mullet imitations that boost

L-R: Zane Cannaday and Karen Ching, Structura, recently practiced their golf swing at the CBRE Group Community Care Bash at TopGolf in Austin. –ab

Top notchSubmitted to Construction News

big results when presented in front of feeding fish. These lures became popular in 1996 when James Wallace of Houston landed a 13-lb. 11-oz. speck on the origi-nal corky. This is one lure I will not leave without as I ease over the edge of the boat this winter!

To schedule your next bay fishing trip, give Capt. Steve Schultz a call at 361-813-3716 or 361-334-3105 or e-mail him at [email protected].

Already booking for the 2015-fishing sea-son. Good luck and Good Fishing.

Business coordinator Amy Hageman, Big Red Dog, shot these two turkeys while hunting with her husband at the YO Ranchlands in November. Hageman says she had

the Christmas bird covered! –ab

Two turkeys, one shotSubmitted to Construction News


Half or Full Day Fishing Trips

All Bait, Tackle & EquipmentFurnished

Your catch Filleted andBagged for You

Furnish your TPWD FishingLicense & Refreshments,

and WE DO THE REST!Ken Milam Guide Service(325) 379-2051

www.striperfever.com

Ken Milam’s Fishing LineSince 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

The passing of the holidays always reminds me of a passing storm. It’s exciting and engaging while it’s go-

ing on, but always a relief when you get to the blessed calm after the storm. It is always nice to get back to normal and start looking forward to what’s next – Spring!

I know, not yet. We still have a little more football to go, some more cold fronts and time to pass. I always figure any time af-ter winter solstice is getting closer to spring bit by bit.

The tournament trails are getting started so the bass boats will start moving again. If you really get lucky and land a 13-lb. or better largemouth bass – you still have time to get in on the Toyota ShareLunker program until April 30th.

These nice warm sunny afternoons are starting to make me wonder how long it will be until the crappie start moving up into shallow water around structure to start wanting to bed. All you need is some frisky minnows or your favorite jigs to catch a nice mess of crappie. If the weather gets cloudy and cold they will go back deep and wait for the next nice spell to come shallow again. You just have to catch them when the catching is good.

Stripers and hybrids are loving the colder water. They are chasing shad in open wa-ter under the birds and feeding hard so they can be as strong and healthy as pos-sible for their spawning run, later in the spring. Except for Lake Texoma, stripers can’t successfully spawn in Texas because we don’t have the right conditions for the eggs to hatch. Don’t tell the stripers though, they don’t know the difference

and they will put all their energy into try-ing to reproduce. As they school up and chase shad they will give us some of the best freshwater fishing to be had!

If white bass are more to your liking, then get ready! As mild as the winter temper-atures have been this year I wouldn’t be surprised if they start running upstream on their spawning runs a little early this

year. This usually happens around Valen-tine’s Day, give or take a week or three depending on the weather. Keep in touch with your tackle shops and fishing reports. When the run begins the word spreads like wildfire. On low lakes and rivers the run may not happen in the usu-al places for lack of water. This is where good current information is really impor-tant.

If you love jug lining for blue catfish, get those jugs ready. From now through February is when you can catch the big ones. You want to concentrate on areas where the river and creek channels con-verge.

Spring’s acoming! Be sure you have your boat running good and always get good weather information before you set out. Weather changes fast this time of year. Fishing the day before a cold front comes through will usually be much better, and you want to avoid those old windy days as a front moves through. High pressure systems tend to keep fish from biting.

If you plan on booking some guided fish-ing trips this spring, you need to get your reservations pretty quick. It looks like we are getting ready for a nice season!

Fish On!

On the huntSubmitted to Construction News

President Manor Foster, Manor Foster Construction, went deer hunting on the Rancho Venado Grande Ranch in Freer, TX Dec. 15. –ab

ASCO Equipment, a Texas-based construction equipment distribu-tor, presented a check to A Sol-

dier’s Child Foundation (ASC) in the amount of $262,707 to benefit ASC’s on-going efforts to provide birthday and Christmas gifts for children of fallen sol-diers. The check resulted from a yearlong effort by local employees at ASCO’s 22 locations to benefit ASC in 2014. ASCO has a corporate and personal commit-ment to community and philanthropy, selecting deserving organizations each year to benefit from the efforts of their employees and staff. Employees at each ASCO location

Employees and their children in Belton run an obstacle course as part of that team’s fundraising efforts for A Soldier’s Child Foundation.

