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August 2020 | Advertising for Certified Women, Veteran & Minority-Owned Subcontractors | 53rd Edition
Prairie View A&M’s
New Workforce Academy is Bringing Opportunity to Rural Areas LEFT TO RIGHT: Jimmy Henry, Community and Economic Development Unit Program Leader; Eisha Jones, Prairie View A&M University Extension Agent; Gerard D’Souza Ph.D., College of Agriculture and Human Sciences Dean; Beverly Copeland, Prairie View A&M University Assistant to the President; David Allen, Mayor of the City of Prairie View; Talia Washington, Prairie View A&M University Extension Program Specialist
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INSIDE
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Prime Black Contractors WIN with City of Fort Worth
10
City of Houston Partners with bp to Advance Climate Action Plan Goals
30
DART Rail Generates $10.27 Billion Near Rail Stations
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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.
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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 highlights Prairie View A&M University’s new Rural Workforce Academy. This program was established in response to the great effect various types of disasters have had on rural areas of Texas. The Rural Workforce Academy will offer training and certification led by industry experts in the areas of welding, electrical installation and service technician, core construction
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BEHIND THE JOURNAL
ACCOUNTING MANAGER Eugenie Doualla STAFF WRITER Carly Hammack ART DIRECTOR Angel Rosa PHOTOGRAPHY Grady Carter L.C. Poullard DISTRIBUTION Rockie Hayden CONTRIBUTING WRITERS Helen Callier Subcontractors USA News Provider
— Albert Einstein
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04 ARCHITECTURE 04 Holding ourselves accountable
10 ENERGY 10 City of Houston Partners with bp to Advance Climate Action Plan Goals 12 IT & TECHNOLOGY 12 4 ways construction technology platforms improve team collaboration 14 LEGAL 14 U.S. Department Of Labor To Offer Online Prevailing Wage Seminars In September For Employers, Workers And Other Stakeholders 16-17 COVER STORY 16-17 Prairie View A&M’s New Workforce Academy is Bringing Opportunity to Rural Areas 16-17
22 OIL AND GAS 22 RRC Commissioners Take Major Step to Help Address Oil and Gas Flaring 26 PERMITS 26 8 Steps to Follow When Completed Construction and Failed to Pull a Building Permit
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ADVERTISING | MARKETING MEDIA | COMMUNICATION
06 CONSTRUCTION 06 Senate Republicans’ Coronavirus Relief Measure 04 Includes Provisions That Will Help Hard-hit Construction Firms Recover 06 3 key reasons to continue construction training even amid the pandemic 08 Prime Black Contractors WIN with City of Fort Worth
20 LEGAL 20 Build Your Construction Contract On Solid Ground: Know The Documents You Incorporated By Reference!
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PUBLISHER & CEO Keith J. Davis, Sr. COO & MANAGING EDITOR Kimberly Floyd
“Strive not to be a success, but rather to be of value.”
and nursing assistant. Training sessions will take place in Liberty County at the Langetree Retreat and Ecocenter and Waller County on the campus of Prairie View A&M University and the City of Prairie View. The Rural Workforce Academy is open to anyone who has a desire to learn and a determination to succeed in their newly earned industryrecognized certification. 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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30 TRANSPORTATION 30 VIA Board Takes Action to Address Opportunity Gap Caused by Underfunding 30 DART Rail Generates $10.27 Billion Near Rail Stations
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ARCHITECTURE
Holding ourselves accountable By Subcontractors USA News Provider
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ince affirming AIA’s commitment to contributing to solutions that foster equity and justice in the built environment, the Board of Directors has met regularly to identify next steps for translating our ideals into meaningful action and progress. It’s time to redouble our efforts to leverage our tools and resources as a membership society to advance meaningful change within the profession of architecture, within AIA as an employer, and in society through member expertise and engagement in the built environment. To pinpoint gaps in programs, polices, and practices, we’ve been in listening and action mode. Colleagues within our membership, Equity in the Future of Architecture Committee, Council of Architectural Component Executives, National Organization of Minority Architects, and other essential voices are generously sharing their insights on what’s working, what isn’t, and where we go from here. And expanding this critical dialogue is the cornerstone of our plans going forward. Equity, diversity, and inclusion impact every aspect of the profession and every stage of an architect’s career, from employment opportunities to salary to daily workplace culture, community engagement to recognition of achievements. Learning to identify implicit and explicit biases is essential to progress, and we’re implementing a number of initiatives to provide resources to members so that they can tackle these issues head-on. There’s no question AIA and the profession have a long way to go, and we’re fortunate to have existing
tools like the Guides for Equitable Practice to steer by in the short term. Developed over the last two years in partnership with Renée Cheng, FAIA, dean of the University of Washington’s College of Built Environments, and her teams at the University of Minnesota and University of Washington, the guides include case studies and tactical advice to, as Renée Cheng says, “convert intentions into actions.”
