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Austin Construction News September 2022

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Austin CONSTRUCTION NEWS

If you’ve ever driven through Texas and/or Oklahoma, you know that there is a lot of land mass to cover. If your car breaks down, you had better have roadside assistance in your contacts.

If you live in these two states and want a new countertop or marble floor, Heather Haas has you covered better than your favorite car insurance company.

Haas is the regional sales manager at Arizona Tile for these two states, which is a big area to cover. She started with the company 17 years ago when she opened Arizona Tile’s first Texas branch in Dallas. From there, Haas moved to West Texas and opened up that territory before finally coming to Austin. She laughs when she thinks about moving again. “I hope [Aus-

There’s no such word as “wingsteps;” we’re more used to “footsteps.” But “wingsteps” definitely applies to Austin Butts, who is the second generation to work at Red Wing Aerials, the photography firm founded by his father Kevin Butts

Red Wing Aerials does custom eyein-the sky photography, and construction photography is one of its main services.

“The biggest thing we have on the schedule all the time is construction,” Butts said. “That, or apartment or real estate pictures.”

Butts graduated from Texas State University last year. While in college, he began working for Red Wing Aerials in the post-production area, editing photos and learning all the ropes.

Now, Butts is the primary drone photographer for the company. He

tin] is my final stop.”

Covering such a large area as Texas and Oklahoma isn’t an issue for Haas, as she hails from Hereford, way out in the panhandle. “It was a great place to grow up, but,” she said, “I don’t miss the wind or the lack of trees.”

Arizona Tile started in 1977 in San Diego, but has its corporate office in Tempe, AZ now. It deals in quartz, tile, marble, granite, travertine, limestone, etc., both natural and manmade.

Haas stays busy, filling both remodeling and new construction needs.

“It’s a competitive market,” she said. “You really have to get out in the market and sell yourself and your products. You really have to be knowledgeable about

There’s a new roofer in town, Rhino Roofers. Located in Round Rock, this is the company’s second location after experiencing expediential growth in just one short year.

The company was founded by a group of roofing industry veterans, David Villarreal, Dante Cantu, and Misti White Experienced in starting and running successful businesses, Cantu joined forces with Villarreal and White, who have over 20 years of roofing experience each, to establish Rhino Roofers in April 2021.

“As our website says, our team is dedicated to giving our clients the 5-star, white-glove experience,” says Sales Manager Jacob LaRue. “We believe that separates us from all the other contractors. In addition to providing the highest quality

products and workmanship, we also aim to provide outstanding customer service.”

Wanting Rhino Roofers to stand apart from their competition, the trio did their homework before taking on their first project. “Part of the vision of Rhino was to build a roofing company that’s completely different from the rest of the industry,” LaRue states. “When the partnership agreement was signed and started the company, there were months of planning before we even started building in San Antonio. We didn’t have our first full month, actual sales, and roof build until August of 2021. A lot of that was planning, building the right infrastructure, determining how we could give back to

learned photography both from his father and by studying various resources online. “He told me everything I know about camera settings and different lenses and composition,” Butts said. A most important part of the job is “what our customers are really looking for. He taught me all that.”

The elder Butts used to be a banker, working for Frost Bank. But his love of flying couldn’t be held in check. “He always had a passion for getting up in the air,” Butts said of his father.

Once he got Red Wing Aerials going in 2005, Butts found out that the construction industry needed what he had to offer. He first had to show them that, however. He would see where the construction was going on, go up and take pictures of it, and then show the work to the folks he just photographed from above.

Arizona Tile Team (L-R): Stacy Rosenbaum, Sharmily Patel
Jennifer Montenero, KiKi Carmichael, Anna Poletti, Heather Haas
Rhino Roofers’ Austin and San Antonio team members

Four generations strong

Since the early 1900s, the name Christians has been a reputable name in the construction industry. In 1910, Chris B. Christians II founded Chris B. Christians Inc. and gained national recognition as a pioneer in the lath and plaster industry. The second generation, Buddy and Sonny Christians, joined the family business in the 1950s continuing its legacy.

Buddy and Sonny had a keen sense for business, and through the hard work they were known for, branched out, expanding the company with the purchase of Lynwood Brick and Tile in 1974. As material sales grew at an expeditious pace, the brothers decided to separate the material sales from the contracting company, giving birth to Lynwood Building Materials in 1980.

From its humble beginnings, Chris B. Christians II’s grandson, CEO Chris B. Christians III has owned and operated Lynwood Building Materials. Quality product and customer service remains a family tradition.

Keeping the family tradition alive, the fourth generation of Christians’ have joined the business and are eager to lead the company into the future. CB Christians and Leslie Rosales both have years of experience working at Lynwood learning the ins and outs of the business and industry.

“Maintaining the high standards and quality customer service that our dad instilled in us, that his father instilled in him, is our number one priority,” says CB, vice president of Lynwood Building Materials.

Lynwood Building Materials continues to offer a full line drywall, insulation and acoustical ceiling, lath and plaster supplies. “We have products to support the trades,” adds Assistant Manager Leslie Rosales. “We also carry general contractor supplies from paper cups to brooms, as well as most general interior finish-out supplies.”

As these are unprecedented times, both CB and his sister, Leslie, admit that they are trying to survive the times of price increases and labor shortages like everybody else. “It’s funny, things we have trouble getting one month, we get easily the next. But then it changes to something else we can’t get,” CB adds.

When asked how long they thought this cycle would continue, they both stated they weren’t sure. “People in the industry are saying that rate hikes are slowing things down a bit, but San Antonio and Texas have always weathered the storm better than most,” CB continues.

CB Christians and Leslie Rosales are proud to be carrying on their family’s legacy. The generations of keen business sense with a willingness to provide topnotch customer service is truly reflected within this fourth generation.

“Supplying is our specialty,” adds Rosales. “We will ensure our customers get what they need; when they need it. We always have, and always will.”

Lynwood Building Materials Lynwood Building Materials is a full line drywall, insulation and acoustical ceiling, lath and plaster supply house. -cmw

A Hill Country footprint

Texas First Rentals®, a construction equipment rental company and a division of HOLT, has expanded its footprint in Texas.

On Aug. 1, Texas First announced it acquired Class A Equipment Rentals in Fredericksburg to better serve the Texas Hill Country. Serving 118 Texas counties spanning from the Red River to the Rio Grande™, Texas First Rentals offers a full line of aerial, dirt, and portable power rental equipment such as booms, scissor lifts, excavators, generators, pumps, and trench safety equipment.

The Fredericksburg branch will operate from Class A Equipment Rentals’ current location until construction on Texas First Rentals’ new facility is complete in early 2023.

Class A Equipment Rentals will assume the Texas First Rentals name immediately. Class A Equipment Rentals’ team members will maintain their positions and continue serving Fredericksburg and the Texas Hill Country as employees of Texas First Rentals.

Prior to the acquisition of Class A Equipment Rentals, Texas First Rentals serviced Fredericksburg and the Hill Country from its North San Antonio branch off Loop 1604. Already serving this area, Texas First Rentals knew the demand was there as they are continually evaluating the needs of their customers.

“We felt to service the customers better, we should consider a facility with a shorter response time,” says Texas First Rentals Senior Vice President Don Myrick “We can respond quicker and continue to provide legendary customer service more efficiently if we’re in the community versus being an hour and a half away. Our search for a new location in Fredericksburg ultimately led us to solidify an agreement with Class A Equipment Rentals.”

Additionally, the new branch in Fredericksburg will continue to carry its full line of heavy equipment and customize

its inventory to meet the needs of the Hill Country customer base. “The acquisition provided a good mix of inventory,” adds Myrick. “The fleet for that geographical area, as well as that of the Tradesmen branch, since they’ve been servicing that area for some time, have developed an inventory that works well with the customer needs in that area.”

The Class A Equipment Rentals team is well known to the Fredericksburg community and will be joined with additional personnel to help serve an even larger area. Texas First Rentals will add sales representatives, a transportation driver, and a manager to its Fredericksburg team.

“As a previous customer of HOLT CAT, we recognized the value Class A Equipment Rentals, and its employees bring to the community. We are confident the business and team built by Claudyne and Tracy Clark align well with our values and we look forward to expanding upon the success of Class A Equipment Rentals.”

The future home of Texas First Rentals is currently underway and will be located at 448 FM 2093, Fredericksburg, Texas.

Texas First Rentals® is part of the HOLT family of companies. -cmw

L-R: Leslie Rosales and CB Christians
Don Myrick, Vice President of Texas First Rentals

Evolving progress

After nearly 20 years in business, Austin Underground has seen many ups and downs in the construction industry and has faced many challenges. But through it all, Austin Underground continues to grow, learning along the way.

Specializing in difficult underground installation in 2004, the company has emerged performing municipal utility work with six employees. Today, the company employs an impressive 150 employees, all of whom are well-experienced in bringing water, wastewater, storm, and duct bank to the high-rise commercial market.

“Out of the original six, four are still with us,” says Austin Underground President Rick Vavro. ”They’ve gone from laborers to, I think, one of them is our best equipment operator. Two others are now superintendents.”

Continually growing, Austin Underground evolved its services from building underground utilities in high schools to utility locating and redesigning assistance in Austin’s central business district.

“Nowadays, when we put our t-shirts

on,” adds Vavro, “We have to put four logos on our shirts.”

