Subcontractors USA Journal 34

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TEXAS JOURNAL

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January 2019 | Advertising for Certified Women, Veteran & Minority-Owned Subcontractors | 34th Edition

THE

LONE STAR

STATE IS THE NEW FRONTIER

16-17

INSIDE

04

Texas Bullet Train Moves Forward, Triggering New Round of Station Proposals

05

In the Subcontractors USA Community...

Meet the Buyer

10 Renewable Share of U.S. Energy Generation on a Slow and Steady Ascent

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PUBLISHER’S MESSAGE

Keith J. Davis, Sr. CERTIFIED:

HMSDC

The Subcontractors USA Texas Journal highlights opportunities and news relevant to the construction, energy, architecture, manufacturing, education, engineering, oil and gas, transportation and IT industries we serve. We hope you find this issue not only informative, but inspiring and educational as well.

This month’s issue spotlights Texas now being the best state to do business in. California has lost thousands of businesses in the past few years, with the ma-

Port of Houston

EXECUTIVE ASSISTANT Tiffany Brown STAFF WRITER Carly Hammack

06

ART DIRECTOR Angel Rosa GRAPHIC DESIGNER Kendra Wiseman DISTRIBUTION Rockie Hayden CONTRIBUTING WRITERS Helen Callier Karalynn Cromeens Subcontractors USA News Provider

HISD

04 ARCHITECTURE 04 Texas Bullet Train Moves Forward, Triggering New Round of Station Proposals 04 Austin Gets Its First Composite Cross-Laminated Timber Structure

06 CONSTRUCTION 06 2018 construction Brief 10 ENERGY 10 Renewable Share of U.S. Energy Generation on a Slow and Steady Ascent

06

10 ENGINEERING 10 6 Ways Robotics Can Make ECs Safer 10

11 IT & TECHNOLOGY 11 The iPad is the New Hammer 12 How industry drone leaders scaled their programs

16-17 COVER STORY 16-17 The Lone Star State is the New Frontier 18 LEGAL 18 Navigating the Ins and Outs of Texas Contingent Payment Clauses 20 PERMITS 20 Missed Pulling a Permit or CO? Here are Five Tips That Can Help Get You Out of a Jam 22 SAFETY 22 Mitigate risk with construction site monitoring 24 Ensuring Operational Safety When Utilizing Boom Lifts

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OUR SERVICES

05 IN THE SUBCONTRACTORS USA COMMUNITY...

05 Meet the Buyer

PROJECT COORDINATORS Lindsey Ford PHOTOGRAPHY Grady Carter L.C. Poullard

City of Houston

CONTENTS

PUBLISHER & CEO Keith J. Davis, Sr.

ACCOUNTING MANAGER Eugenie Doualla

—Oprah Winfrey

Metro

BEHIND THE JOURNAL

COO & MANAGING EDITOR Kimberly Floyd

“Don’t worry about being successful but work toward being significant and the success will naturally follow.”

jority of them relocating to Texas.

This issue explores why businesses are leaving California, why Texas is the place for businesses to be and what new opportunities this creates for minority, women and veteran business people.

As always, thank you for your continued support of Subcontractors USA Texas Journal. When you support us, you are supporting more than just our company; you are supporting the communities in which we live and work. Working together, we can succeed in making positive things happen.

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16-17 26 TRANSPORTATION 26 METRO Sets New Standard with Tech Innovation Personalized Navigation Tool Introduced 26 DFW Airport Selected for $5 million Transportation Study

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ARCHITECTURE

Texas Bullet Train Moves Forward, Triggering New Round of Station Proposals

By Subcontractors USA News Provider

I

n August 2017, TCP announced that Fluor Enterprises and The Lane Construction Corporation had been added to the project, pooling their expertise in civil infrastructure to refine and update the rail line’s construction and sequencing; provide scheduling, cost estimates and procurement; and engage in other design and engineering activities.

In December 2017, after nearly four years of work, the Federal Railroad Administration (FRA) released its Draft Environmental Impact Statement on the project, outlining for the first time a preferred route between Dallas and Houston, with a midway stop in the Brazos Valley. The FRA’s analysis also reviewed the train’s potential impact on the environment and how best to manage it to protect private property and farmland, natural resources, energy demands, and other conditions along the 240-mile route. In February of this year, TCP unveiled one of the most highly-anticipated details: the locations of the railway passenger stations in Dallas and Houston. TCP’s most recent addition was announced in May, when the company appointed global engineering firm Bechtel as project manager.

This latest step moves the plans significantly closer to the construction and implementation phase.

If all goes according to schedule, the TCP rail project will be the first operational high-speed commuter train in North America. The roughly $15-billion enterprise is expected to finalize funding by mid-2019, and construction is slated to be complete in 2024, giving the project a 10-year timeline that beats out the 14-year construction timeline of the only other bullet train currently in progress in North America: the California High Speed Rail Authority.

The TCP venture is entirely funded by private investors, another key detail that sets it apart from the government-subsidized California high-speed rail. Once completed, the Dallas-Houston bullet train could set a precedent for other high-speed rail projects around the United States and North America, which could potentially generate billions of dollars in economic benefits to the cities involved.

The TCP high-speed train will have three stops: Dallas, Bryan, and Houston. The Dallas station will be located near the Kay Bailey Hutchison Convention Center in the Cedars neighborhood, near the Interstate 30 and Interstate 35 interchange. The Houston station is set to be built in an area northwest of the city, on the 45-acre Northwest Mall site near the Interstate 610 and US 290 interchange.

With the line on the map drawn and the station locations chosen, unrequested station proposals have begun to emerge. Corgan held an internal design competition for the Houston station, which resulted in nine submissions from nearly 50 people across all of the firm’s offices. The

winning submission, titled “Nexus,” envisions an adaptable transportation spine created from modular vertebrae, with a network of transit and pedestrian arteries that connect to existing roads and a surrounding ecosystem of retail, working, residential, and recreational spaces.

