build houston dec/jan 2015

December / January 2016 BuildHoustonOnline.com 1

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December/January 2016

2 0 1 6 C O N S T R U C T I O N D I R E C T O R Y A N D R E S O U R C E G U I D E I N S I D E !

How they earned their place as a trusted paving contractor through

experience, efficiency and attention to detail.

2 BuildHoustonOnline.com December / January 2016

( 844 ) 8 - M YS M A S Hi n f o @ s m a s h m y t r a s h . c o m

W W W. S M A S H M Y T R A S H . CO M

a r e y o u m a n a g i n g y o u r t r a s h m a n a g e m e n t c o m pa n y ?s e r v i c e L e v e L s n o n -e x i s t e n t ?

i n d i r e c t t r a s h c o s t s c o n t i n u i n g t o r i s e ?h av i n g t o d o u b L e “h a n d L e ” y o u r W a s t e ?

s a f e t y c o n c e r n s ? s pa c e c o n s t r a i n t s ?

L e a r n m o r e a n d s i g n u p t o d ay v i a

s at i s fa c t i o n g u a r a n t e e d

- d o e s n ’ t a f f e c t c u r r e n t c o n t r a c t s

- s av i n g s o f 20%+ o r m o r e

- n o c a p i ta L i n v e s t m e n t o r c o n t r a c t r e q u i r e d


Letter from the Chair

Well here it is, my last letter and my last month serving as the ABC Chair. It has been a great year. Lots of good

things have happened this year. We continue to increase our membership, growing by 8% year-to-date. ABC

members continue to be successful and have nationally won more Excellence in Construction awards than

many other Chapters. We consistently rank in the top three chapters for PAC and FEA fundraising. We have also

increased STEP participation by contractor members to 63%.

And that’s not all! We have worked diligently to develop new training programs to meet the needs of the industry. CMEF

and the craft training committee, have streamlined training, allowing the employer and the worker more control on

what is taught. As a result, one benefit is that the length of time required for training has been shortened. However,

the greatest change that we have been working on all year is offering craft training for commercial contractors. More

information about the new commercial training programs will be available soon.

We have collaborated with owners groups, such as C3, HBR, EHCMA, and others to make our workforce development

programs even stronger. We worked with Wunsche High School in a pilot program resulting in 128 students receiving

OSHA 10 hour certification. We also hosted their vocational teachers on jobsite walk throughs so they could see for

themselves the opportunities available for students.

I could go on and on, but we are members of a great organization that benefits the industry and the community. I have

been honored to serve as the Chair.

a chair

farewell

DarleneeastHoles Incorporated2015 ABC Greater Houston Chair


Contents

Also in this issue

68

20

NRLB Loses Again in Fifth CircuitFind out what the United States Court of Appeals for the Fifth Circuit ruling means for you.

New Open Carry Law in Texas Any business that wishes to ban the open carry of weapons within their establishment must post a specific sign starting January 1st.

We said it would be a decent year, and it wasThe International Monetary Fund recently issued its estimate for U.S. economic growth for the current year.

Voluntary BenefitsFatality Stats: Are Traditional Safety Practices Failing?Is it Ho, Ho, Ho or Ha, Ha, Ha this year?Oxford Builders: We Hang Doors and A Whole Lot MoreIn the Know

AdvertisersAggregate Technologies....................11American Mat & Timber.....................11Buyers Barricades.................................9Cherry Companies...............................14Clark Construction..............................28Coastal Welding Supply.....................14

Cokinos, Bosien & Young...................13Craig & Heidt, Inc....................................9GP Radar System..................................17 InterfaceConsulting International..13Locke Solutions.......................................7Merit Professional Coatings............22

Porter & Hedges...................................17Scott Macon Equipment......................9Smash My Trash.....................................2The Compliance Alliance.....................5Total CAD Systems.................................7Trench Plate Rental..............................14United Rentals Trench Safety..........18

Cover Story

15How Pavecon earned their place as a trusted paving contractor through experience, efficiency and attention to detail.

Pavecon

ABC LEADERSHIP

ChairDarlene East Holes Incorporated

Chair ElectMike Holland - Marek Brothers Systems, Inc.

Vice ChairWarren Adamson - S&B Engineers and Constructors

SecretaryRobert Burelsmith - E.E. Reed Construction, L.P.

TreasurerTodd Fry - Karsten Interior Services

Past ChairmanTim Ricketts - HSG Constructors, LLC

PresidentRussell Hamley - ABC Greater Houston Chapter

2015 BOARD OF DIRECTORS

Brian Anderson - G.R. Birdwell Construction

Rusty Barnhill - Force Corporation

Leonard Bedell - Mobil Steel International, Inc.

Kerry Bennett - ISC Constructors, LLC

Edwin Brink - JACOBS

Tahnee Coulston - Zachry Industrial

Sam Craig - Craig & Heidt, Inc.

Matt Daniel - BE&K Building Group

Matt Elliott - SpawGlass Construction Corp.

Laura Price Gautreau - Polk Mechanical

Dinesh Ghia - Gilbane Building Company

John Golashesky - Turner Industries Group, LLC

Michael Harris - Baker Concrete Construction, Ind.

Ronnie Howe - Skanska USA Building

Brandon Mabile - Performance Contractors, Inc.

John Marshall - Satterfield & Pontikes Construction Inc.

David McCleskey - Brown & Root Industrial Services, LLC

Rod Molyneau - Brock Services, LTD.

Phillip Morgan - CB&I

Rodney Page - Ref-Chem L.P.

Wendell Rychlik - W.T. Byler Company

William Sanchez - Oxford Builders Inc.