Honoring the fallen

determined the individual fundraising ef-forts. ASCO and the founding Wright family matched all money raised to reach the total amount. “Giving back to our communities has always been an important value of ASCO and our family,” said John Wright, one of the third generation owners. “It’s gratify-ing to see our employees nominate and support this effort on behalf of A Sol-dier’s Child Foundation. It’s an honor to support the families of those who died in service to their company.” The $262,707 check was presented to A Soldier’s Child Foundation and will be distributed throughout the year. –cw


The news has a nose for BBQConstruction News ON LOCATION

The Construction News team at Construction News headquarters in San Antonio hosted a Christmas barbeque Dec. 19. L-R: Buddy Doebbler, publisher; Jim Reilly, sales; Cyndi

Wright, managing editor; Sue Johnson, production manager; Mary Hazlett, San Antonio editor; Kent Gerstner, sales – and barbeque cook! –mh

Happy trailsSubmitted to Construction News

Engineers from Big Red Dog Engineering went to the Trail of Lights, one of Austin’s most beloved holiday activities, in December. –ab

Lucky duckSubmitted to Construction News

Kidd Roofing employee Steve Stahl (center) won a brand new 2014 VW Jetta in the Austin Duck Derby benefiting the Boys & Girls Clubs of the Austin area. Stahl's duck came

in 1st Place out of 8,000 ducks. –ab

Finish lineSubmitted to Construction News

Team Rogers-O’Brien Construction raced in the Austin Komen 2014 event in honor of those who have lost the battle, those who have survived the battle, and those who are

still fighting the battle. –ab

This party was a gas!Submitted to Construction News

Bubba's Lonestar Propane, located in San Marcos, had its Christmas party at McAdoo’s in New Braunfels on Dec. 20. A great time was had by all!

Pictured, owners Bubba and Lenaya Pfarrdrescher. –cw


Ti m b e r t o w n Austin invit-ed deck

crews and deck builder customers to the Thank You Deck Crew Barbe-cue event at the Grand St. location in November. Attendees en-joyed a plate of barbecue, games and an opportuni-ty to win prizes such as two HDT-Vs, golf clubs, pow-er tools and throw-ing knives. –ab

Deck the halls

Customers shoot hoops in the Timbertown Austin warehouse.

Barbecue is served for lunch.

Greater Austin Contractors & Engineers Association (ACEA) members participated in a Christmas Gifts for Children delivery at Mainspring Nursery School Dec. 12. –ab

Ho Ho HoSubmitted to Construction News

McKinney York Architects held a Christmas party for staff at Aus-tin City Lofts Dec. 11.

Word of Mouth Catering and Austin Wine Merchant catered the party. Dur-ing this year’s party, Brian Carlson and

A joyful celebration

L-R: Ryan Lemmo, Stephanie Lemmo, Andrew Green and Aspen Green

Will Wood were announced as new part-ners of the firm. McKinney York Architects is general practice architecture firm in Texas with ex-pertise across the full spectrum of building types from residential to institutional. –ab

L-R: Will Wood and Brian Carlson L-R: John Pomeroy and Heather McKinney

Enjoying spending time with each other outside the office, Koetter Fire Protec-tion of Austin LLC employees and their families gathered at Reunion Ranch in Georgetown for a Christmas party Dec. 14.

Koetter Fire Protection of Austin is a full-service, specialty fire protection systems con-tractor. –ab

Merrily merrily

The Koetter Fire Protection of Austin staff and their families have dinner at Reunion Ranch.

Jason Ferguson and his family


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& Coatings • Application MaterialsAnd Much More!

Fox Service Co. did something a lit-tle different around the holiday season when it was time to have a

party. The company had a Formula One Simulator at the Austin office and em-ployees took turns driving behind the steering wheel. Fox Service Company provides com-mercial and residential HVAC, plumbing, electrical, refrigeration and process piping services. –ab

CEO Robert Nagel gets behindthe steering wheel.

Customer care manager Cheryl Barnett concentrates on driving.

Commercial HVAC estimator manager Jeff Clarke turns a corner on the Formula One track.

The weather outside might have been frightful, but the Associated General Con-tractors Austin Chapter (AGC) annual Holiday Party was delightful Dec. 10. Contractors and their guests gathered at The Long Center for Performing Arts

Kodosky Lounge for the party. Folks enjoyed hors d’oeuvres and networking with friends in the construction industry. –ab

Holly jolly

L-R: Curtis Cline and Cory Wilson catch up.

Party time!

John Braun, Braun & Butler Construction (left) and friends

The Christmas tree

Tyler White, owner of Custom Woodworking by Tyler White, shared his wood-working knowledge with an Austin area home school group in late November.The kids learned how to build wood crafts at the shop and White was on hand to

help. Based in Austin, Custom Woodworking by Tyler White is full-service design and build company focusing on building custom wood cabinets. –ab

Introduction to woodworking

The home school group show their completed projects.