Building on the Guides, AIA is developing a series of guided discussions organized around each of the Guide chapters. These discussions will be led by experts in each respective field and facilitate dialogue from members, firms, and chapters. Please make no mistake: We are not resting on the guides alone; we are relying on the guides as a resource to inform the first steps in realizing our pledge to work together to break down the barriers that exclude far too many.
As they are developed, we’ll share more information about the guided discussions around each of the Guides for Equitable Practice topics: • Intercultural competence • Workplace culture • Compensation • Recruitment and retention • Negotiation • Mentorship and partnership • Advancing careers • Engaging community • Measuring progress
As we measure AIA’s progress, our participation in the NAACP inaugural report card of the sustainable building sector will provide a baseline, and we expect it will be sobering. AIA’s participation in the NAACP 2020 Diversity & Opportunity Report Card for the Sustainable Building Sector will include evaluations for staffing (composition and perceptions), programs and services, procurement, and governance. Slated for release in 2021, the report card will create an enlightening milestone, and we appreciate the NAACP’s guiding influence. Moving from aspiration to action will require a multipronged approach, and progress won’t be precisely linear. Most of all, the listening phase is not temporary or preliminary. As we continue to implement new strategies and reforms, a focus on rapid iteration, and listening is the ongoing foundation for all actions as we build on these immediate steps. Source: AIA
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CONSTRUCTION
Senate Republicans’ Coronavirus Relief Measure Includes Provisions That Will Help Hard-hit Construction Firms Recover By Subcontractors USA News Provider
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he HEALS Act Includes Essential Liability, Workforce, Financial & Unemployment Reforms, But Association Will Work to Get Needed Infrastructure Investments Included in Final Relief Measure The chief executive officer of the Associated General Contractors of America, Stephen E. Sandherr, issued the following statement in reaction to the release today of Senate Republican’s latest coronavirus relief measure, the Heals Act: “Senate Republicans have crafted a relief measure that includes a number of vital provisions that will allow hard-hit construction firms to begin rebuilding their businesses and payrolls. Among the most promising of these provisions are liability reforms so construction firms that are protecting workers from the coronavirus will not be subjected to needless litigation. The proposal also includes important improvements to the Paycheck Protection Program and a much-needed expansion of the Employee Retention Tax Credit, both of which will
help protect construction jobs. “The measure also takes a more thoughtful approach than the existing federal unemployment insurance benefit by protecting unemployed workers without creating artificial barriers to returning people to good-paying jobs in sectors like construction. And the ambitious workforce development provisions in this measure have the potential to help millions of unemployed prepare for new careers in middle-class professions like construction.
“The measure is not without flaws, however. Most troubling is the virtual lack of funding for new infrastructure improvements. State transportation officials are coping with a $37 billion funding shortfall, declining revenues and the uncertainty that comes with the September 30 expiration of the existing highway and transit law. Additionally, public school, health and broadband infrastructure need federal investment to meet the challenges of operating during and after the pandemic. Ultimately, such new investments are essential to sustaining and rebuilding the American economy, which is why we will work to ensure they are ultimately included in a final relief measure. “This proposed measure includes many provisions that will help the construction industry and the broader American economy. Combined with new infrastructure funding, it will help workers and employers avoid further economic harm. That is why we will work with leaders in both parties and both houses to see a final, fuller, measure enacted as quickly as possible.” Source: Associated General Contractor
CONSTRUCTION
3 key reasons to continue construction training even amid the pandemic istorically, companies will do two things when times get tough: They will curtail their training departments and sales departments. The world was not prepared for the coronavirus, and there is no denying companies are facing hard decisions. Some companies have been required to do reduction in workforce because projects have been delayed. Although halting training may be fiscally understandable, it’s short-sighted and hurts your program and the construction industry as a whole in the long run. This is the time to really focus on projects that are going and ensure people are working at their maximum capacity. Proactive, successful companies have historically managed to maintain training through difficult times. It may not look the same and may be adapted, but progressive companies will not quit training. Why?