Christina Stone - Stone & Stone

Phil Restivo - Turner Construction

Ben Westcott - Andrews Myers, P.C. Mark Williams - Bechtel Construction Services

Lohn Zylicz - D.E. Harvey Builders, Inc.

Build Houston Magazine4910 Dacoma StHouston, Texas 77092(713) 523-6222

Publisher/Owner: Associated Builders & Contractors of Greater HoustonExecutive Editor: Jennifer WoodruffContributing Writer: Callie Fields and Austin TomlinsonAccount Manager: Janice PetersGraphic Design: Robert Chevis

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In Murphy Oil USA, Inc. v. NLRB, the United States Court of Appeals

for the Fifth Circuit overturned the National Labor Relation Board’s

decision that Murphy Oil had unlawfully required employees at

its Alabama facility to sign an arbitration agreement waiving their

right to pursue class and collective actions. This is not the first

time in recent history the 5th Circuit slapped down a decision of

the NLRB regarding class action waivers in arbitration agreements.

In December 2013, the 5th Circuit rejected the NLRB’s analysis of

arbitration agreements in D.R. Horton, Inc. v. NLRB. In the D.R.

Horton case, the 5th Circuit held the National Labor Relations Act

did not contain a “congressional command overriding” the Federal

Arbitration Act. The Court further held that the use of class action

procedures is not a substantive right under Section 7 of the NLRA.

Accordingly, the 5th Circuit concluded that an employer does not

engage in an unfair labor practice by maintaining and enforcing

an arbitration agreement prohibiting class or collective actions

and requiring employment-related claims to be resolved through

individual arbitration.

Notwithstanding the clear message the 5th Circuit sent to the

NLRB in D.R. Horton about the lawfulness of class action waivers

in arbitration agreements, the Board refused to recognize the

Court’s holding in administratively deciding the Murphy Oil case.

The 5th Circuit, pointing out the NLRB’s non-acquiescence and

disregard of the court’s D. R. Horton ruling, relying on its prior

D.R. Horton decision stated: “Murphy Oil committed no unfair

labor practice by requiring employees to relinquish their right

to pursue class or collective claims in all forums by signing the

arbitration agreements at issue here.” The 5th Circuit further

stated: “We do not celebrate the Board’s failure to follow our D.R.

Horton reasoning....” The Court noted in its Murphy Oil decision

several sister circuits (the 11th, 9th, 8th and 2nd Circuits) have

either indicated or expressly stated that they would agree with the

5th Circuit’s holding in D.R. Horton that class or collective action

waivers in arbitration agreements do not violate the NLRA.

The 5th Circuit in Murphy Oil did reiterate its other holding in

D.R. Horton that an arbitration agreement violates the NLRA if

employees would reasonably construe it as prohibiting filing unfair

labor practice charges with the Board. The Court again indicated

that broad “any claims” language in arbitration agreements can

create the impression that an employee is waiving not just trial

rights, but administrative rights as well. The 5th Circuit indicated

that it does not require employers to include an express

statement in their arbitration agreements that an employee’s

right to file Board charges remains intact before an arbitration

agreement will be found lawful, but such a provision would be

helpful. The arbitration agreement at issue in Murphy Oil included

the following language: “Nothing in this Agreement precludes

[employees]... from participating in proceedings to adjudicate

unfair labor practice charges before the [Board].” The 5th Circuit,

reading the Murphy Oil agreement as a whole, found that it would

be “unreasonable for an employee to construe the [arbitration

agreement] as prohibiting the filing of Board charges when the

agreement says the opposite.”u

B Y G . M A R K J O D O N

NLRB Loses Again in Fifth Circuit

on Class Action Waiver Agreements

ABOUT THE AUTHORG. Mark Jodon, managing shareholder of Littler Mendelson’s Houston office, is board-certified in labor and employment law by the Texas Board of Legal Specialization. Mark represents employers exclusively in all areas of labor and employment law. He can be reached at (713) 652 - 4739 and [email protected].


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Texas’ new open carry law goes into effect on January 1, 2016. Any business that wishes to ban the open carry of weapons within their establishment must post a specific sign, in English and Spanish, in at least

1” text, the word for word language of the statute. If the sign doesn’t comply with the language of the law, then arguably a licensed handgun holder does not receive effective notice. In order to prohibit open carry on a property, the business must display a sign that says the following:

Pursuant to Section 30.07, Penal Code (trespass by license holder with an openly carried handgun), a person licensed under Subchapter H, Chapter 411, Government Code (handgun licensing law), may not enter this property with a handgun that is carried openly.

Under the new law, a property owner may prohibit open carry of a handgun by properly displaying a Section 30.07 notice while still allowing concealed carry on the property. If the business elects to prohibit concealed carry, effective January 1, 2016, they will have to display a new sign which must state that:

Pursuant to Section 30.06, Penal Code (trespass by license holder with a concealed handgun), a person licensed under Subchapter H, Chapter 411, Government Code (handgun licensing law), may not enter this property with a concealed handgun.

Businesses that want to prohibit both concealed and open carry must display both signs in a manner required by Sections 30.06 and 30.07 of the Penal Code.

Exceptions for Some?The above statutory signs are used to give notice to licensed gun owners that entrance onto an owner’s property, with a concealed and/or open carry handgun, is not permitted. If there are no signs posted on the premises, no notice is given that carrying is prohibited, although owners will still be able to orally tell gun carriers they aren’t welcome. If statutory notice signs are posted, however, a property owner can presumably also verbally consent to a person entering the property while carrying. This would effectively establish consent and allow the person to enter the property, with either concealed or open carry, notwithstanding the posted sign.