While TCP and local officials in Dallas and Houston have worked together to realize their goal of choosing station locations in historically- and economicallyunderserved urban areas, the Northwest Mall site in Houston has been widely criticized. In 2016, TCP appointed LEK Consulting to conduct a study exploring the opportunity for a high-speed train in Texas.

LEK’s study incorporated research from the City of Houston 2000 Land Use & Demographic Profile, showing that Houston’s population base is growing north and west of the central business district, which provides some rationale for the northwest site choice. However, one long-term regional goal of the Metropolitan Transit Authority of Harris County is to contain urban sprawl. The new passenger station will likely add to the sprawl of Houston, creating a new peripheral node in this decentralized city. And as the impact of Hurricane Harvey still remains fresh in the minds of Houstonians, TCP and its developers and contractors must remember that Houston is a very flood-prone region. Increasing the urban sprawl of Houston will only add to the total acres that the Harris County Flood Control District and the U.S.

Army Corps of Engineers must defend.

James Adams, AIA, senior associate at Corgan, says the challenges of the Houston site are what attracted the firm’s internal competition. “We saw an opportunity to connect this blank slate to the rest of Houston,” Adams says. “There was a focus on avoiding the ‘airport effect,’ where there is a bubble of faux-human neighborhoods around a transportation site. We wanted to create a sense of place through connections between the ridership and the elements of a thriving human neighborhood: the restaurants, farmers’ markets, retail, schools, and multifamily residential units.”

The Corgan design competition was not done in conjunction with, or at the request of, TCP. However, a statement released by the company states that Corgan’s work “recognizes the Houston passenger station as an economic catalyst for prosperity and transit-oriented development.”

Source: Texas Architect

ARCHITECTURE

Austin Gets Its First Composite Cross-Laminated Timber Structure

By Subcontractors USA News Provider

T

he site on East 6th Street just one block east of Interstate 35 is one of many patches of dirt undergoing rapid development in Austin today. Once occupied by an unpaved auto lot and an automotive garage, nearly half a city block is in the midst of a transformation that will bring five stories and 130,000 sf of creative office space, ground floor retail, and underground parking to a neighborhood increasingly defined by similar mixed-use, urban projects. This particular building, however, is unique.

Developed by Endeavor Real Estate with Dennis McDaniel and Richard Kooris and designed by a joint venture between the local offices of Delineate Studio and Thoughtbarn, the mixed-use midrise has the privilege of being Austin’s first hybrid structure that uses CLT — or cross-laminated timber — as a primary structural element. Large prefabricated solid engineered wood panels, sourced from Structurlam in Canada, compose the structural decking in the otherwise steel-framed structure. Offering an attractive and lightweight thermally and seismically high-performing alternative to a traditionally framed building, the CLT modules and steel frame also drastically reduced the number of columns required within each floor plate, compared to an all timber structure. According to Bart Whatley, AIA, of Delineate Studio, this advantage, enabling vast, uninterrupted tenant space, helped dictate the use of the assembly early in the project’s conception. “It was a huge programmatic item, from the beginning,” Whatley says.

“The development team had a particular vision from the start that the whole team got behind. It’s always been a values-driven project. The honest and sustainable use of materials combined with the openness and warmth of wood will make this project stand out.” While the developer hopes the payoff will be obvious in the long run, the adoption of a building technique so new to Austin didn’t come without its challenges, especially when it came to code compliance. Classified as a IIIA construction type, the entire structure needed a one-hour fire rating. Meeting that benchmark is no problem for CLT, as it performs just like any other heavy timber element would. As it burns, a sacrificial layer of char about an inch thick develops, insulating and protecting the assembly from further degradation. Proving that to code officials typically requires an acceptable UL rating — a rating the product lacked, despite having been in widespread use in Europe and Australia for decades.

To pass code, the design team enlisted the help of fire-engineers from Arup to mathematically calculate the assembly’s fire rating, working to educate city officials. This added cost and time to the project’s budget and schedule, but ultimately paved the way for the integration of CLT in future projects in Austin.

As the project nears completion, Whatley is optimistic about the design’s eventual contribution to the fabric of the ever-changing neighborhood and city as a whole. “The ground floor is designed to relate well to the adjacent streetscape. The lobby is designed to accommodate a large bi-fold door that pivots upward to allow for a seamless connection with pedestrian traffic.

We’re expecting a lively urban experience with a coffee kiosk, patio, and public engagement.” The development expects to open its doors by the beginning of 2019.

Source: Texas Architects

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Meet the Buyer The City of Houston’s Office of Business Opportunity Department recently hosted its 10th Annual “Meet the Buyer” Purchasing Forum. “Meet the Buyer” was held to introduce City of Houston, community partners, and other governmental agencies’ purchasing agents to Minority, Women, Small, and Disadvantaged Business Enterprises (MWSDBE) so that these business owners could gain an understanding of the purchasing needs of their departments and organizations.

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CONSTRUCTION

2018 Construction Brief Dive Brief: • The Houston metropolitan area, according to an analysis of federal employment data by the Associated General Contractors of America, created 25,600 construction jobs — the largest number recorded out of 358 U.S. metros and a 12% increase — from October 2017 through October 2018.

• The construction industries in the Phoenix (16,700 jobs; 14%), Dallas (13,200; 9%) and Orlando (11,700; 16%) metro areas generated the next-highest number of construction jobs, while Midland, Texas (7,200; 25%), and New Bedford, Massachusetts (600; 22%), had the largest percentage increases. Seventyeight percent, or 280, of the metro areas AGC tracks saw construction job growth, while 43 saw a decline and 34 stayed the same. The Middlesex-MonmouthOcean, New Jersey, metro had the greatest decline of 3,900 jobs, a 10% loss.

• The number of construction job openings at the end of September 2018 rose 55% to the highest level in 18 years, noted AGC chief economist Ken Simonson in the report, and construction unemployment last month fell to an 18-year low of 3.6%. Association officials said the lack of skilled labor could threaten future gains and called on federal and state officials to double funding for career and technical programs during the next five years and to reform immigration laws so that employers can bring in foreign workers if needed.

