South Texas Construction News July 2015

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The Industry’s Newspaper CONSTRUCTION CONSTRUCTION South Texas Built like a fortress continued on Page 14 continued on Page 14 continued on Page 14 An eye to the future A growing family PRSRT. STD. U.S. POSTAGE PAID DALLAS, TX PERMIT #1451 P.O. Box 791290 San Antonio, Texas 78279-1290 Change Service Requested www.constructionnews.net H (210) 308-5800 H Volume 3 H Number 7 H JULY 2015 San Antonio Dallas/Fort Worth Austin Houston South Texas Texas Style Covering the Industry’s News July 4, 2015 Happy Birthday America T he founder of Gignac & Associates, an architectural firm in Corpus Christi with offices in Harlingen and McAllen, came to the coastal United States in a circuitous way. Raymond Gignac was born in Hon- duras. His family moved to Cuba, but left for the United States in 1960 when Fidel Castro came into power. After a time in New York, the family landed in Harlingen, where Raymond graduated from Harlin- gen High School and then Texas A&M in College Station with a degree in architec- ture. He opened his office in Corpus Christi in 1988 and in Harlingen in 2000. “He opened an office in Harlingen because he had contacts there,” says son Nick Gignac. “He started working from Corpus Christi where he had moved to after graduating from college in 1975.” Nick Gignac grew up in Corpus Chris- ti and followed in his father’s footsteps to Texas A&M, where he received an under- graduate degree in construction science. He went on to get his master’s degree in architecture, graduating in 2010. He hadn’t really planned to become an ar- chitect, but a trip to Europe was a game- changer. “I took a trip to Europe with some ar- chitectural students while I was in the construction science program,” he says. “I was so impressed with the beauty of the buildings in Spain and all over. It inspired me to apply for architectural school. I’ve Raymond and Nick Gignac love architecture and the easy-going life of the Texas coast. F ifty-three years ago, LNV Inc., an en- gineering, architectural, surveying and construction company in Cor- pus Christi, began life as the architectural and engineering firm of Smith & Russo. Now, LNV is celebrating its 15th year. In April 2000, Dan Leyendecker , Derek Naiser and Robert Viera acquired the firm and originated LNV. In early 2007, LNV expanded its services to include ar- chitecture, when it took in the 44-year- old firm of Roots/Foster Associates. The firm started with seven employ- ees in one office and has grown to more than 140 employees in seven Texas loca- tions. “Our success is founded in the exper- tise and dedication of our staff,” Leyen- decker says. “We empower our people to be passionate in all they do and encour- age them to influence decision-making processes and outcomes.” The firm offers employees internal training programs in various disciplines for career growth. LNV lives the ‘work hard, play hard’ mentality. “It’s great to know our employees are friends outside of the workplace,” Leyen- decker says. “Many spend weekends to- gether with their families boating the Corpus Christi Bay, catching games at the local sports bars or enjoying family bar- becues. “Having a good sense of humor will Dan Leyendecker, Derek Naiser and Robert Viera are the leaders of the LNV family. M anuel Rodero has a long history of general contracting in the Rio Grande Valley, so when he de- cided to build his own project – South Texas Tactical Shooting Range in Browns- ville – he was his own GC. His GC compa- ny is also known as South Texas Tactical. Building an indoor shooting range is like building a fortress, Rodero says. Al- though the outside is brick, the inside consists of injected concrete walls rein- forced with rebar. The unique gun range is the first of its kind in South Texas. Partnering with Action Target, a company that specializes in indoor shooting ranges, the range includes ar- mor steel with innovative designs result- ing in unique, patented technology. The steel bullet trap, now known as the Total Containment Trap (TCT), has become a superior trap within the industry because of its ability to successfully collect bullet rounds, lead dust and other particles in a way that is eco-friendly and low mainte- nance for the range owner. The project consists of two 10-lane indoor ranges, as well as a store that sells and rents guns and accessories. The steel targets are made of AR500 steel, pro- duced to a special carbon-manganese specification and designed to outlast other steel grades. Another unique feature of the build- ing is its self-contained ventilation sys- tem. “The filtration system for the range is a self containment trap to keep guests and visitors from breathing gun powder and residual lead contaminants,” Rodero says. “The non-recycling filtration system provides fresh, clean air every 3-7 min- utes.” South Texas Tactical Shooting is built like a fortress and offers innovative design in indoor shooting ranges.

description

Monthly publication covering the construction, design and engineering industries from the Coastal Bend through the Rio Grande Valley of Texas.

Transcript of South Texas Construction News July 2015

The Industry’s Newspaper

™CONSTRUCTIONCONSTRUCTIONSouth Texas

Built like a fortress

continued on Page 14 continued on Page 14

continued on Page 14

An eye to the future A growing family

PRSRT. STD.U.S. POSTAGE

PAIDDALLAS, TX

PERMIT #1451

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

Change Service Requested

www.constructionnews.net H (210) 308-5800 H Volume 3 H Number 7 H JULY 2015

San AntonioDallas/Fort WorthAustin Houston South Texas

TexasStyle

Covering the Industry’s News

July 4, 2015

Happy BirthdayAmerica

The founder of Gignac & Associates, an architectural firm in Corpus Christi with offices in Harlingen and

McAllen, came to the coastal United States in a circuitous way. Raymond Gignac was born in Hon-duras. His family moved to Cuba, but left for the United States in 1960 when Fidel Castro came into power. After a time in New York, the family landed in Harlingen, where Raymond graduated from Harlin-gen High School and then Texas A&M in College Station with a degree in architec-ture. He opened his office in Corpus Christi in 1988 and in Harlingen in 2000. “He opened an office in Harlingen because he had contacts there,” says son Nick Gignac. “He started working from

Corpus Christi where he had moved to after graduating from college in 1975.” Nick Gignac grew up in Corpus Chris-ti and followed in his father’s footsteps to Texas A&M, where he received an under-graduate degree in construction science. He went on to get his master’s degree in architecture, graduating in 2010. He hadn’t really planned to become an ar-chitect, but a trip to Europe was a game-changer. “I took a trip to Europe with some ar-chitectural students while I was in the construction science program,” he says. “I was so impressed with the beauty of the buildings in Spain and all over. It inspired me to apply for architectural school. I’ve

Raymond and Nick Gignac love architecture and the easy-going life of the Texas coast.

Fifty-three years ago, LNV Inc., an en-gineering, architectural, surveying and construction company in Cor-

pus Christi, began life as the architectural and engineering firm of Smith & Russo. Now, LNV is celebrating its 15th year. In April 2000, Dan Leyendecker, Derek Naiser and Robert Viera acquired the firm and originated LNV. In early 2007, LNV expanded its services to include ar-chitecture, when it took in the 44-year-old firm of Roots/Foster Associates. The firm started with seven employ-ees in one office and has grown to more than 140 employees in seven Texas loca-tions. “Our success is founded in the exper-tise and dedication of our staff,” Leyen-

decker says. “We empower our people to be passionate in all they do and encour-age them to influence decision-making processes and outcomes.” The firm offers employees internal training programs in various disciplines for career growth. LNV lives the ‘work hard, play hard’ mentality. “It’s great to know our employees are friends outside of the workplace,” Leyen-decker says. “Many spend weekends to-gether with their families boating the Corpus Christi Bay, catching games at the local sports bars or enjoying family bar-becues. “Having a good sense of humor will

Dan Leyendecker, Derek Naiser and Robert Viera are the leaders of the LNV family.

Manuel Rodero has a long history of general contracting in the Rio Grande Valley, so when he de-

cided to build his own project – South Texas Tactical Shooting Range in Browns-ville – he was his own GC. His GC compa-ny is also known as South Texas Tactical. Building an indoor shooting range is like building a fortress, Rodero says. Al-though the outside is brick, the inside consists of injected concrete walls rein-forced with rebar. The unique gun range is the first of its kind in South Texas. Partnering with Action Target, a company that specializes in indoor shooting ranges, the range includes ar-mor steel with innovative designs result-ing in unique, patented technology. The steel bullet trap, now known as the Total Containment Trap (TCT), has become a superior trap within the industry because of its ability to successfully collect bullet

rounds, lead dust and other particles in a way that is eco-friendly and low mainte-nance for the range owner. The project consists of two 10-lane indoor ranges, as well as a store that sells and rents guns and accessories. The steel targets are made of AR500 steel, pro-duced to a special carbon-manganese specification and designed to outlast other steel grades. Another unique feature of the build-ing is its self-contained ventilation sys-tem. “The filtration system for the range is a self containment trap to keep guests and visitors from breathing gun powder and residual lead contaminants,” Rodero says. “The non-recycling filtration system provides fresh, clean air every 3-7 min-utes.”

South Texas Tactical Shooting is built like a fortress and offers innovativedesign in indoor shooting ranges.