professionals. Training and retaining our workforce must remain a priority or we’ll be facing an even more extreme shortage after the crisis. ManpowerGroup reports that skilled craft professionals and construction laborers remain in the top 10 most difficult roles to fill. “If you stop your recruiting or apprenticeship programs, it’s like turning off the faucet. A quality workforce program includes recruiting, training and retaining,” said Katrina Kersch, NCCER Chief Operations Officer. “Stopping these activities stops the pipeline of people coming into your organizations that are getting trained, becoming experienced and becoming valuable, skilled craftsmen and women.” Training remains a top priority for DP Electric; their founder and CEO, Dan Puente, shares, “The growth of our people is the growth of our company.” Despite being in the midst of the pandemic, DP Electrical has started an apprenticeship program that launched July 27, 2020.
Theskills skillsshortage shortagewon’t won’t 1.1.The disappear. disappear.
Trainingincreases increases 2.2.Training productivity. productivity.
Before COVID-19, the construction industry was already facing an estimated shortage of 1 million skilled workers by 2023. The Associated General Contractors of America found back in August of 2019 that 80% of contractors were having difficulty finding qualified craft
Doing targeted, job site specific training helps get workers reengaged and increases productivity. Concerns about job security and the industry are prevalent across the workforce — training helps combat those feelings of apprehension. “It sends a powerful message to the
By Subcontractors USA News Provider
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individual that you’re investing in them because they are part of the success of the organization,” shares Kersch. “It’s just intrinsically such a part of making your employees feel valuable.” Continued training during this time also builds your sense of community in your workplace culture. The McKinsey Engineering, Construction and Building Materials Practice points out that “balancing performance and health is critical at any point in time — and it’s that much more important in these turbulent times.”
It’sstrategic. strategic. 3.3.It’s
To be an employer of choice in construction is all about training and retaining your workforce. Although the industry is being impacted by the pandemic, it is more of a dip for construction compared to other harder hit industries like hospitality and leisure, retail and health services such as dentistry.
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Instead of ‘turning off the electricity to save on electricity when times get tough’, it is an opportunity to be more strategic. The most progressive companies will explore how to leverage the downtimes by dynamically allocating talent. In addition, companies have typically already invested significantly in establishing workforce development programs to recruit. During times when companies are not bringing new people in, trying to maintain the employees that you may have already invested in with a year or two in training is tactically important. “It’s becoming clear that the world will be different as we move beyond the COVID-19 crisis to the next normal.” In their article, “How Construction Can Emerge Stronger After Coronavirus”, the McKinsey Engineering, Construction and Building Materials Practice calls for five stages of action as companies plan their path forward: resolve, resilience, return, reimagination and reform. The industry has an opportunity to reimagine and reform the future while remaining resilient. This momentary slump cannot affect the construction industry’s vision for the future. As an essential business, the world needs construction, from quickly building hospitals to donating personal protective equipment. We remain the industry that builds America. Source: Construction Dive
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CONSTRUCTION
Prime Black Contractors WIN with City of Fort Worth By Subcontractors USA News Provider
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he City of Fort Worth made history this month with their Professional Engineering Design and Consultant Services RFQ. The objective of the RFQ was to identify the most competent and qualified firms from which the City may negotiate contracts for professional design services that will be necessary to complete various TPW Capital Delivery Division (CDD) projects in 20 different categories. For the first time in Fort Worth history, an African-American Woman-owned business (McKissack McKissack) was selected as the Prime contractor in not only one, but two categories (Program Level & Project Planning and Project Management Peer Review/Process Improvement). In addition, McKissack McKissack also teamed with another African-American company, Dikita Enterprises, to provide subcontracting services; hence, modeling the behavior of diversity inclusion at the Prime level, even when you are a minority.
The Pre-Qualified Professional Provider list consists of several reputable companies, one of which is also an Industry Partner to the RBCA. HNTB has made subcontracting commitments with African-American Engineering firms like EJES, CMTS, and Dikita in the spirit of building capacity and strengthening pre-existing relationships. Also, note that the City hired CM Foster Group, an African-American Prime contractor for Infrastructure Inspection Services, not related to the above referenced RFQ. The RBCA values its partnership with the City of Fort Worth and gives thanks to City Manager, David Cooke, Christina Brooks, Diversity and Inclusion Director, her team and Director of Transportation and Public Works, William Johnson, for their tireless efforts to continue making Fort Worth an inclusive City. We look forward to increasing African-American business participation together! And as Always, thanks to Mayor Betsy Price!