Tyler White (left) answers questions about woodworking at the shop.


Texas Quality Services LLC employees recently had a barbecue lunch at the Austin office and supported the Doc & Gayle Young Food Drive Barbecue fundraiser. –ab


Circle of friends

The Brundage-Bone Austin crew pours a slab at the Homestead Oaks project. Bailey Elliott Construction is the GC. –ab

Smooth pourConstruction News JOB SIGHT

Jay Reese Contractors Inc. works on the Seaholm Power improvements in Austin. –ab

Powering upConstruction News JOB SIGHT

Congratulations to the JE Dunn Construction Austin Minority Contractor Business Development (MCBD) Program graduating class. Graduating in December, participants

spent 18 months of intense work and learning. –ab


Reaching goals

The Texas Aggregates & Concrete Association (TACA) members from Austinrecently attended a golf tournament at The Quarry Golf Course. –ab


Lining up carts


Construction Forecast

The Lone Star State is a leader in job creation, among other things

Anirban Basu, Chief EconomistAssociated Builders and ContractorsWashington, D.C.

We are now in the sixth year of economic recovery and the U.S. economy finally looks like it is expand-

ing with conviction. The winter of early-2014 was brutal, robbing the U.S. economy of the momentum it enjoyed during the final six months of 2013. But the nation’s economy rebounded nicely as the final snows melted, particu-larly in the form of expanding business investment. Construction projects that were delayed by the harsh winter are now underway, auto sales are surging, the nation sup-ports 2.734 million more jobs than it did a year ago, and for the first time in six years, unemployment has fallen below 6 percent.

The quality of jobs being added has improved of late as well, with more mid-dle-income jobs being produced in con-struction, manufacturing, energy, profes-sional services and IT. After shrinking dur-ing the first quarter, the U.S. economy bounced back with a robust 4.6 percent annualized performance during the sec-ond. Third quarter growth stood at 3.9 percent on an annualized basis and the year’s final quarter should be decent. The most recent International Monetary Fund upgraded its growth projection for the U.S. from 1.7 to 2.2 percent for 2014, par-ticularly impressive given the fact the economy spent the first three months of the year shrinking. What does all of this mean? Associ-ated Builders and Contractors believes that the U.S. economy is approaching the peak of its business cycle. We are now in a period in which the economy is gaining momentum while the Federal Reserve acts as if that’s not occurring, and there-fore is expected to maintain low short-term interest rates well into 2015. Keep in mind that many companies have managed to grow profits in recent years through aggressive cost-cutting measures. Even in the presence of a more active mergers and acquisitions market, that can only continue for so long. To

grow earnings, businesses will increas-ingly have to bulk up top-line revenues, which implies faster capital spending and inventory accumulation. For residents of the Lone Star State, however, the economic numbers were headed in the right direction long before the remainder of the country. Already a job creator while the rest of the U.S. was struggling to stop the economic bleed-ing, Texas was the economic outlier that quickly shrugged off the lingering ef-fects of the 2008 financial crisis. Looking ahead – 2015 will be good for Texas So as the rest of the country finally gets back onto its economic feet, what’s in store for Texas? There are reasons to believe that the Lone Star State’s economy will face some new headwinds even as the U.S. econo-my settles into a period of relative prog-ress. Consumers, who represent 70 per-cent of the nation’s economy, have be-come far more confident of late, in part because of falling oil and gas prices. Most of America benefits from cheaper fuel, but Texas is easily the nation’s largest oil producer, and the impact of falling oil and gas prices on the Texas economy re-mains unknown.

Presuming that oil production at least holds its own, Texas’ economy should be in for a terrific year in 2015. By October 2014, the state’s unemployment rate had declined to 5.1 percent, a 1.1 per-cent decline from the same period one year prior and 0.7 percent below the na-tional average. Among the state’s 25 statistical ar-eas, nine recorded unemployment rates of 4 percent or lower recently, with un-employment rates of 2.5 percent and 3 percent in Midland and Odessa, respec-tively. The state’s major metropolitan areas all posted unemployment rates below 5 percent as well (Houston, 4.7 percent; Dallas, 4.8 percent; Austin, 4 percent; and San Antonio, 4.5 percent). Over the past 12 months for which data are available, Houston has created 120,000 jobs (an increase of 4.3 percent), Dallas roughly 112,000 (3.6 percent), and Austin has added more than 29,000 (3.4 percent). Overall, the state added 436,700 jobs over a recent twelve-month period, a 3.9 percent increase from the year before and roughly double the national rate. Demand for industrial construction in Houston is surging as well. Total net absorption of industrial space totaled more than 2.6 million square feet during the third quarter of 2014 alone, with the industrial vacancy rate sliding to 5.4 per-cent. Over the first three quarters of 2014, net absorption exceeded 5.8 million square feet. The region presently has more than 6 million square feet of indus-trial space under construction. While en-ergy production still drives a significant portion of Houston’s economic expan-sion, the city also acts as a transportation hub for its region, with more steel being shipped through the Port of Houston Au-thority in July 2014 than in any other month since 2008. With oil prices falling recently, it is conceivable that some of the edge will

