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November 2019 | Advertising for Certified Women, Veteran & Minority-Owned Subcontractors | 44th Edition
Bexar County SBED’s Mission to Help SMWBEs Thrive
LEFT TO RIGHT: Anthony Ruiz, San Antonio District Director, U.S. Small Business Administration; Renee Watson, BA, MPA, ECMCA, Small Business and Entrepreneurship Department Director; Bexar County Judge Nelson W. Wolff; Dr. Tivy Whitlock Tommy Calvert, Bexar County Precinct 4 Commissioner
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INSIDE
04
How to design net-zero ready buildings on a budget
22
Greater Houston Business Procurement Forum – October Breakfast
28
Moving Foward Future of Houston Transit Focus of 2019 State of METRO
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PUBLISHER’S MESSAGE 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 highlights Bexar County’s Small Business and Entrepreneurship Department. This department is responsible for creating an environment where small businesses can thrive, leading to a more sustainable economic future
for Bexar County. The Small Business and Entrepreneurship Department is also responsible for administrating the Small, Minority and Women Owned Business Enterprise (SMWBE) Program and the Disadvantaged Business Enterprise (DBE) Program. 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.
“The purpose of life is to contribute in some way to making things better.” —Robert F. Kennedy
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CONTENTS
OUR SERVICES
04 ARCHITECTURE 04 How to design net-zero ready buildings on a budget
ADVERTISING | MARKETING MEDIA | COMMUNICATION
06 CONSTRUCTION 06 Owners contractors have different ideas of what makes multi-site work successful 06 Slow payers cost GCs, subs $64B a year
10 ENERGY 10 Shifts in Energy Sources, Workforce Lead State of Energy Discussion with Chevron's Mike Wirth 12 IT & TECHNOLOGY 12 Prepare for Automated Construction Fleet Vehicles 14 LEGAL 14 How technology can help contractors prevent lawsuits 14 The Utility of Arbitration Agreements in the Construction Industry 16-17 COVER STORY 16-17 Business for All: Inside Bexar County’s Small Business and Entrepreneurship Department 18 PERMITS 18 Contractors: Some Straight Talk About Getting Your Building Permit
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20 SAFETY 20 New OSHA weighting system could lead to more inspections 20
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22 IN THE SUBCONTRACTORS USA COMMUNITY... 22 Greater Houston Business Procurement Forum – October Breakfast
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24 TRANSPORTATION 24 Calling All U.S. Veterans! Houston Airports is working with Edge4Vets to provide career guidance to local veterans. 24 TxDOT Seeking Input on Texas Transportation Plan 24 Sen. Ted Cruz Supports Houston Ship Channel Expansion Project 28 Moving Foward Future of Houston Transit Focus of 2019 State of METRO
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ARCHITECTURE
How to DESIGN NET-ZERO ready buildings on a budget By Subcontractors USA News Provider
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n architect and engineer present a case study and give advice on how to be sustainable and cost-effective at the same time. The term “net-zero” often brings to mind big budgets and expensive building systems, but this conception couldn't be further from the truth. As architects and engineers, we have everything we need to design netzero ready buildings for the same cost as buildings that meet basic code. All it takes is the right mindset and the right approach. Here’s what our team—architects from emersion DESIGN and engineers from Fanning Howey—learned while collaborating on a net-zero ready campus addition for Bethany School in Cincinnati, Ohio:
Make sure the owner is all in Like a ll goals, creating a netzero ready building w i l l not happen without buy in from all parties, especially the owner. Designers should educate owners about the affordability and practicality of net-zero strategies. However, if net-zero isn’t central to a client's mission and goals for the project, then net-zero strategies are unlikely to be embraced and actualized. Bethany School’s strong existing commitment to sustainability made it possible for us to deliver a net-zero ready design at $225 per square foot.
Assemble the right design team To deve lop a n e t- z e r o ready design you need a team with a collaborative mindset. Architects and engineers need to be comfortable sharing ideas and working outside of their given disciplines. This is important because net-zero ready buildings require extreme creativity and laser-focused attention to the specifics of each building and site. From the very beginning, every Bethany School project team member was in the room giving input. Before there was even a floor plan, the team explored seven different window-to-wall ratio profiles and mul-
tiple construction profiles, including glazing and solar coefficients, evaluating along with way with energy modeling data. Working collaboratively and drawing on the strengths of all involved is the only way to create a cost-effective, net-zero ready building.
Don't be constrained by rules of thumb Net-zero ready buildings require per fect lysized systems to be cost-effective, a nd they can’t be properly designed by following traditional rules of thumb. During early conceptual design efforts, the entire team needs to explore building-and site-specific solutions using energy modeling tools. For example, conventional wisdom says that a high performing building should have more glazing on the south than the north. But during the energy modeling process for Bethany School, our team found the opposite to be true. For this building, on this site, more glazing on the north meant fewer glare issues while less glazing on the south meant less heat gain and the ability to eliminate solar shades. With its site-specific design strategies, the Bethany School addition is projected to be 18.7 percent more energy efficient than the average local vacant building. Right now, the project's Energy Use Intensity is tracking at 17 kBtu per square foot, which will make Bethany School one of the most energy-efficient schools in the nation.
ergy efficiency strategies. When you can, implement an energy efficiency strategy for below the renewable dollars per watt. Be aware of potential funding sources for high performing buildings. Depending on the marketplace and the type of client, there may be funding in the form of tax breaks, grants or rebates. Make sure to include these additional funding sources in your analysis of first costs and long-term operating costs.