Dive Insight: The value of construction projects in Houston also increased between Oct. 2017 and Oct. 2018, jumping to $3.4 billion from $1.9 billion, according to Dodge Data & Analytics. The energy and chemical sectors are a significant driver of building activity in the area.

In October, German manufacturing company Covestro announced it is planning a 1.5 billioneuro methylene diphenyl diisocyanate (MDI) plant in nearby Baytown, Texas. The facility will be able to produce 500 kilotons of MDI (which is used for polyurethane insulation and other materials) annually and will replace existing Covestro facilities on the site.

The Houston area is also recovering from last year’s Hurricane Harvey, which devastated commercial and residential properties with record flooding. Harvey caused an estimated $125 billion of damage, and the demand for construction services remains high.

In an effort to prevent damage from future storms, Texas officials and the Army Corps of Engineers are developing a $23 billion to $32 billion plan for a “coastal spine" system of flood protection and draining infrastructure to protect the Texas Gulf Coast.

The coastal protection project will get more than $2 billion of federal money, as part of the almost $6 billion in water infrastructure projects outlined in America's Water Infrastructure Act of 2018 that President Donald Trump authorized in October.

Source: Construction Dive

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ENERGY

Renewable Share of U.S. Energy Generation on a Slow and Steady Ascent

By Subcontractors USA News Provider

W

hile optimism over the role of renewable energy in the United States is high, the challenge of overtaking fossil fuels en route to a larger share of the mix remains large.

Despite the enormity of the task, renewable energy generation continues to expand at steady, although incremental, pace.

Recent data from the U.S. Energy Information Agency (EIA) illustrates the trend.

Released in October, the EIA’s “Electric Power Monthly” shows year-to-date trends for all sources of energy generation in the U.S. through the month of August.

According to the data, renewables accounted for just about 18 percent of the

total generated from all energy sources.

The largest contributors were wind and solar at 37 percent and 9 percent of the renewable total, respectively. Renewables also include hydro power, geothermal, biomass and wood-derived fuels.

While not expanding rapidly, renewables are on the upswing. Total renewable generation increased by about 5 percent from August of 2017. Wind power increased by 16 percent, and solar increased by 31 percent. Combined, renewables accounted for just about 17 percent of the total at the same time last year.

Despite this overall growth, other factors have mitigated the expansion of renewables as a share of total generation. First of all, energy generation increased overall by about 41/2 percent from last year.

Within the mix, coal generation dropped by almost 6 percentage points. Meanwhile, oil generation increased by more than 50 percent, and natural gas generation increased by 14 percent.

The poster child for fossil fuels and the target of elimination for renewable proponents, coal generation now accounts for about 27 percent of total generation, down from 30 percent last year and nearly 50 percent a decade ago.

Source: Electrical Contractor

ENGINEERING

Six Ways Robotics Can Make ECs Safer

By Subcontractors USA News Provider

E

lectrical contractors (ECs) have dangerous jobs by nature since they work around electricity.

However, robotics and other kinds of autonomous equipment could help ECs enjoy more safety every day. Here are six ways to implement robotics into the work ECs do.

1. Remotely disconnect power sources ECs know how to work around electricity responsibly, but it's even better if they can do so at a distance. Eaton offers shunt trip safety switches for electrical power sources that communicate with external sensors.

If the sensors identify unsafe conditions, the switches automatically turn off the power. In addition to enhancing personnel safety, these switches aim to reduce equipment downtime.

the wearer lifts their arms above their head but then makes the force almost nonexistent when the person holds their arms at their sides to rest or reaches for an item stored in a toolbelt.

Although there are many potential uses for ShoulderX, the company lists electrical wiring and other overhead tasks as being easier when people wear it. The design of the gadget is also streamlined to make it suitable for working in confined spaces, and it takes less than a minute to put on or take off. It's also possible to adjust the amount of support provided based on tasks performed or a person's fatigue level.

This wearable case study is one example of how robotics can benefit the work humans do instead of replacing it, while improving safety, too.

2. Cut underground wires from a distance Some robotics applications that improve safety also promote efficiency by allowing the completion of more uniform work. An underground wire-cutting toolfrom Milwaukee Tool is a prime example because it permits a lineman to prepare the cutter and operate it remotely from afar with a wireless remote.

The cutter also has an LED light that indicates when the device has finished cutting, preventing the worker from approaching the area too soon.

Additionally, the tool, which works with a hydraulic pump, features a mutually exclusive connection that prevents other intelligent gadgets from also linking to the cutting device and causing it to behave unexpectedly.

3. Reduce fatigue If ECs get tired, the inherent dangers in their jobs can become apparent. Even when they know how to work safely, fatigue can set in and exacerbate the risks. SuitX offers wearable robotic equipment that helps people who carry out repetitive motions such as bending and lifting.

Its ShoulderX product applies an assistive force when

traverse the uneven terrain that's typical of the tropical, mountainous region on foot, risking ankle sprains or falls. But, authorized pilots operated the drones to find problems and even string new lines over inaccessible terrain.

When ECs use drones to survey the damage before taking action, they can figure out how to best tackle situations without putting their lives at risk. As such, this method boosts safety and allows for improved human resource allocation.

5. Prevent electrical shock Electrical shock is an always-present threat for ECs, but companies develop technologies that reduce the risk. Proxxi is a wearable sensor that automatically vibrates when people get too close to high-voltage electricity.

The sensor also connects to an app and calculates the number of potentially harmful interactions during shifts. So, in addition to helping people avoid in-the-moment risks, it can assist them with tracking unsafe trends.

6. Potentially allow ECs avoid some heightrelated tasks

4. Look for downed power lines When severe weather batters a community, electricians are often among the first on the scene to survey the damage and start repairing fallen power lines to restore electricity to the affected household and business customers. Some methods of looking for the worst-hit areas involve traveling on foot to see where companies need to send their electrical crews first.

It's not difficult to imagine the risk in that scenario.