be taken off the Texas economy over the near-term. A few months ago, several government and private reports indicat-ed that it would take a further drop of $10 or $20 a barrel, to as low as $60 a barrel, to slow energy production even modest-ly. Oil presently sits below $60 per barrel, though that price could rise next year due to the onset of the driving season or other factors. While lower prices mean that taxes and royalties on oil production will de-cline, potentially impacting the finances of oil producing states like Texas, Alaska, Oklahoma and North Dakota, current lev-els of output are likely to be sustained in the shale fields of America in 2015. The U.S. Energy Department recently report-ed that only 4 percent of shale-derived oil production in North Dakota, Texas and other states required an oil price above $80 dollars a barrel for producers to break even on their investments. Therefore, the dip in oil prices should not affect the majority of production across the U.S., and in particular, Texas. Moreover, while low oil prices nega-tively impact some, they represent a boon for the majority. Texas’ drivers, whether commuters or truckers, stand to benefit next year as do consumers. Manufactur-ers are also a beneficiary of cheaper en-ergy, which is important because Texas is home to the second largest number of manufacturing positions in America. Correspondingly, even if oil produc-tion slows more in Texas than is expect-ed, there are other segments that are po-sitioned to more than compensate for the associated loss in construction vol-ume, including both manufacturing and commercial segments. Leading indica-tors also indicate that all of the state’s major metropolitan areas, including Aus-tin, Dallas, Houston and San Antonio ap-pear positioned for meaningful growth in nonresidential construction spending next year.

2015 big year in Houston

Brad Flack, PresidentStorm-Tex ServicesSpring, TX

What is your opinion about the current state of the Houston construction industry?

I think that the current schedule of construction activi-ty in Houston is growing at what appears to be a more sustainable rate than in 2006-2008.

I also think that there are more green infrastructure and low impact develop-ments, which are better for long-term water usage, as well. We have grown by over 25 percent this year in new clients. We have been successful in getting people the help they needed in their construction, post-construction and in-dustrial storm water permit needs. We recently opened an office in Cen-tral Texas to help clients out there keep up with the changing regulations.

What do you think is on the horizon for the Houston construction industry in 2015? I think 2015 is already shaping up to be a big year for construction in Houston.

Why do you think so? I have had some GC’s telling me they were booked up through the end of the year already and having to turn away work or face expanding their current op-erations.

That tells me that the near future is bright for construction in Houston!

How do you stay up-to-date in your in-dustry? I attend several conferences around the nation to stay up-to-date on my in-dustry. I pick up a lot of information at these conferences. The other way I stay up-to-date is I read several industry publications and I read emails from the Environmental Pro-tection Agency (EPA) and the State of Texas on new changes. I have a great relationship with the city inspectors and city engineers. They keep me abreast of things coming down the pipeline. Why do you enjoy what you do today? My favorite part about my job is helping and interacting with the people. Since this type of work is a legal re-quirement with the county or state, folks are required to do this. I want to help them along the way. It

is very rewarding.

What advice would you give a young person who wants to work in the con-struction industry in 2015? If a young person wants to work in the construction industry in 2015, I’d say jump right in and start doing it. Get good job training and learn as you go!

Brad Flack has been nominated for a 2015 TCEQ Texas Environmental Excellence Award and awarded the 2015 International Erosion Control Association (IECA) Young Professional of the Year Award. He is now Region 6 chapter president for EnviroCert International and president of the South Central chapter of the IECA, Co-Chair of the Stormwater Management Track for Region 1 IECA Education Committee, TCEQ Enviro-mentor, TCEQ Small Business and Govern-ment Assistance Committee for Houston Region, Certified Erosion, Sediment and Storm Water Inspector (CESSWI) Instructor and Certified Professional in Erosion & Sedi-ment Control CPESC Instructor-In-Training. –ab



What shape will the frame take?

