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www.constructionnews.net (210) 308-5800 PO Box 791290 San Antonio TX 78279 FEBRUARY 2012 Vol. 10 No. 2

Pets awaiting their forever homes will have a clean, comfortable and durable sanctuary in Dallas with

the new Jan Rees-Jones Animal Care Cen-ter at SPCA of Texas’ headquarters locat-ed at 2400 Lone Star Dr. The facility, which replaces its Dealy Animal Care Center near downtown Dal-las, includes a full-service animal adop-tion center, a fully equipped veterinary wing and surgery suite to care for injured animals and neuter healthy ones, and the Rees-Jones Foundation Humane Educa-tion Center for volunteer and community outreach. Hill & Wilkinson General Contrac-tors completed the $8 million, 72,000-sf project in nine months for the SPCA. Cleanliness and health were carefully considered when building drainage, high/low water pressure systems and HVAC systems. Materials that animals can’t damage were also carefully incor-porated.

“The most challenging part of con-struction was the mechanical and plumb-ing infrastructure,” said Peyton Boddie, project manager for Hill & Wilkinson. “Be-cause of the design of the building, all of the overhead mechanical, plumbing and steel, including roof joists and RTU frames, HVAC ductwork, water lines, vent pipe, electrical lines and sprinkler pipe, were going to be exposed. “We had to install and paint these systems before the walls were built, which required tremendous trade coor-dination and cooperation to complete and stay on schedule.” The center’s exterior dog pods in-clude artificial turf grass with integral drainage, painted CMU with vinyl-coated chain link fencing and metal roof sys-tems. Glazed blocked, aluminum store-front material and epoxy flooring were

The new $8 million Jan Rees-Jones Animal Care Center at 2400 Lone Star Dr. in Dallas features an adoption center, veterinary wing, surgery suite and education center

for volunteer and community outreach.

It wouldn’t be a stretch to call Travis Armstrong of CAS, Inc. a lifer in the construction industry, the Kennedale

business owner said. “I am a third generation construction person, having worked beside my grand-father as a child and my father, Rudy Arm-strong, for over 20 years,” Armstrong said. “I joined CAS, Inc. as an apprentice. My dad retired six years ago, and I moved into his position as estimator and vice president. “Construction is in my blood.” The versatile nature of the business and the number of services it performs requires its key cogs to wear a lot of hats, Armstrong explained.

L-R: Administrative Assistant Sharon Rushing, Owner Travis Armstrong, Ryan Orr Aleand Vice President Robert Martin comprise CAS, Inc.

Armstrong handles the drywall and acoustical ceilings, he said. Vice President Robert Martin runs and operates the tape, bed, texture and painting side of the business, which will celebrate its 40th year in 2013. “No one person can do this type of job,” Armstrong said. “It takes the whole team, from the man pushing a broom to the one signing the paychecks. “ Armstrong said his vice president’s background was similar to his own, as he had also followed in his father’s footsteps in becoming a master craftsman. Both men enjoy giving back to their

H&E Equipment Services, Inc. will cater to a broader customer base, having begun adding a wide

range of commercial utility and earth-moving equipment to its fleet. The company, has dropped the “Hi-Lift” tag from its name for all locations, including Dallas, San Antonio, Austin, Corpus Christi and Houston, amd is mak-ing “general rental” equipment available in addition to its line of aerial specialty equipment, said Abe Farrington, Grand Prairie branch manager, who noted that the company would continue . “We will continue to carry all the best aerial equipment while continuing to up-date our existing fleet,” Farrington said.

“We’ve added $8 million in 2011, and plan to continue adding in 2012.” The growing list of equipment that will be coming available at the Dallas branch includes mini excavators, skid steers, light towers, welders, generators, drum rollers, backhoes, track loaders, wheel loaders and generators, Farrington said. Specialty products include the 92-foot Reachmaster atrium boom lift, which is popular with contractors who do work in tight spaces such as atriums in hotels and office buildings. As the name sug-gests, the piece of equipment, which

Employees of H&E Equipment Services, Inc. are pictured with new equipmentavailable at the Grand Prairie location.

Dallas/Fort Worth Construction News • Feb 2012

L-R: Lance Brotherton, Johnny Delgado and Kevin Preston man the counterat Summit Electric Supply’s service center in Dallas.

The trio is ready to help commercial and industrial contractors find the partthey need to finish the job. Summit, which stocks a full line of electrical

supplies, is headquartered in Albuquerque, NM. –ms

Pieces to the puzzleConstruction News ON LOCATION

You might say L-R: Bill Doetsch and Paul Clark of Concrete Coring Companyin Dallas are a couple of “cut-ups.” The company’s specialties include flat

sawing, wall sawing, core drilling and concrete removal. –ms

Cutting crewConstruction News ON LOCATION

TDIndustries (TDI) recently earned its 15th consecutive place on the FORTUNE magazine “100 Best Com-

panies to Work for” list. Ranked at No. 64, the company is one of only 13 to make the list every year since its inception in 1998, earning it the

distinction of being a FORTUNE “All Star.” “This annual recognition always sheds light on TDIndustries’ great cul-ture,” said CEO Harold MacDowell. “Our focus on continuous, aggressive im-provement, exceeding our customers’ expectations and ensuring a healthy, work-life balance for our employees, con-tinues to drive our success. “We are honored to be on FORTUNE’s list for the past 15 years.” The company has offices in Dallas, Fort Worth, Round Rock, Houston and San Antonio. TDI has been involved with many high profile projects in its 66-year history, including Cowboys Stadium, The Ballpark in Arlington and the American Airlines Center in the Metroplex, and Lakewood Church in Houston. And the company continues to grow, creating 150 full-time jobs in 2011, and currently has numerous job openings in the Southwest, including in Dallas, Hous-ton and Round Rock. Bob Richards, president of TDI’s Central Texas operations, attributed the FORTUNE ranking to the company’s op-portunity to “identify and develop each employee’s career path.” “We also believe in a balanced work life and celebrate our successes,” Rich-ards added. Founded in 1946, TDIndustries is the leading mechanical construction, facilities operations, and services provider in the South with annual revenues of approxi-mately $300 million. –ms

An ‘All-Star’ company


The Dallas Fort Worth Construction News (ISSN 1547-7657) is published monthly by Construction News Ltd., dba Dallas/Fort Worth Construction News, and distributed by mail to construction related companies in the Dallas/Fort Worth metropolitan 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 Dallas Fort Worth 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.

CONSTRUCTION NEWSDallas Fort Worth

Publisher: Buddy Doebbler Editorial/Production: Reesa DoebblerManaging Editor: Debra Nicholas Editorial: Miles SmithProduction Mgr: Sue JohnsonSales Representative: Kent GerstnerAdministration: Kevin Hughes

© 2012 Construction News, Ltd.

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If you are a construction-related companyin Dallas, Tarrant, Collin or Denton counties

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TEXO is pleased to announce Mike McWay as the 2012 Board Chair. Mike is the President of the Texas Di-

vision of McCarthy Building Companies located in Dallas and is responsible for all McCarthy activities in Texas. Serving with McWay will be Chair-Elect, Sam Gioldasis, President, Electrical Division of Brandt; Vice Chair, Judy Lembke, President, LEMCO Construction Services; Secretary, Lee Smith, Vice Presi-dent, Potter Structures, Ltd.

Directors: Rob Barnes, Dee Brown, Inc.; John Bosworth, Bosworth Steel Erectors, Inc.; Dave Bloxom, Speed Fab-Crete Design-Build ; Greg Cody, GCC Enterprises, Inc.; Denward Freeman, MEDCO Construction, LLC; Jeff Forbes, The Beck Group; Jenny Gonzales, Bill Jeter, Inc.; Scott Griffith, Griffith Nixon Davison, P.C.; John Hinson, Marek Brothers Systems, Inc.; Cary Hughes, Rogers-O’Brien Construction; Rod Johannsen, TDIndustries, Inc.; Kirk Kibler, W.B. Kibler Construction; Brady Lowry, Abstract Construction Company;

2012 leadership announced

Fran McCann, Polk Mechanical; Sam Mullis, Mullis Newby Hurst, LP; Mark Nyquist, DynaTen Corporation; Luis Spinola, Azteca Enterprises Inc. ; Mike Trull, CMC Rebar; Tim Underwood, Southwest Construction Services; David Walls, Austin Commercial, LP; William Wright, H.E. Wright & Company, Inc.

McWay

The American Institute of Architects Dallas (AIA Dallas) recently announced its officers for the 2012

program year.Shade O’Quinn, AIA, NCARB, President and CEO of Raymond Harris & Associates Architects (RHA) will serve as president. As a partner at RHA, he oversees all aspects of the business as well as manages the Remodel program for Walmart Stores, Inc. A member of the AIA for many years, Shade has served AIA Dallas as Commissioner of Membership Services for two years and as the Vice President, Treasurer in 2010. “I look forward to leading AIA Dallas as we continue to be the voice of the architectural profession in what promises

AIA announces officers

Shade O’Quinn, president Kirk Teske, president-elect

Thom Powell, vice president, treasurer Thom Powell, vice president, treasurer

to be an architecturally significant year for our city with the opening of the Margaret Hunt Hill Bridge and the completion of the Woodall Rogers Park,” said O’Quinn. Other officers are President-Elect Kirk Teske, AIA, LEED AP, with HKS, Inc.; Vice President, Treasurer Thom Powell, AIA, LEED AP, with Good Fulton & Farrell; and Vice President, Programs Paul Pascarelli, AIA, LEED AP, with Michael Malone Architects. All were members of the 2011 AIA Dallas Board of Directors. AIA Dallas, the seventh largest AIA chapter in the U.S., has a membership base of more than 2,000 members and 300 architectural firms. More information about AIA Dallas can be found online at www.aiadallas.org. –ms

Where did you and your spouse meet?