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ENERGY
City of Houston Partners
with bp to Advance Climate Action Plan Goals By Subcontractors USA News Provider
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ayor Sylvester Turner and the City of Houston’s Office of Sustainability today announced a new partnership with bp that will help advance major goals in the City’s recently launched Houston Climate Action Plan (CAP). Visit www.greenhoustontx. gov for more information on the CAP. Under the agreement, bp will serve as the City’s strategic planning and technical partner on the CAP for the next four years. bp will make experts available to help identify priority programs and to lead or support working groups on specific areas of the CAP, including reducing regional greenhouse gas (GHG) emissions and improving energy efficiency in buildings. The agreement also includes a grant of $2 million from bp to the City’s Office of Sustainability to directly support the implementation of CAP programs and increasing community awareness and participation in the plan. The City can use the unrestricted grant in any other ways needed to advance the CAP, while working with bp, other companies, non-profits and community stakeholders toward achieving goals within the plan. “As we work to slow the spread of COVID-19 in Houston—in the middle of a heat wave—the connection between climate change and community health cannot be ignored,” said Mayor Turner. “Partnership is key to the success of any community-wide initiative and bp’s recent commitment to net-zero emissions and helping cities decarbonize makes them an ideal implementation
partner for the Houston Climate Action Plan. bp’s financial support and technical expertise across the entire energy spectrum will help move the CAP forward in these challenging and uncertain times.” The announcement comes as both the City of Houston and bp are working to re-invent themselves for a low carbon future. The CAP is the cornerstone of that effort for the City of Houston. It is a science-based, community-driven plan to reduce emissions, achieve carbon neutrality by 2050 and make Houston a leader in the global energy transition. It is also a critical part of Mayor Turner’s Hurricane Harvey recovery effort, which identified climate change as a key threat to the city’s future. The CAP focuses on reducing emissions in the four areas that generate most of the city’s GHG emissions: transportation, energy transition, building optimization, and materials management. Each focus area identifies goals, strategies, actions and targets for residents, businesses and the City to follow. bp offers expertise across the energy spectrum and within each of the four areas of the CAP. “ T h e transition to a cleaner, net zero future is an extraordinary opportunity for Houston to lead the global energy transition while also improving the quality of life for millions of people in the region,”
said William Lin, executive vice president of bp’s Regions, Cities and Solutions team. “Mayor Turner and the Houston City Council should be commended for keeping this vital work at the top of the agenda, especially during these uncertain times. At bp, we also remain focused on delivering our net zero ambition and look forward to partnering with other cities, countries and corporations who share this vision.” Earlier this year, bp announced its ambition to become a net zero emissions company by 2050 or sooner and to help the world reach net zero. As part of this ambition, the company launched a new team that will be at the forefront of helping regions, cities and corporations decarbonize. It will leverage bp’s expertise across the energy spectrum to identify innovative, integrated and low-carbon energy solutions for governments and businesses around the world seeking to reduce their emissions.
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Source: City of Houston
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ways construction construction 44 ways technology technology platforms improve improve platforms team collaboration collaboration team IT & TECHNOLOGY
By Subcontractors USA News Provider
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hen it comes to general contractors and payment applications, “technology” and “collaboration” may not be the first words that come to mind. As the construction industry continues to innovate, we’ve found that technology solutions are doing more than just make certain processes easier. Below we highlight four ways we’ve seen innovative technology platforms influence team collaboration and overall success.
SingleSource Source of of Truth Truth 1.1.Single Something that tends to slow teams down is when there is more than one version of a single document. We’ve all been there – you receive a spreadsheet and need to make edits, so you save a new version and make your changes. Once the spreadsheet passes through several hands, we now suddenly have 5 or 10 versions of the same document. At this point it’s impossible to tell which version is the “right” one. Not to mention the mess that occurs when you are emailing these documents back and forth, so they’re not being saved in a central location for easy access. For Dome Construction, a large general contractor out of California, their manual process made it nearly impossible to determine a single source of truth. All of their subcontractors would email their applications for payment into one person, and then their project managers would have to get involved to try to make sense of each invoice. The web of communication was nearly impossible to track effectively. This is where a platform like GCPay is so impactful for easy team collaboration. GCPay provides a collaborative location where the most up-to-date information is stored and available. All your contact and billing data is saved in a single place in GCPay and matches what you see in your ERP system. There is no need to make edits to a spreadsheet and re-upload, nor do you have to go digging for that exact lien waiver template. GCPay helped Dome Construction speed up their process time and data reliability.