Neilesh Verma, PresidentGalaxy BuildersSan Antonio, TX

With ongoing labor issues and economic factors up in the air, Neilesh Verma, president of Galaxy Build-

ers, shared some thoughts on how the future might be framed as the industry builds up again, particularly regarding multifamily projects.

What markets do you expect Galaxy Builders and the industry will see in-crease over the course of 2015? The multifamily industry will contin-ue to remain strong in 2015. Individuals continue to be challenged with the pro-cess of getting approved for single-fami-ly home loans due to tightened credit re-quirements. People need to live some-where and multi-family has become the biggest beneficiary of such.

What do you foresee as the biggest challenges your company and others like it in the industry will face in 2015? And how does Galaxy plan to address or overcome this challenge? The availability of skilled labor con-tinues to be the greatest challenge to our industry today. There is no short-term fix to this problem, as many in the labor

force left during the recession and have not returned. The solution is to make a dedicated effort to promote students in trade schools. Show them that they have a future in our industry, provided with opportunities through internships and scholarships. Another challenge is the continued rise in construction costs. At some point, these costs will no longer be feasible for the developments to make sense. When interest rates rise, and I suspect they will, we will truly be tested in how creative we can be to make the numbers work. Are there any potential wild cards, or variables, that you think might be a factor in the construction industry and economy in 2015? How could they affect the rebounding climate? It will be interesting to see how the

sharp decline in oil prices will impact our industry. We are all connected one way or another, so the impact to us will surely be felt. What do you think will be different for Galaxy and the industry in 2015 from 2014? That is what is exciting about this business. There is always something new to work through on the horizon. The Af-fordable Healthcare Act, Immigration Re-form, pressures from the Fed to raise in-terest rates and the upcoming 2016 presi-dential election are some of the issues that we will have to watch closely as we position ourselves into 2015 and beyond.

What are Galaxy’s plans for 2015? How does the outlook for 2015 seem as compared with 2014? The outlook for 2015 is bullish, with anticipated growth in revenues from 2014 to 2015. We have a pipeline of proj-ects that are strong, supported with a backlog that is healthier than we have seen in the last few years. We have work statewide, all of which is in multifamily. How would you sum up the last five years for business at Galaxy, and what would you predict for the next five years? In the last five years, we have seen

how important it is to operate your busi-ness conservatively by thinking with your head and not your heart. We braced our-selves for impact when opportunities were not as readily available as they are today. I consider us one of the fortunate ones to stand the test of time. We are certainly on an upward trend; however, I believe you are always in the first year of a five-year plan. Only time will tell and market conditions will dictate how the next five years are. For now, we have to be willing not to bite off more than we can chew.

What is the most important takeaway you’ve learned in this past year? Great question! This has arguably been the busiest year many of us have had to be a part of. With that, I will defer to answer this until the end of the year when I take appropriate time to reflect on what went right, what went wrong, and how we can be better in 2015.

Established in San Antonio in 1991 by Arun Verma, Galaxy Builders specializes in multifamily, institutional and governmen-tal projects. Arun’s son, Neilesh, started in the company in 2005 as director of business development and marketing and took on his current role as president in 2012. –mh

NEXT MONTHJanuary 2015


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2015Schedule

“A great year” aheadKevin Butler, PresidentMerrick Butler, Vice PresidentButler & Butler ConstructionLancaster, TX

What markets do you expect your company and industry to see an increase in over the course

of 2015? Kevin: As far as the forecast from the bids com-

ing out, I see a lot of educational, retail – there’s a little bit of everything going on right now. 2015 looks to be a great year. Merrick: I would say schools, federal jobs and airports. We cover a mixture of them all; we’re diverse. I think there is going to be a considerable increase over what we were doing in revenue for the past few years. This will be our greatest year.

What do you foresee as the biggest challenge your company and others like it in the industry will face in 2015? Kevin: One, a labor shortage, and two, getting materials on time; with so many projects going on, the lead times on materials are exceeding job sched-ules, they’re getting pushed back further and further, especially specialty items. Merrick: It will be personnel, finding qualified people as the industry has bounced back so rapidly. People who filled those positions before in the down-turn have gone to other places. Now we’re flooded with projects, and there are more projects than there are people. Finding people – qualified people – is the challenge, as well maintaining job

schedules due to the increase in work that has been presented.

What do you think will be different for your company and the industry in 2015 compare to the previous year? Kevin: 2014 was a great year for us and a great year for the economy, so I hope not too much will change. I hope that there’s an increase in opportunities there, and I think there will be. Merrick: I would say the increased revenue and the potential revenue that we stand to capitalize on based on an in-crease in workflow is going to be great for our company. It will give us the capital we need to reorganize the structure and to stand on more firm ground.