If companies had not used drones in Puerto Rico to look for downed lines, ECs would have been required to

Utility poles mean electricians and linemen must take part in work that occurs at dangerous heights.

They wear safety harnesses to reduce the chances of things going wrong, but accidents still happen.

Scientists built a prototype of a pole-climbing robot intended for power line-related work. It's not used in real-world settings yet, but the project shows that researchers are examining what's possible.

Technology that helps ECs work safely and doesn't replace them All of the options presented here equip ECs to do their jobs with safer methods and, notably, don't put those professionals at risk of being replaced by robots.

ECs have specialized skills and expertise. These robotic products allow them to use what they know without facing such significant possibilities for unsafe situations.

Source: Electrical Contractor

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IT & TECHNOLOGY

The iPad is the New Hammer

By Subcontractors USA News Provider

T

here are three main factors that drive the demand for mobile technology in the construction industry: leadership request, an increasingly mobile workforce and the growing need for real-time information. According to a recent study, more than 80 percent of construction professionals surveyed said that mobile capabilities are "very important" in improving their workflows.

While the adoption of mobile technology, in general has been growing for the last several years, smartphones and tablets remain the most widely used devices in the construction field. Instead of several types of devices, construction executives are favoring using single devices for multiple purposes. Advanced software solutions are integrating more features and functionalities than ever, which means fewer types of devices and software are needed to get the same job done.

Off-The-Shelf Off-The-Shelf Vs. Vs. Custom Apps In order for mobile technology to be productive, it must be supported by good software. A mobile app can improve workflows such as easing the dispatch of real-time information from the main office to the field, reducing administrative workload and minimizing paperwork for faster billing and time tracking.

With so many options for apps, how do you choose the right one for your mobile strategy? Off-the-shelf mobile apps have the benefits of quick deployment and lower development costs. But it’s rare to find an off-the-shelf app that suits the exact needs of your company.

The ideal application is a customized one that can be designed around a workflow to meet your individual business needs. With a custom app, businesses can access, transport and analyze company information quickly and easily. For example, a project manager can report construction errors immediately while building a system, which will then send automatic notifications to the person responsible for fixing the error.

Executives can then use real-time data from connected devices to make faster and smarter strategic decisions. And finally, a good application should also feature an engaging and easy-to-use interface.

Here are some questions to consider when choosing the right app for your business: • What are the business issues that need to be resolved?

• What features and functionalities are important to your business?

• Who will be using the app and how tech-savvy are they?

• How will the app integrate into your existing workflow?

IntegrationSolutions Solutions Integration One of the main considerations when planning a mobile strategy is how the updated technology will integrate with existing processes. Fortunately, most app solutions integrate the mobile application with desktop capabilities so that individuals in the back office and the field can update and view any information at any time. The capabilities of mobile technology are far more beneficial when they can be shared with all involved persons. It can also be beneficial to have a web admin portal that allows authorized users to manage content being displayed to each group of users.

"When you have a workforce that is comfortable with technology, it can only mean good things. It naturally creates more efficiency," according to one IT director.

"Developing the app kicked off our momentum as a company to be more open to technology; it’s opened up doors and avenues of being able to save on workflows, save on productivity and get things done as efficiently as possible."

Source: Associated General Contractor

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IT & TECHNOLOGY

How industry DRONE leaders scaled their programs

By Subcontractors USA News Provider

J

ust a few years ago, enterprise adoption of drones was out of reach for even the largest contractors, due to tight Federal Aviation Administration regulations and limited options in the drone hardware and software marketplace.

But with the development of the Small Unmanned Aircraft System (UAS) Part 107 regulations in 2016 — eliminating the requirement that commercial drone operators have a pilot’s license, among other provisions — and an influx of tech solutions for planning and managing drone operations, drone adoption is becoming more feasible for construction companies.

Drone experts at Skanska USA and PCL Construction, both early adopters of the technology, outlined in a recent webinar the steps they took to expand drone use to more jobsites and applications across their companies.

this approach, besides getting more comfortable operating the technology and compiling useful data, was the “internal buzz” it generated in onlookers, said National Quality Manager Bill Bennington.

The flights “drummed up a lot of internal interest into the drone platform and how we could use the tool,” he said. “They’d want to see the point clouds and mesh surfaces we created out of those flights,” and would ask the drone team to come out to their jobsites.

With more experience and training under their belts, Skanska’s drone team tapped into the technology’s potential as a tool for studying existing site conditions (without relying on often out-of-date Google Maps images or internet searches), communicating with stakeholders, tracking project progress and more. The contractor developed a streamlined process and workflow to deliver in-house 3D point clouds, mesh models, aerial photos, 360-degree photo sets, video capture and more, said Smith. And while expanding to these use cases, it increased its number of UAS-certified pilots on staff from one at the end of 2017 to 10 this year.

predictable results from your flights.”

A drone training program can be one forum where this can take place. Even though drones and accompanying software have user-friendly autonomous capabilities, it’s critical that all operators be trained in manual operation as well, he added.

“The autonomous features within a lot of these programs are so easy to fly that if you’re not careful, you could have somebody that flies for a long time but … isn’t comfortable taking over manually” if an emergency situation arises, said Bennington.

Standardizing Standardizingacross acrossthe thecompany company To prepare their programs for broader expansion, both firms worked with legal teams, tech providers and other partners to develop flight operations manuals and standardize pre-flight plans, safety checklists, site walkthroughs and other best practices. For example, because the FAA currently restricts commercial drone flights over nonparticipants, Smith said teams should walk through the area prior to a flight as well as make sure there are no deliveries planned during the flight window.

It’s also important that contractors “learn from any hiccups along the way” and share those lessons learned across the entire company, said Bennington, because doing so “helps you produce consistent,

Developinguse usecases cases Developing Both firms started small to work out kinks and establish a baseline process they could later build on.

