houston construction management. atkinson is a former professional ... page 2 houston construction...

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The Industry’s Newspaper CONSTRUCTION CONSTRUCTION www.constructionnews.net (210) 308-5800 P.O. Box 791290 San Antonio TX 78279 11931 Warfield San Antonio TX 78216 Nov 2010 Vol. 8 No. 11 Houston Gathering space continued on Page 14 continued on Page 14 continued on Page 14 PRSRT. STD. U.S. POSTAGE PAID DALLAS, TX PERMIT #1451 P.O. Box 791290 San Antonio, Texas 78279-1290 Change Service Requested San Antonio Austin Dallas/Fort Worth Houston Texas Style Covering the Industry’s News Team approach Stars and stripes Z enith Construction recently com- pleted the St. Angela Merici Multi- Use Building for the St. Angela Mer- ici Catholic Church. The Archdiocese of Galveston-Houston is the owner. Robert J. Betancourt, project exec- utive, says the construction team com- pleted the $3.1 million project in 10 months. “Phase I construction of the new 13,500sf Multi-Use Building for St. Angela Merici Catholic Church took place on a 26-acre development in Missouri City, TX,” Betancourt said. “It consists of a large gathering space for worship which accommodates 500 people, a meeting room for group gatherings, three large classrooms and a hospitality area. Future plans include a new sanctuary, parish of- fices and a parochial K-8 school.” Betancourt says the project was con- structed of a pre-engineered steel build- ing, brick veneer, standing seam metal roof with chilled-water HVAC system, electrical and plumbing. Interior finishes included ceramic tile and MCT flooring, solid surface countertops and stained red oak finishes throughout. “The main challenge in this project was developing the six-acre portion of this 26-acre tract of land,” he said. “Spe- cifically running utilities and coordinat- ing the utility services for undeveloped acreage. Centerpoint Energy had to cross over two other tracts of land to es- tablish the electrical services on our site. Careful negotiations and lots of conver- sations with the connecting land owners were key. “Another challenge was the City of Missouri City, Sienna Plantation and their local/regional requirements which are very different from the City of Houston.” According to Betancourt, the project was unique because St. Angela Merici is St. Angela Merici Catholic Church I f you ever visit Atkinson Engineers, you’d see a variety of historical maps, surveys, photos and a framed docu- ment on the wall signed by Sam Hous- ton. Jason Atkinson is the president and his brother Neil is the vice president and chief surveyor at the firm. “Texas became the 28th state of the United States in 1845,” Jason Atkinson said. “President Polk sent General Zach- ary Taylor to Texas with a force of 3,000 men to defend the southern border from Mexico. “Our great, great, great grandfather Charles Arden Russell was one of the 3,000 men. In 1846, he retired from the Army and became a deputy surveyor on the Texas frontier. Six generations later, we are still surveying and engineering in Texas. “Our dad and former president Rob- ert “Bobby” Atkinson Jr. has been tran- sitioning into a consultant to the business while spending more and more time at his ranch.” Brad Flack, business development manager, is involved with Storm Water Quality Management. Atkinson is a former professional football player and All-American line- backer for Texas A&M University. He says he combines a practical engineering at- titude with a team approach. He says he coaches youth football in his free time L-R: Brad Flack, Jason Atkinson and Neil Atkinson O n Oct. 5, Pete Post, owner of Vol- vo Rents of Houston, sales man- ager Steve Brock and sales repre- sentative Billy Wilson met with Con- struction News to discuss the Color For a Cause initiative. Fiberspar LinePipe LLC (Fiberspar) rented an excavator painted with blue and red stripes. Thomas Lindsay, manu- facturing supervisor, walked everyone out to the machine on the property. “Our program is supporting the troops and Wounded Warriors,” Post said. “We found that Fort Sam Houston and Texas had a good program for all the ser- vices such as the U.S. Army, Navy, Marines and Air Force. “We started out collecting bags of goodies and toiletries to send to the troops overseas. We still do that, but we focus primarily on the Wounded War- riors.” Post says the folks at Fiberspar, a manufacturer and designer of fiber-rein- forced spoolable pipe, agreed to run the painted machine. They also wanted to support the troops, he said. Post says he and Brock started Volvo Rents of Houston in 2004. They bought the franchise from Volvo Rents in Ashe- ville, NC. “I have been in this business all my life and so has Steve,” Post said. “We saw it as a good opportunity. We are in our L-R: Steve Brock, Billy Wilson, Thomas Lindsay and Pete Post

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The Industry’s Newspaper

™CONSTRUCTIONCONSTRUCTION www.constructionnews.net (210) 308-5800 P.O. Box 791290 San Antonio TX 78279 11931 Warfield San Antonio TX 78216 Nov 2010 Vol. 8 No. 11

Houston

Gathering space

continued on Page 14 continued on Page 14

continued on Page 14

PRSRT. STD.U.S. POSTAGE

PAIDDALLAS, TX

PERMIT #1451

P.O. Box 791290San Antonio, Texas 78279-1290

Change Service Requested

San Antonio Austin Dallas/Fort Worth Houston

TexasStyle

Covering the Industry’s News

Team approach Stars and stripes

Zenith Construction recently com-pleted the St. Angela Merici Multi-Use Building for the St. Angela Mer-

ici Catholic Church. The Archdiocese of Galveston-Houston is the owner. Robert J. Betancourt, project exec-utive, says the construction team com-pleted the $3.1 million project in 10 months. “Phase I construction of the new 13,500sf Multi-Use Building for St. Angela Merici Catholic Church took place on a 26-acre development in Missouri City, TX,” Betancourt said. “It consists of a large gathering space for worship which accommodates 500 people, a meeting room for group gatherings, three large classrooms and a hospitality area. Future plans include a new sanctuary, parish of-fices and a parochial K-8 school.” Betancourt says the project was con-structed of a pre-engineered steel build-ing, brick veneer, standing seam metal

roof with chilled-water HVAC system, electrical and plumbing. Interior finishes included ceramic tile and MCT flooring, solid surface countertops and stained red oak finishes throughout. “The main challenge in this project was developing the six-acre portion of this 26-acre tract of land,” he said. “Spe-cifically running utilities and coordinat-ing the utility services for undeveloped acreage. Centerpoint Energy had to cross over two other tracts of land to es-tablish the electrical services on our site. Careful negotiations and lots of conver-sations with the connecting land owners were key. “Another challenge was the City of Missouri City, Sienna Plantation and their local/regional requirements which are very different from the City of Houston.” According to Betancourt, the project was unique because St. Angela Merici is

St. Angela Merici Catholic Church

If you ever visit Atkinson Engineers, you’d see a variety of historical maps, surveys, photos and a framed docu-

ment on the wall signed by Sam Hous-ton. Jason Atkinson is the president and his brother Neil is the vice president and chief surveyor at the firm. “Texas became the 28th state of the United States in 1845,” Jason Atkinson said. “President Polk sent General Zach-ary Taylor to Texas with a force of 3,000 men to defend the southern border from Mexico. “Our great, great, great grandfather Charles Arden Russell was one of the 3,000 men. In 1846, he retired from the Army and became a deputy surveyor on

the Texas frontier. Six generations later, we are still surveying and engineering in Texas. “Our dad and former president Rob-ert “Bobby” Atkinson Jr. has been tran-sitioning into a consultant to the business while spending more and more time at his ranch.” Brad Flack, business development manager, is involved with Storm Water Quality Management. Atkinson is a former professional football player and All-American line-backer for Texas A&M University. He says he combines a practical engineering at-titude with a team approach. He says he coaches youth football in his free time

L-R: Brad Flack, Jason Atkinson and Neil Atkinson

On Oct. 5, Pete Post, owner of Vol-vo Rents of Houston, sales man-ager Steve Brock and sales repre-

sentative Billy Wilson met with Con-struction News to discuss the Color For a Cause initiative. Fiberspar LinePipe LLC (Fiberspar) rented an excavator painted with blue and red stripes. Thomas Lindsay, manu-facturing supervisor, walked everyone out to the machine on the property. “Our program is supporting the troops and Wounded Warriors,” Post said. “We found that Fort Sam Houston and Texas had a good program for all the ser-vices such as the U.S. Army, Navy, Marines and Air Force.