SupplyChain Chain Transparency Transparency 2.2.Supply Clear, easy communication with your supply chain is paramount to running a successful business. And even if you have solid relationships and open lines of communication already set up, this is often a bottle neck that takes up valuable time and resources for your internal team. To preserve these internal resources, many GCs are relying on transparency rather than back-and-forth communication. A construction technology platform should offer this transparency so that GCs can easily communicate with
their supply chain without ever opening their email or picking up their phone. One of the reasons Dome Construction adopted GCPay for their pay app processing is because of the transparency offered for their subcontractors. Subs who submit they AFPs can easily see feedback and assessments along the way without needing to get in contact with Dome’s AP team. With GCPay, companies like Dome can assess, approve, request information and more from within the platform.
BetterCommunication Communication 3.3.Better Technology helps improve communication by easing some of the pressure your team may be experiencing. As deadlines loom and work piles up, it can be natural for team members to put their head down in an effort to get everything done. It can be dangerous for your team to work in isolation like this and can make them feel shut off from one another. Tech is never meant to replace your team’s communication with one another, but it can help streamline their workflow. The Accounts Payable team at Dome Construction, for example, is thrilled that they never have to chase down an email thread to find the right contract information. Rather than relying on documents coming in via snail mail or fax machines, the information needed is all in one place on their GCPay portal. This serves as
a single point of reference for teams when they do come together to collaborate.
Timesaving saving 4.4.Time Last but certainly not least, we know running your business smoothly has a lot to do with saving time and resources whenever possible. Though it may seem daunting to incorporate new tech – especially at a time like this – doing so can have a massive impact on your team’s time. The Dome Construction team is thrilled to be saving so much time for their accounting and project teams. “What used to take days now takes literally zero time because it’s already done in the platform,” their Billing Supervisor tells us. General contractors who switch to GCPay save an average of 50% of their accounting team’s time once they get up and running. Think of what your team could accomplish with that many additional labor hours! We are excited to see many contractors adopting technology and making big strides in their collaboration as a result. We truly believe technology is the future of our industry. But, we also believe we are only as agile as our slowest process. Now more than ever, it’s important to consider leaving manual, paper-based processes in the past. If you’d like to read the Dome Construction case study in its entirety, click here.
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Source: Construction Dive
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LEGAL
U.S. Department Of Labor To Offer Online Prevailing Wage Seminars In September For Employers, Workers And Other Stakeholders By Subcontractors USA News Provider
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he U.S. Department of Labor’s Wage and Hour Division (WHD) announced today that it is offering online seminars in September to provide compliance assistance on the legal requirements to pay prevailing wages on federal and federally funded contracts for contracting agencies, contractors, unions, workers and other stakeholders. The events are part of an ongoing effort to raise awareness among and improve compliance by employers with federal and federally funded contracts. The multi-part seminars will offer participants self-paced learning with video overviews of topics such as the Davis-Bacon and Related Acts (DBRA) and the McNamara-O’Hara Service Contract Act (SCA), followed by live question-and-answer sessions with WHD representatives who will respond to questions and lead discussions on relevant topics. Interested participants should register in advance and complete the self-paced portion of the training before attending a live session. Attendance is free, but registration is required. “The U.S. Department of Labor’s Wage and Hour Division is committed to providing useful information to help employers understand their legal responsibilities as federal contractors to pay prevailing wages and ensure workers are paid the wages they’ve earned,” said Wage and Hour Division Administrator Cheryl Stanton. “These seminars give us the opportunity
to reach a large number of stakeholders in an effective manner. We encourage employers and other stakeholders to participate in these events and to use our many tools on wage and hour compliance.” WHD will offer the live portion of the DBRA seminar on prevailing wage requirements on federal and federally funded construction contracts from 2 p.m. to 3:30
p.m. EDT on Sept. 9 and 15, 2020. Register for one of these sessions. The live portion of the SCA seminar on prevailing wage requirements for contractors performing services on federal contracts will be from 2 p.m. to 3:30 p.m. EDT on Sept. 10 and 16, 2020. Register for one of these sessions.