Early on, the company started doing asphalt paving and formed a spin-off company called The Asphalt Repair Company (TARCO) which has rolled into Austin Underground. As the company continued to grow, it began doing more concrete work. Consistently needing concrete to keep crews more productive the company started Cubic Concrete, supplying Austin Underground with 20 percent of its volume supply of concrete. Lastly, the company has progressed into road work and started Texas Road LLC earlier this year.

“I think a big part of this success is being able to bring people in and get them to stay to create this,” Vavro explains. “I enjoy the people that are around me and how stable a workforce we’ve been able to create. I have a lot of people who have been here for over 10 years or are very close to it as we’ve grown. I think of this as a work family because we’ve been around each other so long.”

Serving the Central Texas area, Austin Underground is a utility contractor. -cmw

MClay bustin’

embers of the Central Texas Chapter of Associated Builders & Contractors (ABC) grabbed the shotguns for ABC’s Annual Clay Shoot on May 19. The event was held at Capital City Clays. Despite the warm temperatures, members and guests enjoyed a great event and camaraderie. -cmw

2nd & 3rd Place: DPR Construction
1st Place: The Premier Group
Austin Underground performs underground utility work at Samsung.

MDid you go to college? Did you get a degree?

I went to Texas State University my freshman year and decided that college wouldn’t be my path. I dropped out of college and went to work for the local lumberyard here in town and became the retail sales manager there.

When you were in college, what did you major in?

I was majoring in philosophy and realized it didn’t have a lot of career prospects and then moved to business. When I was 18-19 years old, I had no idea what I wanted to do. I had no idea what was important to me. The best decision I ever made was dropping out and getting into the trades. I worked as a plumber’s apprentice for years.

ichael Melton worked as a manager for a local lumberyard when he was faced with the reality of being out of work. As the lumberyard approached its final days of operation, Melton was busy at work starting his own business.

Where were you born and where were you raised?

I was born in Dallas, TX. I grew up in northern Indiana, in the greater South Bend area. I came back to Texas 10 years later around the time I was graduating from high school.

What was it like living in Indiana?

Terrible! It was very cold and not a lot of sunshine. For a Texas kid up there, it was a hard transition with six months of no sunshine at a time. I’m glad to be back here, even with the crazy droughts.

I remember in January, my last year up there, it was like negative 30 degrees, and the moving truck was frozen solid, so we had to get a torch out to thaw it out. I came down for a college visit to Texas State University and saw all the beautiful girls in bikinis out on Bikini Hill in January, and I thought, ‘What am I doing in Indiana?’

What did your parents do as you were growing up?

My mom was an occupational therapist for like 35 years. My dad was an Episcopal priest.

What made your family move to Indiana?

My dad took a job at St. Michael & All Angels Episcopal Church there. We relocated from Dallas to Indiana following his job. He got relocated again about 10 years later to Gonzales, TX. I wanted to finish high school up north. I did and then decided at that point to join them in sunny Texas.

How did you get involved in the power equipment business?

The lumberyard property was worth too much in downtown San Marcos, so the owner decided to sell the property. The outdoor power equipment was a good department within the lumberyard. It was my first pet project and we had really built up it. At that point, I talked to the operations manager at the lumberyard about opening Power Haus.

How did that all come together?

In January 2015, the owners pulled the management team together and told us what they were planning. Liquidation started quickly thereafter. I quickly put together a business plan and started meeting with banks and lenders, trying to find someone to fund Power Haus. I was 24 years old, and I didn’t have a whole lot to my name. It was much the same thing with any bank. I was starting to get frustrated looking for funding when my immediate boss at the time asked me what I was working on. I shared it with him and about two hours later, he came back to my office and said, ‘I talked to my wife, and we’re in.’ He was my angel investor, if you will, to get started.

We found a little warehouse space to rent and started with one item and slowly built our brand and inventory. That was seven years ago.

Are you married? How did you meet?

My wife, Alicia, and I have been married for seven and a half years. At the time, she was attending school at Texas State University, and I was working at a local lumberyard. I was meeting an old friend of mine at a bar downtown and bumped into this lovely lady who was there with her friends and we just kind of started hanging out that night. I texted her later that evening and asked if she would meet me for breakfast in the morning, but she turned me down. So, I went to a local skate park and broke my elbow. A few nights later, we met up and we cooked dinner. I guess she felt bad for me. I was so pathetic. That kind of started us off and it’s been a bit of a whirlwind ever since.

We found out in January the lumber-

yard was closing in February. We got married in February and opened Power Haus. It was a very, very fast couple of months. I would tell her if she can stick with me through that, she can stick with me through anything.

What does Alicia do? Does she work for Power Haus?

She is the college graduate of the family. She’s got a master’s degree in business administration and is a senior financial administrator at a local tech company.

Do you have any children?

We have one daughter. Her name is Zoe. She is going to be five years old in October.

She loves anything and everything. Zoe is a very open-minded kid. When the pandemic hit, we kind of blew off school for a while with all the daycares shutting down. We got some chickens, goats, and such. She loves tending to her little backyard farm and taking care of animals. She is just a very happy engaged kid that will occasionally come up and sweep floors here in the shop for a quarter. That’s her favorite little afternoon thing.

Do you have any hobbies?

I’m kind of an introvert. I love canoeing, kayaking, fishing, hiking, and all that good stuff. Whenever I’m not at work, I try to be out doing something outdoors, whether it’s landscaping my own yard or just being out in nature, enjoying this beautiful world we have.

What would you like our readers to know about Michael Melton?

I’ve learned that hard work and investing in relationships – customers, employees, and suppliers have carried us through some difficult times over the

years. Turning on the news, it’s hard to not get a little cynical about current events, economic forecasts, and all that kind of stuff. I firmly believe that there’s still a small business market out there and we don’t have to let the Amazons of the world take over all the little guys. The last few years have really restored a lot of faith in that small local economy, which I think is so critical to the infrastructure and what makes America a wonderful place of opportunity. -cmw

Michael Melton
Zoe Melton sweeps enjoys helping her dad at the shop.
L-R: Pater Klaerner and Michael Melton started Power Haus Equipment in 2015.

Good overhead

The business usage of the term “overhead” means “expenses associated with running a business that can’t be linked to creating or producing a product or service.” Too much overhead isn’t a good thing.

Or, another business usage is when “overhead” means that’s your business to start with, such as All Area Overhead Doors, run by the husband and wife team of Neal Smith and Christina Cummings

They bought the company just this past September. Neal had worked there for the past six years, while Christina was still working at her job in the restaurant business until just this past March when she retired from that to help run All Area Overhead.

“It was definitely a very strenuous situation in the beginning when we first started,” Christina said. “[Neal would be] putting a garage door together and then your phone’s ringing and you don’t want to miss the call.”

Coming out of the pandemic was also hard. “You’re going to other people’s

home and you really can’t do that in the middle of a lockdown, when you’re not supposed to be going out to do things,” she said.

We would all agree, however, that when your garage door doesn’t open and you need to go somewhere, pandemic or not, you have to call someone, and Christina answers the call.

“I am basically the office person,” she said.” I take all the phone calls, do all the scheduling, do all the invoicing, get all the estimates out to the clients who need those, and then my husband does the leg work, and he does all the installations.”

Neal was doing all of this in the beginning, but then Christina left the occupation she had been in for the past 22 years.

When it comes to picking out a new garage door, Christina likens it to the choices we have in shoes. “There’s Nike, Reebok, Adidas, New Balance. There’s [also] a variety of different brands of doors that you can get; they all have different aspects and details,” such as short

squares, long squares, windows or no windows. Maybe it’s something more modern or just an everyday door. Maybe it’s the barn door look.

Another factor in terms of the residential market is whether the house has the two-garage door look with the divider between them, or the single, two-car garage door.

“It’s literally just an aesthetic look and how you want your appearance of your home to be, Christina said. In other words, there is no rhyme or reason why some homes have the two separate doors or not; it’s just what the homebuilder decided for that particular home.

A homeowner can remove the center brickwork and install a single, larger garage door if he/she chooses. “I actually have a client who’s in the middle of making that decision right now,” she said.

All Area Overhead works with the various subdivision builders and HOAs

when it comes to installing doors on new construction.

“Quite often when you do a subdivision,” Christina said, “they have doors that pretty much match each other within the variation. The general material of the door is typically all the same.”

90 percent of their work is residential and there is no shortage of work in the Austin area.

Even though Neal and Christina are new business owners, “you have to adapt quickly,” she said. Their son works for them and it’s possible that he would take the business over sometime down the road.

Too much overhead is a bad thing. But so is when your garage door won’t go up or down. Then Overhead is very good indeed.

All Area Overhead Doors is a full-service garage door company in Austin and the surrounding area. -dsz

Steel sectional doors

Clean corners

After attending a house-warming party, Jean-Philippe Gagnon (JP) noticed that a lot of metal stripping was exposed at the corners. When he asked his friend about it, he realized his friend’s anxiety over the constant repair – the mud, the drying time, the sanding, the dust, the clean-up; it was just too much.

As a project engineer, JP was accustomed to finding solutions to big problems and set out to find a solution to his friend’s problem. He then takes two years of his spare time, working out of his garage, and developed a solution for interior corners: no more exposed metal stripping, no more mud, no more sanding, no more mess.