Employees and Parking LotsWhile employers can prohibit employees from bringing guns into the workplace they can’t prohibit employees, who lawfully possess concealed handguns and ammunition, from storing such handguns and ammunition in their own vehicles in the employers’ parking lot. The law is silent as to whether employees can store their handguns loaded with ammunition. Texas employers can still prohibit the storage of firearms and ammunition in company owned or leased vehicles. Schools, chemical manufacturers and oil and gas refineries are excluded from the law and they retain the ability to form their own policies with respect to guns in their parking lot.

new O P E N CARRY L A W

in Texas


ABOUT THE AUTHORBoard Certified in Labor and Employment Law by the Texas Board of Legal Specialization, Anthony G. “Tony” Stergio has extensive experience in the defense of State and Federal employment discrimination claims, wage and hour compliance, non-competition agreements and employment policy design and review. He speaks frequently at employment-related seminars and also counsels clients regarding developments in various areas of State and Federal employment law. www.andrewsmyers.com.

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Finally, the law provides employers immunity from any civil liability involving a gun-related incident resulting from or arising out of a firearm or ammunition, which the employer is required to allow on its parking lot under Texas law, except in cases of gross negligence. u


Voluntary Benefits

As health care costs continue to rise, so has the demand for voluntary benefits. Since many employers find it increasingly difficult to provide employees with a complete benefit package, voluntary benefits have become an ideal solution. Voluntary

benefits allow employers to offer benefits that are attractive to employees without added cost to the company. Employees benefit because they have a variety of insurance options available conveniently in one place, and often with lower premiums than individual policies they would have bought themselves.

What are voluntary benefits?Voluntary benefits are coverages and products made available to employees for elective purchase. These programs have four key characteristics:

• 100 percent employee-paid• Offered through an employer• Solicited and enrolled through a carrier or enrollment firm• Paid through automatic payroll deductions.

Because of their cost efficiency and portability, as well as their contribution to an employee’s work–life balance, voluntary benefits are becoming a central component of many companies’ overall benefits strategies.

What are some common voluntary benefits?• Permanent life insurance• Disability income insurance• Accidental death and dismemberment (AD&D)• Supplemental health insurance• Long–term care insurance• Retiree medical insurance• Dental/vision insurance• Auto/homeowners’ insurance• Prepaid legal services • Identity theft insurance

Why should employers consider expanding their benefit offerings to include voluntary benefits?• Trends show employees have strong emotional appeal

towards these benefits and have come to expect them• Usually there are no fees or costs for employers• They complement the goals of most corporate work/life

programs• They offer easy implementation (most do not have legal and

regulatory issues associated with insurance benefits)• They require little post-implementation administration or

support

What are some specific advantages to offering voluntary benefits?Voluntary benefits appeal to both employer and employee needs.

Employers:• Increased expense control in the face of rising benefit costs• Cost-effective way to supplement benefit cuts or reductions• Important tools for attracting and retaining valued

employees• Differentiate themselves from competitors (both in offerings

and image)

Employees:• Opportunity to access a broader array of benefits • Freedom to choose benefits that best suit their needs • Affordable premiums (often deducted on a pretax basis)• Portable coverage • Easy enrollment process • More convenient and time-saving than buying on their own• Convenience of payroll deduction• No medical exams• More lenient underwriting requirements


ABOUT THE AUTHORChrist Taylor Insurance is an Employee Benefits and Insurance Brokerage firm doing business for over 50 years in southeast Texas, and long-time ABC member. We provide solutions to small and medium size companies in the areas of Healthcare and other Benefit programs, as well as Life Insurance and Retirement Plans. Contact the Christ Taylor team at 713-850-7747 or www.christtaylor.com.

What process should employers follow when expanding their non-traditional voluntary benefit packages?Employers wishing to roll out new voluntary benefits must show their support for these products in order for them to take off with employees. Showing support motivates workers to take notice and see the value for themselves and their families.

• Examine your current benefits package to determine which benefits are popular or not

• Talk to employees to determine what voluntary benefits they would prefer

• Determine which benefits are offered by your competitors, as current and prospective employees may use this information as a benchmark for evaluating your organization

• Initiate an employee communications campaign to educate employees on what voluntary plans are offered and the benefits of electing them

• Consider offering benefits multiple times per year, not just during open enrollment. This allows employees to focus on one or two voluntary packages versus being overwhelmed with many packages all at once.

To ensure that voluntary benefits programs are as competitive and effective as possible, employers should measure the success of the programs every 12 to 24 months. Employers can conduct surveys to test employee awareness of, understanding of and satisfaction with the voluntary benefits programs. Companies can also benchmark their portfolios of voluntary benefits against those offered by industry peers.

Voluntary Benefits may not be the right solution for all employers or individuals. Please contact your Christ Taylor Insurance representative for assistance in determining if and what type of voluntary benefit plan designs are right for you. u

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ABOUT THE AUTHORTara Maria Amavi, (formerly Tara Templeton Hart, name changed due to identity theft) is the Founder and President of TCA/The Compliance Alliance

L.P. TCA has provided services to almost 1000 companies nationwide and TCA’s proprietary tools, methods and means have been ranked #1 in the world for managing contractor safety. The TCA Safety System® is peer acknowledged as a method based upon TCA’s own trade secrets which get better results than traditional safety methods and, therefore, saves lives. Ms. Amavi has been named one of Houston’s 50 Most Influential Women by Houston Woman

magazine, and has also been named one of the Who’s Who in Safety by Compliance Magazine. Ms. Amavi is a sought after public speaker, has appeared on local & national radio and television programs including five appearances on The BusinessMakers, a radio show hosted by John Beddow & Russ Capper.

Ms. Amavi may be contacted at [email protected] or 713.263.7661.