“We started out collecting bags of goodies and toiletries to send to the troops overseas. We still do that, but we focus primarily on the Wounded War-riors.” Post says the folks at Fiberspar, a manufacturer and designer of fiber-rein-forced spoolable pipe, agreed to run the painted machine. They also wanted to support the troops, he said. Post says he and Brock started Volvo Rents of Houston in 2004. They bought the franchise from Volvo Rents in Ashe-ville, NC. “I have been in this business all my life and so has Steve,” Post said. “We saw it as a good opportunity. We are in our

L-R: Steve Brock, Billy Wilson, Thomas Lindsay and Pete Post

Page 2 Houston Construction News • Nov 2010

After 40 years working as a plumber, Moe (Mahmoud) Olya, owner of Nations’ Plumbing in Houston, is

planning to retire in Dec. 2010. He says he was born in a family with construction and investment talent in Tehran, Iran. “When I was in high school, I walked the distance from the school to my home,” he said. “Along the way, I saw a plumbing company. I stopped by one day and told the owner I wanted to learn the plumbing trade. I asked him if he would hire me. “At first the owner said no, and after he saw how much I wanted to work, he said I could come to work at 7am. I knew I wanted to ultimately become a plumber.” Olya says next he came to the U.S. for higher education and in 1983, he started

New horizons

People’s Plumbing in Houston. “I eventually opened Nations’ Plumb-ing 12 years ago,” he said. “I have really enjoyed my job over the years and plumbing in general. It is part of me. Plumbers contribute to the health of so-ciety and the environment. I will miss it.” In his free time, Olya says he runs three miles every other day in Memorial Park, enjoys chess games and plays rac-quetball. He also likes boxing. “I have traveled to 30 countries of Asia, Europe and North and Central American,” he said. “I am fluent in Fars, German, Spanish and English.” Olya says in the future, he will con-tinue his higher education and plans to receive his Ph.D in Political Science. Nations’ Plumbing is a plumbing con-tractor in Houston. –ab

Mahmoud Olya says staying physically fit helps him work efficiently.

Houston-based Sparkling Doors opened the last week of Septem-ber at 2617 Karbach St.

Office manager Diana Cortinas an-swers the phone and takes care of cus-tomers. She also handles sales and sets up all the installation jobs. “We have had some light commercial work lately such as a restaurant project in Houston,” she said. “We installed the ma-hogany doors at the project.” Cortinas says the owner Ronald D. Smith has experience in the construction industry and decided he wanted to open his own door company. Isreal Cortinas and Arturo Velaquez do the custom measurements and they also stain doors at the shop. “Since we first opened, we have stayed busy.” Cortinas said. “We have al-ready had customers come to our loca-tion for business. I think things are going to go great for the rest of the year.” Working in the door business for 10 years, Cortinas says prior to her new posi-tion, she worked part time at another company. “My favorite part of my job is meet-ing different people,” she said. “I find it rewarding to help customers find the best door for their needs.” In her extra time, Cortinas says she used to play volleyball. Today she enjoys spending time with and raising her three

children ages 11, 15 and 17. “On the weekends, my kids play se-lect baseball,” she said. “I attend their games and cheer them on in the stands. Most of their baseball games take place in the Houston area.” Sparkling Doors is a residential and commercial door company. –ab

Sparkling endeavors

One month into the job, salesman Charley Witbeck says he enjoys talkingwith customers at The Granite Yard, a granite installation and fabrication

company in Houston. –ab

Granite stopConstruction News ON LOCATION

Houston Construction News • Nov 2010 Page 3

CONSTRUCTION NEWSHouston

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.

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Finalists were honored at the 1st Annual Business Excellence Awards Gala held at the Wortham The-ater Oct. 21. The gala will be an ongoing program

presented on even-numbered years, alternating annu-ally with the Excellence in Construction Awards. Houston’s construction stars were recognized in management and business excellence rather than con-struction projects. The guest emcee, Jim McIngvale “Mattress Mack”, got the crowd laughing by quoting Winston Churchill and presenting the awards after dinner. The Associated Builders and Contractors (ABC) held the event. –ab

Congrats to the winners!

Supplier: ExperTox (not pictured)

Taking care of business

Commercial Specialty Contractor:Marek Brothers Systems Inc.

.Industrial Specialty Contractor:Fugro Consultants Inc.

Associate:Littler Mendelson P.C.

Commercial General Contractor:SpawGlass Construction Corp.

Industrial General Contractor:Plant Performance Services LLC

Minority Contractor: Oxford Builders Inc.

Mega Commercial Specialty Contractor: TDIndustries

Mega Industrial Specialty Contractor: KBR

Page 4 Houston Construction News • Nov 2010

Chris BurkeSouthern Comfort

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Chris Burke says around every cor-ner there is a challenge when you own your own business.

“My main goal is to help people bring comfort into their lives,” Burke said. “I love what I do. My business is my baby. It is something that I have nurtured along the way. It has been rocky. It has been tough. That is why I am doing what I am doing today!” Southern Comfort Insulation pro-vides commercial, industrial and residen-tial insulation services throughout Hous-ton and the surrounding counties. Ser-vices include attic and wall insulation, ra-diant barrier installations, retrofitting, ceilings and fiberglass insulation.

How long have you been in business? I opened Southern Comfort Insula-tion five years ago this May.

What sparked your interest to get into the insulation business? I worked for another insulation con-tractor at first. I can remember working on an insulation tear off project in Chan-nelview, TX. I was up on one of the silos, which was up several 100 ft. in the air. I could see the whole city of Houston from the silo. I remember a gentleman who used to drive up in his Avalanche wearing white collared shirt, a tie and a hard hat and he carried blueprints. I thought to myself, I have a degree in business and I know what I am doing. So, I climbed down and told my foreman I was leaving and gave my two weeks no-tice. The foreman asked me why and I said I wanted to start my own company. He said, “Wow, I wish I had your heart. You don’t even have to give your two weeks notice. Go, go, go, go!”

What did you do next? Within the first week, I would actual-ly take flyers and go put them in all the Greensheets. I would go door to door and sent out direct mail. I started with the first name in the phone book and then began to mail the flyers. I mailed about 400 fliers at that time. The calls started coming in frequent-ly and then referrals started happening. To make a long story short, I started out by renting my equipment from Home Depot. I drove my old beat up Dodge truck with a machine in the back. We had insulation strapped in the back seat and over the top of the truck. A guy name Fernando, my helper, came along with me. I operated the company from my home for the first three and a half years and then moved to our current location on N. Eldridge Parkway. Did you come up with the company name? Yes. I sat down in my living room and wrote down several company names that came to mind. I kept going back to the name Southern Comfort Insulation. I re-ally liked the name. I went online and checked through Harris County and the name was available. So, I went down and got a DBA. Since that time, we have be-come an LLC.

Are you married? I was single when I started the busi-ness and now I am married. One day, I had a job in Northwest Houston and met my wife Carissa. I looked in her attic and she called a few days later and said she never intended to hire a contractor, she just needed advice. I went back to do some work and the job took about two days and then three weeks. Next, Carissa and I started going to the movies. We dated about six months even before the first kiss!

Does Carissa work with you today? Yes, she does a lot behind the scenes at home. She helped me design the ted-dy bear we came up with for the logo. Prior to marriage, basically it was just Fer-nando and I and maybe another helper. When we got married, Carissa began to help at the company and I am so glad she did!

Do you and Carissa have any children? Yes, we have two children named Hunter and Hannah.

Are you a sports fan? Yes, my family and I are Houston Tex-ans football fans. I want to go to at least one game at the Reliant Stadium this year! My buddy Bernard had extra tickets for a recent game but he ended up giving them to someone else. I am hoping he will come across some more tickets soon! What else do you and your family like do on the weekends? On Sundays, we all attend church at the Fellowship of the Woodlands. In ad-dition, my wife, our kids and I enjoy par-ticipating in martial arts. Hopefully Hunter will be eligible to go for his first belt. We go to martial arts on Thursdays and Saturdays. Lately, Carissa is trying to talk me into taking salsa dance lessons with her. I also enjoy landscaping, doing yard-work, hanging out on the weekends and

just being a family.

What is something you have always wanted to do? Well, I have always wanted to learn a foreign language. My wife recently asked me what I wanted for Christmas and I told her I wanted Rosetta Stone Spanish so I can teach myself Spanish. In Houston and in Texas, it helps to know Spanish in the construction indus-try. I did take Spanish classes in college, so I do know some words. I can watch it on television and understand the lan-guage a lot better than I can in the field. To get ahead in the business world, I think it would be helpful to be bilingual in Spanish and English. How has the company progressed since you opened five years ago? The company has grown every year. We added trucks, trailers and our own equipment. Now, we have employees that specifically do the commercial work. The office manager is Patricia Cantu. She basically runs the phones, talks to the customers and schedules all the work. She is slowly but surely taking over a lot of the accounting responsibilities too. Taylor Guidry is a salesman. At Southern Comfort Insulation, we are doing work with the Residential En-ergy Efficiency Program (REEP) for the Federal Government and the City of Houston. We have donated materials and labor to organizations and low in-come housing in Houston. It is important to us to be a pivotal part of our commu-nity.