In July, CleanCo Construction was established in Liberty Hill, simplifying life by eliminating the use of metal corner beads, plaster, and the sanding that comes with it. The result is more durable with a modern look than that of the standard method. “It’s a PVC extrusion that is inserted and glued in the internal machined groove in the gypsum sheet,” says JP. “The corner is then supported by this PVC extrusion embedded in the gypsum

Osheet, which is itself supported by the wall structure. In case of impact to the corner, the force applied is distributed to the wood or metal studs. This increases the durability and resistance of the corner. Also, the sheetrock’s external cardboard exposed surface is never altered so the primers and paint absorption are maximum, which gives a neat finish to the wall.”

Eliminating the use of corner beads and all the time and energy needed to make a clean corner, JP believes CleanCo can be a huge saving in both labor and material costs. CleanCo can be used in residential and commercial work, for new construction and renovations.

CleanCo Construction provides an alternative to traditional interior drywall corners. -cmw

Class of ‘22

n Jul. 16, The Independent Electrical Contractors Central Texas Chapter (IEC CenTex) held its 2022 Apprentice Graduation. One-hundredfour apprentice electricians graduated from IEC’s program as journeymen workers. Over 500 family members, friends, colleagues, employers, and supporters attended the event held at Riverbend Centre.

Apprenticeship Manager Suzanne Johnson was awarded 15 years of service as the chapter’s Red Cross/Medic First Aid CPR and AED Instructor. Mr. Julian Alvarez III, Labor of the Texas Workforce Commission, was the event’s commencement speaker, giving an encouraging and uplifting speech on the jobs and opportunities in the electrical trade in Texas. -cmw

Coming above ground

Almost 20 years ago, Rick Vavro ventured out on his own to build a successful utility company. Since then, his company has grown splintering into several off-shoot companies.

Migrating back into road work, Vavro started Texas Road LLC in March 2022 specializing in complicated road construction. “We want to focus more on inner city road work,” says Vavro, president of Texas Road LLC. “Our focus will be rehab, road realignment, intersections, spot repairs, and things of that nature.”

Parent company Austin Underground had just completed a $13 million job for the city of Cedar Park in which the company did a complete road realignment. “Downtown Cedar Park has gotten pretty busy with some big projects getting ready to start,” adds Vavro. “The realignment was the first phase. We did a one and half-mile realignment on Hwy. 183. And it’s complicated enough that not a

lot of people want to do that kind of work. But it ties into the complicated utility work of Austin Underground. Texas Road LLC is not out to compete with larger companies that do 10-mile stretches of road. “We want to do smaller city streets, realignments and such,” Vavro clarifies.

Vavro, before starting Austin Underground had years of experience in road building as do some of the people he employs. Valentin Gomez , a 35-year veteran of road construction has partnered with Vavro in the formation of Texas Road LLC. The company owns and operates all its machinery – milling machines, pavers, and all the required traffic control equipment. It will service the Central Texas area from San Marcos to Waco. Texas Road LLC is a subsidiary of Austin Underground and is located in Jonestown. -cmw

Owner & founder, Jean-Philippe Gagnon shows off a CleanCo corner
L-R: Tony Franco, VP of Austin Underground and Rick Vavro, President of Texas Road LLC at a bridge on CR190 in Dripping Springs upon completion of this TxDOT project in just under two months

ACCOUNTING

How an ESOP can preserve a business and a legacy

Aftertwo years of whipsaw change brought on by the pandemic, many business owners have decided to retire. A recent survey of business owners conducted by the Wilmington Trust found that the pandemic is behind this rush to retire, adding another unexpected wrinkle to a devastating year.

But what ’s the right succession plan? It’s no small consideration for an owner who has spent a career building a business and wants to see that legacy continue.

For many in the construction industry, that answer is increasingly found in an employee stock ownership plan, or ESOP, which allows for continuity in the sale process, and can provide tax savings as well

An aging industry

Indeed, the construction industry is ripe for a transition to the next generation. The median age of construction workers increased to 42.9 from 2010 to 2020, an increase of 1.3 years. For the economy as a whole, the increase was 0.5 years over the same time frame.

And many owners of construction firms are at an age where they need to consider succession planning. According to the latest survey on ownership transfer and management succession by research firm Future Market Insights, a majority of those surveyed plan to exit their business in the next five years or so. But at the same time, more than 50% reported that they do not have an ownership transfer plan.

The exit strategies usually fall into five categories:

• Liquidate the business

• Sell to an external third party (competitor, private equity, etc.)

• Sell or gift to a family member

Sell to employees

Sell or gift to both family and employees

Amid this range of choices, the employee stock ownership plan has increasingly stood out in recent years. Employees as owners

An ESOP is a qualified employee retirement plan governed by the Employee Retirement Income Security Act (ERISA). ESOPs function to reward employees with an ownership stake in the business that they work for, allowing them to share in the successes of the company while also providing for a tax-advantaged transition plan for owners and the sponsoring ESOP companies.

Once the company adopts the ESOP trust, that trust can purchase shares of stock from the owner using borrowed funds from the company, a bank or the selling shareholder.

Advantages

An ESOP can provide certain advantages to a selling shareholder, including the continuity of the existing company and tax savings.

Using an ESOP can provide an owner with a structured exit over a longer timeframe, should the owner want to stay involved. This is typically achieved because the owner is not required to sell 100% of the business in the transaction, although an owner can defer tax on the gains made from the sale of an ESOP if the ESOP holds 30% or more of the stock, along with meeting other requirements. By not having to divest fully, an owner can continue to be involved with the business while determining the proper succession plan.

The second advantage is taxes, and it’s not just for the owner.

If the sale of the company is at least 30% of the stock from the seller—and the company is a tax-paying C corporation at the time the ESOP acquires the stock— the seller may defer paying capital gains taxes by electing Section 1042 of the

Internal Revenue Code. This can lead to tax savings for the seller.

Another major tax advantage results from the sponsoring company. Businesses can borrow money to fund ESOPs and repay these loans with pretax dollars because both the principal and interest are deductible when repaying an ESOP loan (as opposed to just the interest in a conventional loan). This can be a significant savings on cash flows for the company.

Consider this example: A company, taxed at a 35% tax rate, wants to borrow $1 million. The firm arranges conventional financing at 10% annual interest and makes equal annual principal payments over five years. The following represents the summary of after-tax cash incurred by the company with conventional lending versus ESOP financing.

There is a $350,000 difference between conventional debt lending versus ESOP financing. This makes the ESOP financing less risky to lenders and allows for greater cash flows for the company. Disadvantages

There are some disadvantages to ESOPs as well. One is a result of balance sheet leverage. If a company borrows money and then lends it to the ESOP to enable the ESOP to make a leveraged purchase of company stock, this will hurt the company’s equity position (as liabilities will increase and equity decreases). This reduction could have an impact on the company’s financial leverage and affect both bonding capacity and potential financing with third-party lenders.

Another disadvantage is that the trustee of the ESOP needs to monitor the repurchase obligations of an ESOP. The timing of redemptions will need to be monitored to ensure that there is significant cash or liquid assets available to meet the repurchase requirements needed for the ESOP. The price of which will be determined annually through a formal valuation process. Moreover, if the value of the company does not regularly increase, employees may feel that the ESOP is less attractive for them than other profit-sharing plans.

The last disadvantage is that ESOPs require significant management time and resources. These resources will need to be used to meet rules related to accounting, the Internal Revenue Code and the Department of Labor. Meeting these rules can be burdensome and will require continued annual fees, such as formal valuation and audit requirements that come with implementation of an ESOP.

The takeaway

It is important to note that if a contractor is interested in pursuing an ESOP, that contractor should meet with business advisors including attorneys, lenders, certified public accountants, fiduciaries and other administrative professionals to discuss implementation and perform a feasibility analysis. This analysis will help to test the assumptions that go into an ESOP and what the expected benefits would be for employees and help to determine whether an ESOP is a viable exit strategy.

While ESOPs are not for all contractors, they can be a great succession strategy for the right organization to help transition the business to the next set of leaders. Retirement can be a challenge, but it would make it a lot easier knowing that the owner’s legacy will continue in the company.

INSURANCE

The Importance of Distracted Driving Awareness

How fleet management safety programs create a healthy company culture

Jason Pfaltzgraff

Risk Management Consultant

The Nitsche Group Lampasas County, TX

With construction booming in Central Texas, the need for qualified drivers and fleet driving safety programs are more important now than ever. The Nitsche Group has served communities across Texas since 1949, and we know how important safe driving is when it comes to a business’ bottom line. Distracted driving leads to accidents that impact our personal and public safety, but it can also lead to insurance increases from claims that can take a heavy toll on a business.

Finding reliable and experienced drivers is a challenge to many businesses, yet having a fleet safety program can help ensure employee retention while showing concern for employees’ well-being. Construction companies should run background checks, drug tests and check Motor Vehicle Records (MVRs) before hiring a new driver. Candidates with a poor driving history may pose a risk for businesses with cost inefficiencies.

Fleet safety programs

Just like we train teenagers to drive, a business should ensure that its company drivers are adequately educated. Driver training programs help prevent accidents and allow for the standardization of processes that establish effective driving habits and general rules of the road specific to a fleet’s vehicle types. A fleet safety program will not only establish company-wide policies and procedures that are crucial to ensure a safe work environment for employees, but it can also help protect your business against liability from vehicle accidents.

Fleet safety programs should clearly state company safety policies and guidelines, standard operating procedures and define accident response protocols. In the event of a trucking accident, drivers should retain evidence and documents to help the business mitigate losses. In addition, company management should adequately communicate with all drivers on how to avoid accidents and how to submit accident reviews.