On September 17, 2015 OSHA published the 2014 fatality statistics. The same day, a local radio journalist called me as an expert for his story on the increased fatality rates in Texas. He tried to blame Texas industry (chemical, refining, and construction). I didn’t cooperate.

I shared the obvious: Newsflash—sky is blue, grass is green, Texas is big so more people work here. We are also the hub of these critical industries. I said it wasn’t about Texas or our industries, it was that traditional safety practices are not effective. Not in Texas, not anywhere.

“Well, presumably California is pretty large, too, with lots of people and industries, and their numbers went down? Any comment?”

I shared more of the obvious. “The movie industry? Silicon Valley? Google headquarters? Well, while California natives are only too happy to be rabid consumers of the products generated by the chemical and refining industries, they typically won’t take ownership to produce them. They also have a 6.1% unemployment rate to Texas’ 4.1%. Pretty hard to get hurt at work if you don’t have a job.”

He thanked me for my time and didn’t use the interview.

Compliance with traditional safety practices may be the best it’s ever been. Behavior Based Safety, OSHA Partnerships, ISNetworld and other prequalification groups, Zero Tolerance, and companies reporting zero incidents for hundreds of work days and millions of man-hours—has never been more prevalent.

Traditional safety has impact. Training is beneficial because workers are more productive when they know what they are doing and increased productivity typically = increased profits. Zero tolerance and zero incident practices help influence an entire workforce to maintain “good” EMR and TRIR numbers thus ensuring the companies’ qualify to bid for billions of dollars in major capital projects. OSHA Partnerships allow OSHA to gather millions of statistics from industry to analyze hot spots that OSHA could never otherwise get due to lack of funds and manpower.

Behavior Based Safety (BBS) has benefits, too. BBS increases owner personnel awareness of safety on an ongoing basis for those employees who make the observation, but not for those employees being observed. This is because its effect, to spontaneously stop and watch a worker’s every move while looking for mistakes, actually increases anxiety, distraction, and fear in the observed worker and could, theoretically, lead to an accident. This occurs because BBS does not consider how the observed worker’s brain is designed to respond to this type of practice. BBS also places focus away from the cause of 97% of safety issues because it doesn’t encourage analysis of process, but rather it encourages analysis of individual worker actions. According to the Law of Large numbers and W. Edwards Deming, the Father of Quality, 97% of the issues are typically process, not rogue employee behavior.

This means that saying workplace deaths occur because there’s not enough training, or Behavior Based Safety observations, or ISNetworld paper pushing is like saying people get cancer because their bodies don’t have enough chemotherapy, or because they lack radiation in their tissues. So, to quote The Sunscreen Song, using those methods to “cure” the problem

FATALITY STATS: ARE TRADITIONAL SAFETY PRACTICES FAILING?B Y T A R A M A R I A A M A V I

SAFETY


of workplace fatalities “is about as effective as trying to solve a math problem by chewing bubble gum.”

Traditional practices mean well but fall short and the fatality statistics prove it. It is the effect of unintended consequences having a head-on collision with biological and cognitive neuroscience.

What does work? We must find out what is informing the neuronal pathways of worker brains and then develop processes designed to create new neuronal pathways to achieve the desired outcome—fewer deaths.

Sound impossible or unrealistic? Tune in next issue to find out what industries already use this approach and the amazing results they are getting. If other industries can do it, why not the safety industry? u

FATALITY STATS: ARE TRADITIONAL SAFETY PRACTICES FAILING?

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PAVINGthe Road to Success


COVER STORY

Being one of the largest and most respected pavement maintenance companies in the nation and reaching $100 million in revenue is not something you just happen to stumble upon—just ask Pavecon. It takes hard work, dedication to

excellence, and commitment to customers.

By operating out of seven regional offices strategically placed in Texas, Arkansas and Mississippi, Pavecon has the flexibility to work with companies across the country in both the industrial and commercial sector. Pavecon’s services include asphalt paving and repair, asphalt seal coating, concrete paving and structures, concrete repair and floor repair, reclamation, striping, grading and excavation, and cement stabilization.

Always looking to expand its expertise and grow, Pavecon recently opened up a full-service, waterproofing maintenance facility in Austin, Texas. Water damage is one of the most common and destructive threats to any building whether from water damage from the roof, from the ground, or through cracks or windows. Pavecon saw a market need for such a service and proactively provided a solution.

In addition to having strategically placed locations, Pavecon Houston owns a majority of their own equipment and has on-hand, full service mechanics who are dedicated to the maintenance of said equipment. By eliminating the need for outside services on equipment, Pavecon is positioning themselves as unique competitors in the market.

Employee focusedAsphalt maintenance is an important facet of property management that is overlooked on a regular basis. In an effort to shed more light on the necessity of proper asphalt maintenance, Pavecon Houston is working to develop a training program for men and women interested in learning the proper procedures and processes to become a successful practitioner.

“We saw a need for this program and decided who better to train people than those working in the industry everyday,” Ron Vernon, Division President, Pavecon said. “We hire recent graduates and experienced professionals, this program will be a great way to get those individuals up to speed on best practices and knowledge about the industry.”

Pavecon does many commercial projects for retail companies such as Wal-Mart and Home Depot, and scientific research and medical institutions such as MD Anderson and National Aeronautics and Space Administration (NASA). Pavecon was recently awarded an asphalt and concrete paving renovation project for the Michael E. DeBakey Veterans Affairs Medical Center in Houston, Texas.

Management at Pavecon Houston is also working on moving more into the Industrial sector. To do so they are sponsoring employees to receive their Transportation Worker Identification Credential cards (TWIC).

“We want to build careers that work,” said Vernon. “We have employees that have been with us more than 10 years and to keep developing them we want them to obtain new skills and certifications that will allow for advancement.”