Page 2 South Texas Construction News • Jul 2015

Having served as an executive vice president of RDO Equipment Co. since 2012,Chris Cooper was recently named COO of the company. Based at RDO’s Field Support

Office in Fargo, ND, he will be responsible for daily operations across all regions and teams. He joined RDO in 2004 as general manager of the Irving, Fort Worth and Waco locations, becoming vice president of the Texas region in 2007 and vice president of

southern construction in 2010. –mh

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Hoyte Gentry, 86, died May 24, 2015, in Corpus Christi. He was born in Lou-

isville, MS, to James and Claudie Gentry on April 11, 1929. Gentry worked as a plumber in the 1950s and incorporated his commercial plumbing business, Gentry Company, in 1965. He served as president and C.E.O. of Gentry Company until his death. He was active in the community serving on numerous boards and com-mittees for various organizations includ-ing the AGC, MCA, RTA, SWCA, BACALA, Chamber of Commerce, Coastal Bend Na-tional Bank and Stonewall Bank, as well as many others. His philanthropic inter-ests included Ada Wilson Hospital, Driscoll Children's Hospital, Christus Spohn Hospitals and the Shrine Temple. He was a Noble of the Shrine of North America, 32nd degree Mason, and served on the motor patrol and in the Royal Or-der of Jesters. He is preceded in death by his par-ents; sisters, Ruth Gentry, Jamie Scott, Louise Wood; brother, Wallace Gentry and grandson, Jason Boltinghouse. Hoyte is survived by his wife of 63 years, Elizabeth Gentry; sister, Faye Col-lier (Joe); daughter, Traci Fugh (Robert); son, Ty Gentry (Robin); grandchildren, Jeremy Boltinghouse, Tyler Gentry, Kailin Boltinghouse, and Alyssa Gentry.

In memoriam

Victor Guzman Sr. founded Guz-man Construction in Pharr in 2007, but managed through good work

and referrals to keep on growing the company through the recession. “When we started the company, the recession hadn’t started,” says Victor Guzman Jr., president and CEO. “But my father has always been in construction and he enjoys doing it. We’ve always been able to preserver and grow the company.” Guzman Jr. attended the University of Texas at San Antonio, where he ma-jored in business administration and joined the company after school the year it was founded. He says customer service is key. “Customer service and satisfaction are what we build our business on,” he says. “At the end of the day, the customer is going to refer us and that’s where most of our business comes from – word of mouth.”

The family business

The company does both residential and commercial, with some industrial thrown in. “We have quite a few homes coming up, plus two cold storage facilities,” he said. “We are about to start on a commer-cial shopping center in Pharr.” Guzman Construction has roughly eight employees and subs out the rest. His advice to someone who wants to work in the field is simple. “Be very detail oriented,” he said. “You have to be sure and check every-thing. Mistakes in our industry cost a lot of money. We focus on making sure ev-erything is in place and ordered oon time so we don’t have delays and unhappy customers.” Guzman Jr. is married to Denisse and the couple have three children. When he is not working, he likes to spend time with the family. “I also love to fish,” he said. –cw

Victor Guzman Sr. and Victor Guzman Jr. are busy bringing great service to their clients.

Heading into the weekendSubmitted to Construction News

AFC Builders LLC superintendents give a big smile on a Friday afternoon in Pharr after a busy work week. Standing, L-R: Juan Morales, Javier Sanchez and Leo Pedraza;

and seated, L-R: Marco Salas and Eddie Aguirre. –cw

CONSTRUCTION NEWS

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South Texas

The South Texas Construction News (ISSN #2327-4670) is published monthly by Construction News Ltd., dba South Texas Construction News, and distributed by mail to construction related companies in the South Texas area. All submissions should be mailed to our editorial offices. We reserve the right to edit any materials submitted. No fees for materials, copy or photographs submitted will be due unless agreed upon in advance in writing. Submissions will be published at our discretion on a space-available basis. Construction News, Ltd., dba South Texas Construction News, will not be liable for errors in copy or in advertisements beyond the actual cost of space occupied by the error. Publisher reserves the right to reject any advertisement at any time.

If you are a construction-related companyin Aransas, Atascosa, Bee, Calhoun, Cameron, DeWitt, Dimmit, Frio, Goliad, Hidalgo, Karnes, Kenedy, Kleberg, LaSalle, Live Oak, Maverick,

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AGC welcomes Rye

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Chris AlbrightEnvironmental SpecialistTerracon

Industry FOLKS

Chris Albright is an environmental specialist for Terracon in Pharr –

and that fits right in with his interest in all things outdoors. On the side, he plays percussion in a church band at First United Methodist Church in Harlingen. Originally from Pennsylvania, Al-bright picked up the drums in middle school. “I bought my first drum set in 7th grade,” he says. A friend with a band introduced him to percussions and he occasionally went on road trips as a drum tech as the band toured. He says he is a quiet guy and the noise of the drums appeals to him. “Strumming something didn’t re-ally interest me,” he says. In high school, he played hard rock with a couple of bands and wanted to major in music therapy in college, but realized he didn’t have the voice or the multi-instrument talent needed for that job. So, he went to Susquehanna Uni-versity and majored in his other inter-est – the outdoors – getting a degree in earth and environmental science with a focus on hydrology. He graduated in 2009. In 2012, he married Lauren, who al-ready had a job in the Rio Grande Valley as a teacher. Of course, he followed her there. “I didn’t have anything lined up

when I came down, but after a few months, Terracon picked me up,” he says. And even though Texas is a far cry from Pennsylvania, Albright has been able to indulge some of his other favor-ite activities. “I’ve always enjoyed the outdoors,” he says. “My uncle is a forester, and me and my dad used to go hiking and camping on the Appalachian Trail.” Other favorite activities include biking and snowboarding, something he doesn’t get much a chance to do in the Valley. “I do miss having changing sea-sons,” he says. “I love snow.” He also says he misses good diners. “Texas doesn’t have any good din-ers,” he says. Chris and Lauren welcomed their first child, a son, Theo Wesley, in April and becoming a family man might cur-tail some of Albright’s ambitions for his music. “The birth of my son and family fo-cus may put some limits on that,” he laughs. “Lauren wants a plethora of children.” –cw

Tracy Hefley, left, was recently honored for 24 years of service at Testengeer in Pharr. Alisa Villarreal, right, recently celebrated an anniversary after

25 years of service to the company. –cw

Service awardsSubmitted to Construction News

National Association of Women in Construction Corpus Christi (NAWIC) sponsored their annual CAD/Design/Drafting Competition for senior high school students. The contest

provides recognition to students for creative design, successful problem solving and craftsmanship in preparing architectural drawings. Pictured above, L-R: Daniel Garza, 2nd

place; David Triplett, 1st place and Region 7 2nd place; Bruni High School CAD teacher Alfonso Gonzalez III; and CAD chair Vickie Thompson, Dixie Pipe Sales. –cw

DrawdownSubmitted to Construction News

The South Texas chapter of the AGC recently welcomed Colette Rye as the new executive director.

Colette replaces long-time executive director Debbie Schibi, who has em-barked on a new adventure with her hus-band, Charles, to Charleston, S.C. “I am excited for the opportunity to represent such a vital and growing indus-try in my home town, continue building the reputable membership and contrib-ute value to our stakeholders,” Rye says. Colette began her career with an in-ternship and subsequent marketing posi-tion with Bay, Ltd. During her time there, she witnessed firsthand the important role that the industry and skilled laborers contributed to the local economy. After leaving Bay, Ltd., she continued in vari-ous marketing and membership driven roles, most recently as the director of marketing for the Schlitterbahn develop-ment on Upper Padre Island in Corpus Christi. Starting on the project when it was merely blueprints and sand, she worked closely on both the construction and op-erations sides, but most importantly she learned that skilled labor and true crafts-manship are a necessary and hard to come by commodity. “I reflect on this experience with the developers, contractors, sub-contractors and laborers as an awakening into the challenges that are faced within our in-dustry on a day to day basis,” she says. She begins her new role with simple, but focused goals: to listen to the needs of the local members, to contribute

meaningful representation and to con-tinue chapter growth by welcoming new members. For Colette, this new role is an honor and a privilege she doesn’t take lightly. “I am committed to bringing the needs of my chapter and members to the forefront of our community, affecting positive change that will improve not only the industry, but also the individuals who build amazing projects and, more importantly, an amazing future for all of us.” Upcoming events for AGC South Tex-as Chapter include the annual fishing tournament, scheduled for Jul. 10 at Bluff Landing Marina and Build Corpus Christi Day on Aug. 22–cw

Page 4 South Texas Construction News • Jul 2015

Are your construction contracts choking project cash flow?Michael Kuchar, CPADoeren Mayhew Houston, TX

When you think about what’s tying up your available dollars, a variety of culprits may come to mind.

Perhaps you’re servicing a substantial amount of debt, waiting for past-due customer payments or dealing with elevated material costs. But one perpetrator of

cash-flow crises that often goes overlooked is the piece of paper you sign in advance of every job — the contract.