Test, retest, and continuously improve Constant evaluation is a critical part of the net-zero approach. As part of the Bethany School project, the team continually tested the design’s energy efficiency using energy modeling. The initial modeling provided a framework for broad concepts and modeling during the design development and construction documentation phases allowed the team to stay on target and make sure that we were achieving our goals. The team will also be working with Bethany School to evaluate to the building's performance after construction with the goal of achieving true net-zero energy usage, not just a target in a model. Even if you don’t have a sustainable-minded client like Bethany School, you can still improve the overall energy efficiency of your designs. Starting down the path of designing for net-zero ready buildings will help secure the future of your practice and the planet.
Understand all project costs and opportunities Understanding all available cost saving strategies is a big part of making net-zero ready buildings affordable. If you are looking at solar panels for renewable energy, for example, find a contractor who will help establish your dollars per watt, which becomes a good rubric for en-
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Source: AIA
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CONSTRUCTION
Slow payers cost GCs, subs $64B a year
CONSTRUCTION
By Subcontractors USA News Provider
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• 92% of owners surveyed believe that that they often form and maintain long-term partnerships with contractors, compared to the 35% of contractors that agree to that assertion.
There are also areas of the survey where contractors and owners are indeed on the same page. For instance, most owners and contractors agree that early collaboration has a positive impact on the quality of completed work, safety and clarity of scope, as well as adherence to the schedule and budget. Construction industry players have long been singing the praises of early collaboration, be it through design-build, integrated project delivery or other similar project delivery methods. One of the primary goals is to identify any potential constructability issues, design clashes or other possible areas of disagreement as soon as possible, therefore reducing the chance of time-consuming and costly change orders. However, design-bid-build, when contractors bid according to a complete and final set of construction documents, is still one of the most popular project delivery methods, traditionally leaving little room for collaboration before the final design is issued.
new study has found that slow payments are costing general contractors and subcontractors $64 billion a year. This is a $24 billion increase from the 2018 study from construction finance platform Rabbet, formerly Contract Simply, as the company added general contractors to the respondent mix. Rabbet conducted the study in partnership with Procore Technologies and found that the 51-day average payment turnaround is particularly hard on labor- and material-intensive subcontractors. More than 60% of subcontractors said they have chosen not to bid on certain projects if the owner or general contractor has a reputation for paying late, and 72% said they would offer a 1% to 5% discount for quicker payments, saving the construction industry approximately $44 billion. Only 39% of subcontractors reported that they are able to cover the late payments with cash on hand, forcing them to incur the costs associated with using lines of credit, credit cards, personal savings and even retirement savings. General contractors have it a little easier when it comes to slow-paying owners, with 35% responding that they have to look to sources outside their balance sheets for alternative financing. About 22% of general contractors reported that they sometimes hold back subcontractor payments to increase their own working capital, although contractors with less than $5 million in annual revenue were most likely to practice this. The tendency for some owners to make slow payments only drives up the cost of the project, by about 5.3%, according to the Rabbet study. Owners also risk mechanic's liens and project shutdowns, the costs of which are included in Rabbet’s estimated cost increases. On the $1 billion Oceanwide project in Los Angeles, for instance, owner Oceanwide Holdings is trying to refinance the project, and in the meantime, subcontractors and general contractor Lendlease have walked off the project. Earlier this year, mechanic's liens on the project totaled approximately $100 million. If and when the project restarts, the owner will likely face demobilization and remobilization fees. Standard forms of contract, like those published by the American Institute of Architects (AIA), explicitly allow for these types of charges if the owner fails to make payment. On a positive note, the Rabbet survey found that 95% of general contractors understand the value of paying subcontractors on time. In fact, almost 75% of general contractors reported paying more frequently than once a month. To do so, however, they sometimes incur as much as 35% in financing costs. It makes sense that general contractors would try to take care of their vendors, though, because in order to secure future work, they need a reliable stable of subcontractors willing to supply them with bids. One way that general contractors can help to ensure on-time payments is to perform a little due diligence prior to signing its own contract with the owner. This would include asking for proof that the owner has financing lined up for the project. In the AIA's A201-2017 General Conditions of the Contract for Construction, general contractors can ask for this proof before the project begins or if the owner falls behind in its payments after the project has started. A letter of commitment from the bank or other lender, financial statements, bank statements or a bond commitment from a public agency are all acceptable means of verifying that the necessary funds are in place.
• 52% of owners think they are on top of evolving
Source: Construction Dive
Source: Construction Dive
Owners
contractors have different ideas of what makes multi-site work successful permit requirements versus the 21% of contractors that believe that to be true.