What is rewarding about what you do today? For one, I am my own boss. So, I can look in the mirror and say, “Hey, can I have the day off?” I don’t usually get the day off though! For the first three years, at some point I was working for what seemed 24 hours a day and seven days a week. I re-member sleeping on jobsites. I still do a lot of the sales myself to-day. I put together letters, flyers, business cards, fold them up and put on stamps

and then send them out in the Houston area. This is all something that is coming out of my pocket. I am doing all the di-rect mail myself.

What are the keys to success? A former employee asked me if he ever broke off to start his own business, would I help him. I almost wanted to tell him, “I’d rather see you take up a bad habit or something!” It takes a lot of hard work and a lot of tears. You are dealing with customers, Federal law, local law, IRS, the comptroller and vendors. On any given day a situation or problem can arise. You have to make sure you show up and be ready to take care of business. What are a few commercial projects the company has worked on lately? We provided the insulation services at the Blencor project, a food manufac-turing plant, in Sealy, TX. It was a $50 mil-lion dollar project and it took 10 months to complete. In addition, we insulate shipping containers that go to China and around the world. We also do metal building in-sulation (MBI).

What are your future goals? I love being a Houstonian. The diver-sity and culture are awesome. I think it is nice to work and play near the Gulf Coast. My plans are to continue to grow the business steadily and be the “Mattress Mack” of the insulation business. –ab

Chris Burke says he and his family participate in martial arts on Thursdays and Saturdays.

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Houston Construction News • Nov 2010 Page 5

Certain tax aspects of theSmall Business Jobs Act of 2010David Donnelly, CPA, PartnerAnna Johnson, CPA, Senior ManagerGainer, Donnelly & Desroches LLPHouston, TX

Father and son Felix and Francisco Renteria, Smart Construction, specializein commercial exterior and interior painting in Houston. They both enjoy

watching soccer on the weekends. –ab

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In September Congress passed, and the President signed, the Small Business Jobs Act of 2010. Since

most of the provisions only apply for 2010 and 2011, this comes somewhat late in the year. Regardless of the tim-ing, though, there are some provisions which should be beneficial to many small businesses, especially real es-tate and construction businesses. This article contains a very general explanation of only some provisions of the tax aspects of the new law. All taxpayers should contact their tax professionals to determine how the provisions explained here could af-fect them, and to determine if there are other provisions of the new law which might affect them.

There are three new rules liberalizing the first-year expensing of property. First, the Section 179 deduction (Section 179 refers to the Tax Code section which allows the deduction of property placed in service in the year it is placed in ser-vice) is raised from $250,000 to $500,000. Also, the cap at which the deduction be-gins to be limited is raised from $800,000 to $2,000,000. This applies to new and used property purchased in 2010 and 2011. Second, there is new rule which adds qualified real estate to Section 179. Up to $250,000 in qualified real property addi-tions can be deducted for additions in 2010 and 2011. Qualified real property includes certain leasehold improve-ments; restaurant properties, and retail property improvements. The qualifica-tions for these properties are somewhat complex; a common qualifier, though, is that the buildings in which the improve-ments are made must be more than 3 years old. Third, bonus depreciation is back for 2010 and, for some property, 2011. Under the bonus depreciation rules, you can de-duct 50 percent of the cost of qualified property placed in service during the year, for both regular and alternative minimum tax purposes. Qualified prop-erty includes machinery, equipment, computer software and certain leasehold improvements; also, the property must be “new” – the law uses the term “original use.” Once again, the qualifications are somewhat complex.

As a graduate of the University of Texas at Austin, David Donnelly has over 25 years in public accounting. He leads the real es-tate practice at GD&D. Donnelly serves as

both a Chair in the Relations with the IRS Committee and on the State Tax Commit-tee for the Texas Society of Certified Public Accountants. In 2005, CPA Magazine named him one of the industry’s “Top 100 Most Influential Practitioners.” Anna Johnson has 14 years in public accounting. Her clients include athletes, le-gal and other professional service individu-als, and high net worth individuals. She has a BA in French and an MBA from the Univer-sity of Houston. GD&D has offices in Houston and Aus-tin, TX. They specialize in construction, en-ergy, healthcare, manufacturing and real estate markets. –dn

Wage and hour claims - Are we seeing just the tip of the iceberg?Kenneth D. Minter, CIC, Vice PresidentMHBT LLCDallas, TX

The U.S. Labor Department can “get you” if you are not careful with how you pay your wage and hourly em-

ployees. One contractor required all employees to re-port to the main yard for work where they were transported to the job site. This con-tractor, wanting to be fair, paid each employee his hourly wage going to and from the job site. He was investigated by the U.S. Department of Labor because some of the trips were 1 1/2 hours and he only paid for 1 hour. He was fined $60,000 for back wages.

A class action suit was filed against a restaurant for failure to pay overtime wages at 1 1/2 times the regular rate of pay for all hours worked over 40 per week. Also alleged was mandatory par-ticipation in a tip pool. Another plaintiff alleged improper classification as an exempt employee and was entitled to overtime compensation. The plaintiff normally worked 11 hours per day with only one meal period, and was not paid any overtime compensation or meal period wages. The claim was for $145,000, plus attorney fees. Wage and hour claims are one of the largest exposures for employers today. Litigating wage and hour claims can be extremely expensive. If an employer can-not show good faith, it is possible for claimants to recover liquidated damages (2X the actual damages) plus attorney fees. The most common sources of wage and hour claims come from: (a) Claims associated with “exempt” versus “nonexempt” misclassification. For a detailed explanation of “exempt” versus “nonexempt” classifications, go to www.dol.gov/whd/flsa/index.htm or http://www.dol.gov/whd/regs/compli-ance/fairpay/fs17a_overview.pdf (b) Misclassifying employees as inde-pendent contractors and not paying them overtime because independent contractors are ineligible for overtime pay (c) Not properly paying employees’ overtime (d) Allowing employees to work “off the clock” Why are wage and hour claims be-coming so prevalent? The law has not changed; however, investigation and en-forcement have increased drastically. DOL is intensifying the investigations conducted and is focused on the con-struction industry. President Obama’s 2010 budget assumes the crackdown on independent contractor misclassification will yield $7 billion in revenue over the next 10 years. In November 2009, the Secretary of Labor hired over 80 additional wage &

hour investigators. This year they hired an additional 175 investigators. The DOL has created a public aware-ness website. It is intended to provide workers with information about their rights in the workplace and to educate them on how to seek assistance from the Wage and Hour Division when they be-lieve that they have been subject to viola-tion. The website provides emphasis on construction industry practices. http://www.dol.gov/wecanhelp/ There are steps that you should take to try and avoid any wage and hour is-sues. Begin an internal audit now. Make sure you are paying minimum wage and overtime, no “off the clock” pay. Pay spe-cial attention to those exempt employ-ees and make sure they are exempt ac-cording to current standards. Also review your independent contractors. Make sure they are properly classified and fit the current definition. Ensure that your records are complete and accurate. To-day, even the best companies can un-knowingly make mistakes that can be costly, even devastating. It’s more impor-tant than ever to be knowledgeable and vigilant. Consult with your labor attorney about your wage and hour exposure. He/she can assist in identifying areas the audit should address. Ask your insurance agent to provide pricing and coverage information for wage and hour protection. Many current Employment Practices Liability (EPL) poli-cies exclude claims arising out of wage and hour infractions. Several will provide defense coverage only and may or may not have a sub limit. There are a few com-panies that provide coverage for both in-demnity and defense costs at the full policy limits.

Ken Minter has an extensive back-ground with both the staffing industry and the construction industry. He has helped numerous companies design and institute risk management programs as well as com-petitive Workers’ Compensation programs. Ken joined MHBT in 1995 and is active in ASA. You may contact Ken @ 972-770-1676 or email: [email protected]. –dn

Page 6 Houston Construction News • Nov 2010

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What was yourfavorite vacation?