When asked what advice he would give budding professionals attempting to enter the construction industry, Vernon simply replied, “Be diligent and maintain your integrity, make sure you deliver what you’re promoting.”

Looking forward to 2016 while putting safety first, Pavecon hopes to continue working towards a goal of zero on-the-job incidents, and to see a 20 percent growth in revenue and employees. u

PAVINGthe Road to Success

Asphalt overlay at Texana Plantation


It’s about that time folks: End of year bonuses for those who have been good. Actually, not good, but efficient, effective, thorough and safe. And not personally, we’re talking about project results here. So was your project 1) good enough to get a bonus?

Check. Have you 2) met all milestone agreements? Check. Did you 3) satisfy the customer? Check. Did you 4) get anyone injured? Check. Unfortunately, many managers, superintendents and other leaders will get bonuses for getting all four checks. And in today’s construction world, it’s unclear why this still happens? Safety, just like quality, means no defects-no injuries, eliminating errors and satisfying customers. I’ve seen projects in recent years that got no checks yet the project manager and his staff received hefty bonuses.

Kids love this time of year with the expectation of toys and goodies. As a youth, the kids in our family expected to get a new pair of socks, some clothes or a pair of shoes. It was good times in those days. We thought we were good, so it was like we all got bonuses.

BonusesMy first bonus came from working in the oil patch. As a well safety technician, I had safety oversight for wellhead component installations. If all went well with no complaints from the driller or customer, we got good marks which led to end of year bonuses. In the construction industry, project leaders receive the best bonuses; safety techs receive little or none, and I don’t understand why. When asking around, the best answer came from a former project manager: Those who bring in the bucks get a share. Nowadays, a senior leader at a large company may get a million dollar annual bonus.

An employer asked me to design a safety bonus system that was based on injury results. My plan was to use the previous year’s loss data from injury claims and set that amount as a bonus pool for the current year. As an injury occurred, the cost was deducted from the bonus pool. At the end of the year the remaining dollars in the pool were to be distributed to the leaders on a percentage of work hours basis. Nobody liked the plan. Leaders who were accustomed to not knowing or overlooking the cost of injury, were shocked at the dollar losses, the cost of workers compensation insurance and the resulting experience modification rates. They were focused only on project completion and bringing home the

dollars. Injured workers, their families and the associated costs of injuries were unimportant and overlooked.

Ha, Ha, HaCompanies that can’t prevent injuries and eliminate losses become the laughing stock of the industry. A subcontractor that served our company had multiple recordable injuries on one project. It turned out that with a small number of work hours that year, their total recordable incidence rate was out of sight and unacceptable to any owner or general contractor. Result: They could not win bids with a bad safety record and went out of business. Is that ha, ha, ha? No, it’s very sad. Not only were several employees injured, the whole workforce lost their jobs and nobody got a bonus. The competition said good riddance to a bad subcontractor. I said it’s a shame. When looking into the injuries that caused their demise, it was poor leadership that put workers in harm’s way. The tasks were not planned well and some unexpected hazards created the at-risk situation. Better planning and quality leadership could have saved the day, could have prevented pain and suffering and could have saved the company.

So, hopefully you are enjoying your bonus for a great year. If there were injuries on your projects, figure out what happened and please don’t let it happen again. The root cause of injury is at-risk behavior on the part of workers and/or their leaders. Next year make it ho, ho, ho. u

ABOUT THE AUTHORBennett Ghormley has more than 35 years of experience in safety, training and construction administration. He is experienced in implementing safety programs involving commercial, industrial and municipal industries. Mr. Ghormley has conducted audits, investigations and inspections in refineries, chemical and petrochemical plants, for pipelines, water and waste facilities, manufacturing plants and fabrication facilities. Mr. Ghormley has served as an expert witness in litigation cases and appeared before the Workers’ Compensation Commission, EEOC, Employment Commission and civil courts. Contact Mr. Ghormley via email at [email protected].

B Y B E N N E T T G H O R M L E Y

IS IT HO, HO, HO OR HA, HA, HA THIS YEAR?


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solutions based on experience.

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United Rentals Trench SafetyDallas, TX (214) 357-4369

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OXFORDBUILDERS INC.

Oxford Builders’ slogan is “We hang doors and a whole lot more”. For some customers we install doors and hardware, for others we install louvers, and for others we build tree houses!

Oxford Builders Inc. works for large commercial general contractors in the Greater Houston Area. Our customers demand the very best. High quality work, done safely and on schedule. Oxford has been successful in delivering work as desired since its inception.

Oxford works on a wide spectrum of commercial projects which includes but not limited to, schools, airports, universities, hospitals, churches, fire stations, water treatment plants, dormitories and assisted living centers.

What does Oxford Builders do on these projects? “We hang doors and a whole lot more”. The whole lot more includes rough carpentry, roof blocking, specialty wood installation, owner furnished contractor installed (OFCI) medical equipment, louver installation, wood decks, outdoor furniture, truck maintenance equipment installation, hollow metal modifications, aluminum frame installation, wood trellises, pergolas and gazebos, Hardie Plank siding and trim, finish carpentry and temporary decks.

There is a lot to the “whole lot more”. For more information, contact William P. Sanchez at [email protected], call 713-934-7777 or visit www.oxfordbuilders.com.

“We hang doorsand a whole lot more”

Oxford Builders specializes in working with specialty woods, including Ipe, Mahogany, Cedar, Clear Heart, vertical grain bald Cypress and sinker Cypress.

Oxford Builders installs rough carpentry which includes roof blocking, window blocking, interior blocking and wood framing.

Oxford Builders builds and covers wood decks with Ipe decking, composite decking, and pressure treated decking.