By Subcontractors USA News Provider • A new study from Dodge Data & Analytics and Sevan Multi-Site Solutions found that owners and contractors don't see eye to eye about key factors of how a successful multi-site construction campaign plays out, though a positive relationship stemmed from solid communication is the single most important factor. A multi-site project entails an owner orchestrating work at several or even hundreds of its locations under a single contract. • The "Challenges and Opportunities in Multi-Site Construction SmartMarket Insight" survey posed questions to both owners and contractors across nine areas. More than 70% of contractors and owners agree that a good relationship drives desired outcomes on these projects, but there are also some major disconnects between the two stakeholder groups. For instance, 56% of owners believe they know what makes their projects attractive to bidders, but only 16% of contractors agreed with that statement. • The authors of the report said that the purpose of the survey was not to call out either side — owner or contractor — but to facilitate early, clear communication between the two and help them understand each other's perspectives.
Dodge and Sevan called multi-site construction an "often-overlooked" niche, even though it can generate a great deal of work. A big box store owner that replaces signage, for instance, or makes other improvements or expansions at all of its retail locations as part of a concerted campaign, is an example of a multi-site construction program. Along with mismatched perceptions on what makes a project enticing, though, there are impediments to a truly collaborative relationship between owners and contractors.
• 19% of contractors believe that owners consistently keep them up to speed on their future project plans, while 76% of owners think they're doing a great job in communicating their plans. As a side note, most owners reported that when they do hold back information about future work, it's because the details might change. Most contractors, however, think the withholding of details is related to owners' concerns about confidentiality.
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ENERGY
Shifts in Energy Sources, Workforce Lead State of Energy Discussion with Chevron's Mike Wirth implemented. More regulations on emissions are coming, he said, "the industry ought to be out front and set the right standard for decreasing emissions.”
By Subcontractors USA News Provider
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ouston’s business climate and energy-rich workforce base has long supported its position as The Energy Capital of the World. Both were major discussion topics at the Partnership’s annual State of Energy event on Oct. 9. Mike Wirth, Chairman of the Board and CEO of Chevron, headlined the event by participating in a fireside chat with Bobby Tudor, chairman of Tudor, Pickering, Holt and Co. and the Partnership's 2019 vice chair. Here are four takeaways from Wirth’s comments.
EnvironmentalImpacts Impactsand andShifts in Energy Environmental Shifts in Energy Sources Sources For an industry traditionally supported by fossil fuels, the increasing focus on environmental concerns has caused energy companies to take a hard look at energy sources and sustainable operations practices. “The future of our industry at our core is very strong. But we also need to respond to these pressures. Climate change is a real concern for the people we work with around the world and that will play a role in how we work,” Wirth said. He added: “moving forward we must execute well on our core business, control spending, and prepare to bring new sources of energy into the mix.” Wirth also noted that the company is working to curb emissions and flaring ahead of regulations being
Focuson onFuture FutureWorkforce Workforce Focus Wirth discussed how digitization is rapidly influencing energy operations and that companies must consider future workforce needs in order to remain competitive. One way Chevron is doing this is by making investments in education systems, particularly around STEM.
"DIGITAL TECHNOLOGY REALLY CHANGES EVERY INDUSTRY," WIRTH SAID. "No matter what business you’re in in this room, if you think it’s not going to change, you need to look again. Energy is no different.” Few jobs exist in the energy today that do not have some technological component. That's why it's critical for STEM education to start early, Wirth said. Chevron’s made large scale investments world wide in education, both K-12 but also in higher education and committed to support reform for education systems. “We must invest in systems that supports the talent pipeline” he said.
Corporate Citizenship a Key Factor in Corporate Citizenship a Key Factor in Stakeholder Value Stakeholder Value In working to advance its corporate citizenship, Chevron has put an emphasis on delivering value and accountability to a holistic set of stakeholders — not only its shareholders but also the communities they serve and operate. “We have to invest in community priorities and work with local suppliers to grow small businesses," Wirth said. "In doing this, you build economic power that improves people’s lives.”
Leading on D&I Leading Houston is home to more than a quarter million energy employees and a hub for energy expertise and experience. Those facts, coupled with the city's cultural and ethnic diversity, have helped bolster the talent pipelines of companies like Chevron. For Chevron, Wirth discussed how diversity and inclusion (D&I) is the easiest business case to make, adding that the company has put a strong focus a corporate culture that celebrates diversity and inclusion. “We need everyone for this industry to succeed," he said. "Diversity is an imperative for us to be competitive. Diversity is about counting every head. Inclusion is about making sure every head counts...You have to have a culture where a broad set of ideas flourish.”