Focusing on MVRs

When hiring new drivers, businesses should run employee screenings and review driver histories. MVRs allow employers to have a more in-depth look at an applicant to see if they have a history of following safety regulations. MVRs typically include driver’s license information, license statuses, violations, accidents and automatic renewal notices. MVRs must be requested annually in the annual review process to determine if the driver meets company requirements.

Particularly for construction companies, having a consistent system for collecting and reviewing MVRs may help employers hire qualified drivers more efficiently. The Texas Department of Insurance and Division of Workers’ Compensation has established the occupational driving safety program and recommends a safety checklist for employers to make sure company standards align with the law.

Culture around driver awareness

Creating a good fleet-driving culture starts with good leadership. Once employees are made aware of safety policies and procedures, fleet managers are better able to lay the foundation for new em-

ployees and coach them adequately. Managers who instill confidence in their drivers will see a difference in team collaboration and higher rates of employee retention.

When implementing these rules and regulations, managers should also ask employees questions to check in on driver history. Asking simple questions such as “Who had an accident this week?” or “Is there something happening in your life outside of work that could be affecting your driving?” allows company leadership to dig in and find out what’s happening in an employee’s personal life. Asking these questions does not serve as a punishment, but rather as a benefit to talk about what’s going on and allow for drivers to improve.

Telematics

Telematics systems are often used in the construction industry to help provide data on machines including GPS location, fuel consumption, idle times and more. By looking at this data, employers are able to see which machines are active on a job site and adjust fleet size accordingly.

While monitoring telematics, employers are able to identify problems early in the process to correct driver behavior. Owners or fleet managers can also run reports to identify individuals who are overworking or misusing equipment. This allows the construction company to not only identify reduced labor costs, but also avoid excessive wear and tear on equipment.

Some insurance providers will provide discounts or reduced deductibles if company equipment has GPS tracking capabilities. Construction companies with a large fleet size may use telematics to streamline organizational communication between office staff and drivers. Overall, telematics software can help improve driver behavior and distracted driving awareness.

Importance of driver safety to a business

Without proper driver safety measures, businesses may be putting the welfare of employees at risk. Implementing a fleet management safety program will help protect against liability from vehicle accidents. Checking MVRs will help ensure that potential hires have a good driving history and are responsible employees.

When creating a culture of distracted driving awareness, it’s important to keep an ongoing and open line of communication with your employees regarding a safety-first mentality. We all know how important it is to your destination— whether you’re traveling for personal reasons or for your job. Training your employees to stay focused on the road and avoid distractions will help them not only reach their destination quickly, but do so safely too.

Jason Pfaltzgraff is a risk management consultant at The Nitsche Group in Lampasas County, Texas. He is licensed in risk management and insurance from The University of North Texas. Pfaltzgraff is from Killeen and has 15 years of experience in insurance with five years of experience as a contractor. In his spare time, he enjoys golfing and hunting.

Jasonp@thenitschegroup.com

LEGAL

Condition Precedent or Covenant:

How the Texas Supreme Court interprets contractual promises

In James Construction Group, LLC v. Westlake Chemical Corp., the Texas Supreme Court held that in construction contracts, parties may substantially (rather than strictly) comply with contractual notice requirements. When a contract expressly requires written notice, however, the Court explained that absent some waiver of contractual requirements, oral notice alone cannot satisfy a contract’s written notice requirement; only written notice can substantially comply with a written notice requirement.

Because the owner in James Construction failed to send the general contractor the contractually required written notices before terminating for default, the owner could not recover the excess costs it incurred in replacing the contractor on the project. This opinion, and the Court’s reasoning behind it, helps show how Texas courts interpret important construction contract provisions, specifically including conditions precedent, covenants, and waivers of consequential damages.

A “covenant” is a contractual promise to do something or a written expression of an intent to act, or not act, in a particular way. On the other hand, a “condition precedent” is something that must occur, or must be performed, before a party may enforce a contractual obligation subject to that condition. If the express condition is not satisfied, then the party whose performance is conditional is excused from its obligation.

For example, construction contracts often require punch walks (among other things) for a contractor to receive final payment. These can take the form of a covenant: “Contractor will perform a punch walk before receiving final payment.” But they can also take the form of a condition precedent: “Contractor’s entitlement to final payment is conditioned on a punch walk.” While the differences may seem to split hairs, legally speaking, the covenant is better for the contractor because the owner may owe final payment even if there’s no punch walk (but the owner could have damages for the contractor’s failure to perform the punch walk). The condition precedent is better for the owner because the owner does not have to pay until the general contractor performs the punch walk.

In James Construction, the Court held that the written notice requirements for termination were conditions precedent, not covenants. The contract gave the owner the right to terminate the contract for any reason and to assign work to another contractor (sometimes called a termination for convenience). But the owner could also terminate for cause, and, if it did so correctly (that is, in accordance with the contract), the contractor had to pay the owner the cost to complete, minus the rest of the contract balance. So, the general contractor’s obligation to pay the owner for these excess completion costs was conditioned on the owner satisfying the written requirements to terminate for cause.

The Court ultimately found that the owner failed to adhere to these conditions precedent by neglecting to issue the required written notices before terminating the contractor. As a result, the owner was not entitled to receive the excess completion costs from the contractor at all, at least under that contract. Noncompliance with a condition precedent precludes the noncomplying party from enforcing its conditional right—in this case, the owner’s recovery of the costs to hire a replacement contractor to

complete the work. Courts sometimes call this “forfeiture,” because the failure to satisfy the condition forfeits the party’s conditional right.

The Court also interpreted the contract’s consequential damages waiver to determine whether it amounted to an affirmative covenant that would be breached by a suit for consequential damages. This provision was unique in that it contained a clause commanding that “no claim shall be made” for consequential damages. The contractor contended that this provision was a covenant not to sue for consequential damages. Yet the Court sided with the owner, holding that the parties merely waived a claim to any consequential damages that might be available in a lawsuit—not that the parties relinquished the right to sue in the first place.

This holding may change how you draft or negotiate certain contractual provisions. In effect, the Court provided guidance for contracting parties who want to deter future claims for consequential damages. Parties must be very explicit if they want to ensure that promises not to sue are interpreted this way by Texas courts. If you want to prevent the other side from ever suing you for a certain type of damage, you need to say that expressly in your contract; for example, “The parties covenant that neither will sue each other for [insert the type of damage for which you want to prevent suit].”

Here are two key points from the Court’s interpretation of the contractual provisions in James Construction:

(1) Texas courts may enforce conditions precedent if they are sufficiently clear in the contract—even when the consequences of doing so appear to be harsh—particularly where they include time limits and notice requirements to which the parties have agreed.

(2) Texas courts will not automatically treat a contractual provision waiving consequential damages as a covenant not to sue for consequential damages. If parties intend to include a true covenant not to sue for a certain type of damage in their contract, the provision must explicitly state that it is a “Covenant Not to Sue” or use words to that effect

Rebecca L. Quade is an attorney at Allensworth in Austin, Texas. She works with architects, engineers, contractors, and owners on complex, multiparty cases involving design and construction defects and contract disputes. You can reach Rebecca by email at rquade@allensworthlaw. com

OSHA

Temporary Workers

OSHA

Austin, TX

Temporary workers are workers supplied to a host employer and paid by a staffing agency, whether or not the job is actually temporary. Whether temporary or permanent, all workers always have a right to a safe and healthy workplace. The staffing agency and the staffing agency’s client (the host employer) are joint employers of temporary workers and, therefore, both are responsible for providing and maintaining a safe work environment for those workers. The staffing agency and the host employer must work together to ensure that the Occupational Safety and Health Act of 1970 requirements are fully met.

While the extent of responsibility under the law of staffing agencies and host employers is dependent on the specific facts of each case, staffing agencies and host employers are  jointly responsible for maintaining a safe work environment for temporary workers - including, for example, ensuring that OSHA’s training, hazard communication, and recordkeeping requirements are fulfilled.

OSHA could hold both the host and temporary employers responsible for the violative condition(s) - and that can include lack of adequate training regarding workplace hazards. Temporary staffing agencies and host employers share control over the worker, and are therefore jointly responsible for temporary workers’ safety and health.

Both host employers and staffing agencies have roles in complying with workplace health and safety requirements and they  share responsibility for ensuring worker safety and health.

A key concept is that each employer should consider the hazards it is in a position to  prevent and correct, and in a position to  comply with OSHA standards. For example: staffing agencies might provide general safety and health training, and

host employers provide specific training tailored to the particular workplace equipment/hazards.

• The key is  communication between the agency and the host to ensure that the necessary protections are provided.

Staffing agencies have a duty to inquire into the conditions of their workers’ assigned workplaces. They must ensure that they are sending workers to a safe workplace.

• Ignorance of hazards is not an excuse.

Staffing agencies need not become experts on specific workplace hazards, but they should determine what conditions exist at their client (host) agencies, what hazards may be encountered, and how best to ensure protection for the temporary workers.

• The staffing agency has the duty to inquire and  verify that the host has fulfilled its responsibilities for a safe workplace.