No louver is too big for Oxford Builders.

At Oxford Builders, we call this fine carpentry.


A DECENT YEARWe Said It Would Be

...and it was

Consumers Lead Recovery Forward

Coming into the year, ABC’s economic forecasters had predicted that 2015 would be unspectacular, but would be the best year of the current economic recovery to date. The International Monetary Fund recently issued its estimate for U.S. economic growth for the current year. The estimate stands at 2.6 percent, which in fact would be the best year since the recovery began, but still uninspiring. In 2010, the U.S. economy expanded 2.5 percent, and that has been the best post-recession growth rate thus far. If the economic recovery were likened to a college basketball game, we would be in the early to mid-stages of the second half. With the arrival of mid-June, the nation completed its sixth year of economic recovery. As of this writing, the nation is in the 77th month of recovery.

Once upon a time, people would have been right to fret that the end was near. The average post-World War II recovery has lasted about 58 months, or slightly more than 4.5 years. The previous three economic recoveries lasted an average of 95 months, or nearly 8 years. The average duration of economic expansions between 1860 and 1945 was just 26 months. The current recovery may still have a few birthdays in front of it and may very well end up challenging the lengthiest recovery in U.S. history, which lasted precisely 120 months between March 1991 and March 2001.

It took the U.S. a long time to arrive at the mid-phase of the recovery. This is typically the lengthiest phase and ultimately gives way to the late-phase when the economy overheats. Already, signs emerging, particularly with respect to emerging skills shortages of that are in key industry categories like trucking and construction.

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B Y A N I R B A N B A S U


Despite that, average hourly earnings across all industries collectively are up only 2.1 percent over the past year nationally. Construction hourly earnings are up only a bit more than that. This is well below the Federal Reserve’s goal of 3.5 percent. Still, there are other cracks emerging in the current economic expansion, including indications that certain real estate and technology segments have become overheated with purchase prices rocketing higher and capitalization rates remaining unusually low.

What’s more, job growth has begun to soften recently. After adding an average of nearly 250,000 jobs per month during the one year period stretching from July 2014 to July 2015, the nation added only 136,000 net new jobs in August according to a revised estimate and 142,000 jobs in September according to a preliminary estimate.

While two surprisingly tepid months of end-of-summer data should not raise alarm bells, something is not quite right with the economy. Job growth is typically a lagging indicator, meaning that something else has happened to the economy to cause the recent softness. There are many candidate explanations. At the top of the list is a slowing global economy and stronger U.S. dollar. After adding jobs for many months, the nation’s manufacturing sector has been losing jobs recently, as a stronger greenback has made it more difficult to expand exports abroad and as imports become more price competitive.

With regard to nonresidential construction, spending fell in

September for the first time in eight months. According to a November 2nd release supplied by the U.S. Census Bureau, nonresidential construction spending, which totaled $692.8 billion on a seasonally adjusted annualized basis, fell by 0.1 percent from August. While the Census Bureau revised both July and August’s nonresidential spending estimates 0.4 percent lower, September’s year-over-year increase of 12.4 percent represents the largest since April 2008.

September’s release, while not especially upbeat, does not alter the fact that nonresidential construction spending continues to recover and that most contractors are busier than they were a year ago. Although there are many potential forces at work that resulted in a September spending decline, most are not alarming. With construction materials prices falling, it may be that contractors are able to offer somewhat lower prices for their services, helping to suppress growth in construction value put in place. It is also conceivable that some construction work is being slowed by an ongoing lack of available skilled personnel. This factor has certainly helped to slow residential construction, and it seems reasonable to presume that some nonresidential contractors would face similar issues.

For the time being, the near-term macroeconomic and nonresidential construction outlooks appear positive. Although the domestic economy only expanded 1.5 percent on an annualized basis during the third quarter, the weakness was largely the result of an adjustment to inventories and the impact of a weaker

global economy. Domestic final demand continues to expand at a reasonable clip.

However, America’s growth rate will remain highly constrained. In large measure, this is due to the fact that the global economy is likely to remain sluggish in 2016. For many years, there has been a running narrative indicating that the BRIC nations (Brazil, Russia, India, and China) would eventually supplant the U.S. as the primary driver of global economic expansion. It hasn’t happened yet. China is set to sustain its lowest rate of annual economic expansion in at least 20 years, Brazil is in recession, and Russia’s is even deeper. Among the BRIC nations, only India, the world’s largest democracy, is having a solid year economically. Unlike Russia and Brazil, oil production is not a primary source of growth in India. Its primary resource is a large and growing population of talented, educated young people, the ultimate renewable resource.

In addition to weakness in the emerging world, much of the advanced world continues to be sluggish. Europe’s malaise is well known, and the ongoing refugee crisis will put additional pressure on labor


markets associated with already high unemployment and strained central government budgets. The Canadian economy, to which the U.S. exports more output than any other nation, actually recessed during the first half of the year, weighed down in large measure by the collapse in commodity prices, and the Japanese economy also continues to perform erratically.

On top of global economic weakness is the fact that the U.S. dollar is much stronger than it was a year ago. As of this writing, one dollar can purchase 121 Japanese yen. Roughly a year earlier, the dollar could buy around 100 yen. Today, one euro can purchase $1.09. It wasn’t that long ago that a single euro could purchase $1.38. Several years ago, one Canadian dollar could purchase more than one U.S. dollar. Today, the Canadian dollar purchases only about three-quarters of a single U.S. dollar.

One implication is that U.S. export growth will continue to be stifled. U.S. exports are on track to decline in 2015 for the first time since the financial crisis despite an ongoing national push to expand shipments abroad. According to the U.S. Commerce Department, exports of goods and services were down 3.5 percent in July compared to the same period one year prior.