Skanska primarily focused on safety benefits in its first use case, said Oliver Smith, Skanska's director of innovation and virtual design and construction, by sending a drone to inspect a crane to see how it would later be brought down from its height to be repurposed in the design of Raleigh Union Station. Instead of assembling scaffolding and subjecting workers to strong crosswinds, the project team created a plan of action for removing the component based on the drone imagery.

PCL debuted its first two drones on its home turf, practicing flights over its Orlando office. One perk to

Findingthe thedrone dronechampions champions Finding Key to expanding drone use is not only making sure that projects are a good fit, according to Bennington, but also ensuring the right people are involved. “If it’s working well and they start talking about the tool and how it’s being used and the value it’s bringing to the job, that’s going to be way more impactful than having a lead talk about scaling the program,” he said.

Contractors may tap their innovation or VDC staff to run drone programs by default, but the biggest UAS enthusiasts could be among the field engineers or superintendents, Bennington suggested. “We saw more success with people that were passionate about it than just assigning it to someone based on their role or title,” he said.

And as more people and projects are looped in, it’s important that companies have an end-to-end software tool to record various certifications, insurance approvals, flight logs, fleet information and more. Seek a solution “that’s going to grow with you as you scale up and move across districts,” Bennington said. Being able to refer back to records of all drone flights can clear up any concerns by clients or other stakeholders and “bring certainty to what was captured,” he said.

Source: Construction Dive

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Look out California, Texas is now the to business in, and for Minority, Women a Owned Businesses, that means it is time This just goes to prove that when the state government and businesses in the state work together, it creates a more growth-happy environment.

Of the top ten cities to gain the most business from companies leaving California, three were cities in Texas:

By Subcontractors USA News Provider

Why are companies leaving California?

A recent study by Joseph Vranich from Spectrum Location Solutions showed that from 2008 to 2016 more than 13,000 businesses left California and moved their headquarters elsewhere. In 2016 alone, an estimated 1,800 relocations or “disinvestment events” occurred.

But, this downfall in California’s business climate is not a new development. For about 40 years, California has continuously been viewed as a state difficult to do business in, and it seems things are only getting worse.

Harsh laws and regulations, increased taxes and no support from the state government are contributing to the increasing difficulty for businesses, large or small, in California to succeed.

• Austin • Dallas • San Antonio

Why are those companies relocating to Texas?

Vranich’s study showed the state to gain the most from the departing California businesses was Texas. Texas has also consistently ranked No. 1 in a survey for “Most Business-Friendly State.” Texas’ business friendly environment can be accredited to several aspects including lower taxes and a more pro-business state government.

The Spectrum Location Solutions study showed Texas voters elected more business people to the legislature regardless of party.

In the study, Chuck DeVore, a former California legislator, stated “An inordinate number of California legislators have worked for government or were attorneys. But Democrats in the Texas legislature are more than twice as likely to claim private-sector experience outside the field of law while 75 percent of Texas Republicans earn a living in business, farming or medicine. It’s virtually certain that an updated comparison would produce similar findings.”

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Houston and Fort Worth were not far behind, coming in in the top 20 cities to gain new business.

So with Texas’ business friendly environment, as well as its superior infrastructure, government regulations, schools, safety and power and fuel costs, finally being recognized by those other than Texas residents, how does it affect business in Texas?

What does this mean for Texas businesses?

This means now is the time to act! Those looking to start a business, gain more business or join new, successful businesses in Texas are in the best climate to do so.

In addition to Texas being ranked as the top business friendly state, it is also ranked No. 2 on the Small Business and Entrepreneurship Council’s 2018 Small Business Policy Index, which ranks the states on policy measures and costs that impact entrepreneurship and small business growth.

Whether people are looking to join an already established business or start their own, Texas is one of the top places to pursue business and

January 2019 | 17

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op state to do and Veteranto expand! career growth.

For those aiming to start their own business, Texas has an economic foundation laid out for small businesses to be successful. Texas was ranked as the No. 2 most economically free state on the Fraser Institute’s “Economic Freedom of North America 2017,” a report that measured the variables of government spending, taxes and labor market freedom in each state.

Vranich’s study stated in a quote from Dean Stansel, an economics professor at Southern Methodist University and co-author of the report, that “The link between economic freedom and prosperity is clear – people who live in states that support comparatively low taxation, limited government and flexible labor markets have higher living standards and greater economic opportunity.”

With Texas being notorious for its oil and gas industry, as well as having a strong construction, engineering and technology industry, the opportunities for subcontractors and future minority, women and veteran business owners, seem to be plentiful. Texas

A few of the prominent companies in these industries moving from California to Texas include:

is one of the select states showing rising numbers for small business and entrepreneurship growth, so now is the time to start or begin furthering business growth efforts in these areas.

On the other hand, people looking to join successful bigbusinesses that have moved to Texas just so happen to be in luck as well. With Texas being the largest recipient of businesses departing from California, several large companies are moving in with plenty of jobs to offer. Of the top types of companies leaving California, development, technology and all types of engineering rank in the top five. This means that jobs in these industries are waiting to be filled by residents of Texas who have the required skills.

1. Kubota Tractor Corporation - Grapevine, TX 2. Toyota US Headquarters - Plano, TX 3. Jacobs Engineering - Dallas, TX 4. Occidental Petroleum - Houston, TX

All these companies have established

diversity and inclusion and supplier diversity programs. This creates great opportunities for minorities, women and veterans looking for jobs in these fields. Research in the Spectrum Location Solutions study shows that Texas is currently a place of business growth and success, which will only attract more businesses like the ones moving here, creating more and more opportunity.

In conclusion Regardless of the type of career moves people are looking to make - whether its owning a business, growing a small business or joining a large business - now is the time for women, minority and veteran businesspeople in Texas to start taking action. Texas is the place to be right now when it comes to business and based on the consistent top rankings and proof of continuous business growth and success, there is only more to come.

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LEGAL

Navigating the Ins and Outs of Texas Contingent Payment Clauses

By Karalynn Cromeens Contributing Writer

G

reat! You landed a contract for a new build and your team is ready to get to work. All that’s left is to sign your John Hancock to the dotted line to make sure you and your crew get paid for the work that’s done. But wait, what’s this?