Be safe about SARE: Commercial real estate default andbankruptcy planningDebra L. Innocenti, AttorneyOppenheimer, Blend, Harrison & Tate Inc.San Antonio, TX

The commercial real estate climate still looks stormy. Banks have remained cautious with their balance sheets, accord-

ing to Wells Fargo’s Economics Group. Five percent contin-ued to tighten standards on commercial real estate in the second quarter of 2010. The National Association of Realtors has predicted continued short-term declines in all five sectors of commercial real estate: office, retail, industrial, multifamily and hospitality. In this climate, $1.4 trillion in com-mercial loans will need refinancing be-tween 2010 and 2014. Over half of those loans are under water. A prudent developer or property owner must stay on top of commercial loans before any problems come to fore. That means knowing the limitations and hurdles of the “last resort” of bankruptcy, particularly for a single-asset real estate entity, known as a SARE (pronounced SAHR-ee). SAREs have stricter timelines and obligations under the Bankruptcy Code, which can prevent a successful reor-ganization. The Bankruptcy Code defines a SARE as “real property constituting a single property or project, other than residen-tial real property with fewer than 4 resi-dential units, which generates substan-tially all of the gross income of a debtor who is not a family farmer and on which no substantial business is being conduct-ed by a debtor other than the business of operating the real property and activities incidental.” 11 U.S.C. § 101(51B). In lay-man’s terms, a SARE is single-purpose en-tity, one that owns only one project, which is the source for most of its income. The amendments to the Bankruptcy Code in 2005 eliminated the $4 million se-cured-debt cap from the definition, which has broadened its reach. Accordingly, more SARE cases have been filed, and we can begin to see the full reach of both the definition and the associated hurdles. In Texas, courts have interpreted SARE to reach apartment buildings, office buildings, shopping centers, undevel-oped land, and even multiple undevel-oped properties with a common plan or scheme for development. Entities that have other business operations conduct-ed on the real property, such as restau-rants, may escape SARE designation. Some golf courses and hotels have been found by the courts not to be SAREs, but there is still little consensus on the outer parameters of the definition.

What does it mean to be a SARE in bankruptcy? It’s easier for a secured lender to get permission from the bank-ruptcy court to foreclose on the property. Within 90 days from the bankruptcy filing or 30 days after the court determines the debtor is a SARE, the debtor must either (i) file a plan that has a reasonable possi-bility of being confirmed within a reason-able time; or (ii) commence monthly in-terest payments to its secured creditors. That may be difficult (or impossible) for a SARE debtor still in development and de-pendant on loans for its cash flow. In addition, negotiating a plan that has a reasonable possibility of being con-firmed has its own intrinsic hurdles. Among them is the “Fair and Equitable Standard,” also known as the “Absolute Priority Rule.” Equity cannot retain own-ership without paying all creditors in full or infusing new value into the debtor. This means bankruptcy takes sub-stantial planning. A debtor who “sud-denly” finds its property posted for fore-closure will not be able to obtain relief by picking up the phone for the first time to call a bankruptcy lawyer. What should developers and com-mercial property owners do now? Deter-mine the maturity date of your commer-cial loans. Begin talking with your lender on refinancing or extending the maturity date. If you anticipate trouble obtaining refinancing or modification, begin talk-ing to an attorney about your options. Be aware whether your entity may be desig-nated a SARE and what you might be able to do now to prevent such a desig-nation or, alternatively, to avoid the ef-fect of the stricter provisions in the Bank-ruptcy Code. The more time you give yourself the more options you have. Debra L. Innocenti is a creditor's rights/bankruptcy attorney with Oppenheimer, Blend, Harrison & Tate, Inc. She has been recognized by Law & Politics and Texas Monthly magazine as a Texas Rising Star in the area of Bankruptcy & Creditor/Debtor Rights (2007-2010). –dn

My wife and I enjoyed spending eight days in Hawaii. We went to Honolulu and Oahu. We saw a dormant volcano while we were there.

Bill James Driver,Driver Tin Man Tool & Supply

Spending time in the Hill Country!Tom Large, Maverick Enterprises

I’d have to say going out to Brady, TX. I raise white tail deer out there.

Bobby Small, Gemini Plumbing Inc.

Taking road trips to Austin and San Anto-nio is always a good time. I will go to 6th Street in Austin and the Riverwalk in San Antonio.

Hugo Gil, Evys Electric Inc.

One of my favorite trips was traveling to Guadalajara, Mexico to visit my parents. The scenery and sunsets were so beauti-ful!

Amy Alcantara,Amador Granite & Tile Inc.

Fishing in Kemah, TX!Jose Espinal, Ceramica Texas Inc.

Hawaii is my favorite place in the world. I try to make it to Oahu and Maul at least once a year. I love listening to the Hawai-ian music when I am there.

Matt Rhodes,Cambridge Doors & Windows Inc.

My favorite vacation is going fishing for bass, crappie and catfish at Lake Somer-ville in Somerville, TX.

David King, San Jacinto Glass Co.

I like to stay at home and just relax! Now that is a nice holiday.

Will Mason, Aces A/C Supply Inc.

One of my favorite vacations was going to a family ranch in Huntsville, TX. My family and friends and I did a lot of fish-ing, barbecuing and four-wheeling. It was a great time!

Geraldo Ortega,National Trench Safety

I liked going to Kansas on Christmas break to visit my family. My wife Erin came with me. I was able to go white tail deer hunting a few times during the trip.

Matt Whiting, Brother’s Lighting & Electrical Specialist

My favorite trip was going back to South America where I am originally from. I en-joyed participating in outdoor activities like surfing and offshore fishing.

Steven Meyer, E & L Service Co.

Camping and hiking in North Carolina with my wife Christie. We went there to visit Christie’s parents.

James Green,G & H Air Conditioning & Heating

Spending time in Key West, FL is the best. In fact, I have been there every year for the past nine years.

David Douglas,American Mechanical Services

My favorite vacation was going off-shore fishing in Galveston with my son David. We have a lot of fun!

Tommy Cangelosi,Natural Earth Products Co.

I find it really relaxing to go salt-water fishing in Matagorda Bay with my family and friends.Jose Ponce, Ponce Remodeling Service

Houston Construction News • Nov 2010 Page 7

BAFFIN BAYLAGUNA MADRE

LAND CUT

SPECKLED TROUT

REDFISHFLOUNDER

FISHING AND HUNTING TRIPS

STEVE SCHULTZOUTDOORS, LLC

(361) 949-7359www.baffinbaycharters.com

[email protected]

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

Fall Round-Up

by Capt. Steve Schultz

Sponsored by:Trans Sport Boats, Yamaha Outboards, Ronnie’s Marine,

Minn Kota Trolling Motors, Power Pole Shallow Water Anchor, Interstate Batteries, Pure Fishing, Pflueger

Reels, All-Star Rods,Mirr-O-Lure, FINS Braided Line

and Columbia Sportswear.

By the time this copy of the Saltwater Angler hits your favorite pick-up rack, you will probably be gearing up for deer hunting season. Yea, break out

the rifles and binoculars. Dig out the camo clothing and head for the lease. You might want to rethink that plan if the weather stays calm like it has been for the last few weeks. Fishing has really picked up the last few weeks and I’m prepared to miss a few weeks of deer hunting as long as the fish stay around.

As conditions slowly returned to normal from the tropical weather patterns we experienced in September and the beginning of October, fishing seemed to improve also. Specks and redfish both have been actively feeding in most of the popular hotspots around the Laguna Madre and Baffin Bay. We have had solid boxes of trout

in the 17in. to 22in. range with scattered reds mixed in. Live bait still remains the bait of most charters, although I’ve heard some of the lure grinders are scoring big on soft plastics also.

The fall and winter seasons are perhaps my favorite times of the year. Fishing the birds can be a hoot. When you see a flock of birds circling and diving a particular area, you know that something has to be happening in the water. As incredible as it may seem, I can’t tell you how many times I’ve watched fishermen drive right through a large group of working gulls not knowing the damage they’ve done, or what they’re missing out on!

When chasing the birds, you’ll find that a good trolling motor can prove very useful. A trolling motor that can push your boat at a decent speed is a great help if the fish are moving. Both Great White and Minn-Kota make excellent units. If you’re purchasing a new one, take the time to learn how they are rated in terms of “pounds thrust.” The higher the number, the more power or pounds of thrust the unit delivers. Your dealer can help you select the best trolling motor for your boat. Believe me, you don’t want to be under-powered when following working birds. Nothing is more frustrating than to have the school out run your trolling motor. If you start your outboard motor, there is a good chance that you will spook the fish and your chances are slim to none that you will locate them again.

Always remember to work into the birds from the up-wind side so that you can drift into them. When approaching a flock of birds try not to get too close to them while under power. It is definitely best to come in as quietly as possible… either drifting or with the trolling motor. The outboard is a big No-No!

To schedule your next bay fishing trip giveCapt. Steve Schultz a call at:

361-949-7359 or 361-813-3716, or e-mail [email protected].

Already booking for the 2011 fishing season. Good luck and Good Fishing.

Mike and Kelcie Kaiman enjoyed a nice Columbus Dayon the water with Steve Schultz Outdoors. Kelcie

handled this 42-inch bull redfish like a pro.