Texas Economic Recovery Cools Off

Predictably, with oil and natural gas prices slumping for more than a year, the Texas economy has lost a bit of its edge. The fact that Texas can continue to expand at roughly the same rate as the balance of the country even with collapsing commodity prices is a testament to the state’s economic diversification.

The Lone Star State managed to create 224,800 jobs over the past twelve months, an increase of 1.9 percent, only slightly less than the U.S. average of 2.0 percent. Texas would have added more jobs were there more workers available to hire. As of this writing, the state’s unemployment rate stands at a puny 4.2 percent, 0.6 percentage points lower that at the same time one year ago.

One year ago, Texas’ construction sector was booming, and this was neatly reflected in employment figures. Last year, the state was adding construction jobs on an approximately 40,000 net new positions pace per 12-month period. But during the more recent twelve-month period, Texas’ construction sector added 10,100 jobs. Though that number isn’t bad, there is evidence that the construction spending bonanza has paused.

Still, there are communities within the state that continue to outperform the nation. Among the state’s 25 major metropolitan areas, 11 registered a pace of job growth greater than the national average of 2 percent. San Antonio posted the largest percentage job growth in the state, adding 35,100 jobs, which represents a 3.7 percent increase. The list of other Texas metropolitan areas with job growth in excess of 3 percent includes Austin, Beaumont, Dallas, McAllen, and Odessa. Additionally, only Wichita Falls saw employment fall on a year over year basis, and only three cities had unemployment rates higher than September’s national average of 5.1 percent.

Houston, the world’s energy technology capital, continues to sustain solid job growth numbers. The metropolitan area added 34,300 jobs between September 2014 and September 2015, translating into 1.2 percent job growth. Regional unemployment fell 0.3 percentage points from the same time one year prior (4.9 to 4.6 percent), tied for the 7th lowest rate of unemployment among the nation’s twenty largest metropolitan areas.

However, the Houston area has shed 3,300 construction jobs over the past year, with much of this likely related to a drop-off in energy industry-related investment. Still, the region’s office market vacancy rate has declined to around 13 percent and the community net absorbed more than 1.5 million square feet over a recent twelve month period, helping to push average office rental rates $27.74/square foot.

Looking Ahead

Energy prices fall and energy prices rise. It is quite possible that energy prices will begin to edge higher in 2016, which might help to green light energy-related projects presently on hold. Houston’s health and education sector continues to expand and many local governments are in better financial shape than they have been in years.

National economic growth will continue to be moderate. Growth will be led by consumers, with nonresidential and residential construction serving as supporting cast members. The nation’s auto sector also continues to expand, creating large-scale construction opportunities in the process. The ongoing construction of export-oriented liquefied natural gas terminals also remains an important phenomenon, with one LNG terminal presently under construction in Texas. Two others are in construction, including one in Maryland and one in Louisiana.

Next year is also likely to be associated with more rapid wage growth, a bit more inflation, and higher interest rates. The nation is a year or less away from full employment, which is associated with a level of unemployment at which inflation becomes more problematic. Many economists have expressed concerns regarding the 2017 and 2018 economic outlooks, but 2016 is shaping up to be another decent year. u

ABOUT THE AUTHORAnirban Basu was named Associated Builders and Contractors (ABC) chief economist in February 2008. His primary responsibility is to provide ABC with timely, comprehensive analyses of important trends in the U.S. commercial and industrial construction industry. Basu produces ABC’s electronic economic news report, Construction Economic Update, which includes an analysis of the following federal government economic indicators upon their release : construction spending, employment, producer price index and gross domestic product.


In The Know

Coats Rose, P.C. announces the addition of three new associates to the firm’s Houston office. Greer Kuras joins Coats Rose’s public finance section, Nick Nieto joins the litigation section and Kevin Falvo joins the firm’s affordable housing practice group. Greer Kuras specializes in the acquisition and development of land, the creation of special purpose districts and the financing of public infrastructure through tax-exempt bonds. Nick Nieto’s practice at Coats Rose is focused primarily on construction, surety and real estate law. Kevin Falvo is an associate in Coats Rose’s affordable housing practice group. Satterfield & Pontikes held their second annual Nora’s Home Golf Classic in October. The event raises funds for Nora’s Home, whose mission is to offer affordable lodging for pre-transplant and post transplant patients and their families who travel to any of the Texas Medical Center transplant centers. The first of its kind in Houston, it provides care, education and support for transplant patients and their families in a loving, home-like environment. The Katy Well Pet building, built by Epoch Construction, is a 10,000+ square foot design build project. The building is fully encapsulated with spray urethane foam for maximized energy efficiency. In combination with low E glazing, and a standing seam metal roof, it provides minimal environmental impact. The exterior façade is composed of massive cedar columns, and cedar trusses fabricated onsite, in combination with stone, and metal wall paneling to provide a comfortable yet beautiful exterior appeal. On, November 10, 2015 Standard Constructors, Inc. was awarded the Construction Users Round Table (CURT), Construction Industry Safety Excellence (CISE) Award in the NAICS 238-Special Trade Contractors Category.