And, just as important: Host employers  must treat temporary workers like any other workers in terms of training and safety and health protections. natarajan.joann@dol.gov

512-374-0271 x232

Breaking ground

On Aug. 30, more than 40 guests came together to celebrate a private groundbreaking ceremony of Brookfield Residential Properties’ newest park, Skyline Park which will feature expansive skyline views of downtown Austin, a bridge connection that will resemble the Pennybacker Bridge, a splash pad, an open lawn, public art, and two specific planned playgrounds – one for juniors (2-5 years old) and one for older children.
Joe Bland Construction is the general contractor for the project. L-R: Richard Suttle, Travis County Judge Andy Brown, Brookfield VP of Land Matt McCafferty, Mayor Steve Alder and District 2 Councilwoman Vanessa Fuentes. -cmw

School Starts, Fishing Continues

Sponsored by Waypoint Marine/Waypoint Customs, Shoalwater Boats, Mercury Marine, Shimano Reels, E-Z Bel Construction, Costa Sunglasses, Simms Fishing, Columbia Sportswear, ForEverlast Fishing Products, PowerPro, Interstate Batteries, MirrOlure, JL Marines Power-Pole, and AFTCO Clothing:

Well, it finally happened!! Much needed rain came a couple of weeks ago ending what seemed to be a yearlong drought. A total of 8.6 inches fell on my yard and into our bay system, lowering water temperatures and salinity level. We had already started water restrictions in our city and lawns were starting to burn up with the sum -

been in the mid to upper 80s. However, with this last rain fall, our bays have cooled down slightly. Usually, my first two stops are the most productive, most of the time catching trout. By mid-morning, after the bite has tapered off, I switch to looking for other species to complete the box. I like to feel out my customers and give them a chance to choose what species we target next. Certainly, if I have knowledge of some positive action, I will try to encourage them in that direction.

Our winds have finally started to settle down a bit and this really makes me grin. Most of my clients know by late summer I am always thinking of the Gulf of Mexico, specifically fishing the surf. Usually by late July, I will have fished the beach front half a dozen times. However, the last season’s winds have deterred me from poking out the jetties. Most of you that have been out in the surf with me know how much fun it can be. For one, you never know what you may see or catch while fishing the surf. Many of the species I have hooked up on include the obvious, like trout, reds, and drum. Some of the larger species may include tarpon, sharks, kingfish, and spanish mackerel just to name a few. Fishing the surf is not for everyone and if you have a light stomach or get sea sick when going offshore, maybe you should suggest to stay in-shore. However, if the conditions are right and my clients are up to it, that’s where I will be for the next few months.

mer heat. We were blessed to receive so much rain, I kinda wish the whole state could have gotten half as much as we did.

Fishing remains strong through the summer months with limits of trout just about everyday. Redfish, flounder and drum also have been showing up at the cleaning table which puts smiles on clients faces. The key to my success is starting out the day early. This means running in the dark and being where you want to fish by gray light. Take advantage of the cooler water temps and try to make every bite count. Water temperatures have

My fishing will come to a halt for this season at the end of October and I will turn to hunting. If you need a referral for a guide, don’t hesitate to call me. Also, if you have a date in mind for the 2023 fishing season, shoot me a text. I’m also booking South Texas whitetail hunts for the coming season. Don’t wait until all the good dates are gone!

To schedule your next bay fishing or hunting trip give Capt. Steve Schultz a call at 361-813-3716 or email me at SteveSchultzOutdoors@gmail.com

Good luck and Good Fishing.

Cindy Fuller showing her grandsons up on a recent fishing outing with Steve Schultz Outdoors. This 21” speck was one from her limit she caught.
Kim Gates of New Mexico looked like a pro angler catching trout like this healthy upper Laguna Madre beauty. Be sure to give Steve Schultz Outdoors a call before booking your next fishing outing

It hasn’t forgotten how to rain after all! Some of us got a little rain and some got too much rain, but that is mostly how it goes in Texas. When it rains here you are thankful for every drop at the same time you are hoping that you’ll come safely through it.

Whatever kind of rain you got, at least you have something to work with! So many rivers that were just about dried up will at least get a little flush of fresh water for a few days. Any lakes or ponds that benefit from that shot of fresh water will see the catfish and bass and bluegill liven up. Think of all the bugs and worms and stuff that current is serving up to hungry fish. It is a good time to be fishing!

Our striper and hybrid fishing is improved by fresh water this time of year too. Falling lake levels and hot weather make the water oppressive to fish that prefer cooler temperatures. Anything that stirs up cooler currents and brings nutrient rich fresh water into a lake will boost the well-being of the food chain will pay off in better fishing in the near term and bigger and better fish in the long term. The exception would be the lakes that got a heavy inflow from flooding. If the water gets really muddied up,

Ken Milam’s Fishing Line

it can take a few days to clear up enough for good feeding patterns to resume.

It looks like we are in for some good fishing here on Lake Buchanan this fall and winter. We are already seeing some signs of a strong topwater pattern like what we sometimes see in the fall of low water years. At any rate, a lot of the not quite keepers we have been seeing throughout the year will surely be keepers now and we know we have a lot of them!

I know here we have been watching the deer and doves and all kinds of wild things come down from the hills to the lake to water because their usual water sources have disappeared. The rainfall around here was pretty hit or miss so there is no telling which tanks and creeks caught some water and which are still dry. Any rain on the places you hunt will help your game, but you need to be sure and check to see if you still need to be providing extra water sources or not. When you are busy getting your blinds and feeders established and ready for the upcoming hunting season, be sure to see what the water situation is.

It is nice to see rain as we turn the corner from summer into fall. No matter what the weather brings, at least the coming of shorter days will bring the cooler temperatures and amazing sunrises and sunsets of autumn. We can begin to enjoy getting outside to hunt and fish and play without getting scorched by the sun. Ball games, less crowded waterways, more time in the pastures, and feeling those first gentle northers chase the humidity away are what I enjoy about Fall.

After this summer, bring it on!

DSI in Austin
Sunrise at the lake

Ready, set, go

Adrenaline rush

L-R: CEO Jacques Williams, General Manager Julie Ross, her kids Aiden Ross and Ava Ross, Jacques’ sister Alicia Huppe, brother-in-law Matt Huppe, and niece Juliana Huppe.
Pleasure Pier in Galveston, TX.
Nick Page, Nick’s Bricks, breaking in a new shot gun at his property in Liberty Hill AND practicing for a day at the skeet range.

Making things happen

Jacqués Williams really isn’t carrying the weight of the entire world like the real Atlas did. But running his own business is heavy enough.

“There’s still a big load on the shoulders to keep a business rolling,” he said. Hence, the name, Atlas Design & Development, which he started nine years ago. “I really liked the Atlas logo. He’s holding the world on his shoulders and looking like he’s ready to take on all the workload and make things happen.”

“I’m an owner,” Williams said, “but I’m hands on. I’m in the field with the guys every day. I know everything that’s going on in the field.”

To keep the office running smoothly, however, Williams counts on Julia Ross to honcho everything from the bids and paperwork to helping design the residential projects.

Even though work can be in crazy spurts, like nothing but residential for several months in a row, the average is a 5050 split between the commercial and residential. For commercial, Williams works with the architects to come up with the

final rendering. For residential, he’ll go back and forth with the homeowner, but always allowing for adjustments as the work progresses.

Williams started in the masonry business many years ago, working with two of his uncles. When he graduated from college with degrees in ag business and economics, he was ready to start Atlas Design.

His love of drawing means he doesn’t need fancy computer software. “We’re still old school,” Williams said. He uses “paper and pencils and rulers and colored markers.”

In the earlier days, Atlas would go as far as San Antonio, but with all the growth in the Austin area, “we’re not having to go much further than 60 miles, which really nice,” he said.

Williams likes keeping Atlas not-too big so as to not lose the hands-on approach, which ensures the quality never slips. That is enough of a weight on his shoulders to be just right.

Atlas Design & Development, LLC, is based in Cedar Park. -dsz

Julie Ross, General Manager and Jacqués Williams, CEO, celebrating nine years at the office fireplace which was designed and built by Atlas
Team Atlas crew hard at work on a retaining wall footing.
Photo, courtesy of Jacqués Williams in the Bobcat.
Austin Landscape Supplies team members L-R: Josue Sauceda Juan Prado Chris Estrada Lori Wilbanks Karen Lomba Janet Carrillo Cynthia Gonzalez , and Melissa Mireles are eager to meet Construction News readers at their Georgetown yard. -cmw

ABC Associated Builders & Contractors

Sept. 13: Meet the GC, City of Austin Developmental Services Department Bldg., 6310 Wilhelmina Delco Dr., 8-11am, GC Booth $250, Member $50, Non-Member (ABC discretion & approval) $75.

Sept. 22: Excellence in Construction Wards Gala, Bullock Texas State History Museum, 1800 Congress Ave., 6-10pm. Sept. 28: Dove Hunt, Solana Ranch, For more info, contact Brian Bisgard at 512719-5263 or email bbisgard@abccentraltexas.org

ACEA

Greater Austin Contractors & Engineers Association

Sept. 8: Monthly Membership Luncheon, Norris Conference Center, 2525 W. Anderson Ln. #365, 11:30am-1pm. $40 Member, $45 On-site Member, $55 Non-member.

Sept. 29: Fish Fry Fundraiser 2022, Travis Expo Center, 7311 Decker Ln., 5-10pm, Table of Eight $300, Individual Member $40, Individual Non-Member $55. For more info, call Silvia Pendleton at 512-893-7067

AGC

Associated General Contractor Texas Sept. 15: AGC Texas Building Branch Outstanding Construction Awards, Georgetown Sheraton, 1101 Woodlawn St., Georgetown, 6pm.