TexasStyle

San Antonio Austin Dallas/Fort Worth Houston

www.constructionnews.netpublishing the industry’s news

Page 8 Houston Construction News • Nov 2010

Ken Milam’s Fishing LineSponsored by Tropical Marine and Honda Marine

My name is Ken Milam and, for the past 26 years, I have been guiding fishing trips for striped bass onLake Buchanan in the Texas Hill Country. Over the years, I’ve had the opportunity of getting to know

a good many folks in the construction trade.

Have you ever unplugged your kid? If you want to see drama, just try it!

Just about everything in the world is at a kid’s fingertips now. Friends, games, food, they can have it all. They are con-nected to just about everything around them, but do they know what it feels like to be unplugged? I have seen it happen when folks come to the lake on a family trip. Phone signal is still a little iffy here and when a kid gets disconnected it can get bumpy for a while. First there is complaining, then the “I saw a bar of signal” acrobatics and then the pouting period. If you are lucky though, this will pass and they will start to notice the world around them. The warm sun, cool breeze and the crit-ters around them start to get them con-nected to something much greater than their usual network. Somehow they be-gin to realize that mankind survived just fine for a long time before electricity and the avalanche of technology that fol-lowed. It is good for us to unplug too. We relax and watch the waves move, notice the soaring of birds and see the rising of the sun. For just a little while, time doesn’t rule us and we can enjoy turning

loose the reins and letting the universe drive for a while. When you watch the flash of a distant thunderstorm or see a deep, dark night sky filled with endless stars, you just can’t help but see things in a different way. It is reassuring to be re-

Let’s go outside!

minded that the universe doesn’t revolve around us after all and it somehow light-ens the burden we carry. I guess that is why hunting and fish-ing and just being outside in general are so important to me, and I want to share

that with other people. More and more I see people who don’t take the time to just get out and get away and take the family. It worries me that our kids might forget how to enjoy the freedom and re-newal that nature offers us. In Texas, we are lucky to have so many amazing places to go and things to do. The state parks are all around us (did you know there are 93 of them!). You can hunt for just about any kind of animal there is and with all our rivers, lakes and the Gulf coast, you couldn’t ask for better fishing. If we don’t make use of these re-sources and teach our kids to enjoy them too, we may lose them. Already the hunt-ing and fishing industries are worried that the young people are not getting as involved with the out of doors as previ-ous generations. What if we start to lose our parks and then start to lose our rights to enjoy outdoor activities? That would just be too tragic to imagine. We may be able to act like electronic wizards, but we are after all, natural creatures with a tie to a natural world. C’mon, let’s go outside!

Bow hunting season opens a month before rifle in Texas, October some-thing. That alone is a good reason

to start bow hunting, a month in the woods before most everyone else, yea. But with every cloud that has a silver lin-ing there is a tree full of acorns keeping the deer from coming into the feeders. This year the acorn crop in many areas is bumper. Lots of rain at the right time has made for healthy vegetation especially the Texas Hill Country. Trying to pattern a deer trail in Texas is for the most part based on where a feeder is placed. When the acorn crop and brows is good, bow season can be the most frustrating part of your season. Then there is the weather. Early deer season can be hot in Texas, sometimes in the upper 90’s. Sitting in a box blind or a tree stand with sweat rolling down your

back kinda blows the whole scent free idea. But then there will be a day in De-cember when a strong wind is blowing in your face, your shivering and the sleet begins. That is the day you will be think-ing “you know that hot weather hunting is not that bad”. One of the age old controversies I hear each year is about doe hunting. Some folks are adamant about not taking the doe till after they have taken the rut-ting deer. They don’t want the deer to be disrupted from their mission. They want them to be chasing as many doe as pos-sible. I, on the other hand, believe that you should take the doe early. Don’t wear out your old bucks especially if you have a doe problem. I love to hunt for doe and cull bucks. I find it challenging trying to think through how old a doe is and which one would be best to take. I love harvesting cull bucks too. Deer with funky weird horns are cool to me and I love taking them out of the gene pool. Food plots in Texas continue to be a challenge. Finding the right seed blend for the soil in your area has always been confusing to many and is a whole process before the work begins. Turning soils in Texas can require dynamite and a bull-dozer. If you can get the dirt turned you have to plant, cover and begin the rain dance. There are success stories but just as many tales of frustration and abandon. However, all that said, if you can get one planted and growing home run. There are a lot of caliber rifles out there. There are so many numbers and decimals and magnum and personal preferences I can’t even begin to follow them all. I hunt with a lot of kids and new

hunters and I simplify as much as possi-ble, so I like a .270. First of all they are easy to find shells for, every country store, gun shop or quickie mart in Texas has shells for them. You can get one with a scope for a first gun cheap. You can get a really nice one with a wood stock and expen-sive scope that will shoot like a dream for a little bit more or a whole lot more. The other good thing about a .270 is that you can hunt anything in Texas and drop it dead. Snakes, thorns, bees and poison ivy are all part of the hunting experience at one time or another. I remember not to many years back I was invited to hunt a ranch. I never got to check out the stand they were going to put me in but I wasn’t concerned. I was up early and it was dark and cold inside the blind that morning. As the sun started over the horizon I found the ceiling was covered, I mean a four foot square, with yellow jacket wasps from corner to corner. Luckily it was cold

Random thoughts froma Texas deer hunter

out and they were dormant at the time. I slowly moved out of the door and down the stairs. I didn’t want to leave and not hunt so I sat beneath the blind and wait-ed a while. I did that until a wasp dropped down the back of my shirt and stung the begeebers out of my neck. I was done for the morning. I have been stuck, stung and swollen up by a lot of outdoor things but the worst may be the times I crawled through bullnettle. That was a drag. So all this being said I love this time of year. There is something that happens when folks come together around a deer camp that is just special. God comes and changes hearts. Not always, but if we ask Him to be there He will be. Memories are made, boys grow to be men, men learn to slow down and appreciate life. Women and girls experience a strength they may not know they had. All these things,

by TJ Greaney

Boys immersed in hunt camp experience something that is core to their being.

continued on Page 10

Houston Construction News • Nov 2010 Page 9

Shot the limitSubmitted to Construction News

Everyone went home with their limit of doves from the dove hunt held the weekend of Oct. 8. Cowboy Cool Outfitters’ guide, Matt Tekluve, took the picture of the group from

the San Antonio and Houston Morrison Supply and Owens Corning companies. –sjBack row L-R: Gordon Smith, Heriberto Coronado, Ralph Blanco, Alton Flores,

Philip Barron, Tom Havens, Joey Henderson, Jose Matas, Jorge Martinez,Ed Hewitt Jr., Roanld Sprienger Jr., Judy Lukens

Front row L-R: Jake McBee, Cowboy Cool Outfitters owner; CJ Hooper, Owens Corning, host; Roger Russel and James Loechel

Stretched out in the very front is Drake, the bird dog

Ever thought about building some-thing that had never been done be-fore? Bryan Stalcup, owner of

Drain Works of Fort Worth LP, did just that – the “Big Hubless” chopper. Stalcup, otherwise known as a “ga-rage shop fabricator,” had never built a bike, but decided he wanted to see if he could build one from scratch, something unique. After an extensive amount of re-search, he set out in May 2009 making numerous trips to the scrap yards. “The biggest challenge was locating a bearing for the hubless wheel because they are very expensive,” explains Stal-cup. “A new bearing can cost anywhere from $50,000 to $150,000. This is the type of bearing used in army tanks. I got lucky and found one at the scrap yard for $200. In fact, all metal for the bike came from scrap yards.” Stalcup had to fabricate a new de-sign to accommodate the wheel bearing and two Dodge 20 rims and tires. No other chopper has tires this wide. “Only about five items on this bike are new – tires, belts, the seat, etc. I got the motor and transmission from Ameri-can Ironhorse, a bike company that went

“Bryan brings home the win” at the Sturgis Motorcycle Rally.L-R: Lorenzo Lamas (Lorenzo Cycles), Bryan Stalcup, Kick Start TV hosts

Trash and Warren, Jim D’Alexander of FF Journal Magazine.

The Big Hubless

One of a kind

out of business,” said Stalcup. When he wasn’t “plumbing,” Stalcup was working on the bike. Thirteen

months later, it was finished, ready to ride and show. In August 2010, he attended the 70th

Annual Sturgis Motorcycle Rally in Stur-gis, South Dakota, and entered the Ga-rage Shop Fabricator Bike contest – his bike won first place! It was the most fab-ricated work done on a bike in the show. One of the judges for the contest was actor and bike builder Lorenzo La-mas (Lorenzo Cycles), who singled out Stalcup’s bike. Stalcup is now consider-ing the challenge of building a “trans-former” bike, one that stretches out and lowers down while riding it. Stalcup has no plans to sell his bike, but rather wait and see what other op-portunities may arise. While in Sturgis, he met someone interested in using his bike in a movie, though no plans are in the works at this time. On Oct. 9, the bike was displayed at the Handley Festival and Car Show in Fort Worth. Stalcup’s hubless bike won Best in Show in the motorcycyle division. FFJournal Magazine filmed a detailed video on youtube (bighubless) in which Stalcup demonstrates how he designed and fabricated the bike. He plans to at-tend the Sturgis Motorcycle Rally again next year. In the meantime, he will be thinking about designing another “one of a kind.” -rd

Bryan Stalcup at the Sturgis RallyRoss Stalcup, Bryan’s brother also attended with the orange bike in background.