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Source: Greater Houston Partnership
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IT & TECHNOLOGY
By Subcontractors USA News Provider
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echnology is changing at a rapid pace, and the construction industry is not without its opportunities to automate processes and adopt the latest industry advancements. The increased availability of partially automated vehicles is the latest example of how companies everywhere can improve the efficiency and safety of their fleets. But that doesn’t mean contractors should jump on board without examining the anticipated effect of the technology in personal workspaces and on daily business operations. There is value to understanding how technology can best blend with workers as they look to perform their jobs easier, safer and more efficiently. Construction contractors worldwide have already experienced automation and robotics by way of hightech excavators, loaders, compacting machines, drones and other equipment commonly used on jobsites. The industry is known for identifying problems and fixing them in an adaptive and timely way. Advanced technologies can reduce incidents, prevent human error, eliminate fatigue and distractions, and much more. But does automation completely remove exposure to risk? Of course not. New technologies may improve the safety and efficiency of a project, but managing risk will always be a part of jobs in the construction industry, regardless of the methods used. Construction business owners, professionals, and industry suppliers must proceed thoughtfully and ask the right questions when exploring and incorporating new technologies. State-of-the-art technology that was once thought to be science fiction, such as autonomous vehicles, is expanding rapidly and here to stay. Auto and truck manufacturers are producing more vehicles with automated driving components, and that requires companies to take steps to ensure that their fleet vehicles are operated safely. This applies to any fleet of vehicles, and companies and employees share responsibility for making sure vehicle safety features are used as intended. All of this is explained in a new technical report from the American Society of Safety Professionals that can serve as a blueprint for companies to safely manage their hightech fleets. According to the report, employers must deliver proper training and instructions to anyone getting behind
the wheel of a partially or fully automated fleet vehicle. It’s further proof that companies need to stay ahead of the curve and prepare today to safely incorporate automated vehicles into their fleets. Adding vehicles with automated features to a company’s fleet means changing company policies and procedures to address new issues. For example, drivers must understand how advanced driver-assistance features work, and employers must include automated systems in vehicle maintenance and collision-response procedures. Millions of workers drive or ride in a motor vehicle as part of their jobs, and motor vehicle crashes are the leading cause of work-related deaths in the U.S. companies should look to resources from organizations such as
the NIOSH Center for Motor Vehicle Safety to improve safety for workers on the road. Business owners must also examine several factors when considering the implementation of any automated technology. Contractors should make sure they are not changing simply to change, but to make operational improvements safely, correctly and profitably. Many construction systems and processes have been proven successful and sustainable over many years, so a thoughtful analysis of proposed modifications is recommended. In addition, organizational culture must be considered when assessing new technology. There are many examples of organizations that spent big money on impressive new technologies that ultimately didn’t achieve improvements in safety or efficiency because they did not fit the culture of the company. While automated technology holds incredible promise for its potential to prevent injuries and save lives, much work remains for the safe development and deployment of these advancements on a mass scale, especially in regard to fully automated vehicles. People are the most valuable resource to the construction industry, so drivers should never hesitate to ask questions and seek any training necessary to ensure that they remain comfortable and confident on the road. It’s important for all drivers to know precisely what their vehicle is capable of doing and also what it doesn’t do. Drivers should never make assumptions. It’s an exciting yet critical time as the construction industry moves forward. With so many operational technologies becoming available across the industry, contractors must remember to take an intelligent approach to strike a right balance of personnel and automation in their work.
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Source: Construction Executive
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How technology LEGAL
can help contractors prevent lawsuits By Subcontractors USA News Provider
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doption of project management and data collection technology will not only make contractors' operations more efficient but could reduce the risk of litigation as well, according to Resolution Management Consultants of Marlton, New Jersey. Three main construction technology categories that have the biggest potential to reduce the chances of contractors and owners fighting it out in court are scheduling software, 3D modeling tools and data collection devices. Though not foolproof, the use of these digital tools will help team members better plan and execute on their projects, which, in itself, is likely to reduce the number of disputes, the construction consulting firm said. Resolution Management's take on the impact technology is having on construction disputes is backed up by a report from Arcadis, which found that more project teams are using digital tools such as project management information systems, BIM and digital data field collection to prevent and, if necessary, resolve conflicts.
Jim Gallagher, principal at Resolution Management, told Construction Dive that since it has taken the construction industry longer to adopt the latest technologies, it has endured more disputes than other industries. And when clients are in the midst of mediation, arbitration or litigation, access to accurate and timely information will help contractors achieve more positive outcomes in their legal fights. The proliferation of tech options, Gallagher said, has lowered the price point for many tools as well, so there's no longer an excuse for smaller contractors not to take advantage of them. Still, technology can't solve all issues, no matter how good the technology. "The problem still is people know how to collect the data, but they don’t know what to do with the data, or they wait