Is there anything that might present a challenge unique to the new year? Kevin: Laws; there’s an election com-ing up. Immigration is probably one of the biggest issues that could affect our industry. Merrick: As new laws are passed, whatever those laws encompass could affect us. There are a lot of things going on with immigration, so that could be a factor.

What are your company’s plans for 2015? Kevin: We’re actually trying to grow our office; we need to add a couple of more project managers and estimators because we want to make sure we cover everything we need to cover. We also will be showing the value of our company to potential clients – [general contractors] and owners – to grow our company in that capacity. Merrick: We want to be one of the elite masonry companies out there. For us to do that, we’ll be doing some in-house strategizing. With the increased workflow and profitability, we’ll be able to do that. We’ll be able to train more per-sonnel and be able to retain the same core people for longer periods of time. The problem until this time has been the high turnover rate, so we want to mini-mize that.

What is the most important take-away or lesson you’ve learned in the past year? Kevin: In the past year, I’d say the most important take-away would be to manage what you have going on. Don’t overstep your bounds, just stay in your lane and be in a comfortable position. There are a lot of opportunities out there, but make sure you can handle those op-portunities as you take them on. Also, just take care of your people; your people are on your front line. They make the en-gine work, so make sure you have quali-fied people and take care of them as your company grows in the direction you want it to grow in. Merrick: Be patient. When you have a lot of opportunities coming in, you can inundate yourself. You have to know where your balance point is. You don’t want to exceed that with employees, payrolls, job schedules and all the factors that play into trying to perform a project. When we perform a project, we want it to have our signature on it, to put the quali-ty into it. We do that by maintaining our balance point. Brothers Kevin & Merrick Butler reincor-porated Butler & Butler Construction, a fam-ily business for more than 30 years, in 2006. The company, registered as a general con-tractor in cities throughout the Metroplex specializes in commercial masonry with a focus on brick, block and stone. –mjm


Round-Up

Round-UpSubmissions

This is a monthly 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(published 1st of each month).

Email info to appropriate city issue, with “Round-Up” in the subject line:––––––––––––––––––––––––––––––San [email protected]@constructionnews.netDallas/Ft. [email protected]@constructionnews.netSouth [email protected]

Houston, TX (1913)713.868.6111Dallas, TX (1956)972.466.0900San Antonio, TX (1968)210.828.3325New Orleans, LA (1969)504.889.0811Las Vegas, NV (1989)702-435-5053Miami, FL (1997)305.884.5311Los Angeles, CA (2011)818.884.1166Customer Support Center713.868.6111

Over 100 years of building relationships

Since 1913, Fisk has been one of the nation’s leadingproviders for the design, installation and maintenanceof electrical systems, structured cabling applications,integrated electronic security systems, and buildingtechnology solutions.

Chamberlin Roofing and Waterproof-ing announced the following:Bill Lawson has been promoted to vice president of roofing operations for all Chamberlin markets. Having joined the company 17 years ago as a roofing mechanic, he has natural leadership skills and ex-tensive knowledge of commercial roof-ing installations.T.R. Mayfield has been promoted to vice president of roof estimating ser-vices for all Cham-berlin markets. With the company for 14 years now, he was previously a roofing estimating manager and has roofing sys-tem expertise and commitment to pro-viding clear and detailed cost estimates.

The National Association of Women In Construction Austin Chapter (NAWIC) held a food drive in December that benefitted the Capital Area Food Bank of Texas. L-R: Cindy Richter, Austin NAWIC president, a Capital Area Food Bank representative and Chaundra Callaway,

Austin NAWIC vice president and community service chair –ab


Can do attitude

The Texas Society of Professional Engineers Travis Chapter (TSPE) held itsholiday party at Wyndam Garden Inn Dec. 3. TSPE members brought gifts for

Ortega Elementary students. –ab


Gather ‘round

pursuing other endeavors,” Belt said. “It was proposed that Karl and I buy a larger stake in the business. So, after months of discussion and planning, John and Joan sold the majority of their stock to me.” Belt is now president and holds a majority of the stock in the business with John, Joan and Karl as minority owners. These days continue to be busy and exciting times at Mar-teK Contractor Sup-ply LLC. “It’s been a long year, but 2015 looks incredibly promising for us all in this in-dustry,” Belt said. Mar-teK Contractor Supply provides contractor supplies and service. –ab