Page 10 Houston Construction News • Nov 2010

continued from Page 8 – Random thoughts from a Texas deer hunter, TJ Greaney

those moments, are why we come back. They are the things that are core to our souls. They are the things that make ev-ery long day, cold night, dirty, stinky, painful moment perfect.

TJ Greaney is an outdoor writer and Ex-ecutive Director and founder of Kids Out-door Zone Youth Outdoor Adventure Minis-try. Kidsoutdoorzone.com, email TJ at [email protected]

The skies were clear and the sun was bright when lath-ing and plastering contractors met for the 1st Annual Houston Regional Clay Shoot Oct. 7.

Folks competed at the American Shoot Center located on Westheimer Parkway. The Texas Lathing and Plastering Contractors Association (TLPCA) held the event. –ab

Congrats to the winners! 1st Place: Jason Krueger, John Hill Daniel Frank and John Hammond 2nd Place: David Mouton, Jimmy Hood,Garry Buck, Robert Wilson and Wade Arnold 3rd Place: James Evanicky, Brandon Lamb, Greg Leggio and Bill Willingham

Shoot and Score

1st Place team Lewis Class A: David Mouton, 1st Place

Lewis Class B: Scott Thompson, 1st Place Lewis Class C: Pat Wilson, 1st Place

Houston Construction News • Nov 2010 Page 11

Architecture and Engineering

Progressing forward

Jerry G. Ince, PresidentInce Engineering LLCRichmond, TX

Jerry G. Ince thinks the construction in-dustry is recovering in Houston. He

says it took some time for most of the in-dustry to re-identify itself in these diffi-cult times and adjust accordingly. “The biggest changes in my industry in recent years have been the downturn of the economy and more government regulation,” Ince said. “The downturn of the economy has resulted in fewer avail-able dollars in the industry and more regulation has increased project cost and planning time. “In addition, the biggest challenge we face is delivering our product with mini-mum employees. With less revenue avail-able across the market, the threat of in-creased taxes on small businesses and the uncertainty of pending legislation and how it will affect businesses, companies are not in a position to hire employees.”

Ince says the overall cost of doing business is increasing across the board. Everything from labor to materials has in-creased, leaving a smaller bottom line. “We are finding ways to work more efficiently with the resources we have,” he said. “Capital expenses that are not absolutely necessary are being put off until a future time. Instead of hiring full- time employees we are working with other companies to subcontract work during peak workloads.” Ince says he enjoys being an engi-neer because every day he goes to work, he has the opportunity to help someone solve a problem and make his or her life better. “Being able to create a safer and more modern daily life for individuals and communities allows me to achieve a professional satisfaction that I don’t

know I could achieve in another indus-try,” he said. “To be successful in this in-dustry you have to listen to all parties from the client to the contractors to the regulatory people and make decisions that blend these viewpoints. “ I try to look at each project like it is my own problem that needs solving and approach the solution as if it was for me. This method allows me to serve my cli-ents on a more personal level, which I have found to be greatly appreciated.” Ince says if a young person wants to become an engineer, his advice would be to select a good college for your educa-tion, then upon seeking employment at-tempt to join a firm with a good reputa-tion. “Once you have achieved the first two recommendations, spend a lot of time listening to the seasoned employ-

ees to learn how they built the firm’s rep-utation,” he said. “Finally, apply these les-sons in your career and you will do well. “The engineering industry is always progressing forward in all areas. Technol-ogy from software to hardware is con-stantly being improved. Codes and laws will continue to be updated to protect the public welfare.”

Ince Engineering was formed Apr. 1, 2006 and deals with small civil engineering projects. The company deals in three main areas - water, sewer and reservoirs. Ince En-gineering employs two full-time employees and five part time employees. The company is registered in Texas and Kentucky and has current projects in all areas of Texas. –ab

Jason T. Chan thinks the state of the Houston construction and architecture

industry is currently slow, but picking up with government funded projects and grants. “Projects that were on hold are get-ting the green light to move forward,” he said. “Certain market sectors like science and technology and healthcare are sta-ble. Higher education funding is limited and we are still seeing universities releas-ing projects at slower rate.” According to Chan, he has seen changes in his industry such as the inte-grated design process, sustainability and building information modeling (BIM). “Sustainability is an expectation, part of good design,” Chan said. Flexibil-ity and adaptability are important in ar-chitecture. Buildings and spaces can be

adapted to other uses when there is a change in function.” Chan says the most significant chal-lenge his industry faces is there is a com-petitive market for projects. “Competitions are adjusting fees to win work, which is not helping the indus-try,” he said. “I think to deal with the chal-lenge, there has to be a more efficient documentation process, efficient design process and integrated design process. BIM helps too.” In addition, Chan says he doesn’t see much cost increases in architecture these days. “BIM requires advanced hardware, hardware and software upgrades, but this is not a cost increase.” He says the most rewarding aspect of his job is working with some of the best and brightest minds in the industry.

“I also like problem solving and ad-dressing it with architecture,” he said. “We are creating more than a building or space, we are creating an environment. The environments we create inspire oth-ers. I enjoy seeing the built project, from an idea to paper to reality.” To be successful in architecture, Chan says to be on the forefront of the latest trends, push the envelope, listen to the needs of the client and be innovative. Have internal initiatives to research ideas and trends and collaborate to create in-novation, he said. “There is never a dull moment in ar-chitecture,” Chan said. “It is a fulfilling career knowing the work you do has a positive impact on others. Practical expe-rience in design education is essential. “Looking ahead, I think there will be

Positive impactof architecture

Jason T. Chan, Associate Project ManagerPerkins + WillHouston, TX

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a continuing trend towards sustainable design and BIM,” he said. “Perkins+Will is at the forefront. All our new projects are on BIM, beginning in 2007.”

Established in 1935, Perkins+Will is an integrated design firm serving clients from offices in Atlanta, Boston, Charlotte, Chica-go, Dallas, Dubai, Hartford, Houston, Lon-don, Los Angeles, Miami, Minneapolis, New York, Orlando, Philadelphia, Research Tri-angle Park, San Francisco, Seattle, Shang-hai, Toronto, Vancouver and Washington, DC. The firm practices architecture, interi-ors, branded environments, planning + strategies and urban design for clients in the aviation, transit, corporate, commer-cial, civic, healthcare, higher education, K-12 education, science, technology and sports and recreation markets. –ab

Page 12 Houston Construction News • Nov 2010

Architecture and Engineering

Round-UpDon Huml has joined The Trevino Group Inc. as chief operation officer. Huml has more than 20 years of construction man-agement and busi-ness development experience. He will oversee project operations at the com-pany’s Houston, Dallas, San Antonio and Galveston locations.

Filo Castore has joined the Perkins+Will Hous-ton office as associ-ate principal and market sector lead-er for corporate, commercial and civic design. Cas-tore brings 20 years of architectural expe-rience with an emphasis on a collabora-tive process, sustainability and contextu-al thinking. He has lectured and offered educational opportunities for the design community and the public on a variety of sustainable design topics.