Sept. 23: CLC Clay Shoot, Capital City Clays, 8707 Lindell Ln., 8am-5pm, Team $650. For more info, email Toni Osberry

Association Calendar

Content submitted by Associations to Construction News

at 512-994-4401 or email tonio@agcaustin.org

CENTEX IEC

Central Texas Chapter Independent Electrical Contractors

Sept. 29: Meet & Greet, Cover 3, 2700 W. Anderson Ln. #202, 5-7:30pm, No Charge for members, Non-Member $45. For more info, contact David Johnson at 512-832-1333 or email djohnson@centexiec.com

CLC

Construction Leadership Council

Sept. 23: CLC Clay Shoot, Capital City Clays, 8707 Lindell Ln., 8am-5pm.$650 Team of 4. For more info, email Toni Osberry at 512-994-4401 or email tonio@ agcaustin.org

CTSA

Central Texas Subcontractors Association

Sept. 13: Monthly Lunch Meeting. For more info, email Wendy Lambert at wendy@ctsaonline.org or go to www. ctsaonline.org

HBA

Home Builders Association

Sept. 22: 2022 Fall Fest. For more info, contact Erin Scott at 512-982-9187 or email erin@hbaaustin.com

I-LinCP

Institute for Leadership in Capital Projects

Sept. 13: Industrial Development State of the Market, Estancia del Norte, San

s Submitted to Construction News

Round-Up

Gensler is pleased to announce the promotion of Faisal Naveed, and the addition of Elena Cutshall to the Gensler family.

Antonio, 11am-1pm, Member $60, Non-Member $80. For more info, go to www.i-lincp.wildapricot.org

NAWIC

National Association of Women in Construction

Sept. 8: Chapter Meeting/Installation of Officers, Maggiano’s Little Italy, 10910 Domain Dr., 5:30-8:30pm. Sept. 13: NAWIC Golf Tournament, The Golf Club at Star Ranch, 2500 FM 685, Hutto, TX, 11am-7pm. For more info, contact Misti Shafer-Webb at 512-9307733 or email mshafer@complianceresourcesinc.com

NARI

National Association of the Remodeling Industry

Sept. 9: Austin NARI Classic Clay Shoot Tournament, Reunion Ranch, 850 CR 255, Georgetown, TX, 1-7pm. Single Shooter $200, 4-Person Team $500, $BBQ Dinner $50, 2 Shooter Flurry $20/ shooter, Shot Gun Golf $10/shot. For more info, Kayvon Leath at 512-9976274 or email kayvon@austinnari.org

RCAT

Roofing Contractors Association of Texas

Sept. 27-29: 47th Annual Conference & Tradeshow, Fort Worth Convention Center & Omni Hotel, 1201 Houston St. For more info, go to www.rcat.net or call 800-997-6631 or 512-251-7690

SEAot

Structural Engineers Association of Texas

Sept. 27: Chapter Meeting, Casa Chapala, 9041 Research Blvd. #100. For more info, call 512-301-2744

TSPE

Texas Society of Professional Engineers

Sept. 7: Monthly Luncheon – Florida International University (FIU) Pedestrian Bridge Collapse – An Ethics Presentation, Guest Speaker: Terracon Principal & General Counsel Risk Management

Aaron Mann, Maggiano’s Little Italy in the Domain, 10910 Domain Dr. #100,11:30am-1pm. For more info, email tspe.travis@gmail.com

TXAPA

Texas Asphalt Pavement Association

Sept. 15: TXAPA Live! Fundamentals of Asphalt Pavement Design Using the PaveXpress System.

Sept. 20-23: TXAPA 47th Annual Meeting, La Cantera Resort & Spa, 16641 La Cantera Pkwy. For more info, Beck Schaeffer at 512-312-2099 or email bschaeffer@texasasphalt.org

Industry FOLKS

Faisal Naveed, who is celebrating 22 years with the firm, has been promoted to Co-Director of the Workplace Interiors. Before joining the Austin office in 2015, Naveed started in the DC and Detroit offices. In his new role, Naveed will oversee operations and business development, as well as provide mentorship and talent development for the studio. -cmw

Balfour Beatty has welcomed Casen Novak to the Balfour Beatty family in April as a Project Engineer. Novak works closely with the team reviewing submittal packages and tracking the procurement of materials. He handles change management, processes RFI’s, and communicates between our suppliers and the team. He is a recent graduate from Concordia University with a Master’s in Business Administration. -cmw

Project Management Advisors Inc. (PMA) welcomes Grayson Mann as Senior Project Manager to its Austin team. With 15 years of experience in commercial construction and a deep foundation in life sciences, Grayson has handled numerous tenant improvement and ground-up projects within the biotech, pharmaceutical and distribution industries. In his new role, he will deliver a highly collaborative and intuitive skillset as a project team leader in numerous markets, including Texas. -cmw

Elena Cutshall joins Gensler as Co-Director of the Workplace Interiors studio. Her project experience includes workplace design for corporate headquarters, law firms, and technology companies such as Meta, as well as multifamily work. In her new role, Cutshall will manage day-today operations, support business development, and provide mentorship & talent development. -cmw

Tyler James Guest, Project Executive, Metropolitan Contracting, Austin, TX

Tyler Guest was born in Ojai, CA, a pristine forested town about five miles from the beach, and grew up in the beautiful coastal city of Ventura, CA.

FGM Architects proudly announces that Jaime Palomo, AIA, has joined the firm as a principal of the firm and will be focused on municipal projects in the Austin/Central Texas region. Previously, Palomo was a Principal/Partner at CasaBella Architects. An active member of Austin AIA, Palomo has also served as Austin Director for the TX Society of Architects, and he is a visiting critic at the UT Austin School of Architecture. -cmw

“Ventura is what California beaches are supposed to look like. It is an awesome place to grow up. It had a real sense of community and beautiful scenery. I would not have traded it for anything.”

Growing up in a family of union carpenters and flooring installers, the construction industry is in his blood. He was on job sites with a broom in hand at a young age where he learned to love the environment of a job site. He went to your average American high school, Ventura High School.

el. While I have always enjoyed the AEC community, I like most seeing projects come to life and the complex problem-solving it entails. I enjoy leading a great team and watching them continue to grow and service the Austin market on a high level.”

Specht Architects is pleased to announce the addition of Jakeb Novak to the Specht family. Novak brings two decades of design and project management experience to the firm, and has contributed to numerous award-winning residential, institutional, and commercial projects. He is a licensed architect in Texas and Illinois, a LEED Accredited Professional, and NCARB certified. -cmw

“After high school, I attended California State University in Chico. College in Chico was an amazing experience. I worked for Turner Construction while in school and learned the social aspect of college life well in Chico. The construction management program is very strong. I highly recommend them.”

Having grown up on job sites, and enjoying working in teams, construction management was a natural progression for him. He graduated from California State University with clean marks and holds a Bachelor of Science Degree in Construction Management.

Now the project executive of Metropolitan Contracting, he is the market lead for METRO’s Austin expansion. “My job has been putting together the team of amazing professionals we have to service our clients at the highest lev-

Tyler says he has had several mentors throughout his life. “I feel mentors are an integral part of anyone’s professional growth. My most influential mentor would be Jim Hull. He took me under his wing when I was first starting in the general contracting world and taught me more about the industry than I could have ever asked for.

“Our leadership in general, including myself, are all folks who have grown in this industry through the field and front-line operations. We truly value this experience and believe it is what separates us from our competitors. This experience allows us to be proactive in problem-solving and provide honest expectations.”

Tyler enjoys pool time in the Texas heat, football season, and hunting with his best bud and hunting companion, Cojo. Cojo is a German shorthaired pointer. -cmw

New leadership

After a nationwide search, The National Academy of Construction (NAC) has selected its next president and CEO. Edd Gibson will assume his new role beginning Jan. 1, 2023, as Wayne Crew steps down. Crew had been serving as NAC’s president and CEO since 2015.

“Edd is an excellent choice to lead the Academy,” says Milo Riverso, NAC First Vice Chair and Search Committee Chair. “He has been involved in practically every activity undertaken since he was elected and has been a proven leader in all.”

The National Academy of construction was developed to recognize the captains of the construction industry – the people who have contributed heavily to it, and to share the knowledge of those captains of industry, making them available to the government of the nation.

The search to fill the vacancy that would be left by Crew started last summer. Gibson was the only internal candidate and a member of NAC. After going through the interviewing process, Gibson was short-listed and later selected to fill the position.

“The committee was unanimous in its selection guide which is very well respected by all the members of NAC,” adds Riverso. He’s contributed heavily with his time and know how to further NAC along the way, so I think he’s highly respected.

Gibson earned a bachelor’s degree in civil engineering and a PhD, both from Auburn University. He also holds an MBA in engineering management from the University of Dallas. He spent four years in the U.S. Army Corps of Engineers, four years at Texas Instruments, and one year at North Carolina State University. He has held chair positions at The University of Texas at Austin, The University of Alabama, and Arizona State University, is a prolific author, and has supervised over 100 master and doctoral students. He

served as a Fulbright Fellow in Norway and as a Visiting Academic Fellow at Cambridge University. He is the recipient of numerous research, teaching, and service awards. In 2016, he was awarded the American Society of Civil Engineers (ASCE) Peurifoy Award for Outstanding Research. He served as president of the Architectural Engineering Institute of ASCE and is now an ASCE Distinguished Member.

Gibson becomes the third leader for NAC in its 23-year history. Richard L. Tucker served as the original general secretary, as the position was called in its founding, from 1999-2015. Crew will retire at the end of 2022.