continued from Page 1 — Smooth transition continued from Page 1 — Welcome home

continued from Page 1 — Paving the way

Kristen Hunzeker, outside sales

The space easily holds large groups of about 350 guests, as well as smaller, more intimate crowds, King said. Inside, the facility showcases all the amenities you expect to see in a modern rental facility – warm wood-like vinyl ma-terials - perfect for dancing - line the main event room floor; exposed trusses with detailed connections adorn the ceil-ing; an expansive serving kitchen makes preparation a breeze; public restrooms, as well as a separate private restroom and dressing area provide comfort and convenience and high-end finishes shine throughout the space. The primary construction materials used included luxury vinyl planks, ex-posed vaulted wood planked ceiling and wood trusses, mill finish tri-folding glass doors, exterior and painted drywall, har-di siding, native limestone, locally milled eastern red cedar, CIP walls and columns, structural steel supporting elevated first floor and wood frame and trusses. Exten-sive hardscape and landscape sprawled over several acres. According to King, the rear of the project was placed on the bank of Brushy Creek within the flood plane, tying the amphitheater below waters edge. “On two different occasions, the creek rose and submerged our excava-tion equipment,” King said. “The design, fabrication and subsequent direction of the double rolled steel framed spiral staircases proved to be both challenging and rewarding. “This was a special project for us be-

cause it included so many vested people of the community including: the City of Round Rock, the parks and recreation de-partment, the design team, and the proj-ect manager for Round Rock, Larry Mad-sen (The Rabb House was his farewell project after working for the city for many years). Getting to work with Nancy Rabb and her family made this project unfor-gettable. “In addition, there were four father-son and one father-daughter teams work-ing on the project.” King says all involved parties were very hands on, which made for an excel-lent experience from start to finish. In 2014, John King Construction also completed the following projects: Eden Park Academy, Dan’s Hamburgers, Nyle Maxwell, Southside BBQ & Market in Bas-trop and in Elgin, Heytens Ranch, Texas Honey Ham, The Forum, Lash Lounge, Camp Gladiator, Flores Mexican Restau-rant, Taco Bell, Nutrishop, Solid Grounds Storage, High Lonesome Ranch, Austin Stone Community Church and Central Texas Table of Grace. King established the company in 1978, building small ground up restau-rants. By 1988, John King Construction was building for corporate retail custom-ers nationwide. The company currently focuses on serving repeat customers in the Central Texas area in the retail, educa-tion, religious, industrial and municipal sectors. –ab

Photos by: Oscar Amos Photography

The outdoor ampitheater

the weekend, he likes to play soccer for recreation. In the summertime, he goes to ZIlker Park often. “My dad loves going deer hunting when he gets the chance,” he said. “He was glad deer season started in Novem-ber.”

In the future, Hernandez says he and his family want to continue to expand the business. A & J Paving does asphalt repairs and concrete work, seal coating and striping in Austin and the surrounding areas. –ab


Association CalendarContent submitted by Associations to Construction News

ABC Central TexasAssociated Builders & Contractors

Jan. 1: ABC office closed New Years DayFor more information call 512-719-5263

AGCAssociated General Contractors

Jan. 1: AGC office closed New Years DayFor more information call 512-442-7887

AIAAmerican Institute of Architects

Jan. 1: AIA office closed New Years DayJan. 2: AIA Austin office closedJan. 5: Design Awards Committee meet-ingJan. 12: Homes Tour Committee meet-ingFor more information call 512-767-7436

CFMAConstruction Financial Managem’t Assn.

Jan. 20: Monthly Luncheon, 11:30am, Norris Conference Center, Speaker: Ste-fan LeRow, Capstone Mechanical – Topic: LEAN Construction, cost $30 members, $35 non-member. For more information call 512-767-7436

CTSA Central Texas Subcontractors Assn.

Jan. 13: Monthly meeting, 5:30pm, Em-bassy Suites, 5901 N. IH-35, Topic: TCA Legislative Update, Speaker: Raymond RiskFor more information visit www.ctsaon-line.org

NARINat’l Assn. of the Remodeling Industry

Jan. 8: General membership meeting, 11:30am, Norris Conference Center, 2525 W. Anderson Ln. #365Jan. 16-18: Home & Garden ShowFor more information visit www.austin-nari.org

NAWICNat’l Assn. of Women in Construction

Jan. 7: Chapter meeting, Program: Speed Networking, Big Daddy’s Burgers, 9070 Research Blvd.For more information go to www.austin-nawic.org

TSPETexas Society of Professional Engineers

Jan. 8-10: PE Leadership Institute – Ses-sion 2, Canyon of the Eagles, 16942 Ranch Road 2341, Burnet, TXFor more information visit www.tspe-tra-vis.org