until it’s too late to use the data," he said. “There has to be a plan to use the data and to make it available.” For example, new apps and software make it easy for superintendents and foremen to complete and maintain daily activity logs, Gallagher said, but oftentimes the paperwork is filed away only to be taken out again in the event of a dispute. Those reports would be more useful if management took the time to review them and look for potential claims before they become a problem, he added. And there's another compelling reason to use technology, Gallagher said: the capacity of human memory. Someone's honest recollection of events can change significantly in just a few months. In fact, according to attorney Quinn Murphy with Sandberg Phoenix in St. Louis, systems that require people to interact will never be perfect. "Any time you involve human input and interpretation, there is room for disagreement and misunderstandings," he said. So, what technology can help contractors avoid disputes? "I think BIM is really the one that has the most potential," Murphy said. "Not only is it based on objective data, but also it stops disputes before they even start because everyone has real-time access to the information … on the spot." Source: Construction Dive
LEGAL
The Utility of Arbitration Agreements in the Construction Industry By Subcontractors USA News Provider
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n today’s ever-evolving world of employment law, it is far from an easy task for construction industry employers to operate their business while successfully navigating all of the potential legal potholes that continue to abound and multiply seemingly with every passing day. This is particularly true in the face of the onslaught of claims lodged by current and former employees in recent years for alleged unpaid wages. While there may not be a “sure bet” way of avoiding such claims, one tool that employers should strongly consider in their arsenal are arbitration and class action waiver agreements. To that end, last year, the United States Supreme Court rendered its groundbreaking decision in Epic Systems Corp. v. Lewis, 584 U.S. ___ (2018). In Epic Systems, the Supreme Court held that arbitration agreements containing class and collective action waivers of wage and hour disputes are enforceable. At the time of the decision, a split of authority existed among courts across the country as to whether such agreements were viable. On the one hand, several courts contended that class waivers unfairly
violated employees’ rights to collectively bargain under the National Labor Relations Act. On the other hand, many other courts were finding that such agreements were fully enforceable and supported by the policies promoted under the Federal Arbitration Act. The Epic Systems Court sided with this latter viewpoint, concluding that the FAA’s clear policy promoting arbitration as a dispute resolution mechanism and private parties’ rights to freely negotiate contracts outweighed any potential arguments against such agreements under the NLRA. With wage and hour lawsuits being filed against construction industry employers practically daily, the Epic Systems decision is critically important. Construction employers can now freely enter into arbitration and class waiver agreements with their laborers and thereby potentially limit the cost, expense and exposure of fighting such actions in a public forum on a collective or class-wide basis. To be clear, such agreements will not eliminate employees from bringing such wage and hour claims entirely, nor should the use of those agreements signal to employers that they need not make every good-faith effort to comply with their obligations under the Federal Labor Standards Act and/or any applicable state wage and hour laws. But the reality is that arbitration and
class waiver agreements can work to avoid tens or hundreds or even thousands of employees from banding together in some of the massive wage and hour lawsuits being filed across the country. Instead, employers can require that those legal battles be conducted by a single plaintiff in a more controlled environment before an arbitrator (or panel of arbitrators). As arbitration is typically a more expedited process than litigating in federal court, and parties’ discovery rights are much more restricted, the parties (both employer and employee alike) will presumably incur far fewer legal fees in arbitration than would otherwise be experienced in court. Further, by avoiding the opt-in and/or opt-out class collective/ action process that is the hallmark of federal wage and hour lawsuits, savvy construction employers utilizing class waivers may ultimately avoid a significant number of claimants from joining those cases who individually lack meritorious claims, but who have hopes of collecting a portion of the class-wide judgment or settlement amount while doing nothing more than sitting on the sidelines. By forcing each employee to instead commence his/her own arbitration proceeding, that in and of itself may provide a meaningful deterrent against meritless claims while also reducing the already-
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overburdened court system. Such one-off claimants in arbitration may also be less appealing to certain plaintiff’s lawyers who have created a cottage industry in representing classes in wage and hour cases that often yield significant attorneys’ fees given the class and claim size. While there was previously a lack of clarity about whether arbitration and class waiver agreements would be upheld in court, Epic Systems has provided uniformity across the country and the assurance that those agreements will be enforced nationwide if properly drafted and freely executed. While Epic Systems was only decided a year ago, more and more construction employers are integrating arbitration and class waiver agreements into their business practices. And while arbitration and class waivers may not be appropriate in all situations and may not protect against every type of claim depending on the jurisdiction (such as sexual harassment claims, by way of example), it is clear that employers, particularly in the construction industry, should strongly consider requiring their employees to execute such agreements as a condition of employment. As the saying goes, sometimes the best defense is a good offense. Source: Construction Executive
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Business for All: Inside
BEXAR COUNTY’S
Small Business and Entrepreneurship Department By Subcontractors USA News Provider
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LEFT TO RIGHT: James Massey, Senior Data Analyst; Jeanne Johnson, Capacity-Building Program Coordinator; Steven Prado, SMWBE Analyst; Renee Watson, Small Business and Entrepreneurship Department Director; Amparo Arriaga, Office Assistant; and Torence White, DBE Contract Compliance Coordinator