Current chair of the Academy, Maggi Walker states, “Edd adds to the legacy of strong leadership at NAC. His collaborative, inclusive, and engaging approach fits perfectly with the NAC mission of recognition, honor, and service. ”-cmw

I like 300, it gets me motivated.

Jacques Williams, Atlas Design and Development

I think  Déjà Vu with Denzel Washington is my favorite because of the time traveling and going back and forth and what different outcomes you get with different choices. Heather Haas, Arizona Tile

With a five-year-old child, I only watch animated-type movies. I really love Coco It’s been a special movie for me and my daughter. It just reminds us of what came before us and the connections we have to our past, and the sacrifices that people have made that we may never be privy to, to get where we are today.

Michael Melton, Power Haus Equipment

I’m going to have to go with Zootopia. I can literally watch that movie every day. It’s about a rabbit who wants to become a police officer.

Christina Cummings, All Area Overhead Door

I would probably say The Grand Budapest Hotel by director Wes Anderson because of the stunning cinematography and the color palette that he used. Very special, very cool. You should definitely check it out.

Austin Butts, Red Wing Aerials

The one I’ve probably watched the most is the whole Raiders of the Lost Ark series. The action, the history, even though the history isn’t accurate, it’s the historical context of it. Taking history and changing it a little, making it very exciting on top of all the non-stop action. It’s just fun and excitement all in one.

Rick Vavro, Austin Underground

What is your favorite “all-time” movie and why?

I would have to say The Matrix and Fast & Furious. Both, I don’t know which one. Fast & Furious because I’m a fan of cars. I like fast cars. The Matrix I can watch over and over because it’s not reality. Both are my favorites — one for my heart and one for my head.

Jean-Philippe Gagnon, CleanCo Construction

Secondhand Lions It’s a nice portrayal of bringing together a nephew and two uncles who end up raising the nephew. It’s just a warm story. It has a little bit of fantasy to it, but it’s real. They end of teaching him a lot of life lessons.

Barry Wurzel, Wurzel Builders

I’ve got to go with Napoleon Dynamite It’s just the right amount of stupid with the right amount of funny. A lot of people think it’s the stupidest movie they’ve ever seen. Then there’s the people that think it’s the funniest movie they’ve ever seen. And I just think it’s so funny.

Jacob LaRue, Rhino Roofers

Dumb & Dumber. It doesn’t matter how many times I watch it. It never gets old and is just as funny every time. So many great quotable lines in that movie.

Michael Engen, Engen Contracting Inc.

Pride & prejudice. It portrays a strong woman standing up for what she believes in even though she receives ridicule for it. Yet she also has compassion and cares deeply for others. It reminds me of me in some ways and other women in construction that must work hard to be seen and heard, and still be a wife and parent.

Tara Gray-Hyzak, Harvey-Cleary Builders

continued from Page 1 — Arizona Tile

what our products can be used for, whether it’s exterior patios with our anti-slip finish or decorative products in a luxurious bathroom. We just have to get out there and do presentations…and show them the products that we have to fit their business model.”

Haas knows who her customers are. “We are speaking to flooring contractors, countertop fabricators, designers, architects [and] remodelers.”

The COVID situation didn’t faze Arizona Tile at all. “We never had a day that we were closed,” she said. “Our sales number didn’t slow down,” as people who were suddenly working from home decided they need to upgrade their workspace, not to mention they looked around and decided it was time for a face lift.

Haas interacts with her counterparts in other areas of operation. “There are probably eight regionals within our company, and we all share ideas and talk about what works and what needs to be tweaked,” she said. “We have a lot of conversation back and forth.”

Haas is very aware of her being in a business where trends or style can change over time. “We’re always looking for the next big product or the next big

continued from Page 1 — Rhino Roofers the community, and building the right team of people dedicated to helping our customers.” With all the right pieces of the puzzle coming together, one short year later, Rhino Roofers’ team is 50-plus employees strong. “The experience from David and Misti who’ve been in the industry is a key component. Misti ran roofing companies here in San Antonio and has 20 years of experience. David, too, as a supporting representative for Owens Corning and all of South Texas knew the shingle side, the manufacturer side very well. That gave us the knowledge and ability to know all inspectors and the best crews to do the installation in San Antonio. We were able to build a team of people very quickly.”

With over 130-plus combined years of experience, the team at Rhino Roofers knows the ins and outs of roofing from small repairs to large roof replacements. Determined to be a game changer in the roofing industry, Rhino Roofers wants to take the stress and confusion out of residential roof replacements. “We don’t want to fail when it comes to communi-

innovative look,” she said. “It’s a constant process because it takes a long time to get with a factory to make a certain look and then be sure that the color and the texture is tweaked properly. Then we have to produce it to sell so that we kind of stay ahead of the game. As far as design goes, we’ve never stopped designing the next popular phase.”

Today’s technology is a plus. “A digital print technology can get much more rich, natural looking items in a porcelain that looks like a natural stone or marble,” Haas said.

Arizona Tile has a wide range of both natural and manmade items. “We have a huge inventory of manmade quartz and just natural stone, whether it’s marble, granite, limestone, quartzite. But I would say that right now the manmade quartz is the most popular countertop material,” she said.

The future looks bright. “We’re going to find ways to incorporate the technology and make it look seamless in a kitchen or bathroom,” she said. “It’s going to be really fun and interesting.”

Haas covers a big area, but she and Arizona Tile have you covered.

Arizona Tile is a tile and slab distributor, with its Texas hub located in Austin. -dsz

cation, follow-through, customer education, cleanliness, and of course, quality of work,” adds LaRue.

Rhino Roofers specializes in everything roofing – residential, commercial, asphalt shingle roofing, metal roofing, clay tile roofing, and the unexpected, storm damage. Residentially, they perform roof installation, replacement, and inspections. Commercially, Rhino is experienced in the application of spray foam roofing, commercial roof repair, commercial roof replacement, commercial roof maintenance, modified bitumen roofing, TPO roofing, PVC roofing, coatings, multi-family roofs, HOA-approved roofs, assisted living center roofs, and church roofs. They are Owens Corning Platinum Preferred Certified and Malarkey Emerald Pro Certified contractors. This new location will serve a 50mile radius around Round Rock. Rhino’s San Antonio location has a 60-mile service radius of the Alamo City.

Rhino Roofers is a full-service roofing company headquartered in San Antonio. -cmw

continued from Page 1 — Red Wing Aerials

There can be several factors motivating a company to use aerial photography on its construction project. One could be to show investors the progress being made. Another reason could be to document the work which can hold everyone accountable to do that which is expected in the time expected.

Butts uses his drone to also do what he calls “speculative work,” i.e., pre-construction site surveying. “I just went over to San Marcus,” he said, “and there’s just a random field, out in the middle of the country. I just pulled out my drone and got pictures of it” for the person who was making the inquiries.

The FAA rules for both planes and drones are so specific that companies don’t use in-house folks to send up their privately owned drones in order to capture pictures of their work. One has to be a licensed by the FAA to use a drone for commercial purposes. “With the license comes a whole slew of rules,” Butts said. “If you break even one of them and the FAA finds out they can tack on $1,000 with a penalty.”

Red Wing Aerials recently opened a branch in Dallas, employing a total of four pilots. Their market is essential, the entire state of Texas, with forays into Oklahoma and Arkansas.

With Mr. Butts being the owner of the company and its primary photographer, Mrs. Butts keeps the whole ship afloat (plane aloft?) as the office manager. “She

coordinates every aspect of the business from the pricing [to the] scheduling. She responds to customers and answers the phone,” Butts said of Mom Kari

“Customers all rave about our work,” he said. “We have great reviews.”

Butts is currently working on getting his student pilot license so one day he can fly the planes as well as the drones. Since there doesn’t seem to be any end of construction in Texas, it’s a good thing the younger Butts is following in his father’s wingsteps.

Red Wing Aerials offers a wide variety of aerial photography services, with its principal office in San Antonio. - dsz

Edd Gibson

Time to rotate…

Obooth sponsors greeted the 175 attendees as they rotated out of each bay every 10 minutes. The event proved to be a perfect success for all in attendance. -cmw

IPresident’s choice

n lieu of their regular chapter dinner meeting, the National Association of Women In Construction (NAWIC) celebrated “President’s Choice Night” on Aug. 3. As the last hurrah for the outgoing

president, Misti Shafer, Compliance Resources Inc., opted for a fun night at TopGolf where the ladies of the industry, sharpened their golf skills while having a ton of fun. -cmw

Bri Longoria, EquipmentShare Celina Gonzales, Morrison Supply Company | Reece
Samantha Glasscock, Texas Fifth Wall Roofing Marci Kincheloe, Tex-Mix Concrete
n Aug. 10, Associated General Contractors (AGC) hosted a “speed dating” style event at TopGolf. As AGC Director of Member Services, Toni Osberry, kept time, registered
L-R: Amanda Stillman, Alterman; Toni Osberry and Joseph Leon, Sunstate Trench Safety visit between rotations

Jarrell High School softball & baseball fields

Seeing incredible growth in the Central Texas area, enrollment is on the rise at Jarrell High School which has allowed the Cougars to move up from Class 2A to 4A competition in just seven years. Hellas Construction is also on the

rise seeing incredible growth in the turf, track, and tennis court manufacturing business.

Hellas, which is based in Cedar Park, TX, installed a Major Play® Matrix® turf system at Jarrell High School in 2022. Hel-

The Austin Metropolitan area has become a hub for many businesses and facilities. Koetter Fire Protection of Austin LLC (KFPA) has worked or is currently working, with many of these locations with its 20-plus years of experience in the fire protection industry.