Construction contracts, or rather the language therein, can start choking your project cash flow before work even begins. So let’s look at some points to consider before signing on the next dotted line.Front-load, where possible Payment terms can also impact cash flow. A contract that calls for payment on completion of specified phases can create uncertainty, making project cash-flow forecasting difficult. If a contract requires payment in equal installments over the course of a project, it provides predictability, but may not correspond to your expenditures on the job. Construction projects often involve significant upfront costs. If possible, negotiate a front-loaded billing schedule reflecting your greater cash needs in a project’s early stages. Also look at language regarding requisitions. It’s not unusual for a construction contract to disallow requisitions for materials until the materials have been installed. To avoid cash-flow disasters, try to negotiate requisition terms allowing you to request payment once materials have been delivered to the job site. Consider the method of payment, too. You might ask for accelerated methods, such as wire transfers or electronic checks.Review retainage A 5 percent or 10 percent retainage can easily defer your entire gross profit on a job until after construction is completed. To reduce the impact on your project cash flow, try to negotiate a lower percentage or ask for retainage to be phased out over the course of the project. For example, the construction contract might provide for 10 percent retainage, reduced to 5 percent when the job is 50 percent complete and eliminated when it’s 75 percent complete. Other options include limiting retainage to certain job costs, such as the labor component, or eliminating it altogether through the use of letters of credit, performance bonds or other security.Clarify your construction change orders As you know, construction change orders are inevitable in most construction

jobs. It’s critical to establish clear terms and procedures for approving and paying them. If your contracts don’t have such terms, your payments may be delayed for additional work. Or, even worse, you might lose out on those payments altogether. Establish clear procedures for your personnel to identify changes in the scope of work and to promptly prepare and document change orders in accordance with contract terms. Moreover, before things get to the point of a construction change order, monitor work-in-process reports closely to ensure you can generate the proper paperwork should a change come up.Match outlays Remember cash flows in two directions, and outflow is as important as inflow. Scrutinize your contract terms with vendors, suppliers and subcontractors. You may be able to avoid cash-flow problems by negotiating payment terms that, to the extent possible, match your cash outlays with your receipts from the owner or general contractor. For example, include in your subcontracts retainage provisions that have terms similar to those in your contract with the owner. If you’re a subcontractor and your contract with the general contractor contains a “pay-when-paid” or “pay-if-paid” clause, your contracts with subcontractors should contain parallel provisions. That way, you won’t be forced to pay subs until you collect from the general.Get to work Once a construction contract is signed and you get to work, there usually isn’t much you can do about the language or terms of the agreement. At that point, it’s critical to regularly prepare project cash-flow forecasts based on your work-in-progress reports and make necessary adjustments during the course of the job. Michael Kuchar, CPA, is a shareholder and leader of Doeren Mayhew’s dedicated Construction Group in Houston. A top 100 U.S. firm, Doeren Mayhew’s CPAs and business advisors serve more than 500 suppliers and general and specialty contractors doing business domestically and abroad. For more information, visit www.doeren.com.

Workers compensationEMR changes

Mark Gaskamp, CSP, CRM, CIC, CPCU, ALCMWortham LLC Austin, TX

Effective July 1, 2015, the world will change, at least in regards to workers compensation experience

modifiers in the State of Texas. Last year, Texas began a transition to the National Council on Compensation Insurance (NCCI) for work comp rates and policy forms.

The immediate impact is that rates will change for most classifications, some by as much as 15%. This could have a positive or negative impact on your premium and experience modifier calculation. The other impact related to the experience modification rate (EMR). The workers compensation experience modifier (AKA EMR or eMod) is an insurance rating component designed to integrate the individual risk characteristics of each organization based on prior claim experience into the workers comp premium calculations. NCCI compiles claim data from insurance carriers by classification, providing a database for comparison and the ability to produce the EMR for each individual policyholder. There are several changes that will occur as part of the transition. Two will have significant impact for most every policyholder. First, there are major changes in how medical only claims are utilized in the calculation. NCCI’s experience rating rules allow for an experience rating adjustment of 70% for medical-only claims. This means that only 30% of a medical-only claim is used in the experience rating calculation. This change will make it less advantageous to pay claims out of pocket rather than report them to the insurance company. For example: If you have a $1,000 medical only bill for a cut or eye injury, only $300 would apply to the EMR. This will create an extra emphasis on reducing lost time claims. Once one penny is paid in indemnity payments, 100% of the claim will be included in the EMR calculation. Second, “spilt points” are changing. The “split point,” which is used to determine the “primary expected losses,” will increase from $5,000 to $15,500. For those that are not aware, there are actually two calculations used to produce the EMR. One utilizes total expected losses (capped at the maximum, which will be increasing to $230,500 per claim). This calculation uses the actual losses relative to the expected losses multiplied by a normalizing factor based on the size of the operation. The

smaller the organization, the more normalizing. This helps reduce the impact of one claim on a smaller organization’s EMR. The second calculation includes the actual “primary losses,” those that fall below the “split point” relative to the expected primary losses also capped at the “split point.” Note that there is no normalizing, this is dollar for a dollar ratio without taking into account the size of the organization. So, with the split point increasing from $5,000 to $15,500, if an organization has a higher than average number of claims above $5,000, their EMR will be adversely impacted. This could be a dramatic change. In all other states, NCCI phased this increase in over three years. Texas is doing it all at once. So over the next couple of years, you can expect some volatility in your EMR. It will be very important to work closely with insurance company underwriters to help ensure the overall rates and premiums are not adversely impacted by dramatic changes in the EMR. You may also want to revisit the current claim reporting process and determine if paying medical only claims remains a cost effective way to control the overall costs. Lastly, this affirms why the EMR is not an effective safety benchmark. Just because an EMR moves over 1.0 due to the new rating methodology does not make an employer “unsafe.” There are a multitude of reasons for a high experience modifier not related to a safe work place.

Mark Gaskamp is a managing director for Wortham Insurance & Risk Management in Austin. He is a part of the Wortham Construction Industry Practice Group where his responsibilities include partnering with clients to manage safety and risk management exposures to reduce their cost of risk. He is actively involved in the ABC and AGC safety committees, and is a national faculty member of The National Alliance’s Certified Risk Manager’s (CRM) program. For more information, contact Mark at (512) 532-1536 or [email protected] or visit www.worthaminsurance.com

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Multi-family projectConstruction News JOB SIGHT

The American Institute of Architects (AIA) Convention 2015 brought thousands of architects and design

professionals to Atlanta – breaking a few records. Thursday’s keynote, with speak-er President Bill Clinton, had the most at-tendees in AIA Convention history. So did The Party! at the College Football Hall of Fame. President Clinton kicked off AIA Con-vention 2015, telling a standing-room au-dience to tackle pressing global issues and “low-hanging fruit.” Jennifer Workman, AIA, from AIA Dallas/AIA Texas Society of Architects, was elected an at-large director. She is an associate at Good Fulton & Farrell, a multidisciplinary design firm in Dallas. From the AIA-LGRV, executive direc-tor Carmen Perez-Garcia and her hus-band, Rolando L. Garcia, FAIA, and Brownsville architect Roman McAllen and his wife, Lisa, attended the conven-tion. “We had a wonderful time in Atlan-ta,” McAllen says. “We found the histori-cal neighborhoods incredibly interesting and intact. The Expo was fantastic and we attended the investiture of the Fel-lows into the AIA.” –cw

Carmen Perez-Garcia and Rolando L. Garcia

Roman McAllen and his wife, Lisa

On the right: Corpus Christi architect Elizabeth Chu Richter, FAIA, presents Andrew

Freear with the 2015 Whitney M. Young Jr. Award. (Image courtesy of carlbower.com)

No damages for delay clauses: Do they mean what they say?West W. Winter, PartnerMcNelis + Winter, PLLCSan Antonio, TX

Are contract clauses enforceable in Texas to limit or negate the very substantial damages that may be

incurred due to project delays which occur through no fault of your own?

In Zachry Construction Corp. v. Port of Houston Authority of Harris County, a significant construction law opinion which also discusses certain lien release and waiver of sovereign immunity issues, the Texas Supreme Court recently addressed the enforceability of no-damages-for-delay provisions. Zachry sued the Port of Houston Authority in 2006 claiming damages from delays allegedly caused by the Port when it switched course and ordered Zachry to complete the project “in the wet” and without the benefit of a previously utilized cutoff wall. The Port asserted that the no-damages-for-delay provision in the contract precluded Zachry’s delay damages. Pursuant to the contractual provision, the Port was not liable to Zachry “…for any damages arising out of or associated with any delay…to the Work, regardless of the source of the delay…and even if such delay…results from, arises out of or is due, in whole or in part, to the negligence, breach of contract or other fault of the Port Authority.” Zachry countered that this provision could not be enforced if the Port’s intentional misconduct caused the delay. After a three-month trial, the jury found, among other things, that the Port caused Zachry to incur more than $18 million in delay damages due to the Port’s “arbitrary and capricious conduct, active interference, bad faith, and/or fraud.” However, the court of appeals subsequently held that the no-damages-for-delay provision barred Zachry’s recovery of delay damages. It then reversed the trial court’s judgment in favor of Zachry, and rendered judgment for the Port, awarding it $10 million in attorney’s fees. On appeal, the Texas Supreme Court recognized the general rule that a contractor may agree to assume the risk of construction delays and not seek damages. But, the Court also detailed four previously recognized exceptions to the enforcement of such agreements when the delay: (1) was not intended or contemplated by the parties to be within the purview of the provision; (2) resulted from fraud, misrepresentation, or other bad faith on the part of one seeking the benefit of the provision; (3) has extended for such an unreasonable length of time that the party delayed would have been

justified in abandoning the contract; or (4) is not within the specifically enumerated delays to which the clause applies. The Court further recognized a fifth exception “based upon active interference” with the contractor or other wrongful conduct including “arbitrary and capricious acts,” “without due consideration” and in disregard of the other parties’ rights. Zachry argued that the no-damages-for-delay provision was invalid and based upon the jury’s findings, relied upon these second and fifth exceptions. The Texas Supreme Court agreed with Zachry and held, among other things, that the no-damages-for-delay provision was unenforceable and that the award of attorney fees to the Port should be reversed. As part of its rationale, the Court reasoned that while contractors can assess potential delaying events when estimating and bidding, they cannot properly assess potential delays that may arise due to an owner’s direct interference, willful acts, negligence, bad faith fraudulent acts, and/or omissions. Another stated purpose behind these exceptions is to preclude a party from insulating itself from liability for its own deliberate and wrongful conduct. As exemplified by the Zachry holding, no-damages-for-delay clauses can be enforced, but there are numerous viable exceptions. Such clauses certainly cannot be used to insulate oneself from liability for deliberate and wrongful conduct or allow one party to intentionally injure another. Contractors who have suffered delay damages should closely scrutinize the specific facts and circumstances involved as early as possible so they may be fully informed about the impact of any applicable no-damages-for-delay clauses and whether any of these recognized exceptions may apply.