Rogers-O’Brien Construction was recently selected by Harris County to build a new community center at Barbara Jordan Park, renovate the gazebo enclosure at Adair Park, and perform building improvements at the Cavalcade Area Office at Annex 36 for Precinct 1. Construction is scheduled to start in Spring 2016 and will be completed in Fall 2017. Skanska USA has been awarded a $21 million contract with Texas A&M University (TAMU) to oversee the construction of the Agriculture & Life Science Building 4. The project broke ground on November 13 and it will be completed in February 2017. The new five-story, 80,000 square-foot building will house the university’s Department of Wildlife and Fisheries Sciences. The first three floors will include offices, conference rooms and dry work areas. The top two floors will include teaching and wet research laboratories. Kirskey Architecture is the project architect. The Houston Business Roundtable recently recognized Ohmstede for outstanding safety performance, winning the Best of the Best, Specialty Contractor, Hard Crafts Large award. Ohmstede was also recently recognized by the American Fuels and Petrochemical Manufacturers Association for safety performance from member companies during 2014. The company performed approximately 3 million direct field man-hours related to turnaround or event maintenance during the year with a 0.13 TRIR. Their current 2015 TRIR is 0.0. Teal Construction recently completed Texas Bay Area Credit Union Pasadena Branch off of Highway 225. The project features Texas Bay Area Credit Union’s new branding. The project included the demolition of the existing two story credit union and coordination with a local pipeline company to install utilities across the site. The new building contains offices, lobby, drive thru windows, and auxiliary spaces. The new exterior includes stone and horizontal metal panels.

Kuras Nieto Falvo Satterfield & Pontikes


The Katy Well Pet building built by Epoch Construction, encapsulated with spray urethane foam for maximized energy efficiency.

Teal Construction recently completed Texas Bay Area Credit Union Pasadena Branch off of Highway 225, containing offices, lobby,

drive-thru windows and auxilary spaces.

Standard Constructors, Inc’s Construction Users Round Table Award

Overseen by Skanska USA, This new five-story, 80,000 square-foot building will house Texas A&M University’s Department of

Wildlife and Fisheries Sciences.


In The Know

Dow, CH2M and Standard Constructors congratulate the employees and safety staff at the Dow Gulfstream Clarified River Water site in Freeport, Texas for achieving 100,000 hours without a single recordable incident.

E.E. Reed Construction recently completed construction on West Ten-Phase One, consisting of two, one-story, tilt-wall industrial warehouse buildings totaling

413,336 square feet in Katy.

Williamson


Glenn Nesmith Elliott Miller Graham Hanneman

Rogers-O’Brien Construction is pleased to announce several new additions to their Houston office: Director of Field Operations Craig Glenn; Senior Project Manager Butch Nesmith; Superintendent Wes Elliott; Superintendent Clint McIlwain; and Assistant Estimator Amber Austin. ISC Constructors recently celebrated the grand opening of its Lake Charles Regional Office. An open house was held to showcase the newly constructed facility and highlight the importance of the Company’s commitment to the Southwest Louisiana industrial market. ISC associates from their Baton Rouge, Beaumont and Houston offices joined in welcoming over 200 visitors including several elected officials. Located at 115 Hood Road in Sulphur, Louisiana, the office includes a state-of-the-art training center designed to train and assess craft and supervision specifically in the area. Employing an NCCER certified workforce has been a focus of ISC’s for nearly two decades; therefore, making an investment of this magnitude in the local market was paramount. Patti Miller, Director of Business Development at E.E. Reed Construction, has been promoted to Vice President of Business Development. She has been employed at E.E. Reed Construction for five years. Roger Graham, a Project Manager at E.E. Reed Construction, has been promoted to Senior Project Manager. Roger has 13 years of experience in the construction industry and has been employed at E.E. Reed Construction for seven years. Kathryn Hanneman has joined S & B Plant Services as the Vice President of Operations. Kathryn’s 30 + years of expertise from the chemical/petrochemical industry will further enhance the Plant Services division of S & B Engineers and Constructors. She earned a Bachelor’s of Science and a Master’s in Chemical Engineering from Texas A & M University in College Station. She also has a Master’s in Business Administration from Regis University, Denver, Colorado.

Burton Interiors was recently awarded a project for Ryan, LLC, a 34,000 square foot, three floor remodel in Williams Tower. Ryan’s offices will showcase high-end finishes and modern amenities including a new break room facility and conference room. This project is being managed by Hines and designed by Staffelbach. Dow and CH2M congratulate the employees and safety staff at the Dow Gulfstream Clarified River Water site in Freeport, Texas for achieving 100,000 hours without a single recordable incident. A celebratory luncheon was held in honor of Standard Constructors, Inc., Texas Aquastore, G.R. Birdwell, Whaley Steel, PSI and Vernor Material and Equipment. Standard Constructors lead the site with 83,000 hours for the past 6 months. E.E. Reed Construction recently completed construction on West Ten-Phase One, consisting of two, one-story, tilt-wall industrial warehouse buildings totaling 413,336 square feet in Katy. Developed by Transwestern and designed by Munson Kennedy Partnership, West Ten-Phase One was completed in November 2015. Turner Construction Company completed the Top Golf Webster project, a Multi-Use Entertainment and Sports Venue. The project is a new three story ground up facility with a total of 65,000 square feet. The entire site sits on 14.69 acres and includes the building and an outfield with 10 large golf targets. The facility includes 3 bar areas and a roof top terrace. BIG Metal Buildings LLC is pleased to welcome Matt Williamson to the BIG family of companies. Matt is a graduate of Texas A&M and joins the BIG Metal Buildings Brazos Valley office as Project Coordinator. u

HOUSTONBuilding

It’s o� cial! Harris County and the City of Houston have broken ground on the

Joint Processing CenterExperienced builders with deep local roots,

Clark/Horizon is proud to partner with city and county agencies, and architect PGAL,

to deliver this model social infrastructure project. Hats o� to Harris County and the City of Houston

for bringing this facility to life!

PRSRT STDUS POSTAGE

PAIDHOUSTON TXPERMIT 2597Published by Associated Builders & Contractors of Greater Houston

4910 Dacoma St. Houston, Texas 77092(713)523-6ABC (877)577-6ABC

build houston dec/jan 2015

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