KFPA has completed numerous commercial projects and jobs that involve designs, installations, modifications, retrofits, inspections, maintenance, monitoring, repairs, testing, and many more services that can be customized on a needbased basis. As a certified installer of and trusted partner to many vendors and manufacturers, KFPA prides itself on the quality of work and products its factory-trained employees deliver to all customers.

Throughout its decades in the industry, KFPA has built and maintained longterm relationships with these countless clients. “We want to be there for our customers from start to finish,” said Jason Ferguson, Managing Partner of Koetter Fire Protection of Austin LLC, when asked about the Austin area’s growth, “But, there’s really no end to fire protection. This industry is constantly evolving and improving, and we want our customers’ systems to always be up to date because their safety is our top priority.”

One such change is the increased demand for Emergency Responder Radio Coverage systems (ERRCs) in Travis County. Large-scale buildings benefit greatly from ERRCs where radio frequencies can be dampened by size and structure, allowing emergency responders to communicate effectively and work efficiently. Most buildings meet at least one of many conditions that require the installation of ERRCs. KFPA has many technicians that

las employs specially trained crews, who operate company-owned heavy equipment. Hellas is the only sports surfacing contractor that offers the full scope of capabilities to complete the project from start to finish as a one-stop-shop compa-

Addressable Enterprise Fiber install

are certified to survey these areas and help determine what steps need to be taken.

A recent installation required an Addressable Enterprise Fiber DAS, a type of Bi-Directional Amplifier (BDA), which is specifically designed for 700 MHz and 800 MHz LMR and public safety applications. The software is programmable and suitable for high congested RG environments with a centralized point of access. There are many more features to ERRCs that benefit both the building and its occupants.

Located in Pflugerville, TX, Koetter Fire Protection of Austin LLC, and its affiliates are committed to serving Texas by delivering high-quality fire protection, detection, and prevention solutions. -cmw

ny. Following the removal and replacement of dirt, Hellas used lime stabilization to prepare the subgrade for construction. Drainstone was placed on a 30-mil liner followed by the actual Major Play turf installed by Hellas.

Major Play Matrix turf is produced at Hellas’ Fibers plant in Dadeville, AL, and tufted in the Hellas Textiles plant in Chatsworth, GA. The monofilament fibers are exceptionally strong and designed to bounce back after use while preventing splash-out of the RealFill® infill.

Jarrell ISD Athletic Director Marty Murr says, “It’s even better than we imagined. It’s just a beautiful facility. The community will love it and we are very excited about it.” In addition to the synthetic turf, Hellas also installed bullpens, R-Panel walls along the outfield fence areas, and netting at Jarrell High School.

“Hellas has done a really good job of addressing our concerns when we had questions,” says Jarrell ISD Director of Operations & Construction James Larremor e. “Aesthetically, we couldn’t be happier.”

Jarrell High School is a return customer for Hellas, who installed a Matrix synthetic turf football field for the Cougars in 2015.

Hellas Construction builds sports complexes, fields, and stadiums. -cmw

Hellas Construction Cedar Park, TX
Aerial view of Jarrell High School’s baseball and softball diamonds
Koetter Fire Protection of Austin LLC (KFPA)
Bi-directional amplifier installation

Alamo Crane Service recently participated in the erection of a steel structure pedestrian bridge for Walker Park in Austin, Texas. Alamo Crane helped lift the bridge span into place using a Liebherr LTM 1500 mobile 600-ton crane to accommodate the weight, reach, and height of the lift. Alamo Crane is honored to participate in community projects that inspire more of our fellow Texans to get out and enjoy our beautiful city of Austin

Alamo Crane Service Incorporated started as a need for Marvin and Marge Ohlenbusch’s refrigeration company in 1979. As word spread in the air conditioning and refrigeration contractor community, the Ohlenbusches saw a niche market that they could grow.

Forty-three years later, Alamo Crane has yards on the outskirts of San Antonio and Austin, TX. There are over one hundred pieces of mobile equipment that range from boom trucks (15-ton) up to some of the industry’s largest mobile cranes (600-ton) and all the supporting heavy haul equipment and super heavy haul vehicles.

Alamo Crane Service has performed lifts for high volume air conditioning (HVAC) companies, structural steel erectors, concrete tilt wall erectors, water tower construction, bridge spans for highway contractors, industrial plant construction/ maintenance, electrical utility contractors, cellular tower service companies, oilfield service companies, wind turbine constructors, and some unique custom lifts. All have been within the borders of the great state of Texas.

Alamo Crane Service’s affiliate company, Alamo Specialized Trucking Incorporated, is the heavy hauling operation

Since 1985, Southwest Monument & Sign (SWM) has maintained the principles of quality, hard work, integrity, and attention to detail. Founder Domenico Fazzone formed SWM as a sister company to Fazzone Construction during the 1980s construction crash. Knowing he needed to find a way to utilize existing skills and assets, he turned to his knowledge of natural stone as the answer. Granite headstones were the initial focus but quickly expanded to include large memorials and boulder signs.

Today, signage of all kinds including masonry, boulder, Corten steel, and cabinet signs, along with large specialty memorials are the company’s focus working

Walker Park pedestrian bridge

that supports the crane business using 24ft gooseneck trailers up to 120-ton lowboy rear steer trailers. The larger cranes sometimes require hauling of counterweights, luffer systems, and super lift ca-

pabilities to and from job sites. Alamo Specialized Trucking also performs custom hauling for customers that also range from light to super heavy hauls. The super heavy hauls usually require special permit-

Rotary Park

both directly and indirectly with cities, developers, businesses, landscape architects, HOAs, and other contractors.

Located in Cedar Park, the majority of SWM’s work can be seen throughout Central Texas, especially in the Austin and San Antonio areas. However, they have work throughout the state such as the signage at the recently rededicated Rotary Park in Ennis, Texas – south of Dallas. The park improvements were a multi-year project done in phases led by the City of Ennis. With only renderings in hand, SWM was able to turn the city’s vision into reality.

“Southwest Monument & Sign was great to work with,” said Ennis Parks & Rec Director, Paul Liska. “We had a vision, and

they took that vision and turned it into a reality better than we ever imagined.”

The main sign is constructed of three sandstone boulders which SWM hand selected and worked to retrofit and mortar together to become one large double-sided sign – 8ft high, 14ft wide. Black pin-letter signage, smaller stones around the base, and up lighting were all added to finish out the sign. Given the splash pad was one of the major upgrades to the park, a matching 6.5ft high by 5ft wide boulder was added near the pad with a rules plague, sandblasted city logo, and matching park signage.

SWM is led by Joe Fazzone, President; Sarah Honza, Business Manager;

ting and routing. We have the capability to haul up to 240,000 lbs.

Over its 43 years in business, Alamo Crane and Alamo Specialized Trucking have provided crane and/or trucking for thousands of customers. “We are thankful for those relationships,” says Marvin. “We consider our long-term customers a part of our core family. Alamo Crane Service and Alamo Specialized Trucking can pick up, haul, and put down anything that you can imagine. We love to help solve problems. Call us! We would love to earn your business. Questions regarding crane availability can be answered at (512) 282-6866, or Marvin@alamocrane.com. To learn more about Alamo Crane’s capabilities go to our website – www.alamocrane.com.”

Alamo Crane Service specializes in providing safe, professional, efficient crane rentals. -cmw

Dwight Toth, Operation Manager; and Windy Smith, Design & Administrative Specialist.

Honza spoke about the project saying, “Although our team can make it look easy, dealing with stones of this size is extremely difficult and even dangerous. Design elements must merge with structure and functionality. Luckily, we have two of the best in the business at that in Dwight and Windy. A turnkey project like this one that includes several aspects such as design, fabrication, and install really highlights our abilities as a company.”

Southwest Monument & Sign is a full-service commercial sign contractor with a specialty in natural stones. -cmw

Southwest Monument & Sign (SWM) Cedar Park, TX
Rotary Park splash pad rules sign
Rotary Park main entrance
Alamo Crane Service Incorporated Austin, TX
Alamo Crane used a Liebherr LTM 1500 mobile 600 Ton crane to accommodate to lift the bridge span into place.
Chamberlin Roofing & Waterproofing team L-R: Eduin Salinas David Rodriguez Jesus Chavez , Yoni Villaltoro, and Jorge Jimenez remove wall panels and Zs to reinstall waterproofing and install metal roof coping at the Zach Theater. -cmw
Radiant Plumbing L-R: HVAC Installer Arturo Vences and HVAC Lead Installer Rene Aguilar, install a new HVAC system at a residence in Liberty Hill. Photo courtesy of Odalis Suarez. -cmw
Cubic Concrete team members at block 71 in Austin. -cmw
David Patton, Main Street Rental, says he has added more equipment in the yard over the years.
Vicki Smith, the new manager of Longhorn Stucco Masonry, is new to the team, but not as new as warehouse associate John Villanuevas; this was his first day on the job. –mp
McCoy’s Building Supply marketing and advertising manager Tim Rogers shows off the first Towmotor forklift purchased by founder Emmett McCoy in 1953, which now resides in the lobby at the corporate headquarters in San Marcos. –mp
Bob Stasswender, Owner of Stasswender’s Southwest, began working full- time at the company in 1970.
Owner Robert L. Case faces the Texas sun without flinching as he stands outside his location in Kyle, Rock Solid USA, which specializes in decorative concrete. –mp

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