ince 2001, Bexar County’s Small Business and Entrepreneurship Department has made it their mission to create an environment where small businesses can thrive, leading to a more sustainable economic future for Bexar County. The department works to increase small, minority and women-owned business participation in county projects and procurement through public, non-profit and private sector efforts and resources. to access and compete for contracts,” The Small Business and EntrepreWatson said. neurship Department is also responBexar County has set a participation sible for administrating the Small, target of a minimum of 20% of all proMinority and Women-Owned Business “We are an action-oriented curement dollars in the areas of commodiEnterprise (SMWBE) Program and the ties, equipment, services, maintenance team dedicated to linking small, Disadvantaged Business Enterprise (DBE) and construction are spent with minority minority and women-owned Program. and women-owned business enterprises “We are an action-oriented team and a minimum of 30% of those procurebusiness enterprises, disadvantaged dedicated to linking small, minority and ment dollars are spent with business enterprises and historically women-owned business enterprises, dissmall business enterprises. advantaged business enterprises and underutilized businesses to To reach this target and historically underutilized businesses to execute it most effectively, opportunities that will ensure opportunities that will ensure success the SMWBE Program works success in the government in the government marketplace and the closely with other entities private sector,” Renee Watson, Director of marketplace and the private sector.” such as the SMWBE Program the Small Business and Entrepreneurship Advisory Committee, PurchasDepartment, said. ing Department and other local —Renee Watson, Director of the Small Business and Watson has made it clear through the governmental entities to develop Entrepreneurship Department work in her department that they believe and implement various outreach small, minority, women, disadvantaged and procurement programs. This and veteran-owned business are an inensures that area resources are tegral part of life, as they play an important maximized and not duplicated. role in the economy of the United States Some of the outreach efforts and and are considered by many as the heart of procurement programs these entities the free enterprise system, employing well work to develop include the Small, Miover half of all working Americans. Bexar nority, Women and Veteran Business County alone has over 45,000 small busiOwners (SMWVBO) Business Conference, nesses providing products and services to SBED Meet The Buyers events, supplier the community. breakfasts and many more. Through the SMWBE Program, the department works to increase the involvement of For more information about SMWBEs in the procurement process, with Bexar County’s Small Business and the goal being to afford these businesses Entrepreneurship Department, their a fair opportunity to compete for all Bexar of these businesses and works to build part- programs and other upcoming events, nerships with numerous federal, state, local visit https://www.bexar.org/129/SmallCounty contracts. “Bexar County recognizes the importance of and private sector organizations where op- Business-Entrepreneurship-Dept SMWBE/DBE firms, advocates for the growth portunities are provided for SMWBE/DBE firms
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B ex a r C ou n ty Se co n d C h a n ce Job F a ir Fre em a n C ol is eu m
The Small, Minority, Women and Veteran Business Owners Business Conference 2019 The department’s next event is the SMWVBO Business Conference 2019 to be held on December 11. This is a forum created to develop relationships, acquire knowledge and access opportunities that exist with public and private sector entities for the procurement of goods and services. It further enhances the knowledge of procurement staff on the availability and ability of local firms with the desire to do business.
“The SMWVBO Conference is an opportunity for the county Purchasing Department to make direct contact with local vendors,” Watson said. “SMWBEs can get their questions answered and meet the buyers who make decisions daily to solicit or recommend awards that will directly impact their business. It also provides a place for other county departments to provide information regarding their services or programs for SMWBEs. It’s really an opportunity SMWBEs don’t want to miss.”
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PERMITS
Contractors: Some Straight Talk About Getting Your Building Permit By Helen Callier Contributing Writer
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o, a contractor just finished the punch list on their customer’s renovated building; and they are feeling good that they wrapped up the project early and managed to make a good profit. After a few weeks, as the customer starts the process to sell their building, a fear rushes over them because they are unable to find proof of Certificate of Occupancy (CO) or evidence of a building permit being pulled. Several attempts to reach the contractor are futile with no one answering the phone and emails go without response. As this movie scene fades to black, the customer grapples with possible next steps to resolve their lack of CO and building permit. Some contractors are so eager to start construction and simply forget to pull a permit. When they recognize their error, the contractor stops work, then obtains and posts on site the proper building permit. And from phone calls we receive from project owners from time-to-time, we know that there are a few contractors that have no shame in not pulling, when scope dictates, the necessary permits and blatantly disregard building a safe structure for their customers. This is a no-win situation. Here’s the bottom-line, building permits are required on most of the construction projects in the United States;
and local jurisdictions building codes must be complied with to make sure a safe structure is built. To assist those contractors having difficulties in pulling construction permits for various reasons, below are seven key steps to obtain a building permit.
Preconstruction • Review your checklist for key documents, materials, schedules, etc. required to run jobs efficiently, effectively and meeting designed quality. • Make sure obtaining proper permits and Certificate of Occupancy are included in agreement with your customer • Pull permit and post on job site • Inform customer that permit was obtained and posted on job site.
During Construction • Make sure all trade contractors pull permits to be in full compliance and permits are visible on job site • Inform customer about permits during regular updates • Pull revision permits when needed
Post Construction
• Review and use punch list to resolve and finalize last items to fix and finalize • Call for inspection • Address any deficiencies identified during City inspection. • When all items are resolved and finished, call for final inspection and once obtained, provide Certificate of Occupancy (CO) to customer for their files.
In Conclusion There are billions of dollars of construction work across the country and many contractors are busy with a pipeline of projects. In Houston, for example, the latest building permits data show a 16.1 percent increase over this same time period in 2018. Commercial and residential permit data reflect strong markets and present some contractors with challenges on how to satisfy building codes and pull permits in a timely manner. Don’t fret, review the seven key steps noted above to stay the course in obtaining a permit and to comply with building codes. If you have any added suggestions to assist with construction permits or having trouble in pulling a permit, call 1.844.PERMIT.4 to speak with a PermitUsNow team member.