For more information on the Davis-Bacon Act, the Service Contract Act and other federal wage laws related to government contracts administered by the WHD, please call the Department’s toll-free helpline at 1-866-4USWAGE (487-9243) or visit the WHD website at dol. gov/agencies/whd. WHD’s mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation’s workforce. WHD enforces federal minimum wage, overtime pay, recordkeeping and child labor requirements of the Fair Labor Standards Act. WHD also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the DavisBacon and Related Acts and the Service Contract Act and other laws applicable to federal contracts for construction and for the provision of goods and services. The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.
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Source: U.S. Department of Labor
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The Rural Workforce Academy A Look at How
is Changing the Lives of Rural Texas Residents By Subcontractors USA News Provider
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hile many parts of Texas have been greatly affected by various types of disasters, such as Hurricane Harvey and now the COVID-19 pandemic, rural areas experience a more long-term hurt than urban areas. But, thanks to Prairie View A&M University’s new Rural Workforce Academy, change and opportunity have arrived. The Rural Workforce Academy, a collaboration of the U.S. Economic Development Administration Department of Commerce and Prairie View A&M University, the City of Prairie View and Langetree Retreat and Ecocenter, will offer training and certification led by industry experts in the areas of welding, electrical installation and service technician, core construction and nursing assistant. “Being able to have people who are qualified and trained in these different skills in the workforce is going to be incredible,” City of Prairie View Mayor David Allen said. “We always encourage developers to utilize local resources, but if we don’t have trained workers, there is not much we can do. This program is going to open up the opportunity to actually offer those developers trained, local workers who are able to take on and complete the job.” Mayor Allen, along with many others in the community, is hopeful that this program will address the rebuilding and recovery efforts of Liberty and Waller counties by bringing the necessary tools and training to create much needed jobs for residents in these communities.
“Being able to give a skill set that people can utilize toward working and being productive is going to create change throughout the entire county as well as surrounding counties,” Mayor Allen said. “For our residents to have this type of life-changing training is literally invaluable.” This pilot program will aid in an already established long-term recovery plan for Texas rural counties by lending to the goal of economic resilience. It contributes to the efforts of engaging more with surrounding communities by bringing training and expertise to the unemployed and underemployed rural residents.
“It is programs like this that create jobs,” College of Agricultural and Human Sciences Dean and Director of Land Grants Programs Gerard D’Souza, Ph.D., said. “And jobs create what is known as multiplier impacts in the community by increasing income, increasing output and increasing economic development. These factors build the engine that will drive the economy
and make the state even more successful in terms of economic growth and development.” He believes this program is an example of how land grant universities like Prairie View A&M honor their mission to advocate for underserved populations as well as those with limited resources.
“For people who do not intend to go on to college, this is an ideal career path,” D’Souza said. “Being a land grant university means we are here to serve the needs of the people, and given the confluence of hurricanes and now the pandemic, which create a lot of displacement, this type of program can give people a leg up and help uplift the community while also contributing to economic growth. At the end of the day, it is about impact, making a difference in people’s lives and serving the needs of our communities.” Jimmy Henry, Program Leader for the Community and Economic Development Unit at Prairie View A&M, believes this program is an opportunity to meet the needs of high demand jobs in the area by providing the training necessary for them. But he also believes this program can grow to be much more. “I am excited about the start of this program, but I am even more excited about where the program can go,” Henry said. “We don’t have plans to stop here. We want to continue growing The Rural Workforce Academy and help as many people in our community as we can.”
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Training sessions will take place in Liberty County at the Langetree Retreat and Ecocenter and Waller County on the campus of Prairie View A&M University and the City of Prairie View. The Rural Workforce Academy is open to anyone who has a desire to learn and a determination to succeed in their newly earned industry-recognized certification. As part of the program, participants will receive industry-expert-led training and job placement assistance with local employers, leading them to reach the goals of certification, secure employment and immeasurable life skills. For more information about the academy, visit www.TheRuralWorkforceAcademy.com or call 936-261-5165.