West W. Winter is a partner at McNelis + Winter, PLLC. A LEED Green Associate, West serves on the board of the Construction Law Section of the San Antonio Bar Association and has been listed as one of the Best Lawyers in San Antonio for Construction Litigation. West can be reached via email: [email protected].

AGC President Tré Peacock, right, and executive director Perry Vaughn, left, recognized AGC 2015 scholarship recipient David Gomez, Jr. at a recent chapter

event. David is a 2015 graduate of South Texas ISD Science Academy and has plans on attending UT-Rio Grande Valley in the fall to study civil engineering. –cw

What a winner!Submitted to Construction News

Page 6 South Texas Construction News • Jul 2015

Lee WhitePresident/OwnerAlazan Builders

Corpus Christi

MUSTANG COLT SERVICESServing Customers HonestlyElectrical Contracting • Commercial/Industrial

Special Projects

San Antonio, TX 210 494 7100Weslaco, TX 956 969 5703

Being a fourth-generation Texan, Lee White has an affinity for Texas and its history.

His company, Alazan Builders, is named after a Texas bay located just off the King Ranch shoreline. “It has a historical context,” White says. “And, it’s an unusual name.” The word alazán is Spanish for a bay horse, a reddish-brown horse, so the name is an interesting play on words.

Where did you grow up? I grew up in the small community of Taft. My father barely graduated from high school. He worked hard all his life to provide for his three children and never saw any financial rewards for his life of backbreaking work. My brother and I were the first ones in our family to go to college. I came from humble beginnings and I’ve tried never to lose touch with that hu-mility.

Where did you go to college? I went to Texas A&M University in College Station and majored in construc-tion science. After I came back, I eventually set-tled in Corpus Christi by choice. I love the city, love the people and love the culture. I received my master’s degree in psy-chology from Texas A&M Corpus Christi.

Psychology and construction science? I’ve always been fascinated by the human personality. People say “what do you do with a degree like that?” I say, “I use it every day.” When dealing with clients, you find people who have a hard time articulating what they want. You have to learn to read people and know if they need two choices or unlim-ited choices. Sometimes having unlimited choices makes people freeze up. If I read them and I sense that, I say, “OK, do you like A or B?” That makes it much more manage-able.

They have a rough vision of what they want. I break it down into manage-able pieces for them and help them achieve their dream. It also makes it easier to deal with the HOA boards and figuring out who the people are who are troublemakers and who are the decision makers. You just have to learn to nudge them in the right direction. Let them make the choice you lead them to.

When did you start Alazan and what is the main work Alazan Builders does? Alazan began in 2007. Prior to that, I’ve been in the construction business since 1972. I started out as an estimator for a commercial construction company that specialized in churches, banks and schools. When I first went out in the 1990s, my company was Lee White Contractors. Most of our work now is condomini-um work – interior renovations and exte-rior work for the condominium associa-tions all over South Padre Island. I prefer remodels and renovations, just because I love a good mystery. You never know what is going to be behind that wall when you open it up. We fill a specialty niche. One of the things we do is concrete spalling. Not many companies in Texas do that.

What is concrete spalling? Concrete spalling is the result of moisture coming in contact with steel re-inforcing in structural concrete. As the steel rusts it expands, popping holes in the concrete and leading to degradation of the structural integrity of the con-crete. The repair of structural concrete is a complicated process of moisture-proof-ing, or replacing the damaged steel, and rebuilding the damaged concrete using concrete specialty patching products.

Who do you do work for? I have about 15 properties I work on and then individual customers in Corpus Christi. I end up getting calls from people who have been burned by other people who call themselves contractors. Folks that give the construction business a bad name. We work very hard to build a strong working relationship with each of our cli-ents. We treat the $5,000 job as impor-tantly as the $200,000 job.

What is your business philosophy? About 10 years ago, a couple that I attend church with who own a condo on the island asked me to come out and look at a patio door they wanted replaced. While I was there visiting with them they called their property manager and she came down. She said, “While you are here, I’ve got a couple of projects for you to look at. I said, “sure, why not?” That was 10 years ago and we have been working on those condos ever since. Never despise small projects be-cause you never know what they are go-ing to lead to. I never turn up my nose.

You have a mission to help kids with their education – in school and in life. In the summer, we employ a lot of college students who are trying to work their way through school. I have a strong emphasis on education. We try to build their work schedule around their course schedule. Their education is the most im-portant thing I also serve as an advisor to my frater-nity at A&M Corpus Christi. That’s very rewarding. One of the things I emphasize with those young men is grades and financial responsibili-ty. I give them a gift each year for gradu-ation – a description of what it means to be a gentleman. One of the first things I tell them is before this year is out, you will know how to tie a bow tie – and they do! (laughs)

You also employ veterans. We hire a number of veterans. One of my top new guys right now just got out of the army after serving five tours in Iraq with the Special Forces. He’s like one of my kids. He shows so much promise. He’s also going to school. We work very hard to be like a family at Alazan. I treat my employees like I treat my clients – the way I would like to be treated. Even if it costs you a little more, it all comes back in the end. Most of my business comes from re-ferrals - clients I have worked with for years.

Tell me about your family. I have four adult children who have scattered to the wind in San Antonio, Dal-las, Atlanta and Orlando. Their names are Teresa, Sean, Allison and Eric – that’s in chronological order (laughs).

What are some of the programs you are involved in? I’m involved in a number of commu-nity organizations. I serve on the board of the Coastal Bend Wellness Foundation. This foundation deals with health issues with an underserved population Nueces County. I’m also on the Sister Cities Commit-tee, in charge of fundraising.

What does that involve? We facilitate student exchanges with sister cities around the world. Next month, we are sending students to France, Japan and Taiwan. My job is to raise money so that we can provide plane tickets for them. Interested kids go through an inter-view process. We try to pick students who will be good ambassadors for Cor-pus Christi and we don’t want economics to be a factor or an undue burden on their family. So we provide the money for the plane trip. These are high school juniors who will spend two weeks abroad learning about a different culture. Then, we have students from those sister cities visiting and staying with host families here. We try to provide educa-tional opportunities for them along with some fun stuff. There is a lot of marine research that goes on here. Because we want them to go back with a better understanding of Corpus Christi, we arrange for special vis-its to some of these learning centers where they are researching shrimp, ocean pollution, and more. Hopefully they go home with a little better understanding of Texas.

What do you like to do when you have spare time? I don’t have much time for hobbies. I love cooking and I think I am a pretty good cook of Indian cuisine. I belong to a number of groups that get together and do wine tastings and wine tours. I love travel and I have spent a lot time traveling in Mexico and Europe just on my own. I pick a city someplace where I don’t know anybody there and show up and start practicing my Spanish and ex-ploring the city.

You have a great laugh and you seem comfortable with your life. I feel like I have a well-rounded life. I’m in a good place in my life. I have a good circle of friends that charge my bat-teries. I believe that’s one of the keys to suc-cess: Surround yourself with people that challenge you and charge your batteries. –cw

Lee White is a fourth-generation Texan with a love of Texas historyand cooking Indian cuisine.

South Texas Construction News • Jul 2015 Page 7

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

FISHING AND HUNTING TRIPS

(361) 949-7359www.baffi nbaycharters.com

[email protected]

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

STEVE SCHULTZ OUTDOORS, LLC

B2BSubmitted to Construction News

These ladies from KJM Commercial in Corpus Christi took part in the 40th Beach to Bay Relay Marathon. The race honors the men and women serving in the U.S. military. –cw

I’ll take a floatSubmitted to Construction News

Terracon’s Sylvia Quinones, enjoyed cooling off this summer with hergrandchildren, Edgar and Desi Rodriguez, at Garner State Park.

A lasting experienceby Capt. Steve Schultz

Sponsored by: Premier Yamaha Boating Center, Majek Boats, E-Z Bel Construction, Power Pole Shallow Water Anchor, Aggregate Haul-

ers, ForEverlast Hunting and Fishing Products and Columbia Sportswear.

Last month I had an opportunity to be part of something special. One of my sponsors approached me to

see if I would be interested in being a part of a TV show that helps fatherless kids in the outdoors. The organization is called Majesty Outdoors. They focus on taking fatherless teenagers on their maiden outdoor adventure. Whether it be in the field or on the water, the show focuses more on educating the teen in the outdoors more than harvesting a large trophy animal or fish for the TV show. In addition, every teen who ap-pears on Majesty Outdoors television is eligible to receive financial support to further their education beyond high school.