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#BuildSafe
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SAFETY
New OSHA weighting system could lead to more inspections By Subcontractors USA News Provider
ffective Oct. 1, OSHA put a new weighting system in place for workplace safety and health inspections for fiscal year 2020. The new OSHA Weighting System (OWS) replaces the former timecentric program, which was implemented in 2015. OSHA said that the new OWS, which was based on an evaluation of the existing program and on recommendations from a working group, will help agency employees better allocate resources and focus on "critical and strategic" areas that have the most impact. The new system, which adds enforcement initiatives such as site-specific targeting to the weighting of an incident, was designed to better recognize that time is not the only factor to assess when considering the potential impact of an inspection. "Other factors — such as types of hazards inspected and abated, and effective targeting — also influence the impact on workplace safety and health," an OSHA press release reads. The system is meant primarily to gauge exactly how OSHA's area offices are directing their inspection and enforcement efforts, according to Edwin G. Foulke Jr., former assistant secretary of labor for OSHA under President George W. Bush and partner in the Atlanta and Washington, D.C., offices of Fisher Phillips.
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As far as how the change will impact the construction industry, it's still a bit too early to tell. The memo that would contain any new directives or more details about the OWS to area offices has not yet been released to the public, but in discussions with OSHA officials, Foulke said, it is his understanding that some high-hazard emphasis areas, like the Fatal Four, might come into play. The Fatal Four for construction — falls, caught-in-or-between, struck-by and electrocution accidents — are the major causes of death for workers in the private construction industry and account for almost 60% of jobsite deaths. If those hazards in the Fatal Four, or any other construction focus areas are given high enough weighting, Foulke said, that could prompt area offices to put more emphasis on them, meaning more inspections. "So that would impact construction," he said. OSHA's 2015 weighting system, which was mainly based on the time taken to complete the inspection or, in some cases, the impact of the inspection on workplace safety and health, assigned enforcement units (EUs) for various kinds of inspections. For example, inspectors would
assign three EUs for fatalities and catastrophes, three EUs for significant cases and eight EUs for process safety management inspections at chemical plants and refineries, which commonly take several inspectors and can last for days. The OWS will expand the system to include three major functions performed in the field: enforcement activity, essential enforcement support functions like complaint resolution and compliance assistance. "The new system will continue to weight inspections, but will do so based on other factors, including agency priorities and the impact of inspections, rather than simply on a time-weighted basis," the press release states.
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Source: Construction Dive
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In the Subcontractors USA Community... To View More Photos, Visit Our Website www.subcusa.com and Click on ‘Photo Gallery.’
Greater Houston Business Procurement Forum – October Breakfast The Greater Houston Business Procurement Forum held its monthly breakfast at Houston Community College West Loop Campus. This month’s topic was "Doing Business with Our Federal Agencies - Navigating the Maze of Federal Contracting." Attendees had the chance to hear from a panel of several guest speakers representing federal agencies as well as enjoy networking opportunities and a complimentary breakfast.
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TRANSPORTATION
TRANSPORTATION
TxDOT Seeking Input on Texas Transportation Plan
CALLING ALL
U.S. VETERANS! News Provider
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ouston Airports in partnership with Edge4Vets and other local sponsors will once again team up to provide training and job opportunities for some of our nation’s service personnel who are returning to the civilian workforce. It’s all part of an effort to identify talented personnel for local aviation jobs, while ensuring that the right consideration is given to those who have fought and served.
Thursday, November 14, 2019 10 a.m. to 3:30 p.m. Help us spread the word to the local veteran community by sharing the event details to RSVP. https:// www.eventbrite.com/e/houston-vets-register-forfall-2019-edge4vets-workshop-tickets-65207917637 (RSVP required) Houston Airports is proud to be a part of this
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important initiative. Current employees working in the airport community—Houston Airports, Transportation Security Administration, Customs Border Protection, etc.—enjoyed serving as mentors and offering their experiences with transitioning to the civilian workforce. Houston Airports administration even identified a candidate and offered him a full-time position with Houston Airports. “I learned about the airports Edge4vets event through an online advertisement and decided to attend, hoping to continue working in aviation after retiring from the U.S. Air Force,” said Chris Mercado, Houston Airports Radio Project Manager. “The networking was great and provided valuable information and ultimately led to a great career opportunity.” The Edge4Vets program consists of two components; the first is the “PREP” phase. It involves an online preparation program that helps veterans translate their military skills into terminology that resonates with recruiters and HR specialist. During this phase, veterans create their own personal “Plan4Success” which helps identify their most important skill sets and leadership experiences that help them stand out. After the “PREP” phase, participants are invited to “CONNECT” with recruiters and employers from the airport system and affiliated business partners. The airport system and the business partners provide supervisors who act as mentors providing guidance for veteran applicants. The goal is to hold conversations and help veterans understand where their skills may best be utilized, in this case in the air travel industry.
he future possibilities are intriguing, and TxDOT wants to know what Texans think will be the most pressing transportation needs for the next 30 years. TxDOT is hosting a second round of public meetings to gather public input that will be essential to developing the state’s long-range transportation plan, which helps inform the direction for the future of Texas’ multimodal transportation system. The Texas Transportation Plan 2050, or TTP 2050, will guide TxDOT’s planning and programming for the next 30 years and set long-range goals for all forms of transportation. Texans who can’t make the meetings in person can participate online by visiting www. txdot.gov and searching for “TTP 2050”. TxDOT is providing an interactive survey to gather public input. The virtual open house also features a transportation usage survey. This second round of public involvement follows a series of public meetings conducted earlier this year. Anyone who previously participated online, or who attended an open house, is encouraged to continue their involvement as there will be new information and additional opportunities to comment. To receive information or submit comments, email TTP_2050@txdot.gov or call the toll free messaging center at 1-855-TEXAS50 (839-2750). All meeting materials will be available at www.txdot.gov via searching “TTP 2050” on the site.