The last two-plus years have been nothing short of devastating for the

architecture profession. While demand for design services has been increasing recently, it has been at a slow pace and hampered by other obstacles that are preventing an accelerated recovery. In the early days of the “Great Recession,” the American Institute of Architects (AIA) established a series of resources for members, firms and local chapters under the umbrella title, Navigating the Econo-my. Construction spending is expected to increase in 2011, but at a nominal pace, so firms should continue to be prudent in their near-term business planning. With that in mind, the AIA is committed to pro-viding continuing education programs that specifically address the economic challenges facing the architectural com-munity. At the recent Texas Society of Ar-chitects annual convention, there was a session aimed at teaching architects how to position themselves as experts in con-verting old buildings for new purposes since the building boom is long since over. Another program highlighted ef-fective strategies for collections and claim responses, along with other in-

Economic challenges and regulatory changesScott Frank, Director, Media Relations

American Institute of ArchitectsWashington, D.C.

sights into advantageous contract claus-es. Until the economic climate becomes favorable, the AIA will continue to offer programming designed to help archi-tects survive this prolonged downturn. There is an initiative taking place at the national level that will be executed by local states and municipalities that will have tremendous ramifications for archi-tects. The International Code Council, the AIA and a group of other partners, are de-veloping the International Green Con-struction Code. It will be the first code mandating that a building achieve certain goals for energy efficiency. Unlike proj-ects seeking green building certification, the IGCC mandates specific responsibili-ties and liabilities because the code is en-forceable at the local level. This is a mon-umental change for the architecture pro-fession and practitioners would be well served to find out as much as they can about the code, as well as offer their voice in the public comment opportunities. The U.S. Conference of Mayors has already endorsed the IGCC and has called for local governments to adopt the code and consider its Standard 189.1 compliance code as base code to their

jurisdiction. Rhode Island is the first state to adopt the IGCC as an equivalent standard in compliance with require-ments that all public agency major facil-ity projects be design and constructed as green buildings. Currently, the second public version of the IGCC has been posted for com-ment, which included hearings with hun-dreds of interested parties. Architects, product manufacturers and developers had the opportunity to share their per-spectives. The second comment period ends in January 2011, followed by a code development hearing in May 2011. Ex-pectations are that the new code will be finalized and published by March 2012. It is crucial that the architecture profession voice their opinions, issues and concerns as often as possible in order for the final version of the code to represent the best efforts in planning and collaboration. As green buildings will be required to meet certain energy efficiency targets, the AIA developed a new tool that gener-ates a report on predicted energy use and project modeling. The Excel-based reporting tool is available for download for firms that agree to be part of the AIA

2030 Commitment Program and will only require the user to enter project use type (from a drop down menu), gross square footage, yes/no questions and predicted energy use intensity (EUI). Based on that information, for mod-eled projects the tool will automatically calculate the national average site EUI for that project type and the project’s per-cent reduction from the national average EUI toward meeting the firm’s 2030 goal for the current year (currently 60 per-cent). The excel tool will generate three easy to decipher graphs that aggregate the individually listed active projects, and will show a snapshot of the firm port-folio for which the firm will gather actual energy performance. As the profession continues to deal with economic hurdles and regulatory realities that will change the way build-ings are designed, the AIA is dedicated to providing resources and education op-portunities to assist its members in tra-versing an evolving landscape. The American Institute of Architects (AIA) is a professional membership associa-tion for licensed architects, emerging profes-sionals, and allied partners since 1857. –dn

Dynamics of engineering

Justin A. Word, PE., Deputy DirectorCP&Y Inc., Transportation DivisionAustin, TX

The engineering industry often serves as a leading in-dicator of future construction industry activity, and

currently we’re living in an age of fits and starts for engi-neering projects based on numerous traditional and non-traditional funding sources. This uncertainty in

project funding means projects that do develop are often on very aggressive schedules with tight budgets, which is further compounded by substantially increased competi-tion. Many of these factors affect both the engineering and construction industries.

We’ve seen a major shift from tradi-tional Design-Bid-Build to Design-Build for major projects, primarily driven by the bond-based funding mechanism. As project funding continues to be driven by the various flavors of debt financing, we expect this trend to accelerate. This will change the dynamic between engi-neering and construction firms, and if re-cent history is any indication, there will be a substantial number of acquisitions and mergers across these two industries to capitalize on the new market reality. In addition, there are a number of challenges for engineering, but some of the more notable include the commod-itization of engineering services, global-ization of the workforce and the trend toward industry consolidation into large mega-firms. Cost containment will be a significant market force leveraged on en-gineering firms in the coming years. As a professional service industry, our primary cost increases are related to our human resource costs. These costs are generally tied to inflation, along with oth-er increases such as rising health care costs. However, at least partially due to the Great Recession, many owners are ag-gressively pursuing E&O related claims, which increases payouts, overhead relat-ed to defense against claims, and increas-es in the cost of E&O insurance.

While nobody has the magic bullet, steps such as a consistent internal QA/QC program, forming strategic alliances with contractors, capitalizing on global op-portunities, developing lean / low-cost delivery models and being part of the funding solution for owners help in miti-gating the current industry challenges. Substantial changes in project deliv-ery models, along with global competi-tion to provide engineering services, will converge to force a rethink of the way we do business over the next 10 years. Chal-lenges to Qualification Based Selection, if successful, will require a change in mind-set for the engineering community. Technology already allows engineering work to be done 24 hours a day through Internet-based CAD file access, which al-lows the compression of the project de-velopment schedule. Cheaper and faster will be the direction in the future. Engineering remains one of the no-ble professions, allowing an individual to work on projects that make a positive dif-ference in our quality of life and add real value to the economy. Cost controls and great project exe-cution are critical to success and profit-ability in engineering. When times are good, mediocre firms can do well, but only the fittest survive in today’s fiercely competitive market. If I were to give advice to a young person who wants to become an engi-neer, I’d say focus on project manage-ment, construction management and business management in college. A Master’s degree in one or more of these areas would go a long way to en-hancing your career. The future of engi-neering in the U.S. is in managing the projects and the business. Learning and mastering the techni-cal aspects of engineering is a given, but those softer skills in management will open up doors down the road. In addi-tion, learn to speak and write at least one foreign language fluently. Spanish, Man-darin Chinese or other similar high-

growth language would be ideal in the future global job market. Established in 1980, CP&Y is a full- ser-vice, multi-discipline infrastructure engi-neering firm headquartered in Dallas, Tex-as. In addition to the company headquar-ters, CP&Y has offices in Fort Worth, Austin, San Antonio, Houston and McKinney, TX; Phoenix, AZ and Oklahoma City, OK. –ab

Houston Construction News • Nov 2010 Page 13

Learning the ropes

Members of Associated Builders & Contractors (ABC), Greater Houston Chapter had a chance to quiz the media on how best to get coverage for their companies. The event was

held Oct. 5 at the chapter offices. The media panel from L-R:Kim Schell, Houston Business Journal, Amy Davis, KPRC-TV, Buddy Doebbler, Houston

Construction News and Kaye Benham, BIC Alliance. –bd

L-R: John Jones, Marvin Pozmantier and Brian Cummings take careof business at Exclusive Windows and Doors, a window, door and

siding company in Houston. –ab

Windows of opportunityConstruction News ON LOCATION

The National Association of Women in Construction (NAWIC) Houston Chapter installed its 2010-2011 officers and directors. L-R: President Jody Richwine, Tellepsen Builders;

Vice President Becky Manzel, Energy Waterproofing and Roofing Systems;Recording Secretary Diane Miner, Miner Dedrick Construction;

Corresponding Secretary Ana Abrahams, Supernova Construction and Renovation; Treasurer Laurie Jimenez, The Rand Group; Director Sandy Beck, Manhattan

Construction, Director Debbie Moyer, US Builders; Director Sandy Field, Cadence McShane; Past President Terry Johnson, Benchmark Houston Builders and

Parliamentarian Brenda Gaboury, Hartman-Curry Inc. –ab

New leadersSubmitted to Construction News

Crowned princeConstruction News ON LOCATION

Ricardo Jasso, Prince Signs, designs commercial signs and also goes to installation jobs in the Houston area. The company is a manufacturer of custom signs. –ab

Page 14 Houston Construction News • Nov 2010

Association CalendarContent submitted by Associations to Construction News

ABCAssociated Builders & Contractors

Nov 3: Blueprint Boot Camp, 6pm, ABC officeNov. 4: Member Mixer, 4:30pm, Pella Windows & DoorsNov. 8: Construction Site Safety Techni-cian, 6pm, Church of Nazarene, 15149 Wallisville RoadNov. 9: Rigging Fundamentals, CMEF officeNov. 10: Lien and Bonds Claims Seminar, 8am, ABC officeNov. 11: Electrical CE Class, 5pm, CMEF officeNov. 12: 10-Hour OSHA for Construction, 7am, ABC officeNov. 17: Member Breakfast, 6:30am, Sheraton Brook HollowFor more information call 713-523-6222

ACCAAir Conditioning Contractors of Amer.