“Progress payments to Subcontractor shall be made only with sums received by Contractor from Owner for work performed by Subcontractor as reflected in Contractor's applications for payment.”

That’s head-spin lawyer speak, but what does it mean? Are you prepared to receive payment for the hard work and effort your team put into a job? How do you know if what you’re signing is in your best interest? At the Cromeens Law Firm, we are experts at deciphering Texas Business Law.

Avoid the the Pitfalls Pitfalls of Avoid ofthe theClause Clause Genera l contractors use subcontract agreements to protect their intere st s and shift risk downstream to subcontractors. They accomplish this by including powerful contract clauses that provide little escape from harsh outcomes if the project doesn’t unfold as planned.

One such clause is the contingent payment clause, which forces a subcontractor to assume the risk of

the owner’s failure to pay.

Yes, you read that right. If the owner doesn’t pay the general contractor, then the subcontractor doesn’t get paid.

Unfortunately, most subcontractors don’t become aware of this clause until long after the subcontract is executed.

At this point, a subcontractor may assume they’re at the mercy of the nonpaying contractor as they watch their cash flow drop dramatically. Fortunately, Texas law provides subcontractors with some protection.

Understandthe theLaw Lawto toEnsure Proper Understand Ensure Proper Payment Payment Texas law attempts to balance the interests of general contractors and subcontractors by providing commonsense application of contingent payment clauses. The statute states that the general contractor must pay the subcontractor even if he or she had not been paid by the owner.

If a c o n t ingent payment clause is enforceable against the subcontractor, there is still an exception to the rule if the subcontractor gives notice to the general contractor that he intends not to be bound by the clause. The statute provides a strict timeframe for providing the notices, which are ineffective as to subsequent payments and must be reissued.

ExperienceWhen Whenand andWhere WhereYou YouNeed NeedItIt Experience An experienced attorney will ensure you follow the guidelines in the statute. The protections in the statute cannot be waived or used against a properly perfected

mechanic’s and materialman’s lien. Additionally, a contingent payment clause cannot be enforced if it would be “unconscionable.”

If you are unable to reach an agreement with the other party, a judge would need to define what is “unconscionable,” which is a more subjective deliberation than you would think. It really just comes down to a, excuse the pun, judgment call.

If you entered into a subcontract agreement with a contingent payment clause, it’s important to be ready for action as soon as the general contractor attempts to enforce the provision against you. Failure to act can cost you a great deal.

The Cromeens Law Firm provides clients with expert navigation of the Texas contingent payment clauses, ensuring subcontractors protect their bottom line by having access to the right tools.

Contact one of our experienced attorneys today by calling 713-489-5792 or contact us online to discuss your options.

This article is intended as a general educational overview of the subject matter and is not intended to be a comprehensive survey of recent jurisprudence, nor a substitute for legal advice for a specific legal matter. If you have a legal issue, please consult an attorney.

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PROCUREMENT EXPO "ACCESS TO HCC" HCC West Houston Institute 2811 Hayes Rd., Houston, TX 77082

March 5 at 8 – 11:30 a.m.

Procurement Expo - "Access to HCC" is an opportunity for businesses to connect and network with procurement officers and representatives from more than 20 College Departments.

Attendees will have an opportunity to learn about HCC’s current and upcoming procurement PROCUREMENT EXPO - “ACCESS TO HCC” needs, as well as market their product or service March 5, 2019 8:00am – 11:30am to other participating governmental agencies and HCC West Houston Institute, 2811 Hayes Rd., Houston, TX 77082 community resources.

RSVP: https://sbdpaccess.eventbrite.com

RSVP today. https://sbdpaccess.eventbrite.com

“Access to HCC” Procurement Expo is an opportunity for businesses to connect and network with Procurement Officers and representatives from over 20 College Departments. Attendees will have an opportunity to learn about HCC’s current and upcoming procurement needs, as well as market their product or service to other participating governmental agencies and community resources. RSVP today!

Additional exhibitors include:

MCSR19-6749

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PERMITS

Missed Pulling a Permit or CO? Here are Five Tips That Can Help Get You Out of a Jam

By Helen Callier Contributing Writer

T

here is always constant change in this industry that makes it fun to work in. Challenges with labor, juggling ways to incorporate new technology and how to push through a permit with umpteen revisions. One concern we hear about often from Project Owners is that their contractor did not pull a permit before starting construction or at all.

And, last month the Permit Us Now team received several calls indicating that a Certificate of Occupancy (CO) was never obtained on projects finish a long while ago along with how to expand a facility without a CO. Contractors often manage multiple jobs and may miss an item on punch lists, but pulling the building permit should not be one of those tasks missed. Failing to pull a permit from the appropriate jurisdiction will eventually catch up with the contractor at some point in time with a great chance of tarnishing the company’s reputation.

2. Visit permitting jurisdiction’s website: Research Frequently Asked Questions, obtain department telephone numbers of staff you can speak with to help resolve and pull any necessary applications needed 3. Contact permitting jurisdiction to ask questions by phone or in person: Permitting staff members are understanding people with primary focus on building safety, so most will be willing to meet to review what needs to be done.

4. Call for City Inspection to obtain CO: Depending on the length of time elapsed after completing construction and if a permit was originally pulled, contact jurisdiction inspection to properly close out job and to obtain a CO. 5. Review Your Punch List and Preconstruction Checklists: Make sure building permits, CO’s and other needed zoning documents are clearly noted, confirmed and checked off before starting and closing out a construction project.

In InConclusion Conclusion

Building safe housing, restaurants, retail stores, hotels and other structures and infrastructure is top priority in the construction industry. And alerting Project Owners, visiting jurisdictions' website and asking for help from knowledgeable jurisdiction resources and permitting experts will assist in righting your ship if missed pulling a permit or CO. If you have any questions, please connect 1.844.PERMIT.4. Build Safe.

Below are five tips to consider if pulling a permit or CO was missed on your construction project.