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LEGAL
Build Your Construction Contract On Solid Ground: Know The Documents You Incorporated By Reference! By Subcontractors USA News Provider
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construction contract is the foundation of any construction project. But a foundation is only as strong as the ground it is built on. Documents that are incorporated by reference into your contract may lead to unknown risks that are only unearthed when claims or disputes flare-up, or worse, in litigation. Executing a contract without knowing the referenced documents’ terms or failing to preemptively mitigate the risks from these referenced documents is building your project’s foundation on shaky ground. This article first explains how courts and arbitration panels consider documents “incorporated by reference,” then describes a few issues and subsequent consequences that are typically caused (and litigated) by referencing other documents, and finally suggests actions the contracting parties can take to mitigate these issues.
WhenisisaaDocument Document“Incorporated “Incorporatedby by When Reference”? Reference”? Construction contracts often refer to numerous other documents besides the base contract such as design and construction plans, specifications, exhibits, addenda, and even other contracts between other parties. When the proper operative language is used, these referenced documents that are “incorporated by reference” become part of the contract, and enforced by courts and arbitration panels, as the document that is ultimately signed. Proper operative language does not require magic words to incorporate a document by reference into a contract. Generally, the contract must simply identify the document that is to be incorporated by reference and for what purpose the document is referenced. Further, the referenced document usually does not need to be a legal document but can include a project’s plans and specifications. A document can even be referenced and made a part of the contract without providing it to the other party. Simply put: a document may be incorporated by reference into a contract by expressly identifying the referenced document and clearly stating the referenced document is a part of the contract.
WhyDo DoParties PartiesUse Use“Incorporation “Incorporationby by Why Reference”Provisions? Provisions? Reference” Referencing other documents allows the contracting parties to expand a contract’s “four corners.” Parties may incorporate by reference other documents to streamline the contract drafting and negotiating process or as a “belt and suspenders” approach to ensure that the minutia of various technical scopes of work are included in the contract. A common type of incorporation by reference clause is a flow down clause. “Flow down” clauses in subcontracts seek to ensure a uniformity of obligations down the chain of privity. A flow down clause typically refer-
ences the prime contract between the general contractor and owner and “flows down” those obligations to apply them in a similar manner between the subcontractor and general contractor. Although flow down clauses typically focus more on legal obligations, they can lead to similar issues and require the same mitigation suggestions as incorporation by reference clauses.
“Incorporationby byReference” Reference”May MayCreate Create “Incorporation Ambiguities Ambiguities Courts and arbitration panels typically look within the written four corners of a contract to determine the intent of the parties. While each jurisdiction has its own body of law for contract interpretation, a clear and unambiguous contract will typically be enforced as written. Because interpreting a contract is a question of law and not a question of fact, a court may grant summary judgment and avoid a full-blown trial when the dispute can be resolved by interpreting the plain meaning of the contract. And arbitration panels may do the same without an evidentiary hearing. As a result, when a dispute occurs on a project, legal fees may be significantly reduced by avoiding trial or narrowing the scope of the hearing due to an unambiguous contract. Conflicts created by the additional language from a referenced document may cause what looked clear within the four corners of the contract to become unclear or ambiguous. Ambiguous simply means susceptible to more than one reasonable interpretation. If the ambiguity cannot be resolved within the contract, including all referenced documents, the matter has to go to trial to receive evidence on the proper interpretation.
“Incorporationby byReference” Reference”May May “Incorporation IncorporatedUnexpected UnexpectedTerms Terms Incorporated Incorporating documents by reference can inadvertently change or relinquish legal rights otherwise available to one of the parties. For example, a referenced document could extinguish a contractor’s right or preference to litigate a claim in federal or state court by unexpectedly incorporating a requirement to arbitrate. Or, a referenced document could force a party to abide by an unexpected forum selection clause. Referenced documents could also include project documents that materially impact the expected scope of work. For example, a referenced specification could require that the work only be completed at night even though the parties only verbally discussed day time work. Or, a referenced design plan could require building an embankment when prior discussions never specified a manner of wasting excess materials.
Suggestions Suggestionsto toMitigate MitigateRisk Risk Below are some suggestions to consider to avoid many of the issues that could arise from incorporating other documents by reference into your next contract. 1. Obtain and Review All of the Referenced Documents.