Nov. 2: Mastering the Art of Selling, 8:30am; Maintenance Agreements, 1pmNov. 4: HVAC Electrical SeminarNov. 9: Tune a Tech Heating School, 8amNov. 10: 8 Hour Continuing Education, 8amNov. 12: NATE Heat Pump Prep, 4pmNov. 17: EMC Motors, 8amNov. 18: NATE Heat Pump Exam, 7:30amFor more information call 713-781-4822

AGCAssociated General Contractors

Nov. 2-5: OSHA/OTI 521 – OSHA Guide to Industrial Hygiene, 8amNov. 8: Mandatory Lead Renovator Train-ing Course, 8amNov. 8-9: Free HLWSF Low Impact Devel-opment WorkshopNov. 9: AIA/AGC Annual Joint Mtg, 6pmNov. 9-12: OSHA/OTI – 500 – Trainer Course for the Construction Industry, 8amNov. 12: Excavation Safety – Competent Person Training, 8amNov. 16: BIM 101: An Introduction to Building Information Modeling, 8amNov. 18: Webinar: Accident Prevention and Loss Control for Construction Super-visors, 1pmNov. 30-Dec. 1: OSHA/OTI – 7505 – In-troduction to Accident InvestigationFor more information call 713-843-3700

AIAAmerican Institute of Architects

Nov. 3: Young Architects Forum Com-mittee Meeting, noonNov. 4: Young Architects Forum Connect Dinner, 5:30pm, Brochsteins PavilionNov. 9: Interns/Associates Network Committee Meeting, 7pm

Nov. 11: Historic Resources Committee Meeting, noon; AIA/AGC Meeting, 6pmNov. 15: Education Committee Meeting, noonNov. 16: Building Enclosure Council Committee Meeting, 5pmNov. 17: Health Committee Meeting, noon; Authors in Architecture, 6pmNov. 23: Urban Design Committee Meet-ing, noonNov. 23: Government Affairs Committee Meeting, 5pm; Committee on the Envi-ronment Meeting, 6:30pmNov. 24: Building Information Modeling Committee Meeting, noonNov. 25, 26: Thanksgiving HolidayFor more information call 713-520-0155

ASAAmerican Subcontractors Association

Nov. 3: Membership Committee Meet-ing, 11:30am, MEMCO, 1500 N. Post Oak; Schmooze & Mingle, 4pmNov. 10: Board of Directors Meeting, 9am, Marek Brothers Systems; Govern-ment Advocacy Committee Meeting, 10:30am, Marek Brothers SystemsNov. 16: Safety Committee Meeting, 10am, T.A.S. Commercial Concrete, 19319 Oil Center Blvd.Nov. 18: BPI Session, 11am; General Lunch Meeting, 11:30am, What’s Coming Up for the 2011 Legislative SessionNov. 30: Contract Language Seminar, 9am, Andrews, Myers, Coulter & Hayes P.C.For more information call 281-679-1877

FPAFoundation Performance Assn.

Nov. 10: Monthly Meeting, 5pm, HESS Club, Speaker: David Fowler, Ph.D., P.E., University of Texas at AustinFor more information call 713-699-4000

IECIndependent Electrical Contractors

Nov. 2, 9, 16: State Masters Exam Prep, 6pm-9pm, Contractor Members $294/Non-Members $353Nov. 3, 10, 17: State Residential Appli-ance Installer & State Maintenance Exam Prep, 6pm-9pm, Contractor Members $220/Non-Members $300Nov. 4, 11, 18: State Journeyman Exam Prep, 6pm-9pm, Contractor Members $220/Non-Members $300Nov. 3, 10, 17: Motor Control Level 1 & PLCs, 6pm-9pm, Contractor Members $368/Non-Members $420For more information call 713-869-1976

NAWICNat’l Assn. of Women in Construction

Nov. 9: General Meeting, 5:30pm, The Briar Club, 2603 Timmons Lane. $35. Guests welcome. Reservations required to 713-961-1300 X128. Speaker: Mark Lund. “Why the Construction Industry Should Be Concerned About Proposed Accounting Changes for Recognizing Revenue and Paying Taxes”For more information call 713-961-1300

NECANational Electrical Contractor Assn.

Nov. 2: Election DayNov. 2-4: Chapter Managers InstituteNov. 4: Coastal Sabine Division Meeting, 9:30amNov. 9: JATC Meeting, 9am; Galveston Pension Meeting, 9am; Galveston Divi-sion Meeting, 12:30pmNov. 10: Finance Committee Mtg, 10:30amNov. 11: Veteran’s DayNov. 12: Local Union 479 Pension Meet-ing, 9amNov. 16: Local Union 716 Pension Mtg, 2pmNov. 17: Board of Directors Meeting 10:30amNov. 18: Texas Gulf Coast Division Meeting, noon; Texas Gulf Coast CLMP Mtg, 6pmNov. 23: Houston Division Meeting, 11:30amNov. 25: Thanksgiving For more information call 713-977-2522

the first new parish established under Cardinal DiNardo, founded on Jul. 2, 2007. “Cardinal DiNardo chose the patron-ess St Angela Merici as a way to honor the Ursuline Order for their perseverance and contributions as the first order of reli-gious sisters in the Galveston-Houston area,” he said. Betancourt says Zenith Construction has worked with the Archdiocese of Galveston-Houston and HBL Architects on many projects. “Building relationships and continu-ing to service the needs of both the client and the community are goals that we strive to achieve with every project,” he said. Zenith Construction is a general con-

continued from Page – Gathering place

tractor servicing the commercial, wor-ship and institutional sectors of the Houston construction market. Betan-court founded the company in Jan. 2001. Current clients include Rice Universi-ty, The Archdiocese of Galveston-Hous-ton and Community Family Centers. –ab

St. Angela Merici’s Professional Team:Project Executive: Robert J. Betancourt, Zenith ConstructionProject Manager: Joey Newman, Zenith ConstructionProject Superintendent: Paul Rainer, Ze-nith ConstructionArchitects: Stephen A. Lucchesi and Ash-ley Roecker, HBL Architects

The church interior

continued on Page 15

these days. “Neil and I are Aggie football fans and we try to make it to a few games as much possible,” he said. “In addition, we are involved in an organization called Liv-ing Water International that drills water wells in third world countries. We will go in and drill shallow water wells for com-munities. A couple of years ago, we made a trip to Honduras to put in a well at an elementary school. We have been back twice since that time.” Atkinson Engineering is a full-service civil engineering and surveying firm in Houston. –ab

continued from Page 1Team approach

seventh year and we are doing the best we can. Thanks to our customers, we are able to survive.” Volvo Rents of Houston rents construc-tion equipment including back hoes, boom lifts and scissor lifts. –ab

continued from Page 1Stars and stripes

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Houston Construction News • Nov 2010 Page 15

Job Sights

Owner Alex Munoz, RS Remodeling Solutions, works on the metal framing before applying drywall at a warehouse facility project on Karbach Road. –ab

The work crew with Pasadena-based ACV Construction Inc. builds a new parking lot at St. Michael Catholic Church on Sage Road. Bellows Construction is the GC. –ab

The CF Jordan Construction team demonstrates one of their morning safety routines at a jobsite. The company specializes in commercial construction and construction management. –ab

The guys with Pasadena, TX-based Teamwork Construction Services install a new sidewalk near the Houston Galleria on Westheimer Road. –ab

Ready to cast a line, Houston area subcontractors were up bright and early to at-tend a fishing tournament held in San Leon, TX Oct. 1. After the tournament, folks gathered for lunch and an awards ceremony at the TopWater Grill. –ab

1st Place Stringer: Aflac Boat #2

Other winners are: 2nd Place Stringer: Milestone Metals Boat #3 3rd Place Stringer: Holes Incorporated Boat #1 Largest Trout: Pat Stepanski, Holes Incorporated Largest Redfish: Derrick Thurman, Building Specialties

Catch of the day

PHCC Plumbing-Heating-Cooling Contractors

Nov. 10: Dinner Meeting, The HESS ClubFor more information call 281-705-0409

WCAWomen Contractors Association

Nov. 4: November Luncheon, 11:30am, The HESS Club, Doing Business with Tel-lepsen Commercial & Industrial Construc-tion & Upcoming Construction Projects. Speaker: Guy Cook, Tellepsen. Members $30/Non-Members $35For more information call 713-807-9977

continued from Page 14 — Association Calendar

Page 16 Houston Construction News • Nov 2010

Breakfast is servedSubmitted to Construction News

The Manhattan Construction Co. Houston Division held its 16th Annual Subcontractor Appreciation Breakfast at the Crowne Plaza Sept. 29. Manhattan personnel were on hand to greet, get acquainted with and update the attendees on upcoming opportunities for work.

More than 300 folks attended the event. –ab

On the moveSubmitted to Construction News

Seeberger + Associates has recently relocated to 2555 Central Parkway in Houston. With the joint effort of the entire staff, phase one construction began in June. OS Interiors,

Kilgore Electric and Architectural Floors helped the ideas take shape.Phase two will take place in Aug. 2011. –ab

The Bengal Boys cookoff team from Bengal Supply participated in the Knights of Columbus Fairgrounds BBQ Cookoff Oct. 15-16 in South Houston. Bengal Supply

owner Jack Albers and sales manager BJ Triplett led the challengein the categories of brisket, ribs and chicken. –ab

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