1. Advise Project Owner immediately of mistake and lay out plan to correct issue: Doing so shows your ethics and professionalism in the business

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22 | January 2019

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Mitigate risk with SAFETY

construction site monitoring As mentioned above, theft is a major issue for construction sites in the United States.

Loaders are the most common piece of equipment stolen at 36%, according to a study conducted by the LoJack Corporation. And the estimated replacement costs for equipment in 2016 for recovered equipment was nearly $11 million. Bear in mind—that’s for equipment that was recovered by the LoJack system. Less than 25% of stolen construction equipment is ever recovered, adding significantly to that total cost.

Of course, most companies have insurance in place that covers at least part of the value of stolen equipment.

But replacement cost for these items only represents a portion of the total cost. Other costs include:

By Subcontractors USA News Provider

C

onstruction jobsite theft costs the industry up to $1 billion each year and US businesses spend more than $170 billion dollars annually on work-related injuries.

Adding cloud-managed construction cameras to remotely view and record jobsite activity could be the key to reducing theft and ensuring safety compliance. Onsite cameras are a two-birds-one-stone solution. In addition to deterring theft, security cameras can also help prevent workplace injuries and improve overall safety conditions.

It’s no secret that construction sites often present hazardous working conditions. While the industry accounts for only 4% of employment in the U.S., it accounts for a staggering 21% of all fatal work injuries.

Meanwhile, nonfatal injuries in the construction sector top over 70,000. Perhaps most shocking, nearly every construction worker will suffer at least one work-related industry.

Over a 45-year career, 75% of construction workers would suffer a disablinginjury, and one in 200 would suffer a fatal injury.

Onsite injuries are no laughing matter, and protecting your employees should be of paramount importance.

Anything that can be done to improve working conditions on the jobsite should be priority one.

But, aside from the obvious fact that you don’t want your team members seriously injured, these types of events can also be costly to a project. Not only do they cause a loss in productivity, there are the issues of worker’s compensation or even possibly expensive lawsuits to consider.

Cloud-managed, real-time cameras provide simple ways to combat workplace dangers. Employees are likely to take greater precautions under surveillance, live monitoring would allow you to communicate with them in real time if you noticed a safety issue and visual documentation provides evidence should an infraction occur. You are also more likely to become aware of workplace hazards that have the potential to cause catastrophic injury, and correct those problems before such incidents occur.

On that note, early detection and correction of these hazards will help you protect your jobsite in general—for instance, if a site catches fire, surveillance cameras would allow the fire to be caught early before major damage was done.

• Downtime and loss in productivity, resulting in costly delays and potential client penalty fees if deadlines are missed • Renting substitute equipment until your insurance policy kicks in to cover the cost of replacing it • Time lost on police reports and insurance claims—after all, time is money • Higher insurance rates down the road

Lost equipment is equipment that isn’t working for you.

All of this could be avoided by utilizing a few key tools. First, by placing GPS systems on all your major pieces of machinery, you could much more easily track down stolen equipment. Installing jobsite security and surveillance cameras with motion activation and thermal sensors give you non-stop visual access to your projects and keep you informed of afterhours activity through instant alerts and recording. Moreover, the sheer presence of site cameras acts to deter theft.

Sensera Systems provides clients with the ability to utilize real-time data through its SiteCloud platform and site security cameras. SiteCloud provides a rich set of features to view and manage archived images and video and allows project manages to have secure storage and backup of project data, video streaming, time-lapse videos, in addition to providing real-time security alerts. SiteCloud allows for multiple users so that information can easily be shared with stakeholders of their projects. Plus, SiteCloud integrates with Autodesk BIM 360, Procore, and PlanGrid, as well as with an array of other construction focused programs. Benefits of implementing real-time data management through Sensera Systems include: • Photo documentation – review images and videos of incidents on your jobsite in SiteCloud from anywhere on any device • Share information easily across team members • Integrated tools - connects with a variety of Project Management software • Remote visual monitoring – less back and forth from the office to the jobsite • Personnel workflows – increase employee productivity and efficiency • Safety compliance – make sure your jobsite maintains OSHA standards • Security – monitor asset and ensure site security with real-time alerts

Source: Construction Dive

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MORE THAN BRICKS AND MORTAR

As one of the nation’s largest commercial builders, Turner is dedicated to providing avenues of opportunity for Minority- and Woman-Owned Businesses in Houston to achieve entrepreneurial success.

Our commitment to social responsibility and fair play is not just on paper; it is ingrained in our corporate culture. We are devoted to making sure the contributions that strengthen the local economy reflect the demographics of the community at large.

w w w. t u r n e rc o n s t r u c t i o n . c o m

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SAFETY

Ensuring Operational Safety When Utilizing Boom Lifts

By Subcontractors USA News Provider

B

oom lifts have been a popular type of equipment on construction sites for years. The lift’s versatility makes it a perfect choice for tasks that need to be completed at a significant height. However, operators need specialized training to use this type of aerial lift. To keep a work site safe, boom lift operators must be certified by a trusted source.

BOOMLift LIFTBasics BASICS Boom To understand why boom lift certification is so important, it helps to learn the basics of how this equipment works. Also known as cherry pickers, boom lifts are comprised of a wheeled base, a hydraulic arm, and a basket at the top.

On some boom lifts, the arm can bend or extend.

Workers standing in the basket can use the controls to move the arm. Once in the correct position, they can complete their work while in the basket.

Boom lifts are useful for a variety of applications. You’ll often see utility workers using them on construction sites. Boom lifts can be used for painting, for making repairs on another large machine or for renovating the exterior of a building. They are also used as camera platforms for filming, and firefighters sometimes use them in emergencies. The name "cherry picker" comes from one of the original uses for the boom lift, which was harvesting fruit in orchards.

BoomLIFT Lift HAZARDS Hazards BOOM Because the wheeled base is heavy, boom lifts keep workers stable as it lifts them upwards. However, there are some safety risks. Workers are up high, and they are sometimes extended out from the base at an angle.