On this outing the sponsored teen, Stephen, was from the San Antonio area

Tony Rios and son, Trent Rios of San Antonio, recently caught these sow trout that willboth be mounted. Tony’s trout went 8 lbs. and was 30 in. while Trent’s fish was

26 in., 6 lbs. Both trout were released after photos by Capt. Steve Schultz.

and he was joined by another gentleman Blodgett. On the first of two days Ste-phen set the pace fishing with Guide Preston Whitely by landing a 30-in. speckled trout. Both Stephen and Marty shared the camera time by catching speckled trout throughout the day. On

day two, both anglers joined myself and Bill Blodgett for another day of trout and red fishing. The day started out fast and furious with both Stephen and Marty catching their limit of trout in less than an hour and continuing to catch keeper trout while looking for a trophy. Before long the trout bite turned off and we were in search of redfish. We transitioned over to the flats where we got out of the boat and commenced to wade a sandy flat for reds. Although red fishing was slow for the day, both gentlemen did manage to hook up on slot size reds and experience the pull of a true South Texas saltwater fish. What a great experience having these two young men on my boat for the day, along with two of the finest men in the industry, Bill Blodgett of Maj-esty Outdoors and Billy Gerke of ForEver-last Outdoor Products.

If you are interested in helping out in any way, you can visit Majesty Outdoors website at majestyoutdoors.org. Also look up ForEverlast products at forever-lastonline.com for some of the finest hunting and fishing products in the in-dustry.

To schedule your next bay fishing trip give Capt. Steve Schultz a call at 361-813-3716 or 361-334-3105 or e-mail him at SteveSchultzOutdoors @ gmail .com. Good luck and Good Fishing.

Page 8 South Texas Construction News • Jul 2015

A trip to the islandSubmitted to Construction News

Fun in the sun-filled Valley

JB Carey III, Carey Sheet Metal, spends as much time as he canon South Padre Island. Left, nice catch! Right, JB’s favorite past-time: treasure

hunting. But don’t ask where, the location is secret!

L-R: Ross Smith, Andy Carey and John Carey, Carey Sheet Metal,didn’t flounder when they went fishing recently!

It might be raining but you still gotta eat, says Louie Turner, a welderand fabricator at Carey Sheet Metal in Harlingen.

Terracon adventures

Terracon’s Lupe Torres took it to New York for a Yankee’s game.

Terracon’s Jorge Flores, wife Dora, and children Lucy, Sofia and Georgie have visit-ed several places this summer, including Niagara Falls and Ontario, Canada on the

Maid of the Mist Boat Ride. Pictured above, the Hoover Dam was also on the agenda.

Rocky and Keith Foerster, Darlene and Fernando Omana, Gill Roofing, Bill Trbula and Jimmy Brown recently made a short trip to have dinner at Castaways

Seafood in Port Aransas. –cw

South Texas Construction News • Jul 2015 Page 9

One big fanSubmitted to Construction News

A Metro Electrics electrician installs a huge fan at the new Toyota dealership in Brownsville. The GC is Comanche Contractors. –cw

It’s fitting that Jay Graves works in the construc-tion industry now. He learned a lot from his father, a contractor in the Dallas area. He also learned

about being in the military – and that came from personal experience, as well as family history. Jay likes to say he’s been in the military his entire life with the exception of three years. He was born on a military base to a father who was a mechanic in the U.S. Army. His grandmother was also in the army – she built airplanes during WWII. His grandfather and an uncle were also in the military. In fact, Jay and his father almost overlapped in their service – he joined three years after his dad re-tired.

From war to construction to pre-med Jay thought he wanted to go to law school more than anything, so he signed up as a paralegal in the army, but he equates that experience with selling his soul to the devil. “I despised it,” he said. After coming back from his first tour in Iraq in 2006 (he did five tours), his buddy convinced him to try out for Special Forces. Which he did – along with 300 other hopefuls. At the end of a grueling 24 days, there were only 72 left. And after the selection, only 56 actually became a Green Beret. Jay was one of these elites. “I wasn’t expecting it,” he said. “I did not even see myself as being one of the top candidates. But you

don’t know what they are looking for. The team is very diverse, you could say it is a team of Renaissance men.” While serving on active duty, Graves was awarded a Purple Heart – he got shot three times in the arm during a firefight – and the Bronze Star with Valor. Fast forward to 2015 and Graves is now out of active duty. He is in college, studying nursing and pre-med at Texas A&M University Corpus Christi, where his goal is to at-tend medical school. It was while there that he met the owner of Alazan Builders, Lee White, who is an advisor to the fraternity Graves belongs to, Beta Theta Pi. “I needed some work on the side so I can continue to go to school,” he said. “I’ve worked for a lot of people, but working with Lee is the best ever. It’s very professional and there’s no micromanaging. It’s a sign of trust. It’s amazing and rare.” He doesn’t really have a title per se, but basically does whatever job Lee assigns to him – including interior and exterior renovations. As to his personal life, the 30-year-old says he has just been too busy with the mili-tary to settle down just yet. “Basically, it’s just me and my dog and that’s it,” he says. –cw

After five tours in the military, Jay Graves is happy to spend time with his companion, Daisy.

Jay Graves with a 50 caliber machine gun in Iraq.

LJA Engineering Inc. (LJA), the larg-est employee-owned engineering firm in Houston, has acquired RVE

Inc. (RVE), a long-standing engineering firm in Corpus Christi. RVE Inc. was found-ed in 1959 by William B. Ogletree and was primarily a structural engineering firm. Over the years, the firm changed owner-ship several times and from Russell-Vete-to Engineering in 1989 evolved into RVE Inc. in 1999. “Although both companies have un-dergone name changes over the years, our simultaneous mission statements to provide comprehensive, quality engi-neering services fit smartly together,” says Calvin T. Ladner, PE and president of LJA. “The addition of RVE brings a 15-person firm with over 56 years of ex-perience serving a diverse mix of clients, many of whom have been clients for de-cades. Pat Veteto, PE, RPLS, will continue to lead the Corpus Christi group as vice president of LJA. “RVE brings subsurface utility engi-neering, structural engineering, bridge

Engineering a match

condition assessments, windstorm de-sign and inspections, and security sys-tems services to the menu of LJA’s full service offerings, enhancing LJA’s engi-neering services, project management, and surveying services,” says Veteto. Robert C. Hickman, PE, senior vice president, Midstream Infrastructure Divi-sion, says, “Pat brings a strong back-ground in public works, including spe-cialized experience in structural condi-tion assessments, dam safety investiga-tions, and underwater bridge and major marine inspections. He is also involved in the design and management of home-land security improvements. Pat and RVE are well known and respected in the Cor-pus Christi area and we are proud to be affiliated with our new team members and have the opportunity to continue to serve the firm’s long term clients success-fully.” Ladner said no changes were planned for the RVE staff except addi-tional hiring to accommodate increasing project requirements. –cw

L-R: Calvin T. Ladner; Patrick D. Veteto; and Robert C. Hickman

The Industry’s Newspaper

™CONSTRUCTIONCONSTRUCTIONLargest circulation

constructionnewspaper

in Texas

Page 10 South Texas Construction News • Jul 2015

Specializing in Industrial Scrap Metal& Container Service

We buy Aluminum, Brass, Copper, Iron, Stainless Steel,Steel, Brass & Radiators

2300 Frio City Rd. 210-927-2727 www.monterreyiron.com

Architects, designers, engineers and contractors took their tools to East Beach in Galveston May 30 for the annual sandcastle competition.

More than 60 teams had their eyes and shovels set on winning the Golden Bucket Award. Participants stretched along the beach, sculpted their sand piles and worked non-stop for five hours. The judging of the sandcastles was rated on origi-nality of concept, artistic execution of the concept, tech-nical difficulty, carving technique and utilization of the site. The Houston Chapter of the American Institute of Architects (AIA) hosted the event. –ab

Congrats to the winners!Most Complex: PflugerFlintco - Positive/NegativeMost Hilarious: Kirksey - Jurassic SeussMost Lifelike: CDI: MedusaBest Traditional: Gensler - Drift Outside the ShellBest Architectural: cre8/Duratech/ Matrix - Michael's GraveLet the Games Begin: Walter P Moore/ Baker Concrete - OperationStars and Stripes: SWA Group - The Lone Star-fish The Sydney LeNoir Public Favorite Award: Freese and Nichols Inc. - Left SharkBest Team Sign: Ziegler Cooper Architects - 20,000 Leaks Under The SeaBest Team Costume: US "N" SAND - Lame Duck SeasonAIA College Challenge Award: The University of Houston Architecture Students and Alumni - Baymax: Your Per-sonal Sandcastle Companion

Summer funin the sun

That’s Entertainment: Integrity Structural Corp.Power Up with Integrity

Honorable Mention (6th Place): HDR Inc. - Texas Pictionary

Gold Bucket Winner: Kirksey - Jurassic Seuss Silver Shovel Winner: Gensler - Drift Outside the Shell

Bronze Shovel Winner: The Dow Chemical Co.Beauty and the Beachslayer

Honorable Mention (4th Place) Ziegler Cooper Architects 20,000 Leaks Under The Sea

Honorable Mention (5th Place): Matrix DesignBuilt By The Egyptians

Fred Garza, his wife, Alba, and nephew Fabian Carmine Elianto-nio are all stakeholders in the devel-

opment and contracting business, Vena-mex LLC in Corpus Christi. “My wife and I have been in con-struction business for more than 30 years,” says Fred Garza, with 20 of those years in San Antonio before making the move down south. The move was pre-cipitated by family and business reason. “I have parents getting up in age,” Garza explains. “Plus, there was an op-portunity to do some projects down here, like a joint project with Zachry that consisted of a baseball field in Robstown in 2003.” The company employs six full-time employees, including Fred, president; Alba, secretary; and Fabian, vice presi-dent. Additionally, Fred estimates there are up to 400 workers that come in for Venamex, depending on the size of the project.