I was living next door to his sister and she was babysitting my daughter, but Rod and I had never met. Finally, after two years we finally met. Of course, to my daughter he was "Uncle Rod" because she had known him for over a year.

Liz Dykes,American Wallcovering & PDCA

My freshman year in college, my dorm had a volleyball game and mixer and my new girlfriend introduced me to her child-hood best friend and college roommate. My girlfriend and I dated throughout col-lege, but I married her best friend near the end of my senior year. It seems like we’ve always been together, but time has gone by much too quickly. We are amazed how everyone else has aged. Though nei-ther of us could fit in our wedding clothes by a longshot and gray hair is not a worry when you have no hair to speak of. This March we will celebrate 23 years together. I’m not sure my wife got a good deal, but I certainly came out a winner.

John H. Martinez, RHCA

I met him at the Dallas Ski Club at a party we were having. We’ve been married al-most 12 years. The ski club is still there – I was president of it for a couple of years.

Barbara Lochridge-Hogue, PHCC North Texas

I met her on Lake Ray Hubbard on a sail-boat. We were in different sailboats. I was a sailor, and she was a sailor. After about a year and a half, we got together. We’ve been married 33 years!

Pete Snider, SAM

I met her at a party right after graduating from Texas A&M University. She was still a student there. The funny part is, the party was in Dallas. The funnier part was, we’d both basically been dragged kicking and screaming to the party, which neither of us wanted to attend. Just think where we’d both be if we’d decided to stay home! We’ve been together nine years and married for six.

Miles Smith, Construction News

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210-308-5800


Keith DaltonAztec Environmental

Services Inc.

So many ways to unwind at the end of a long day at work: A glass of fine wine with friends, a dog at your

feet, a few days on an island – and rugby? Especially rugby, Keith Dalton, presi-dent and founder of Aztec Environmen-tal Services, would enthusiastically say (and after two decades of business own-ership he would certainly know). Dalton has figured out a few tricks to balancing the hectic pace of his work life with what he loves, including coaching the rugby team, bringing his dog to work, storing wine at the office so he can grab it as a dinner party gift (huge time saver!) or penciling in a much-needed trip away.

Offering environmental services is a pretty specific line of work. Was own-ing this kind of business always in the cards for you? I actually majored in Pre-Med, which is not actually a Pre-Med major but a cur-riculum. So, I did two separate majors, Psychology and Spanish, at Texas Chris-tian University.

What spurred your interest in the medical field and in Spanish? The psychology was just from the standpoint of I was going to have to have so much hard science to complete the Pre-Med curriculum. Everyone was tak-ing either Biology or Chemistry, so I want-ed to take something that was different than that. As for Spanish, I started in kindergar-ten and because of my coursework at Trinity Valley School, I had some credits going in to college. I didn’t even have to take any Spanish for the first couple of years. My advisor said that with four or five classes, I could major in that, so I said to just add it in. After my third year, I de-cided I was kind of schooled out and opt-ed not to go to med school. I even took the LSAT but I just had to get out and start working.

Can you give me a little sample of your Spanish? [Dalton fluently says something in Spanish.]

I’m impressed! It comes in handy on construction sites. Texas is definitely a bilingual con-struction state. And travel is a lot more fun, with Mexico basically being in Texas’ backyard. It makes it easier to get around, and there’s a lot of respect if you can speak the local language.

Do you speak it like a local or do you use a more formal Spanish? I know the formal Spanish, so people in Mexico either think I’m some sort of professor or someone trying to speak in a more inflated dialect. Sometimes I expe-rience a little difficulty because I don’t pick up on all of the local idioms. I’ve seen that on the job site; there will be three words for the same tool.

What was your course of action after you graduated from TCU? Having decided that I didn’t want to go to any more school, I took what I thought was a summer job with a local environmental engineer. I worked for him, in total, for a year, but after about six months everyone had been laid off or

fired, and I was kind of minding the store. [My employer] was really focused on his Ph. D more than growing the business; he was from Wisconsin and his wife de-cided it was just too hot here and they were going to move back. Long story short, at the end of the year they packed up and he sold me the equipment and left me the client list. That’s how I acci-dentally started Aztec.

How old were you? I was 22 when I got the incorporating papers back for Aztec.

Twenty-two years old and owner of a business! I figured if anything went wrong I could still go out and get a job some-where.

Was buying the business a no-brainer for you, or did it give you pause? I did think about it a little bit, but be-ing 22, you don’t think about things that much! You just kind of say, “Well, I’ll try it! We’ll see what happens.”

How did your parents react when you told them you were buying the business? I’d always had different businesses growing up such as mowing lawns and landscaping. When I was real little, we used to drive around and sell Cokes and stuff to the construction workers building the next phase of houses. So I don’t think my parents were too surprised. I always had some sort of enterprise going on.

What was the first year of owning your own business like for you? Interesting. At 22 you can get away with a lot less sleep than you can at my age. You’re basically chef, cook and bot-tle washer, doing everything you can to keep it afloat. I didn’t really have any full-time employees until a year and a half later; my brother graduated from OU in the same situation that I was when I grad-uated from TCU, so I gave him a tempo-rary job and he stayed for 13 years. I bare-ly took in any money or took out any money in six months of operation. The flip side of that is the growth ev-ery year after that looks exponential. It’s really hard to manage up to a certain level and then you kind of float there. That’s where we’ve been the past decade. What I’m proudest of is that we’ve never failed to complete a job in the 20 years we’ve been in business.

Can you believe you’ve had this com-pany for 20 years? Some years I can definitely believe it’s 20, but when you look at the great scheme of things and you’ve spent half of your life doing something, that’s hard to believe.

Has it been all work the past two de-cades, or have you managed to squeeze in a hobby or two? My only other passion is rugby. I started playing about the time I started working this industry; it was right after graduation. We didn’t have a team at TCU and I was hooked up with the Fort Worth men’s team shortly after graduation. I played for about 10 years and we won our only national championship during that time, in 2000. Along the way, I found-ed and coached the TCU rugby team. I quit three years ago when I was asked to come coach the Fort Worth men’s club.

What do you enjoy about rugby? The level of competition and the in-tensity. It’s almost hard to coach some-times because I miss playing so much. Rugby is something that you can really get into at as high a level as you want and as intense as you want. It’s a very wel-coming and all-encompassing environ-ment. It’s unusual in that the team mem-bers are very close but not cliquish. Any-one that shows up is welcome. When you’re not working or involved with rugby, what are your interests? Other than drinking wine (pointing to a tall refrigerator in his office)? I don’t

know if that qualifies as a hobby or not.

Well, look at that huge refrigerator full of wine! Why didn’t I see that? It’s supposed to be camouflaged! I don’t want people pilfering.

You did a great job of diverting my at-tention away from it! How did you be-come a wine collector? I started drinking wine a couple of years out of college. I have a cousin who is a true wine aficionado; he sparked my interest and showed me some really good wines. We’d go to dinners, take my grandmother out every month and drink a different wine every time.

How many bottles of wine do you have, and is this your only refrigerator? I have a smaller refrigerator at home, but I keep most of the wine stored up here. This is a 450-bottle fridge but there’s probably only a couple of hun-dred bottles in it.

Do you give and receive gifts of wine? I do. I like to [give wine as a gift] more when I’m going to share a meal with somebody and we can sit down and all enjoy the wine together, but I do give wine as gifts, especially to my friends. Es-pecially if it’s a wine I’ve never had be-fore, or it’s just an outrageous bargain, I’ll buy a lot of it and turn people on to it. Actually, half of these I just brought back from Napa. It’s fun to just go taste and then pick up a case of whatever you thought was good.

What is your most prized bottle of wine? I have a couple of nice bottles of Opus One and some nice Rubicon, and La Sirena. And then I’ve got a Quintessa Ver-tical from 1986-1988; those three bottles are probably my favorite.

In your opinion, what is the most un-derestimated wine that you feel peo-ple should know about? One of my favorite ones is Plump-jack. They have another label called CADE that not many people know about. It’s a little underpriced but it will just knock your socks off. It’s a little hard to get just because it’s not distributed or marketed. I’ve seen it on a couple of menus in Fort Worth; if you can find it, it’s really worth a shot. There is a Pinot Noir that is called Redwood Empire. When it’s not on sale, it’s $8.99 a bottle and it’s usually on sale for $7.99 a bottle. You should walk by about 30 different $25 to $35 Pinots and still pick this one.