Here are four key safety risks when using a boom lift: Falls: The most dangerous threat when using a boom lift is falling. Workers must move carefully when in the basket and move the arm at a slow, cautious pace. To help prevent falls, workers should always wear a safety harness that connects them to the basket. Railings

around the basket can also help workers stay safe.

Tipping: Workers can extend the arm of a boom lift up and out from the wheeled base. This creates a tipping hazard if the arm is extended past a safe angle. Also, wind gusts can push the boom lift over. Boom lift operators must understand that the lift becomes less stable the more they extend the arm. It’s important to be aware of weather conditions, the total weight in the basket, and other factors that may increase the risk of tipping.

Collisions: The operator can move both the base and the arm of the boom lift. This movement increases the risk for collisions both on the ground and in the air.

Operators must be aware of their surroundings to avoid aerial and ground-level obstacles.

Electricity: Boom lifts are often used for aerial electrical work. While the lift makes it easier to complete this work, there is an increased risk of electric shock.

The basket is usually made of metal, which can transfer electricity to workers if you and your crew don’t take proper precautions.

Training For TRAINING FORBoom BOOM Lift LIFTOperators OPERATORS Due to the safety risks of using a boom lift, all operators must be trained and certified. Train-

ing for this t y p e of machinery consists of several parts, such as instruction on how to use the controls.

Wor k e r s learn about safety risks and how to avoid them.

Training also covers how ma ximum load capacity works and explains how to perform regular inspections.

Workers may have to be retrained periodically, especially if they are required to use a new type of aerial lift.

Most workplaces also require retraining if workplace hazards are discovered or after an accident occurs.

BoomLIFT Lift CERTIFICATION Certification BOOM Workers must complete a certification process to operate a boom lift. In fact, it is required by the Occupational Safety and Health Administration (OSHA). Violation of this requirement can result in fines for the employer.

Employers may require proof of certification upon hiring. In other cases, employers may pay for their workers to complete the training and certification process.

Workers who have completed OSHA-approved training receive a Certified Operator card.

While boom lifts pose some risks, operators can use them safely with the right training, certification and workplace safety precautions.

Source: Associated General Contractor

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What We Do POSITION

ADVOCATE

CONVENE

our region to secure critical transportation funding at the local, state and federal levels.

for ALL modes of transportation to promote a healthy state of mobility.

our region’s industry experts, community leaders and elected officials to build consensus and unity on tr transportation needs.

EDUCATE . COMMUNICATE . ADVOCATE 1160 Dairy Ashford Suite 500 Houston, Texas 77079 832.459.5116

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TRANSPORTATION

METRO Sets New Standard with Tech Innovation

Personalized Navigation Tool Introduced

By Subcontractors USA News Provider

M

ETRO riders now have the luxury of a personal guide thanks to a new tool.

Today the agency launched an updated METRO TRIP App with enhanced My Stop Technology. The first-of-its-kind application relies on Bluetooth technology to provide riders very specific directions. The app displays exactly where to catch the bus and vibrates when the user reaches the location.

"This ambitious application is truly a METRO original. Transit providers must embrace integrating and even pioneering technology to improve mobility. That is exactly what we have here today," said METRO Board Chair Carrin Patman.

The personalized navigation is particularly helpful in transit centers where there are multiple routes. It directs the user to the exact bus bay for pick up.

"This type of forward-thinking innovation that improves the customer experience is exactly what we should all expect from METRO," said METRO President & CEO Tom Lambert.

In recent months, the agency installed more than 9200 Bluetooth beacons at bus stops for the project. Initially, the Authority set out to develop something to make the system more accessible for the visually impaired. However, as the project progressed, the development team realized it had a broader application.

"My Stop Technology removes barriers for everyone. It is for everyone. I expect this dynamic innovation will continue to evolve and result in additional customer-oriented enhancements," said METRO Board Member Lex Frieden.

Frieden worked closely with METRO staff and a customer focus group on the project.

Source: METRO

TRANSPORTATION

DFW Airport Selected for $5 million Transportation Study

By Subcontractors USA News Provider

T

he U.S. Department of Energy (DOE) awarded $5 million to invest in a DFW Airport transportation study. The study will be conducted in partnership with the National Renewable Energy Laboratory (NREL) and Oak Ridge National Laboratory (ORNL), and other national leaders in transportation, aviation and aerospace to maximize energy productivity and identify improvements in convenience, and affordability in the transportation sector.

The $5 million research initiative is funded by the DOE’s Vehicle Technologies Office and will be conducted over three years. DFW Airport hosted

the project kick-off at the Airport Headquarters Building on Nov. 27. Project milestones for year one include creating a digital twin of DFW Airport and connected urban transportation ecosystems to demonstrate a flexible, dynamic high-performance computing model that characterizes and visualizes multi-model passenger, freight movement, and energy flow.

“We are thrilled to partner with these research institutions and study how to effectively integrate and adapt to transformative technologies to benefit our customers,” said DFW Airport Executive Vice President of Operations, Chad Makovsky. “Our partnership with NREL and ORNL will help provide opportunities for the entire region to explore

the best ways to transform, innovate and invest for the future.”

Researchers at NREL and ORNL will identify technology approaches that maximize mobility energy productivity – or the overall quality of mobility with respect to time, cost, and energy – of passenger

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and freight options within the Airport.

“In year one, we will utilize the national laboratories’ high-performance computing to generate digital models based on real-world data from DFW and its transportation partners,” said NREL Associate Lab Director, Mechanical & Thermal Engineering Sciences, Johney Green. “These models will be used to support smart, energyefficient mobility options for people and goods.”

These model results, combined with insights from the Airport and its operating partners, will inform realistic recommendations that can guide long-term technology integration investments at DFW and other transportation hubs over the next 20 years.

Source: DFW

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Houston supports small businesses & entrepreneurs Learn how certifications, classes and other tools from The Office of Business Opportunity can help you start and grow your enterprise Web: houstontx.gov/obo

Call: 832-393-0594

Email: OBOSC@houstontx.gov

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