Generally, there are about five to six major projects going on at any time, in-cluding one current project, a shopping center in a residential area. “We generally have several projects at a time,” Garza says. “We don’t get over-loaded and we don’t want to overcom-mit. That’s not good business.” He thinks of the company, its work-ers and its customers as family. “We like to establish a long term rela-tionship with customers and we under-stand the importance of building trust and carrying out their projects in a timely manner and within budget,” he says. “We are here to stay. We keep it very profes-sional. Our goal is to treat every project as if it is our own. The size of project doesn’t matter. Clients know we take a very vested interest in their project and it becomes like family. The company has an annual catered Christmas party, complete with a band, for clients and employees alike. –cw

Fred Garza, seated front with wife, Alba, says Venamex is a Christian company that started with a good spiritual foundation in business and life. Partner and nephew Fabian Carmine

Eliantonio is standing at the left rear.

Family values

South Texas Construction News • Jul 2015 Page 11

Electrical Industry

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Growth strong,skilled labor weak

Thayer Long, Executive Vice President/CEOIndependent Electrical ContractorsAlexandria, VA

How would you describe the state of the construction industry in

general terms? Have you heard of an increase or slowdown in business? Generally, the construction industry is strong in the vast majority of the coun-try. It is still rebounding from the eco-nomic downturn, but the majority of business owners are cautiously optimistic about the future and that the increased business will continue. Most sectors (i.e. healthcare, education, manufacturing and commercial) are experiencing an in-cline in work and state and local govern-ment investment in infrastructure is also driving growth.

What factors are driving this increase/slowdown? A healthier economy is certainly a

huge help to any recovery. This leads to more confident business owners and consumers.

What are the “hot button” issues in your industry? The largest threat to the electrical in-dustry is a shortage in skilled labor. Elec-trical contractors across the country are struggling to find individuals who want to join this rewarding and lucrative occu-pation. There are very unique opportuni-ties available to electricians, including apprenticeship, that allows students to earn money and gain on-the-job skills to accompany their classroom learning. Additionally, electrician is a very en-trepreneurial field. We have many people who have graduated from our apprentice program and worked for a contractor for

years then opened their business.

What is on the horizon for your indus-try? Changes in technology; equip-ment; materials? Technology is changing in the indus-try. To combat the labor shortage, com-panies must be more efficient in han-dling and installing electrical material. Building Information Modeling (BIM) and other tools increase the need for digital availability. The adoption of smart devic-es has been prevalent on jobsites. The technological improvements are going to continue to positively impact the construction industry.

With the recent emphasis on green building, what is the most environ-mentally friendly change relating to your industry? Lighting and lighting controls have been a recent revolution in electrical work. This includes using more energy efficient lighting fixtures, controlling and automating lighting for maximum effi-ciency, and energy use for heating and cooling system. According to the Energy Information Administration, 60% of an office building electricity is used in light-ing, cooling and venting the space. With

their impact on so many different sys-tems, electrical contractors are leading the way on making substantive improve-ments to buildings’ energy-efficiency.

What cost increases relate to your in-dustry? Commodity and material costs are always fluctuating, driven by normal courses of supply/demand globally. Wag-es rates are starting to rise markedly, and will continue to do so with labor short-ages and again, economics of supply and demand.

What are the rewards of the industry? A career in electrical involves work-ing in a challenging, sophisticated, and technologically evolving industry. It pro-vides one with a lifetime skill and endless education due to the constant construc-tion evolutions. Electricians will always be in high demand and continue to pro-vide high wages.

IEC is a trade association representing more than 3,000 members with 53 chapters nationwide. IEC is the nation’s premier trade association representing America’s independent electrical and systems con-tractors. –cw

Wired for change

Mark Coshal IEC San Antonio, InstructorIES Commercial, SuperintendentSan Antonio, TX

The National Electrical Code (NEC) is published every three years, and each new edition brings changes to

the electrical industry. When the local building codes change, the impact is even more drastic and immediate, according to Mark Coshal, a third-year curriculum instructor for the Independent Electrical Contractors (IEC) San Antonio Chapter and a superintendent for IES Commercial.

At 38, Coshal has been working in electrical for 15 years, 12 of which have been with IES. He has been an instructor at IEC for eight years, and in 2013, he earned national recognition as Instructor of the Year. He is also on IEC’s book re-view committee, which writes the curric-ulum and keeps it updated. His experience in the field and as an educator, who also spends time in the IEC classroom as a student to stay cur-rent, affords him a good opportunity to keep up with the amount of changes in the industry, which he feels is one of the most difficult things about being in elec-trical. “We get a new code every three years, and so we have to keep up with that,” says Coshal. “But then, technology changes, and every time they add a com-

puter or add a different type of light fix-ture or even just changing out a regular incandescent lamp for one of those little compact fluorescents that everybody is going to now – it makes an impact on the way that things have to be wired in the [projects] from the ground up.” With these changes in technology, he observes that the code book is now covering areas that were not there in the past, including circuitry and electronics as well as solar power and green energy. With standards leaning toward the green, that adds to the complexity of those electrical jobs. “One of the issues with going green-er is that you get a bunch of transient loads on your circuitry that causes an in-crease in ampacity on your neutral wires,” he explains. “The first thing that

went away was what they call multi-wire branch circuits, which is sharing of neu-tral loads on different circuits. They’re re-quiring independent neutrals for every-thing, which adds wire to the job, adds circuit ampacity, which increases wire size, and in essence, it makes the job cost more money. “They’re going to save money in the long run by running a more efficient light bulb essentially, but in the initial cost, it’s pretty substantial. There’s quite a bit more wire to be pulled. There’s larger wire that has to be pulled. The transform-ers associated with all of those circuits have to be increased in size to be able to handle the increase in capacitance on the wires. “It’s changed the way that every-thing is circuited. It’s changed the way that we route our conduits. It’s changed the way that we size all of our conduits and our wire and then, of course, the cost impact. So, we have more work going into a job.” Meanwhile, the industry is still suf-fering a labor shortage. More work going into a job means more labor to get the job done on accelerated schedules. With the field being drastically undermanned, Coshal comments that they need more people who know what they are doing and the IEC apprenticeship school helps to turn installers into electricians by pre-paring them for their journeyman test to get their license. He believes the key is to

get the knowledge out there so the peo-ple in the field understand the changes that are happening – why they are upsiz-ing neutrals and why transformers are getting bigger, for example. “In the field, we see it on a print and then we do it,” he says. “But in the class-room, you’re able to teach them why that’s happening. You can actually show them the physical difference that is being produced by the different types of green-er things and it doesn’t just have to do with the green stuff. “Computers do the same thing. With everything becoming more and more computer-oriented, you have more and more circuitry in build-ings for computers, and they do the same thing. They produce a capacitive load that increases neutral demand. A lot of it is taken care of with the code and we have to adapt the curriculum to meet that code and to teach what’s new going on in the field.” While many of his students are new hires, some are also people who have been in the industry for a while, because in the electrical industry, knowledge re-ally is power. “A person that understands why he or she is running a wire from point A to point B is more valuable than a person that has to be told, ‘Okay, pull that wire from point A to point B.’ Contractors will hire new people and want to put them in school to get them to learn.” –mh

Page 12 South Texas Construction News • Jul 2015

The temps and the teams were in sync when 49 boats entered in the Associated Builders and Contrac-

tors Mid-Coast Chapter (ABC) annual fish-ing tournament held July 13 in Port O’Connor. ABC paid out $11,190 to the winners. Congrats! –cwWinnersRedfish1st: Team Williams2nd: A-Team3rd: Trout SlappersRedfish Stringer1st: Team Williams2nd: Brock3rd: Deez Nuts

On the line

Team Williams: Gene Williams, Victor Williams, Walter Williams, John Williams

Team Last Cast: Will Janecek, Josh Doehrman, Ken Miller, Markie Zimmermann

Trout:1st: Last Cast2nd: Los Primos Hooked Up3rd: Deez NutsTrout Stringer1st: Last Cast2nd: Wading Wonders3rd: WaterlooCombo Stringer1st: Last Cast2nd: A-Team3rd: Wading WondersFlounder PotHigh RPMRedfish Spot PotReel Time

TACCA comes back

The Lone Star State’s Air Condition-ing Contractors Association (ACCA) is now an independent entity again.