I know wine is relaxing, but do you ever take vacations? I am taking one to Turks and Caicos. I am going to sit on the beach and turn off every electronic device I own. It’s hard, but once you’ve done it a couple of times,

you realize that no matter what happens [at work] it will still be here a week from now. I’ve tried to do the long weekend thing instead of doing long vacations but you’re still always connected and you don’t really get the rest and recharge. It takes a few days of being on vacation be-fore you’re actually on vacation. I’m go-ing to do absolutely nothing except for maybe a little sailing. Nothing too in-tense.

Do you wish you had time to learn a new skill? I wish I could master an instrument, but it would take so much time and prac-tice. I’ve had some fitful starts. I used to play guitar when I was younger, but there’s something about playing football and rugby and constantly having broken fin-gers that doesn’t really lend itself well to the guitar. I haven’t touched the guitar in 20 years, and not only would I like to pick it up again but actually get really good at it.

Can you play “Stairway to Heaven”? No, I follow the “Wayne’s World” principle. No “Stairway to Heaven!”

Who shares your life with you? I’ve always had dogs; I’ve never not had them. They’ve come to me. I did get a few across the street at the Humane Soci-ety, but most have been hand-me-downs from friends who have moved away. The dog I have now, Tillie, was a stray that had been hanging around for a few weeks. Dogs like that just kind of pick you.

What do you hope the future holds for you? I would really like to change the ratio of work to vacation time. In order to do that, I need to find someone that can re-ally run the asbestos side of things, be-cause that’s still me after all these years, and part of all of that is perfectionism. I want everything that goes out of here to be right and perfect. I just haven’t found that person that could take the workload off of me so that I could take a little more time, whether it’s playing rugby or doing nothing much at all. The thing that I have not bought that I would love to buy is my first sailboat. I’ve sailed a little bit, enough to where I have really got the bug.

As much as you like to travel, do you think you’ll retire in Fort Worth? No, I think I’ll go somewhere. There’s a lot to be said for going somewhere where your dollar goes a lot farther. But the thing about Fort Worth is that, no matter where I go, I love coming home to Fort Worth. This will always be my home.

Fort Worth-based Aztec Environmen-tal Services Inc. provides a broad range of environmental consulting, testing and gen-eral environmental project management for remediation. –mjm

The Grapes of Keith: Keith Dalton with a portion of his wine collection.


Wage and hour lawsuits aresharply on the rise againstconstruction employers

Michael Abcarian, Managing PartnerFisher & Phillips LLPDallas, TX

Your construction business may be doing everything right to cut down on things like employment

discrimination, harassment and retaliation cases. You’ve set up rigorous training programs on company policies; you use performance evaluations and progressive discipline consistently; and you’ve established a successful internal grievance process. You think you’re in the clear. But what other liabilities may be lurking despite these important efforts?

Although race and gender discrimi-nation claims have traditionally been front running employment complaints, wage and hour lawsuits under the feder-al Fair Labor Standards Act (FLSA) and similar state wage payment laws have been sharply on the rise. During the past decade, FLSA cases filed in Texas federal courts have increased nearly 400 per-cent, up from 108 cases filed in 2001 to 525 in 2009. And the signs indicate this trend is intensifying. This should cause concern because construction compa-nies rank among the top of those most likely to have claims filed against them based upon some form of allegedly un-paid wages. According to the U.S. Department of Labor’s (DOL) recently published 2012 budget, investigations conducted by the Wage and Hour Division for fiscal year 2010 collected approximately $176 mil-lion in back wages from employers. This came from about 26,500 separate investi-gations that involved about 210,000 workers. Although construction employers often perceive wage payment rules as black and white, there remain many gray areas that regularly bedevil employers who are trying to comply. Employers can reduce the likelihood of unintentional vi-olations by understanding a few key con-cepts and embracing proactive ap-proaches.1. Record keeping. Have you accurately recorded and properly paid for all time worked? Systematic timekeeping errors will accumulate over time and may lead to hundreds of thousands of dollars in liability, penalties, and attorney’s fees if you are forced to defend wage claims on a class basis. Supervisors must ensure they properly train and monitor employees about accurate timekeeping practices and discipline those who violate these important rules. Such practices will provide important defenses to many claims about unpaid wages.2. Overtime Work and Pay. Have you correctly accounted for all overtime hours worked and properly computed overtime pay due for employees who are not exempt from the overtime pay provisions of federal (and any applicable state) laws? For example, the FLSA requires that covered, nonexempt employees be paid at least one and one-half times their “regular” (usually hourly) rate of pay for time worked in excess of 40 hours in any workweek. In addition to FLSA requirements, the Contract Work Hours and Safety Standards Act (CWHSSA)

requires contractors and subcontractors on most federal contracts involving more than $100,000 in services or for construction to pay laborers and mechanics at least one and one-half times their basic rate of pay for all hours worked in excess of 40 in a workweek.3. Classifications. Have you properly classified employees as exempt? As a general proposition, all employ-ees are presumed to be non-exempt from the overtime pay provisions of the FLSA, unless you can show that a specific exemption applies. In other words, they are entitled to be paid overtime pay for overtime hours. However, research shows that a significant number of employ-ees—for example those who perform safety duties—are treated as exempt when they do not meet any specific ex-emption category under the FLSA. Al-though it may be possible to defend such classification, you must be sure all em-ployees are properly classified in order to avoid this common wage violation. Another area of concern centers on whether a worker is an employee or a contractor. If you discover that your com-pany has incorrectly assumed or decided that someone is not an “employee” for wage payment purposes, a new program announced by the IRS in 2011 may pro-vide a welcome safe harbor. The “Volun-tary Classification Settlement Program” allows an eligible employer to reclassify workers with partial relief from federal employment taxes. With the number of wage-hour claims soaring in recent years, the construction industry is at greater risk than ever as a tar-get for claims. These matters can be time-consuming and expensive to defend, even if you’ve done little that is found to be non-compliant. Generally, these cases boil down to little more than the mechan-ics of how your employees should have been paid. To avoid costly litigation, take time to understand your obligations un-der the FLSA and other applicable wage payment laws, and make compliance a priority. Good faith groundwork goes a long way toward improving the odds of a smooth trip when traveling down the path of wage and hour compliance.

Michael Abcarian is the Managing Partner of the Dallas office of Fisher & Phillips, a na-tional labor and employment law firm. He has experience advising and defending construction industry employers in a vari-ety of labor and employment matters in-cluding those concerning FLSA compliance. He can be reached at [email protected].

The Independent Electrical Contractors Board of Directors for 2012 takes the oathof office at their Dec. 20, 2011 meeting in Fort Worth. The 2012 board is, L-R: Bill

Riley, Brian Jordan, Robert Leonhart, Bobby Tutor, Alex Nantz, Terry Brown-ing, Chip Bean, Coty Owens, Steve Humphrey Jr., Doug Green and Wes

Shahan. Not pictured are Gerald Jordan and Gary Sodd. -ms

Sworn in for dutySubmitted to Construction News

Fraud in construction –A growing problemLynn Menard, CPA, CFEGainer Donnelly & Desroches, LLPHouston, TX

Desperate times calls for desperate measures and, in a stale economy, some employees are finding inter-

esting (and often illegal) ways to boost their income. Just recently, a bookkeeper for a local construction com-pany in Tennessee was indicted for allegedly embez-

zling more than $1.5 million from the company over a period of five years. While this individual was allegedly profiting from her ill-gotten gains, the company was left struggling to make ends meet, laying off more than 20 employees before eventually being forced to file for bankruptcy. One of her former co-workers described her as a “wolf in sheep’s clothing”.

Sadly, it appears that there are many more “wolves” out there. The average fi-nancial loss from fraud for a construction company is $200,000, (according to the Association of Certified Fraud Examiners “ACFE” 2010 Report to the Nation). In many cases, the cost can be even higher. Indeed, the ACFE estimates that the typi-cal company loses more than 5 percent of its annual revenues to fraud. Aside from the obvious loss of revenue, fraud can also hurt companies in other ways; dam-age to reputation, decreased employee morale, and lower productivity.

Fraud schemes that are prevalent in the construction industry include:

• Theft of inventory or assets• Subcontractor billings for inflated or non-existent goods or services• Shell companies – purchases of goods or services run through “dum my” companies• Bribery, kickbacks and bid rigging• Conflicts of interest in purchasing or sales• Illegal gratuities• Extortion

So how can you detect, or better yet, prevent your company (or yourself) from becoming a victim of fraud? Effective in-ternal controls are the strongest fraud prevention and detection tools. These controls can include segregation of du-ties, physical security, background checks, fraud awareness training and fraud reporting hotlines. The old saying that “an ounce of prevention is worth a pound of cure” is certainly true when it comes to fraud. In fact, tips and com-plaints are the number one method for

detecting fraud. A hotline can facilitate this communication, allowing for anony-mous reporting and offering an option to employees who might not otherwise speak up. Statistics show that companies with hotlines detect frauds earlier and suffer smaller fraud losses than those without hotlines. For example, according to the ACFE report, the average fraud dis-covered in companies with a hotline is $100,000, whereas companies without a fraud hotline frequently suffer losses that average $245,000.

So what should you look out for if you decide to implement a fraud hotline? An effective fraud hotline program will offer 24/7 anonymous reporting (usually via a 3rd party), employee training, and an independent professional assessment by a Certified Fraud Examiner of any is-sues that come to light. Most of all, the program should place an emphasis on conveying to employees that the com-pany is committed to strong business ethics. These types of hotline program are generally inexpensive to join, and pay for themselves several times over in the peace of mind provided to employees, business owners, and insurers. So don’t wait to become a victim, think ahead and take the start of this New Year as an op-portunity to put protection measures in place for your business.