The walls are going up at the Fat Quarter project in Buda.Burt-Watts Industries Inc. is the GC. –ab

Aiming highConstruction News JOB SIGHT

Getting things doneSubmitted to Construction News

L-R: Rick and Maggie Vroom and Brett Polulos, Archer Western Construction LLC, recently traveled from the Austin office to talk with attendees at a women and minority small business event in San Antonio. The company is a general contracting

and construction management firm. –abA ribbon cutting ceremony for the Beard-Burrowes Residence Hall and Allen-Frazier Residence Hall renovations took place in November. JE Dunn Construction was the GC

and CasaBella Architects was the architect. –ab

Making the cutSubmitted to Construction News

Book smartConstruction News JOB SIGHT

Hensel Phelps is the GC on the City of Austin New Central Library. The nine-story library will replace and double the size of the 1979 John Henry Faulk library. –ab

Gateway to successConstruction News JOB SIGHT

The Novium Group LLC crew works on the Round RockPolice Department gate project. –ab


Construction, engineering and architecture firms competed in CANstruction Aus-tin at Barton Creek Square Mall Nov. 8. The teams showcased their talents by designing and building giant sculp-

tures made entirely of canned foods. At the close of the CANstruction exhibition, all of the food used in the structures was donated to the Capital Area Food Bank of Texas. –ab

Congrats to the winners!

Creative can structures

Best Use of Labels: MockingCan - W.C. Akins High School

Honorable Mention: Let’s Tackle HungerSchneiderHalls and Rogers-O’Brien Construction

Structural Integrity: Change Your Perspective — Yes We Can, Say No to Hunger - KGA Architecture, Encotech Engineering

and Kiewit Building Group

Juror’s Favorite: Kick HungerWalter P. Moore Engineers and Page Architects

Honorable Mention: Bridging the Gap - Structures, Anderson High School and SpawGlass Contractors Inc

Hunger is Not Awesome - DCE Engineers, DWG Landcape Architects, EEA Consulting Engineers, GSC Architects, Hoar

Construction and Kimley-Horn Best Meal: Canping Out Hunger -Sixthriver Architects,

Petrified Design and CJG Engineers

Lone Star Materials employees and their spouses celebrated

Christmas at the Main Event in Austin in early December. Credit manager Lori Drake says folks enjoyed a gourmet buffet, bowling, rock climbing and laser tag. Lone Star Materials is a construction materials sup-plier selling to general con-tractors, subcontractors and homebuilders. –ab

Spreading holiday cheer

L-R: Robert Reyna, Robert Molina, Connie Reyna and Lisa, Lone Star Materials

L-R: James Tyler, a guest and Malik Sultan, Lone Star Materials

L-R: Lori and John Drake, Lone Star Materials and Steven and Michelle, National Gypsum,prepare for rock climbing.


Warm and cozy

To celebrate National Ugly Christmas Sweater Day on Dec. 12, the Bartlett Cocke General Contractors Central Texas office in Austin wore their sweaters to work. –ab


15 to 500 TonCapacitiesAvailable for yourToughest Projects

www.alamocrane.com

San Antonio (210) 344-7370Austin (512) 282-6866Toll Free (800) 880-0134

35 Years of Service to Texas

fromEl Paso to Beaumont

Amarillo to Brownsville

Hanging structural steelon new offi ce building onParmer Lane.New Terex 60-ton craneis very versatile anddependable.

RDO Equipment Co. employees and their spouses played casino games at a Christmas party at Holiday Inn in December. –ab

Equipped for a partySubmitted to Construction News

Enjoying good company, Journey-man Construction Austin office employees gathered at the W Hotel

for a Christmas Party Dec. 13. Journeyman Construction is based in Austin with regional offices in San Antonio, Dallas, Corpus Christi, Diana and McAllen. –ab

Night on the town

President Sam Kumar thanks attendeesfor a great year.

Gaby Trad, HarHos Management L-R: Judy Fisher and Amanda Cline,

Journeyman Construction

Towering aboveSubmitted to Construction News

Rogers-O’Brien Construction makes progress at the 3800 Lamar project in Austin. –ab

L-R: The Heldenfels Enterprises Inc. San Marcos team traveled to El Paso inNovember to break ground on its new precast concrete plant, which will be operational

in Apr. 2015. L-R: Adam Mainka, Fred Heldenfels IV and Kristen Knox (front row)and Dan Visel, Kurt Schriefer, Ron Reich, Blane Withers and Gil Heldenfels

(back row) Photo by: Bryan Pritchard –ab

Nothin’ but blue skiesSubmitted to Construction News

austin construction news january 2015

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