ACCA Texas reclaimed its previous name, Texas Air Conditioning Contractors Asso-ciation (TACCA) as of Apr. 1. Well known as TACCA since its found-ing in 1969, the state entity changed its name to ACCA Texas in 2000 when ACCA National brought chapters into affiliation under a federated structure from the top down starting with the national office, according to Todd McAllister, TACCA ex-ecutive director. Since the chapters were affiliated at the national, state and local level, mem-bers were required to pay dues to all three entities. Earlier this year, ACCA made the decision at the national level to forego federation. Now, TACCA is sepa-rate from ACCA, and though McAllister says they still encourage members to join ACCA on the national level also, national membership is no longer required. Mem-bers will only have to pay dues to their local chapter and the overseeing state entity, TACCA. Though the name and logo have changed, McAllister and David Mathews, TACCA president, assure members that the local and state levels will continue with business as usual, offering the same services and hosting the same events as always. The 10 chapters that comprised ACCA Texas also remain the same under TACCA. Those chapters include Abilene, Austin, Coastal Bend, Greater Houston, High Plains, North Texas, Rio Grande Val-ley, Greater San Antonio, South Plains and Waco. In the 15 years under the name ACCA Texas and McAllister’s tenure as the state association’s executive director, he ex-plains that the disaffiliation from national came about because everything about association business models and the way

a nonprofit trade organization operates has changed. Mathews adds that nation-al did the billing for all the state and local chapters, which was approximated to re-quire about 400 different billing struc-tures for dues across the country. The change will allow the TACCA board of directors to run the organiza-tion with autonomy. The only difference was that they had to adjust the dues structures for the local and state levels. The new organizational structure will benefit smaller contractors in the HVAC industry, as Mathews recalls that several small contractors could not afford to pay dues to all three levels of the asso-ciation and subsequently left ACCA. McAllister observes that since returning to the familiar TACCA name, they’ve seen several small contractors come back. Mathews notes, “I think it’s a positive adjustment for contractors throughout the state, and I think it’s going to be a re-ally good thing for us.” –mh

David Mathews, president of TACCA

South Texas Construction News • Jul 2015 Page 13

Round-Up

Association CalendarContent submitted by Associations to Construction News

ABC- Coastal BendAssociated Builders & Contractors

Jul. 1: ABC First Wednesday Mixer, 5:30-7pm, Rockit’s Whiskey Bar & Saloon. For more information, contact Kathy Bur-nette at (361) 289-5311.Jul. 16-17: 21st annual Fishing Tourna-ment, Marker 37. For more information contact Venessa Spencer at (361) 289-5311.

AGC- South TexasAssociated General Contractors

Jul. 10: Annual Fishing Tournament, Bluff’s Landing, 4242 Laguna Shores Rd., Corpus Christi. Call 361-289-0996 for more info.

AGC TBBAssoc. Gen. Contractors Tx Building Branch

Jul. 28-31: 38th annual AGC TBB Conven-tion at Resort at Squaw Creek near Lake Tahoe.For more information, visit www.agctbb.org.

AIA - Corpus ChristiAmerican Institute of Architects

Jul. 24: Code Academy from 8am to 5pm

NAWIC - Corpus ChristiNat’l Assn. of Women in Construction

Jul. 21: Dinner and business meeting at The BBQ Man Restaurant beginning at

5:30pm. The public is welcome, cost is $20. For more information, contact Vickie Thompson 361-299-6278 or 361-438-0593 or check out nawic.org or nawiccor-puschristi.org.

RCATRoofing Contractors Assn. of Texas

Jul. 16-18: Summer Membership Meet-ing/Seminars, Hyatt Regency Lost Pines Resort and Spa 575 Hyatt Lost Pines Rd, Cedar CreekFor more information, call 512-251-7690

USGBCU. S. Green Building Council

Jul. 9: IECC CodesJul. 21: North Texas Sustainable Show-case 2015For more information, visitwww.usgbc-centraltexas.org

NAWIC Corpus Christi Chapter #4 had a good turnout at its

membership mixer June 4 at Vino Mio Social Club in Corpus Christi.

Michell Patton,Maverick Engineeringand Vickie Thompson,

Dixie Pipe Sales,manned the sign in desk. –cw

Wine all you likeSubmitted to Construction News

Architectural de-signer Seth Ham-monds has joined the Stantec Austin office. As architec-tural designer, Ham-monds will deliver K-12 and higher ed-ucation projects throughout Texas and the Gulf region.

Engineers from all areas of Texas gathered at the Texas Society of Pro-fessional Engineers (TSPE) Confer-

ence & 79th annual meeting at the Omni Houston Hotel in Houston Jun. 17-19. Julia M. Harrod, PE, F.NSPE, gar-nered the TSPE Engineer of the Year award and Ardita Dushi, PE, APMP, won the TSPE Young Engineer of the Year award. In addition, Nancy Blackwell, PE, AEI Engineering Inc., was installed as TSPE's new president. Seminar topics during the event ad-dressed the professional, economic, so-cial and political aspects of engineering in Texas. Exhibitors at the conference includ-ed ADS Pipe, Hobas Pipe, Horizon Envi-ronmental Services, Inc., JPH Land Sur-veying Inc., Lime Association of Texas, Locke Solutions, SAM Inc., Texas Con-crete Pipe Association and Texas Hy-drant Services. –ab

Leaders of the pack

TSPE Engineer of the Year, Julia M. Harrod, PE, F.NSPE, receives her recognition from

Harold “JR” Reddish, PE.

The TSPE officers

TSPE Young Engineer of the Year, Ardita Dushi, PE, APMP, (right) receives her award

from Harold “JR” Reddish, PE. Nancy Blackwell, PE, AEI Engineering Inc.

SubmissionsEmail with “Round-Up” in the subject

line (w/digital photo, if available)by the 15th of any month, for the

next month’s issue to:

[email protected]

Submissions

Submit your association eventsfor this calendar.

Free of charge

[email protected]

Lower Rio Grande Valley American Institute of Architects (AIA) had a grand opening, ribbon cutting and open house on June 11 at its new location in Mercedes, TX. –cw

Welcome to the neighborhoodSubmitted to Construction News

Page 14 South Texas Construction News • Jul 2015

continued from Page 1 — An eye to the future

continued from Page 1 — A growing family

continued from Page 1 — Built like a fortress

Airika Stevens, at Wil-Con LLP in Harlingen, receives the National AGC Safety Award (NASA) certificate for a zero incidence rate in 2014. Also receiving NASA awards:

W. Murray Thompson Construction; SpawGlass Contractors; Peacock General Contractors; Peterson Construction; and Scoggins Construction. –cw

Safety countsSubmitted to Construction News

enjoyed every second of it.” Both Raymond and Nick Gignac feel that community service is important. They are invested in helping to guide the future of downtown Corpus Christi, where the office in located in a historic old hotel, by serving on the Corpus Chris-ti Downtown Management District. Ray-mond has served as chair of the board and is still on the board, while Nick has served on sub-committees and had a hand in the popular Artwalk event. They also feel strongly about the fu-ture of the environment and do many LEED projects. “We are in the process of designing three new LEED projects and have al-ready done seven,” Nick says. “The last two projects we constructed are LEED certified.” Gignac & Associates is the architec-

tural firm on the huge project construct-ing Corpus Christi’s newest high school, Veterans Memorial High School. Another large ongoing project is the new Region-al Transportation Authority (RTA) build-ing. Both of these projects will be LEED certified. Gignac & Associates has 17 employ-ees, including architect Rolando Garza, who has been with the firm from the be-ginning; architect and interior designer Carolyn James, since 1994; and Juan Mujica, manager of the Valley offices. They’ve enjoyed having employees from all over the world, including France, Nigeria, India and Puerto Rico. Once a year, everybody gets together for a fish fry and at Christmas, a large party. “We stick together and offer good benefits and salaries above the median,” Nick says. “We share the good times.” –cw

get you far at LNV. It’s not unusual to hear contagious laughter throughout the building. “Whoopie cushions, funny stickers placed on hard hats, detached computer mice and rubber snakes are just some of the weekly pranks,” he says. LNV’s superintendents also find unique ways to break the ice with new apprentices, for example, sending them to get “toe nails,” “board stretchers,” or “sky hooks.” As part of the 15th anniversary cele-bration, employees from the South Texas offices relaxed to live music on a private dock at Harrison’s Landing. Everyone en-joyed oyster shooters, a fish taco bar, and “LNV Island,” the signature drink. Door prizes, which featured a day off, were also popular. Leyendecker says the firm’s business practices include matching the right

team to surpass the client’s goals for quality, timely delivery and budget. The focus on understanding the client’s needs has allowed LNV to be involved in the area’s most innovative and cost-ef-fective projects. “We value the reputation we have built through the years for accurately rec-ognizing and assessing the unique re-quirements of each project,” Leyendeck-er explains. “We pride ourselves on our honest relationships with owners, stake-holders, design teams, subcontractors and suppliers.” LNV has offices in Austin, Corpus Chris-ti (headquarters), Dallas/Fort Worth, Har-lingen, Laredo, McAllen and San Antonio. The firm’s construction team handles a va-riety of projects, from simple remodels to complex renovations and new construc-tion. –cw

Beachin’ it

The Plumbing Heating Cooling Con-tractors Texas Chapter (PHCC) an-nual conference took place at the

Moody Gardens Hotel Spa and Conven-tion Center in Galveston Jul 11-12. Despite all the rain in the area, air conditioning and heating contractors from around the state gathered at the opening reception. The next day, 22 ven-dors showcased their products at a trade-show. –ab

Nancy Jones was honored at the event for all her hard work at PHCC Texas.