Lynn Menard is Senior Manager Business Advisory Services and Head of the “Red Flag Reporting” Program at Gainer, Donnelly & Desroches, LLP. She can be reached at (713) 965-5520, or email at:[email protected]


New rules for property andcasualty certificates for 2012Paul F. Franchett, Asst. V.P. and Marketing DirectorGuaranty Insurance Services, Inc.San Antonio, TX

Senate Bill 425 passed by the Texas State Legislature during this most recent session added Chapter 1811

to Subtitle A, Title 10 of the Insurance Code establishing rules for the use and issuance of Certificates of Insurance.

The changes became effective January 1, 2012. However, final rules for implementation are still being developed.

Certificates of Insurance, especially as used to evidence insurance coverages in the construction industry have been among the most contentious documents between contractors and insurance agents. As used before S.B. 425, Certificates of Insurance may or may not mirror coverage actually provided by the insurance policy.

S.B. 425 Subchapter A, General Provisions, Sec. 1811.001 defines a Certificate of Insurance as: “A document, instrument, or record, including an electronic record, no matter how titled or described, that is executed by an insurer or agent and issued to a third party to the subject insurance contract, as a statement or summary of property or casualty insurance coverage.”

To ensure that the Certificate of Insurance only reflects coverage actually provided by the property or casualty insurance policy, the legislature included Subchapter B Prohibited Acts and Practices.

Sec. 1811.051 Altering, Amending, or Extending the Terms of an Insurance Policy; designated that only certificates approved for use the Texas Dept. of Insurance can be issued to evidence insurance coverage. At this writing, only the ACORD, the American Association of Insurance Services, ISO and seven TXDOT Certificates of Insurance have been approved for use in Texas.

Using any forms not approved or modifying approved forms is prohibited by Sec. 1811.054 Issuance of False or Misleading Certificate. Additionally, Sec. 1811.054 prohibits any person or organization from requiring that an agent or insurer “to issue any other document or correspondence, instrument or record,

including that is inconsistent with (Sec. 1811).” Likewise, inserting references to other contractual documents other than the insurance coverage is prohibited.

Sec. 1811.152 reiterates that a certificate is not a policy of insurance and does not amend, extend or alter the coverage afforded by the policy. It also does not covey any new or additional rights to the certificate holder beyond what is contained in the referenced policy.

Specific Insurance Certificates can be used by insurers, but only after they have been reviewed and approved for use by the Texas Department of Insurance. Procedures outling the filing and approval process are outlined in Sec. 1811.101.

Subchapter E, Enforcement and Remedies, outlines the procedures and powers of the commissioner of insurance to issue cease and desist orders, impose sanctions and request that the attorney general’s office recover a civil penalty of up to $1,000 per violation from the agent and/or insurer found to be in violation. In addition, a certificate issued in violation of Sec. 1811 is void and has no effect.

It may take several months for the final rules for implementation to be published, but the legislature has taken the first steps to ensure that all certificates actually mirror the coverage provided by the insurance policy.

Paul F. Franchett is an Assistant Vice President and Marketing Director for Guaranty Insurance Services, an INSURICA, Inc. Company in their San Antonio, TX office. Paul has extensive experience marketing and servicing all facets of property and casualty insurance. He can be reached at (210) 805-5905.

Hill & Wilkinson has entered the multi-family housing market in the North Texas region, hiring in-

dustry veteran Jay Graham to lead its new group. “His expertise in this market niche, as well as our firm’s construction portfolio, will enable us to deliver an outstanding product to both public and private own-ers throughout Texas,” said Greg Wilkin-son, co-chairman of the board. Graham will be charged with build-ing the firm’s multi-family housing port-folio and strategically positioning its ca-pabilities in this sector. With projected population growth in Texas, there will be an explosion in multi-family construction, Graham explained. “Since we currently work in Dallas-Fort Worth, Austin, San Antonio, Tyler, Odessa and Oklahoma City, we are posi-tioned to capitalize on this growth,” he said. “In many sub-markets, such as Celi-na, Prosper, Melissa, Anna and Forney, there is already pent up demand for multi-family housing.” During his nearly 30-year career, Gra-ham has developed and delivered more than 12,000 multi-unit projects. “Hill & Wilkinson has the reputation, balance sheet and leadership team that makes entering this market a great ‘fit’ for both of us,” he said. Prior to joining Hill & Wilkinson, Gra-ham was responsible for evaluating and supervising site acquisitions, land pur-chases, sale negotiations and agree-ments throughout the Southwest for En-

Jay Graham

core Multi-Family, LLC. He also spear-headed real estate acquisitions and ex-pansion operations into new markets for Erickson Retirement Communities in the Southwest. Graham holds a Bachelor of Science degree in Building Construction from Texas A&M University, formerly served on the founding board of the Construc-tion Industry Advisory Council for TAMU, and currently serves on the Plano Family YMCA Board. –ms

Responding to demand

The North Texas Chapter of the Inter-national Concrete Repair Institute (ICRI) held its 5th Annual Casino

Night event on Fri., Jan. 20 at the TEXO Conference Center in Dallas. Event Chair-man, Mark LeMay, reported that close to 100 attendees dined on barbeque, and networked with fellow members of the repair industry before getting down to business at the gaming tables. The dice were flying, the poker stares turned serious, and the chip stacks grew taller as the evening progressed. Several patrons were success-ful in amassing large strings of tickets to use in the prize draw-ings at the end of the evening. The anticipation grew, as sev-eral winners turned down priz-es in the “Deal or No Deal” for-mat, hoping to take home the Grand Prize. In the end, it was Ashley Gemperle who walked away with a big smile on her

Casino night a big win

Win or lose, it’s all smiles for this group

Close to 100 attendees crowd the TEXO Conference Center for ICRI’s 2012 Kick-Off event

face, and the 40-in. Sony LCD TV! The kick-off event for 2012 raised over $3,000 for the Chapter’s Scholarship Fund, which helps to support students enrolled in UTA’s Civil Engineering De-partment, and in the Concrete Industry Management (CIM) Program at Texas State University in San Marcos. –bd


BAFFIN BAY –– LAGUNA MADRE –– LAND CUTSPECKLED TROUT –– REDFISH –– FLOUNDER

FISHING AND HUNTING TRIPS

(361) 949-7359www.baffinbaycharters.com

[email protected]

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STEVE SCHULTZ OUTDOORS, LLC

Have confidencein your fishing

by Capt. Steve Schultz

Sponsored by:Trans Sport Boats, Mercury Outboards,

Chris’s Marine, Motorguide Trolling Motors, Power Pole Shallow Water

Anchor, Pure Fishing, Pflueger Reels, All-Star Rods, Mirr-O-Lure, Bass Assassin, and

Columbia Sportswear

Well, by the time this column hits the newsstand, deer season will be over for most hunters in the

state, except for those ranches that hold MLD permits. We had an awesome sea-son at our new lease, saw lots of promis-ing trophies, and burned many great memories into our hard drives. Now that that’s over, it’s time to get back on the water in search for a different trophy. This is definitely the time of year for those in search of a trout of a lifetime. It’s not easy getting up on a cold day and run-ning across the bay, then getting in the water and wading through mud and grass for a chance to catch a trophy trout,

but once she’s on the end of your line, it makes all those sacrifices well worth it. Fishing this time of the year can be very challenging, but also very rewarding.

Forecast for the months of February and March looks promising for those who don’t mind grinding out days in sub-par conditions for bruiser specks. I’ll be wad-ing every chance I get for the next few months throwing every type of lure known for tricking these elusive giants. Slow retrieving is a major key to success this time of the year with frequent pauses and minimal rod movement. Hours with-out a bite can drive a man to insanity and

Winter fishing yields heavier fish like this 25-in. trout caught by Capt. Steve Schultz. Fish was caught last February in waist deep water on a plum color bass assassin

and was released after photo.

wonder why he’s wasting his time on fish that won’t eat or that are not even in the vicinity. All I can say is be confident with your efforts and your determination will payoff with great rewards.

When searching for fish this time of the year, one must forget what works during summer months. Bait is much more plen-

tiful during warmer months and water levels are generally higher. Single baits flipping across the surface are sure signs that there may be fish in the area. Re-member a fish’s metabolism slows dra-matically in colder months, so they feed on larger prey and less frequent than warmer months.

Concentrate your efforts in mid-thigh to calf-deep water adjacent to deeper sloughs or drop-offs. I’ll usually start in a place where I have had great success in past outings. Having confidence in an area this time of the year is a key to great success. No need to race to other spots chasing a bite that hasn’t turned on yet. Grind it out if the conditions are right. You are better off waiting on the bite than hopping all over the bay, with a chance of missing it. As for choosing a lure, I like starting off with a soft plastic attached to a 1/16 oz. jig head for locat-ing fish. Once I start catching fish and I feel that there is a possibility of a larger fish in the area, I’ll switch to something a bit larger. Keep in mind that if your catch-ing lots of small fish, the chances of catch-ing a trophy in the area are slim.