Source: Houston Airport System
Source: TxDOT
Houston Airports is working with Edge4Vets to provide career guidance to local veterans. By Subcontractors USA
TxDOT planning the future of transportation in Texas
TRANSPORTATION
Sen. Ted Cruz Supports Houston Ship Channel Expansion Project By Subcontractors USA News Provider
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en. Ted Cruz voiced strong support Tuesday for the Houston Ship Channel Improvement Project, after being briefed by Port Houston leadership and top executives representing industry along the channel. Sen. Cruz said the widening and deepening project is important to Texas and the nation and lauded the leadership of Port Houston and the business community for their willingness to work together to get the project completed. He called the Port of Houston “the crown
jewel of the Texas economy” and said expansion of the channel will trigger the creation of even more jobs. The project has been the focus of a four-year study conducted by the U.S. Army Corps of Engineers and Port Houston that is expected to be finished next spring. At the same time, Port Houston and industry stakeholders are working together to get the project authorized in Water Resources Development Act legislation in 2020 and built on an accelerated schedule. During Tuesday’s meeting, Port Com-
mission Chairman Ric Campo provided an overview of the project for Sen. Cruz. Industry representatives from ExxonMobil, Kinder Morgan, Kirby Corp., Magellan, Odfjell USA, SemGroup, Targa Resources and the Coalition for a Fair and Open Port joined the port in advocating for the importance of the expansion project. The briefing highlighted the national economic value of the Port of Houston, supporting energy security and expansion, domestic manufacturing, and exports. Port Houston and industry stakeholders
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have been collaborating on possible funding and other strategies to accelerate the widening and deepening project. The greater Port of Houston, which is comprised of about 200 facilities along the ship channel, has a national economic impact of nearly $802 billion annually and supports about 3.2 million jobs. In Texas alone, the economic value of the port is about $340 billion. For more information about the Houston Ship Channel Expansion Project, please visit www.WidentheHoustonShipChannel.com Source: Port Houston
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TRANSPORTATION
Future of Houston Transit Focus of 2019 State of METRO By Subcontractors USA News Provider
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ith Greater Houston’s population expected to grow by 10 million over the next 40 years, the future of the region’s transit and mobility needs led the discussion at this year’s State of METRO event. The transit agency’s METRONext Moving Forward plan, slated for the November election ballot, is designed to ease traffic congestion and help meet the needs of a growing population. The Partnership supports the plan. “While we should attempt to forecast the region’s future mobility needs, we must also remain flexible and put forward plans that adapt to regional growth patterns and advancements in transport technologies, and I believe METRONext will do just that,” said Bob Harvey, President and CEO of the Partnership, during his opening remarks. METRO Chair Carrin Patman addressed the strides METRO has made to improve the traffic congestion and grow the Houston community since its founding in 1979, and how the agency continues to make improvements. “The State of METRO is strong, robust and it is getting stronger,” Patman said. “From strong ridership to strong finances to strong management…we have shown that we are good stewards of taxpayer dollars.” METRO provided nearly 117 million rides in its 2018 fiscal year, up 3% from the previous year. Patman said the agency continues to grow its ridership by keeping up with the population growth in their service area, as well advancing the ride experience through technology. The METRO Trip mobile app allows riders to see real-time bus movement to improve their commute planning. METRO’s latest innovation, the region’s
first autonomous vehicle, operates along the one mile “Tiger Walk” on the Texas Southern University campus. METRO worked with the Partnership, as well as other community members, organizations and elected officials to ensure that the plan’s key goals were cost-effective and beneficial to the Houston community. The METRONext plan will enable METRO to increase public transportation options throughout the Houston region. The METRO Bus Rapid Transit Network will provide a direct connection between downtown and George Bush Intercontinental Airport, as well as provide direct service between Downtown, Uptown and the Northwest Transit Center. These exclusive lanes could also be used for autonomous vehicles in the future. The plan also includes an initiative that will connect the current Purple and Green light rail lines and extend them southeast to Hobby Airport. The plan will also extend the Red Line to the North Shepherd Park and Ride. “We wanted to future proof [the plan] to make sure by
the time we built something out, it wasn’t already obsolete," Patman said. "We also wanted to take into account all the other technologies coming online, and of course to build upon our investments.” Ensuring a great quality of life is one of the key pillars of the Partnership's guiding strategy, and one of the main reasons the organization is so involved in the transportation discussion. “It is great to see the Houston renaissance, revitalized neighborhoods and public places all garnering national media attention, reflecting the tremendous progress we have made in the last two decades,” Harvey said. “That said, there still needs a lot to be done to cement Houston’s reputation as a major metro area that offers a superb quality of life. One that attracts and retains 21st century businesses and talent. Commuter congestion in Houston undoubtedly calls for the region to pursue new mobility plans, designed around new technologies and changing demographic patterns.”
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Source: Greater Houston Partnership
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