L-R: Ray Jones, Raven Mechanical LP and Carter Ramzel, Benchmark Plumbing

Milton Frank, Milton Frank Plumbing Co. Inc.

L-R: Rhonda Dowdy and Sam Dowdy, S & D Commercial Services (center)

Rick Shelton, Shelton Plumbing (right)and friends

Patrick Freund, Comfort-Air Engineering Inc.

SpawGlass held its 3rd annual CJ IV Memorial Fishing Tournament in Port O'Connor June 5-6. Despite the weeks of rain, this weekend turned out to be perfect weather for the event. More than 200 people attended Friday night's Captains party, catered by Jake's BBQ. More than 40 boats competed on Saturday from SpawGlass locations throughout Texas and clients. Griesenbeck took home the first place honor with a

27.16-pound stringer, breaking the tournament record. –cw

Record breakingSubmitted to Construction News

The HVAC units weigh 40 tons each. Challenges to the $2.6 million proj-ect, which took six months, were lots of

rain and government red tape. The range is located at 2100 Village Center Dr. in Brownsville. –cw

Past editions can bedownloaded at

www.ConstructionNews.net

Did youknow?

South Texas Construction News • Jul 2015 Page 15

What’s on yourbucket list?

Construction News JOB SIGHT

Living mas!

Brown Concrete & Construction employees Shawn, Lil George and George Brown were in Corpus Christi from their home in Alabama doing work on a new Taco Bell.

The GC is Horizon Construction. –cw

Tyler Weeks, Steve O’Neil and manager Josh Ramirez took some time out of their busy day for a photo at Fastenal on Leopard Street in Corpus Christi. –cw

Fasten up!Construction News ON LOCATION

Gill Roofing in Corpus Christi is cel-ebrating 70 years in business this year – and owner and president

Darlene Lee Omana couldn’t be happi-er. Richard Gill, a roofer by trade, es-tablished the business after WWII came to an end. He had learned his craft from his uncle in Oklahoma when he was help-ing support his family during the Depres-sion. Gill offered a young Darlene the op-portunity to move to Corpus Christi from Dallas after high school and he would teach her to run the business. “That was in 1973,” Omana says. “They wanted to retire and fish!” And now, after 42 years, she and her husband, Fernando Omana, have a steady customer base made up of long-time clients and new clients that hear of their good reputation. Fernando spends his days out with the crews. He came to work for Gill in 1995 and the couple started

70 years of roofing

dating in 1997. In 2004, they tied the knot. And even though the company doesn’t really have annual events for the employees, there are other ways this group acts like a family. “We are godparents to some of their children,” Omana says. “Anybody that wants to is welcome to come to our house for Thanksgiving. We have employees that have been here 20 years. We take care of them and we want them to take pride in their work. All of our guys go to church. We are just real lucky.” In her spare time, Omana is a mem-ber of National Women in Construction (NAWIC) and will be receiving her 40-year pin next year. Close to her heart, however, is the charity Loving Spoonful, where she has been president for more than 20 years. The non-profit provides necessary items, such as Christmas presents and school clothes, for children who have been impacted by HIV in the coastal bend. –cw

Fernando and Darlene Omana maintain a solid reputation for good work in Corpus Christi.

Wholesale Electric Supply Co. started more than 65 years ago in a small metal building locat-

ed on the fringes of Houston. Now, there are 12 branch locations in Texas and four international locations. In Victoria, Pam McKellop, daughter of founder Clyde G. Rutland, opened a location in 2004. The Victoria location re-cently celebrated moving into a brand new location, with a ribbon cutting and open house on April 30 that saw more than 300 guests. The manager of the Victoria location is Dana Gollnick, who started working in the electrical business in 1972, right out of high school in Corpus Christi. “I moved to Victoria with another electrical company,” he said. “I was driv-ing back and forth for 2 1/2 years.” Then an opportunity to work in out-side sales with Wholesale Electric opened up and Gollnick snapped it up. “I started out of my house because

we had trouble finding a spot,” he re-members. Eventually, the company found a spot in a warehouse that used to be an auto paint and body shop. “Me and two other guys worked there,” he said. Now, the company boasts 21 em-ployees, including outside, inside and warehouse and everybody works out of a much-nicer, newly-constructed building. “Without the warehouse people, the drivers - even the person answering the phone, we are only as good as the people who work here,” he says. “We work to-gether as a team. It’s a good group of people.” Dana’s wife, Lillian Gollnick, is the office manager and Jeremy McIntosh is the operations and purchasing manager. “On Friday afternoons after work, we hang out and let the stress of the week go,” Gollnick says. “Everybody is wel-come.” –cw

Bigger and better

A ribbon cutting and open house on April 30 saw more than 300 guestsat Wholesale Electric Supply.

A Hawaiian vacation. My aunt is from there, so I’d like to go see it.

Cathy Beaudin, NAWIC-CC

Go to Alaska and go fishing. Like on a cruise.

Vickie Thompson,NAWIC-CC and Dixie Pipe

I would build a new house and attach it to my mom’s house so I could live with her while she is still with me.

Darla Lee Omana, Gill Roofing,Corpus Christi

I haven’t played golf in many years and have never been good at it. On my buck-et list is to learn golf at the same time as my son, who is now almost two years old, and to play once a week with him in the years to come.

Matt Ezell, South Texas BuildingPartners, Corpus Christi

From the team at SpawGlass South Tex-as:Veronica Gutierrez – sky divingKevin Bennett – swimming with sharksMargie Lopez – visit the other six conti-nentsDaisy R. Bennett – build a school for children in Africa

Short list: watch my youngest son get his college degree. Other longer-term: See James Taylor live in concert and speak Spanish like a native.

Lee White, Alazan Builders,Corpus Christi

1. Visit that famous bridge, the Golden Gate, in San Francisco and see with my own eyes mankind’s beauty … at the same time admire the surroundings and understand the reasons behind all those love stories where people have died, in the name of love.2. Spend one entire day … or week vol-untarily at a hospital working directly with elders and children.

Liz Cantu, Briggs Equipment,Corpus Christi

Our bucket list is kind of small right now.We only have one, that is to take a drive up the west coast from California to Washington state, stopping along the way at various locations and spending the night where we may be when it gets dark.

Osvaldo Sosa,Harlingen Glass & Mirror Co. Inc.

From ABC Texas Coastal Bend:Kathy Burnette: Climb Mt. KilimanjaroVenessa Spencer: Travel the worldAmber Godines: Visit Italy

Well, it was skydiving, but just crossed that off a week ago so now I would put swimming with sharks as one of the next items.

Connor Friedrichs, REFCO, Pharr

I’ve always wanted to live on a house-boat in California. My other bucket list items include living in a loft apartment in downtown Austin while working at Whole Foods and visiting Scotland, the home of my maternal ancestors.

Cyndi Wright,South Texas Construction News

Page 16 South Texas Construction News • Jul 2015

Prep workConstruction News JOB SIGHT

Jorge, Carlos and Francisco of Wedge Excavating out of Dallas were preparing a site in Corpus Christi for an upcoming project. –cw

The road inConstruction News JOB SIGHT

Diamond Eight Industries LLC employees work at the Mont Meta Cemetery in San Benito doing concrete asphalt paving. The company is pouring concrete at various

sections in preparation for laying two miles of asphalt at the cemetery. –cw

RegularsConstruction News ON LOCATION

Hugo, Dustin, Fred and Robert from United Rentals on Leopard Street in Corpus Christi visited Ole Café for their lunch hour. –cw

Ron Kocian, team lead at Caterpil-lar Victoria, was recently named a Fortune 500 magazine “Heroes of

the 500” for his work with wounded vet-erans during a special event each May. Ron’s father, Ron Kocian Sr., a veter-an, started the big event in Port O’Connor in 2007. Called Warrior’s Weekend, the blowout bash includes fishing, food and lots of hugs and smiles. This year, roughly 915 veterans, some with families, dogs

A weekend filled with warriors

and caretakers, came to take part. “Down here, veterans are always a big subject,” Ron says. “They always get a lot of support. It’s always in your heart and you grow up with that.” Ron Jr. downplays his role in the event, giving most of the credit to his dad and other board members. The event is specifically for those who have been injured while serving their country – and that includes post-

Ron Kocian works for Caterpillar’s North American Excavators in Victoria.Donors provided 415 boats for the Weekend Warriors to spend some relaxingtime on the water fishing.

traumatic stress syndrome (PSTD). “It’s a huge struggle for them,” Ron says. “We do whatever we can for as many as we can.” The veterans receive a hero’s wel-come when they fly into Houston and are met at the airport. From there, 13-15 bus-ses transport them to Victoria, where the celebration continues with the “Field of Honor” ceremony, where flags are dedi-cated to each visiting veteran, as well as other servicemen. This year, the field in-cluded nearly 3,000 flags. “All of our local veterans and local people pick someone to honor,” Ron said. “Each flag has a name on it.”

The veterans stay in Victoria, Port Lavaca, Seadrift and, of course, Port O’Connor. “We take over Port O’Connor!” Ron laughs. There is no cost to the veterans at-tending the festivities. Flights, hotels, food and boats are donated. Private do-nations and open doors support the an-nual weekend. A full-time medical staff is on standby for any problems that arise. “Once you meet one or two of them, you will be caught,” Ron says. “Once you see how genuine they are. They are in-credible people. You want to do more for them.” –cw