For more information or to schedule your next bay fishing trip, give Capt. Steve Schultz a call at 361-949-7359 or 361-813-3716 or email him at [email protected]. Good Luck and Good Fishing.

Best hunting buddies

Gretel is Taylor Starr’s, Metro-politan Contracting, third Ger-man Shorthaired Pointer (GSP). “Gretel was a fun and curi-ous pup and she dug out of our yard many times and Hans, our other GSP started to follow,” stated Jennifer Starr, Taylor’s wife. “They got out one day and ran a few miles down a nearby country road and a local farmer shot Hans. It was devastating. Now we just have beautiful little Gretel. We still would like to breed her, but have not found the perfect mate. “Gretel is a certified pedi-gree with the full name of Han’s Little Gretel. Taylor enjoys tak-ing her dove hunting and she’s amazing with our children Hud-son (2) and Hunter (4).”

Kris Groda’s, Saltwater-fisheries Enhancement As-sociation (SEA) vice presi-dent, said his favorite hunt-ing buddy is his 105-lb. Yel-low Lab, Drake, a “dove re-trieving machine.” Groda said, “When Drake was 2 years old, he crawled up into a mesquite tree to get a bird out of it. I was looking all over the ground and Drake kept looking in the tree. I couldn’t find the bird. Finally, Drake climbed up the tree, and I saw the bird was hanging up in the tree. Drake climbed up about five feet off the ground

trying to get that bird. He has been a hunting machine since he was 9 months old. He’s a natural at it.”


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

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

a good many folks in the construction trade.

Half or Full Day Fishing Trips

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Your catch Filleted andBagged for You

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and WE DO THE REST!

Ken Milam Guide Service(325) 379-2051

www.striperfever.com

It is that time of year again. The football games, hunting seasons and holidays are just about done for now, and we can

start to look forward to the beginning of fishing season! Any day now, the white bass will be trying to run up the rivers and toward the upper end of the lakes to spawn. They offer us a lot of fast catching action that’s not only fun, but they taste good too. This is the best kind of fishing to start your kids on. The more frequent sunny, warm afternoons will start to bring the crappie into the shallows to begin to nest around structure along the shorelines. They are also fun and easy to catch, and most people consider them the best tasting freshwater fish we have. Now we come to the part where you will have to put your noggin to work. If you like to fish for catfish and bass, who love to find structure and hang out on points, drop-offs and rock piles or even open water feeders like stripers who favor different currents and such, you may have to learn some new tricks. With the drought drastically changing the topography of many of the lakes, and the rest of the lakes seeing increased traffic from people avoiding lower lakes, the game will be different this year. You might not be able to fish your favorite spots that your old fishing buddy taught you several years ago. I know that a lot of my best spots are high and dry now here on Lake Buchanan. Now you will have to go back to the drawing board and remember why those spots were good for fish. Look at the water depth that you were fishing in and find similar depths on your “new” lake. What was the bottom shaped like? Was it a little hilltop, or a depression, or maybe off the side of a ridge? Notice the temperatures of the

water and any possible currents from rivers and creeks. Chances are if a newly discovered spot feels a little like home to you, it will to the fish too. Just don’t be afraid to go check it out and learn some new skills. It will make you a better fisherman in the end. Now here is the silver lining to drought fishing. When a lake goes low, you usually catch bigger fish. Maybe the bigger fish are feeding better because the bait fish are easier to catch, or maybe we just have an easier time getting at the big fish. Either way, I think we are in for a rewarding season. Already we are seeing the Texas Parks and Wildlife ShareLunker Program getting off to a good start for this year. I heard from Maj. Cody Roberson, the President of the Army Bass Anglers a couple of days ago and he’s all excited. He reported that on Lake Falcon this year it is taking a forty-five pound plus stringer of fish to even get into the top five! I don’t know about you, but I’m about ready to hit the water! I hope to see you out there!

Anglers, it’s time to step up

your game!

Watson fish caught on Lake Fork

Brudnicki fish caught on Lake Falcon


As with any power tool, safety should always be a deliberate and conscious effort. An All Terrain Ve-

hicle (ATV) is a very unforgiving and pow-erful vehicle and tool. Proper planning and preparation will also be helpful in making the difference of having a good time or not. Before riding, there are a few basic things that should be maintained and checked routinely in order to keep your machine reliable and save unneces-sary expenses. On any tire, improper air pressure greatly increases handling difficulty and safety risks. Tires should be set to the manufacture’s recommended air pres-sure, somewhere between four and six PSI is a benchmark. In all machines, oil is an essential component of any engine. It is most ac-curate to check oil levels on a cold engine prior to starting. When checking oil levels after being operated, it is important to wait a few minutes after the ATV has been turned off so that the oil has time to settle. Oil should be changed every fifty hours of use, because it gets dirty and loses lubricating abilities and may stop up the oil passages. Air filters should be inspected every other day or weekend of use. In dry weath-er, the air filter will need service more of-ten compared to wet-weather use. Foam air filters are washable using liquid dish soap and must be oiled after cleaning with specific air filter oil. Make sure the fil-ter is sealed to the airbox properly or de-bris will enter into the engine causing pre-mature wear of engine parts. Despite

ATV tips and tricksSubmitted by Bruce Blanks, San Antonio Powersports, San Antonio, TX

popular belief, paper air filters should not be cleaned with compressed air. This will damage the filter element and allow de-bris into engine. Most paper filters can be replaced by after-market serviceable foam filters, which are reusable. Fuel is an obvious necessity and con-cern. Ethanol is a major chorizo for all of us. Unfortunately, ethanol fuel sours quickly and can cause fuel delivery prob-lems. To counter this, fuel should be

treated with a fuel additive. Startron was developed specifically to cure some of these ethanol problems and Stable or Seafoam also works as long as the addi-tive used is intended to aid in the ethanol problem. Quite often ATV’s sit for weeks or months without use. These steps will save much grief and money by treating the fuel in your tank. If your fuel tank has an on/off valve or petcock, it should be turned off when the ATV is not in use or

during transport, or else engine damage may occur due to liquid lock at its startup. If ATV has a “choke” and is in proper running order, in most cases it will only need to be used during cold startups and should not be necessary when igniting a warmed engine. Always turn the choke off as soon as possible, leaving it on may result in a fouled sparkplug. A sparkplug and necessary tools used to change sparkplugs should always be kept handy. I strongly recommend the Japanese made NGK brand. I have yet to find any other brand to perform correctly and dis-courage the use of such alternatives un-less absolutely necessary. Batteries should be checked fre-quently for corrosion and connection tightness. Although most batteries are maintenance free and require no service, there are a few that require maintaining proper fluid levels. These will have marks on the sides showing upper and lower levels in which only distilled water should be used. It is important not to over-tight-en the removable cap on top of the bat-tery because they break easily. Basic things should be looked at rou-tinely in order to keep your machine reli-able and save unnecessary expense/damage. Before riding, there are a few basic things that should always be checked for reliable and safe use and save unnecessary expenses. San Antonio Powersports provides motorcycle and ATV sales, parts accessories and service.

L-R: Bruce Blanks and Brian Borchardt

Location

Location

Location

Location

Publishing the Industry’s News . . .

TEXAS Style

Home Office(210) 308-5800

www.constructionnews.net

Dallas/Fort. Worth

Austin

HoustonSan Antonio


For those struggling over what to do for their sweetie on Valentine’s Day, worry no more. I have an idea for

the perfect evening. It comes with a free movie and delicious refreshments while providing a gift only you can give. If you guessed blood donation, you are correct. The South Texas Blood and Tissue Center (STBTC) in San Antonio offers a most pleasant experience to their donors. Recently, I donated platelets and was completely surprised at the service and amenities available to those who give. In addition to getting a mini-physical, I watched the movie of my choice from a selection that would make Redbox envi-ous while reclining on a toasty warm spa-like chair. Add to that a soft, cushy blan-ket, and all I needed was my pjs and house slippers to be completely at ease. As for the donating part, the profes-sionals at STBTC were incredible. I barely (perhaps less than barely) noticed when the needle was inserted. It didn’t hurt at all – and believe me when I say I’m a cry-

Unique gift

baby over things like that. They also wait-ed on me constantly, brought me bottled water and asked if I needed anything and how I felt. No one has done that for me in years! It was amazing. The ending of the movie timed per-fectly with the completion of the dona-tion. Once they completed their wrap-up procedure, they offered me a variety of refreshments including ice cream. Now that is service – and it didn’t cost me one cent nor was tipping expected. More importantly, I helped another person. Whole blood, platelets, red cell and plasma donations help other people, such as those who are undergoing sur-gery, chemotherapy or suffering from au-toimmune disorders or burn injuries. For them it’s a life saver, but for me it’s only a few minutes of my day. So, as you think about Valentine’s Day, or any other day this year, please think about donating to your local blood and tissue center. It’s a one-of-a-kind gift only you can give. –dn

Debra Nicholas, Construction News, recommends a donation date for Valentine’s Day.

implemented in primary dog viewing pods, while painted CMU drywall, sound attenuating plaster and epoxy flooring were implemented in the holding pods. Painted drywall partitions and ce-ramic tile flooring comprise the new sur-gery suites, vet areas and office space. Rob Dixon, vice-president of the re-tail group for Hill & Wilkinson, said the project was special because of numerous coordination efforts between the SPCA, Hill & Wilkinson, the architectural/engi-neering teams and consultants that would allow the animals to thrive in a comfortable setting. “The team members always had the greater good of the project at hand,” Wilkinson explained. “The dynamic of the personalities meshed well to create a great working atmosphere.” Project superintendent was James

continued from Page 1 — Share the puppy love

The center includes a surgery suite to care for injured animals and neuter healthy ones.

The Jan-Rees Jones Animal Care Center features a spacious new atrium.

Turner of Hill & Wilkinson. Project engi-neer was Dan Elmore of Hill & Wilkinson. HINOJOSA Architecture & Interiors han-dled architectural design. Founded in 1968 by Luther Hill, Hill & Wilkinson has offices in Dallas, Austin and Tyler. With revenues of approximately $250 million, the multi-market company consis-tently ranks among the top 400 contractors in the U.S. according to Engineering News-Record. Most recently, Hill & Wilkinson has been honored with TEXO’s “General Con-tractor of the Year” award, and it recently earned the No. 1 ranking among mid-sized companies on the Top 100 Places to Work list for 2011 from the Dallas Morning News and was named one of the Top Ten “Best Places to Work” in Dallas-Fort Worth by the Dallas Business Journal for the fourth con-secutive year. –ms

Anyone born after Sep. 1, 1993 looking to operate a motor-powered vessel,

sailboat or personal water craft on Texas public waters this year needs to have completed a state-approved boater edu-cation course. While the new law became effective last year, Texas Parks and Wildlife sug-gests starting off the new year with a boater education course to make sure you're good to go when the water warms up and Texans begin heading to the state's many lakes and streams for fishing or recreational boat-ing. Prior to passage of the new law, only boat operators ages 13-17 had to take a boater edu-cation course. The mandatory boater ed-ucation law requires certifica-tion for anyone born after Sep. 1, 1993 who operates a vessel with a motor of more than 15 horsepower or a wind-blown vessel measuring more than 14 ft. in length. While all boaters are encouraged to take boating safety educa-tion, those born before Sep. 1, 1993, are exempt from required certification. Texas' state-approved boater educa-tion courses are available as one-day classroom training or online. The class-room course takes about six hours to complete and the online course has a three hour time commitment. Costs start at $20 for both courses. Information about boater education, including sched-ules of upcoming classroom courses, is available at http://www.tpwd.state.tx.us/learning/boater_education/. Boaters falling under the boater edu-cation requirement will be required to

Get ready for boating

Reese Tollette, 17, nephew of Michael Tollette, Virtual Builders Exchange, enjoys taking the helm

on family boat outings.

carry a valid ID and documentation of having taken and passed a boater educa-tion course. Failure to meet the require-ments is a Class C misdemeanor, and vio-lators have 90 days to complete a boater education course to have the charges dismissed. The 82nd Texas Legislature during its regular session also clarified the defini-tion of a vessel to encompass such craft as standup paddle craft, kayaks and canoes. In Texas public waters everyone on board a vessel that measures less than 26 ft. in length must have a life jacket available and kids under 13 must wear one. For more information contact Tim Spice, Texas Parks and Wildlife, 512-389-8141 or visit www.tpwd.state.tx.us.


CONSTRUCTION SAFETY

Creating the safest and mostproductive work environmentRaleigh Roussell, President/CEOTEXO, Chapter of AGC/ABCDallas, TX

The Hispanic proportion of the construction industry workforce has grown rapidly in the last few years and

is only expected to continue. Thus, the opportunity to invest in, develop and retain this growing workforce is crucial to the continued success of general contractors and specialty contractors that make up our industry. It is also essential to the safety of our workers.

The Census Bureau estimates that by the year 2050, Hispanics will make up about one fourth of the U.S. population. In fact, Hispanics accounted for more than half of the country’s population growth from 2000 to 2001 with a current workforce of 14.5 million. Figures for the number of Hispanic workers who speak English are not available, but with the continued growth in this demographic, the potential for a workplace language barrier is growing. We know that communicating effec-tively is key to safety in the construction business. And it is hard enough to do well when everyone speaks the same lan-guage. To address this issue, many con-tractors have put an emphasis on their personnel learning to speak Spanish and learning about the Hispanic culture. For several years, TEXO has had no trouble filling classes of superintendents, project managers, CEO’s and other construction personnel, many who are sent by their company and others who are eager to learn Spanish. What hasn’t been given as much pri-ority or attention by contractors is mak-ing the investment of both time and dol-

lars in teaching English as a second lan-guage to their Hispanic workforce. Ac-cording to Dorothy Shaw, TEXO vice president/COO who oversees member services, “We have offered classes in Eng-lish for years and always have to cancel them. We continue to do a better job of getting word out to our members about these classes with no positive result to show yet for our efforts. Contractor members tell us workforce development is a top priority and here is an opportu-nity for our industry to do something proactive.” Now we think it is time for contrac-tors, if they are not doing so already, to turn their attention to doing more to en-courage and motivate the Hispanic work-force to learn English as a second lan-guage. This does not mean in any way lessening the effort by many construc-tion personnel to learn Spanish. In fact, it has been shown that Hispanics respond more positively to learning English when they see an effort being made by others they work along side with learning to speak Spanish. With the proactive ap-proach in mind, TEXO has implemented a “Latino Safety/Superintendent Forum”.

The Forum is a way to reach the Latino worker directly with industry “best prac-tices” in safety management. TEXO’s newest safety director is bilingual and is leading an effort to help bridge the many cultural differences faced by workers on a construction site. Many different industries around the country that are experiencing an increase in Hispanic workers are successfully get-ting employers to learn Spanish. Several of these industries are now emphasizing the importance of teaching English as a second language. One example is the Wisconsin dairy industry that has had good results in providing the motivation and resources to enable Hispanic workers to learn a new language. They have learned that simply providing encour-agement to study English without added resources or adding books, tapes and training in English without motivating them to learn will not produce the de-sired results. The two motivational tech-niques that have worked very well for these farmers is to (1) lead by example through learning Spanish, and (2) pro-vide financial or career advancement in-centives to the employees who put out a lot of effort and actually learn English. Not only will English as a second lan-guage help break down the communica-tion barrier in construction, it will also contribute to a safer and more produc-tive workplace. So much of the increase in safety incidents among the Hispanic workforce are attributable to poor com-munication, workers not understanding the safety training, and some of the cul-

tural differences that are unique to His-panics that might preclude them from reporting unsafe practices. The opportunity to require English as a second language for Hispanic work-ers will also help to develop a larger pool of future supervisors and leaders for our industry’s construction firms. Close to 76 million baby boomers are getting close to retirement age and many of those folks are employed in construction. So it is fair to say that the future workforce of our industry might be the people you are employing who only speak Spanish and who are not being given the opportunity or incentive to learn English. It’s these same people who one day could be meeting with your cus-tomers, helping to run your operations, training others in a trade, or teaching others to speak English. But not if these folks only speak Spanish—their limita-tions will become our industry’s limita-tions. Speaking on behalf of our industry, we can and should do more—there is a sense of urgency for contractors to step up to the plate and embrace the impor-tance of developing and retaining our Hispanic workforce—not to mention what will help us recruit additional work-ers to replace those who are retiring soon. In addition to employers continu-ing to encourage their employees in learning Spanish, the first place to start is encouraging your Hispanic workers to at-tend classes to learn, at least, construc-tion English as a second language. –dn

Seven safety sins

David WellsECCSan Antonio, TX

Accidents occur for many reasons and are every-where. Heck, gravity is a hazard – witness all the

trips and falls people suffer. If there were no hazards, there'd be no injuries. But just because a hazard exists doesn't mean an injury will occur. There are many more hazards than there are injuries. Injuries are caused not simply by the existence of the hazard. Even though we're all in the line of fire, some of us sidestep the hazards and others get hit. Why? The difference between getting hit and sidestepping danger may be just pure luck. But more often than not, it's the re-sult not only of a hazard's existence but also – and especially – how the individual in-teracts with the hazard.

In most industries people tend to look for "things" to blame when an accident happens, because it's easier than looking for "root causes," such as those listed be-low. Consider the underlying accident causes described. Have you been guilty of any of these attitudes or behaviors? If so, you may have not been injured, but next time you may not be so lucky. Taking shortcuts: Every day we make decisions we hope will make the job faster and more efficient. But do time savers ever risk your own safety, or that of other crew members? Short cuts that re-duce your safety on the job are not short-cuts, but an increased chance for injury. Being over confident: Confidence

is a good thing. Overconfidence is too much of a good thing. "It'll never happen to me" is an attitude that can lead to im-proper procedures, tools, or methods in your work. Any of these can lead to an injury. Starting a task with incomplete in-structions: To do the job safely and right the first time you need complete infor-mation. Have you ever seen a worker sent to do a job, having been given only part of the job's instructions? Don't be shy about asking for explanations about work procedures and safety precautions. It isn't dumb to ask questions; it's dumb not to. Poor housekeeping: When clients,

managers or safety professionals walk through your work site, housekeeping is an accurate indicator of everyone's atti-tude about quality, production and safe-ty. Poor housekeeping creates hazards of all types. A well maintained area sets a standard for others to follow. Good housekeeping involves both pride and safety. Ignoring safety procedures: Pur-posely failing to observe safety proce-dures can endanger you and your co-workers. You are being paid to follow the company safety policies – not to make your own rules. Being "casual" about safety can lead to a casualty. Mental distractions from work: Having a bad day at home and worrying about it at work is a hazardous combina-tion. Dropping your 'mental' guard can pull your focus away from safe work pro-cedures. Failure to pre-plan the work: There is a lot of talk today about Activity Hazard Analysis (AHA). AHAs are an effective way to figure out the smartest ways to work safely and effectively. Being hasty in starting a task, or not thinking through the process can put you in harms way. In-stead, Plan Your Work and then Work Your Plan! Also don’t forget to conduct a Plan of the Day meeting with all employ-ees and sub-contractors. These issues may have been dis-cussed numerous times, but any one of

these left unchecked can result in an in-jury or fatality. Mark Twain once said, "It is better to be careful 100 times than to get killed once." The logical conclusion: If you can prevent people from making critical errors, you can prevent most inju-ries. The million-dollar question: How do you prevent people from making critical errors? It's not enough to simply say, "Try re-ally hard not to make one of these critical errors." Nobody tries to make a mistake. We must also realize that issues such as safety versus production or quality ver-sus cost arise each day from all directions. Addressing each issue starts with being aware of the consequences of ignoring these basic seven sins, and acquiring the skills to discuss and balance these situa-tions so that our organizations can enjoy safety and productivity, quality and cost-effectiveness. We must do everything in our power to stop the rushing, frustration, fatigue and complacency that arise on busy proj-ects. With over 35 years safety experience in the chemical and construction industries, David Wells is health and safety manager for ECC. Additionally, he holds a Bachelor of Science in Occupational Health and Safety, is a First Aid/CPR/AED instructor, OSHA 500 outreach trainer, and manages health and safety for military base con-struction projects. –dn


CONSTRUCTION SAFETY

Valuing safety

Guy Albanese, Director of SafetyTDIndustriesDallas, TX

In corporate circles, workplace safety has traditionally been approached in terms that could almost be de-

scribed as paranoid – “don’t do this, don’t do that, watch out, be cautious, tools are dangerous” – and all these messages get communicated every few years through memos, posters, PowerPoint presentations and new policies that focus on the negatives rather than the benefits of a safe environment.

Rebuilding a Safety Program In 2009, challenged by CEO Harold MacDowell to examine the merits of vari-ous behavioral safety programs in the marketplace, Guy Albanese, TDIndus-tries’ Director of Safety, gathered TD’s Safety Team of Jamie Dabbs, Joe Lindsey and Cliff Sohl, plus Scott Sanford of the Houston Office and Charlie Thomas, Cen-tral Texas Office. Each team member was assigned one or more behavioral safety programs for review and analysis to discover their strong and weak points, with a mission to report back to the group in a few weeks’ time. By late October, team members had worked through a number of the top be-havioral safety programs and discovered

that none of them really “had it all,” though all shared certain principles that could be helpful in any environment. In November 2009, they shared the best as-pects of all the programs reviewed, along with the time it would take to communi-cate, implement and see results, and something occurred to Harold MacDow-ell. “It sounds like you’re not all that en-thusiastic about starting these particular programs,” he said. Then he asked, “What do you think we ought to be doing?”

A Matter of Principles The team was not enthusiastic be-cause, as Albanese now says, “We already had most of the components in place, but we weren’t doing them as well as we could. We were convinced that, if we

could apply some of the principles that behavioral programs were based on, we could make our safety program much better.” So the team began to take a look at all safety programs currently underway at TD, with regard to improving their ac-countability, positive reinforcement and peer pressure. “First, we changed the way we con-ducted safety inspections, their criteria and distribution, making sure to comment on things done well and problem areas alike. We began to share those reports, ef-fectively ‘turning up the volume’ on safety concerns at TD,” related Cliff Sohl. Individual safety initiatives began to take shape in new ways as well. Review-ing a year’s data at once, Albanese and team appreciated that TD is involved in a number of very different businesses, which require unique initiatives to achieve the best results. TD’s extensive safety data, which identified each incident by time of day, type of injury, day of the week, job being performed and more, was now sorted by Business Unit. Building a new wing on a hospital is very different from changing out an airport’s chillers or creating a LEED-certified commercial office envi-ronment, after all. Each jobsite is unique,

with different hazards, and different trades and professionals at work, pos-sessing different levels of training and safety awareness. In the Major Projects Business Unit, for example, 50 percent of the accidents were of the “strain and sprain” variety and were typically happening before 10am.

No Strain = No Sprain With such data and a broad safety plan in hand, Safety Team Members formed working groups within each Busi-ness Unit, and developed new initiatives to address the specific needs identified.

Performance It didn’t take long for team members to wonder aloud if some sort of morning “stretch and flex” activity would be effec-tive in reducing those “strain and sprain” injuries, for example. It makes sense, after all, that strains might happen more when partners aren’t warmed up, then attempt a demanding movement and experience a pulled or sprained muscle. “It’s fine to say, ‘let’s have a stretch-ing program,’ but if the goal is to produce more flexible, physically effective part-ners, the program has to have concrete goals, priorities and deadlines,” says Joe Lindsey. And each initiative must be inte-grated with all other safety initiatives in each Business Unit.

Putting Safety Plans in Action Working with the management team of each Business Unit, the TD Safety Team developed a full slate of coordinated safety initiatives starting in 2010, agreed to by Business Unit Managers, Produc-tion Managers, Project Managers and Su-perintendents. Each month, as progress and accident data are tracked and site safety inspections are conducted, re-ports were shared with the key personnel listed above and CEO Harold MacDowell. This allowed for lessons each group learned to be shared among the different business units. Jamie Dabbs believes that such across-the-board buy-in and account-ability are essential to growing TD’s cul-ture of safety. “It’s about more than just safe jobsites. It’s about how we ‘spot’ each other, no matter where we’re work-ing. And how we become increasingly conscious that we can make any work-place safer by thinking about what we’re doing, discussing it with our peers, and actually making changes in our work pro-cesses as needed.”

Numbers Don’t Lie Since enacting this safety plan, TD has seen remarkable improvements in an already stellar safety record. TD mea-sures all incidents, not just those that meet OSHA requirements. Even with this rigorous method of recording, incident rates in 2010 and 2011 have dropped to 50 percent of what they were in 2007-2009. Additionally, the more severe lost time incident rate dropped to below 35 percent of 2007-2009 levels. CEO Harold MacDowell is excited about the new safety plan, “I am really proud of what our safety group has ac-complished over the last couple years. The well-being of our Partners is para-mount at TD and the work Guy and his team have put into these new programs really bear that out.” –dn


Association CalendarContent submitted by Associations to Construction News

ACCA- North TexasAir Conditioning Contractors Assn.

Feb. 2: Dinner meeting, Humperdinks, 700 Six Flags Dr., Arlington, 76011, Mix and mingle cash bar 5-6pm, Dinner 6-6:30pm, Feature presentation Home Performance Contracting 6:30-7:45pm, $30, RSVP 817-861-5383 or [email protected]. 8-11: State license Prep class, $375 member, $475 non-member, ACCA-NTX office, 2012 E. Randol Mill, Ste 215, Arling-ton, 76011Feb. 13-16: Apprenticeship 2C, ACCA-NTX officeFor more info: 817-861-5383

ASAAmerican Subcontractors Association

Feb. 2: ASA/TCA PAC event, The Ballpark in Arlington, The Diamond Club, by invi-tation onlyFeb. 10: TX Lien & Bond Claims seminar, 9-9:30am registration; 9:30am-4pm semi-nar; $250 person, lunch included, call 817-640-8275 or [email protected]. 16: Happy hour, The Ranch @ Las Co-linas, 4-7pm, cash bar, no need to register, prospective members welcomeFeb. 23: ASA NTC board meeting, 3-5pm, Las Colinas Country Club, 4400 N O’Connor Blvd., Irving, 75062; Monthly dinner pro-gram, 5pm Registration & Cocktails; 6:15pm BPI Session; 6:45pm Dinner Program; $40 member, $55 non-member, call 817-640-8275 or [email protected]

BCABlack Contractors Association

Feb. 1, 6, 13: Plans Reading and Under-standing, Session 2, 3 & 4, BCA office, by Daniel Waller, 5pmFeb. 2: Chairmen reception & Networker, Omni Convention Hotel, 555 S. Lamar, af-ter five dress code, by invitation, Partners Only – 6pmFeb. 4: Taxes for Small businesses, BCA office, 9am, by Chuck Burch, CPA/PFS, CFP, and his business associatesFeb. 8: Business consulting, “Your time & your money: How PEOs help construcion owners solve employment problems, BCA office, 6pm, by Mark Mettille, Presi-dent, M2 PEO Solutions Inc.Feb. 9: S.E.E.M (Social Economic Equiva-lent Marketing) class, BCA office, 5pm, by Kevin Houston MBA, MS, SBDS, owner, author, A Turnaround GroupFeb. 15: Partnership Networker (Busi-ness Briefing), Location TBA, 11amFeb. 20, 22, 27 & 29: Understanding and Utilizing Estimating class, Session 1-4, BCA office, 5pm, by Daniel WallerFeb. 30: Taxes(Business Finance and Ac-counting class), BCA office, 5pm

CFMAConstruction Financial Mgmt Assn.

Feb. 16: Generational Management, Las Colinas Country Club, 4400 N. O’Connor Rd., Irving, TX, 75062, Register at: http://dfw.cfma.org/events

HCAHispanic Contractors Association

Feb. 2: RHCA Pillars Awards Breadkfast, Omni Dallas Hotel, 7:30am, Awards Proj-ect of the Year, Corporation of the Year, Small Business of the Year and Public En-tity of the Year; please contact Yolanda 972-786-0909 for tickets.

IEC - DallasIndependent Electrical Contractors

Feb. 8: General membership meeting, 11:30amFeb. 11, 15, 25: Electricians Continuing Education coursesFor info: 972-550-1133

IEC - Fort Worth Independent Electrical Contractors

Feb. 9: General Membership meeting, Billy Bob’s of Texas, call 817-496-8422 for details

NARI-Greater DallasNat’l Assn. of the Remodeling Industry

Feb. 7: General Meeting, 6pm, at Meletio Lighting in Frisco, contact NARI office 214-943-6274 to make reservation. Meet-ings are open to all associated with the remodeling industry.

NAWIC - DallasNat’l Assn. of Women in Construction

Feb. 20: “Game night” in lieu of regular business meeting, 5pm networking and happy hour, 6pm dinner and party, Dou-bletree Hotel Dallas Market Center, 2015 Market Center, Dallas, 75207, RSVP to Brenda, 972-385-3158, [email protected]

NAWIC - Fort WorthNat’l Assn. of Women in Construction

Feb. 16: Monthly dinner meeting, Loca-tion changed to Garden Restaurant at Fort Worth Botanical Gardens, 3220 Bo-tanic Garden Blvd., Fort Worth, 76107, Networking 5:30pm, Dinner 6pm, $32, RSVP to Karolene Pittman,[email protected]

NTRCAN. Tx Roofing Contractors Assn.

No Feb. Lunch & LearnFeb. 11: “A Night of Denim and Dia-monds” Awards Banquet, Fort Worth Stockyard Station, tickets $110 and in-cludes 2 drinks, 3-course meal with wine, casino & prizes. Sign up at:www.ntrca.com

SCWCPAS. Central Wall, Ceiling &Plaster Assn.

Feb. 16: Board of Directors meeting, Hy-att Regency Hill Country Resort, San An-tonio, 10am, contact assoc. office for more info: 817-461-0676

TEXOThe Construction Association

Feb. 9, 10: OSHA 10-hour training in English, 1st day 8am-4:30pm, 2nd day 8am-noon, TEXO Dallas Conference Center, 11111 N. Stemmoms Frwy, FreeFeb. 13: First aid/CPR/AED, 8am-noon, TEXO Dallas Conference Center, Contractor/Indus-try $65; Subscribers $125; non-members $185Feb. 13-16: OSHA 30-hour in English, 7:30am-4pm, must attend all 4 days, Contractor/In-dustry $85; Subscribers $150; non-members $210, TEXO Dallas Conference Center Feb 20: ASC/TEXO Region V Student Compe-tition Awards Dinner, Reception 6pm; Dinner 6:30pm; Awards 7:30pm, Omni Dallas Hotel Park West, Luna Rd. @ LBJ Freeway, Contrac-tor/Industry members ONLY, $35Feb. 21-24: ABC BizCon, Phoenix, AZ, www. abc.orgFor info: www.texoassociation.org

continued from Page 1 — Big change for company

continued from Page 1 — Continuing a tradition

community and their employees. “Annually, we have a company bar-becue to show our appreciation for the job they have done,” he said. “CAS, Inc. has in the past sponsored Select league baseball teams and other organizations, and we plan to do more of these types of activities in the future.” Family life is also important to them,

Armstrong said. Both enjoy getting in-volved with their children’s sports teams and school activities. CAS, Inc.’s services range from interi-or commercial finish-out, including metal stud walls and sheetrock with acoustical ceiling finish out, tape bed texture and paint finish-out to residential framing and finish-out. –ms

H&E’s Grand Prairie branch began offer-ing about six months ago, can get you up to 92 feet in the air. The branch located at 3040 Roy Orr Blvd. in Grand Prairie previously stocked only aerial equipment, which includes boom lifts, scissor lifts and reach fork lifts. Farrington said the general mood at his branch was positive, because they will

be better able to help customers who like to “one-stop shop.” “All of our folks are excited, the sales guys, everybody, are excited about being able to have an expanded product offer-ing,” he said. H&E Equipment Services was estab-lished in 1961 in Baton Rouge. The branch office in Dallas opened in 2000. –ms

Miles ahead

Construction News is pleased to intro-duce Miles Smith, a new addition to our editorial team. He is based at

our home office in San Antonio and will be covering stories and events in various cities throughout our Texas territories. “I am really enjoying meeting folks in the construction industry and learn-ing more about what ya’ll do,” he said. “If you’ve got some good news you’d like to share, please feel free to call me. I’d love to hear from you.” Smith graduated from Texas A & M in 2001 with a bachelor’s degree in journal-ism. He came to Construction News from Marble Falls, TX where he was managing editor of the The Highlander newspaper. Smith got his first job in 2002 as a sportswriter with the Palestine Herald Press, where he covered Minnesota Vi-kings’ running back Adrian Peterson, while Peterson was a junior in high school. “Many people don’t know this, but that kid was actually a great basketball player,” Smith recalled of Peterson. “He was a track star also. Baseball was the only sport he didn’t play.” From there, Smith went on to work for newspapers in Indiana, Florida and Texas, with a three-year segue into pub-lic relations in Louisiana. As a jack-of-all trades, he covered sports, government,

politics and features, but also did graphic design work and photography. He lives in San Antonio with his wife, Jessica Thompson, a large animal vet-erinarian who practices in Selma. They enjoy their “furry family,” which includes a dog, a cat and a horse. His hobbies in-clude photography (especially sports and wildlife), hiking, dancing and cheering on his Aggies and Dallas Cowboys. Smith can be reached at his office in San Antonio, (210) 308-5800. Don’t hesitate to call him if you’d like to let him know “what’s going on and who’s doing what.” –rd


The torrential downpour outside the Acme Brick headquarters in Fort Worth did little to dampen the fes-

tivities at the AIA Fort Worth Annual Awards and Honors Dinner Jan. 24.

Prized for their beauty

1: Honor Award – A Cabana, Bart ShawL-R: Dr. and Mrs. Emmanuel Desai, Lee Hill, AIA and Bart Shaw, AIA

Honor Award – Rogers Road Pavilion, Bennet Benner PettitL-R: Lee Hill, AIA; Michael Bennett, Bennett Benner Pettit; Jim Oliver, Tarrant Regional Water

District; Victor Henderson, Tarrant Regional Water District; and JD Granger, Trinity River Development

Honor Award – The Albany Project,Richard Wintersole Architect

L-R: Richard Wintersole and Lee Hill, AIAHonor Award – Bluestem,Norman D. Ward Architect

L-R: Michael Kinler, Redenta’s Landscape Design, Lee Hill, AIA; and Norman Ward, AIA

Honor AwardWriting of Wrongs, A Holocaust Memorial

(unbuilt), Bart Shaw ArchitectL-R: Lee Hill, AIA and Bart Shaw, AIA

President’s AwardRichard Jaynes, AIA

L-R: Lee Hill, AIA and Richard Jaynes, AIA

President’s AwardSteele & Freeman

L-R: Darrell Benton, Steele & Freeman;Lee Hill, AIA;

Mike Freeman, Steele & Freeman

Quality in Construction/Artisan:Cliff Garten & the Cliff Garten Studio

L-R: Lee Hill, AIA and Cliff Garten

Honorary Membership, Terri Thornton, Modern Art Museum of Fort WorthL-R: Lee Hill, AIA and Terri Thornton

Quality in Construction/Contractor The Beck Group

L-R: Lee Hill, AIA and Drew Thigpen, The Beck Group

Community Award,FWISD Superintendent Walter Dansby

L-R: Lee Hill, AIA and Walter Dansby, Fort Worth Independent School District

Excellence in Sustainable DevelopmentTarrant County

L-R: Gary Fiske, Lee Hill, AIA and Tarrant County Judge Glen Whitley

Twenty-Five Year AwardCity Center Towers

L-R: Lee Hill, AIA and Tracy Gilmour, Sundance Square Management

Young Professional AwardChad Davis, AIA

L-R: Lee Hill, AIA and Chad Davis, AIA

Charles R. Adams Awardfor Design ExcellenceEdward S. Werth, AIA

L-R: Lee Hill, AIA and Edward S. Werth, AIA

James R. Wooten Service AwardTommy Stewart, AIA

L-R: Lee Hill, AIA and Tommy Stewart, AIA

L-R: Bart Shaw, AIA accepts the role of 2012 Fort Worth AIA President from the

association’s 2011 President Lee Hill, AIA.

The brief ceremony, followed by a celebratory dinner, highlighted the past year’s best design achievements and col-laborations of local architects and busi-nesses as well as the talents of promising students. -mjm

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