Contracting parties should obtain and review all of the documents referenced in a contract that include commercial and legal terms that may be asserted against them in litigation. Contracting parties in the construction industry will generally be considered sophisticated parties and will not be excused for not pursuing documents that are referenced in its contract. 2. Use an Order of Precedence Clause for Possible Conflicts. An order of precedence clauses defines how courts and arbitration panels should resolve conflicts between contract documents rather than find the contract ambiguous. Although an order of precedence clause is common in construction contracts, this type of clause is not universal. For example, ConsensusDocs includes an order of precedence in its standard forms while the AIA standard forms do not. [1] In fact, the Associated General Contractors of America (“AGC”) has commented on the AIA’s lack of an order of precedence clause and even suggested resolving this issue by using language similar to the ConsensusDocs’ order of precedence clause. [2] 3. Expressly Identify the Purpose of Document Incorporated by Reference. A good rule of thumb is to expressly identify the purpose for which documents are referenced. Generally speaking, courts and arbitration panels will strictly construe unambiguous language regarding the express purpose of a referenced document. Expressly identifying the purpose that referenced documents are incorporated provides clarity to the parties and direction to the court or arbitration panel when interpreting the contract. For example, if the prime contract is referenced in the subcontract to flow down only certain obligations between the owner and general contractor to the subcontractor, the subcontract could identify the specific terms or the types of obligations that are applicable. An alternate option would be, after referencing the prime contract, to specifically exclude the terms that the parties do not intend to flow down. ConsensusDocs 750 includes a version of a flow down clause as part of the standard subcontract.[3] [1] ConsensusDocs 200 Agreement and General Conditions Between Owner and Constructor, Section 14.2 Interpretation of Contract Documents; ConsensusDocs 750 Standard Agreement Between Constructor and Subcontractor, Section 13.1 Interpretation of Subcontract Documents. [2] AGC’s Commentary on the AIA A201 General Terms and Conditions Document, 2017 (July 25, 2017). [3] ConsensusDocs 750 Standard Agreement Between Constructor and Subcontractor, Section 3.1 Obligations. The views expressed in this article are not necessarily those of ConsensusDocs. Readers should not take or refrain from taking any action based on any information without first seeking legal advice.
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Source: Associated General Contractor
August 2020 | 21
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OIL AND GAS
RRC Commissioners
Take Major Step to Help Address Oil and Gas Flaring By Subcontractors USA News Provider
R
ailroad Commission of Texas commissioners today voted to approve draft changes to the Application for Exception to Statewide Rule 32. The changes play a large role in ongoing efforts at the Commission to reduce the amount of flaring in the oil and gas industry in the state. At today’s Conference, Railroad Commission staff also discussed a recent positive trend that has been occurring with the rate of flaring. While the amount of gas produced in Texas declined by 13 percent from June 2019 to May 2020, the portion of produced gas that was flared dropped even more sharply by 79% during that same time period. Staff will continue analyzing flaring trends in the coming months.
There are several proposed modifications to the Statewide Rule 32 application, which include, but are not limited to the following: • The period of time for which an operator may obtain an adminis trative exception to flare gas will be reduced in many cases. For certain exceptions, the duration may be reduced by 50% to 80%. • Provide incentives for operators to use technologies to reduce the amount of gas flared. • Operators must provide more specific information to justify the need to flare or vent gas in accordance with Commission rules. • Flares would be related to specific production properties to facilitate compliance with reported production.
Tracking the new information and data points will be valuable in any future efforts to tailor policy that addresses flaring. “Today, we took an important first step in ensuring we have the data necessary to get an accurate view of the scope of flaring in Texas,” said Chairman Wayne Christian. “Since the downturn, the rate of flaring has gone down with more than 99.5 percent of the gas produced in the month of May sold and beneficially used to generate electricity, cook dinner, or make hundreds of consumer products. Now is the opportune time to implement meaningful recommendations to reduce flaring before oil and gas production climbs back to previous highs.” “I sincerely appreciate the hard work that has gone into making these significant changes and look forward to receiving feedback during the public comment period,” said Commissioner Christi Craddick. “I am pleased with the progress we are making toward sig-
nificant flaring reductions in Texas. The comprehensive IT upgrade will continue to be a priority of the Commission to ensure the availability of reliable and transparent data.” “Flaring is a byproduct of production, but that doesn’t mean it’s not an issue that’s worth examining more closely,” said Commissioner Ryan Sitton. “That’s why I undertook the first systematic study of flaring in Texas and how our volumes compare with other major energy producers. I’m glad the Railroad Commission of Texas is stepping up and continuing to lead.” The proposed changes include RRC staff’s analysis of a Blue Ribbon Task Force report on best practices to reduce flaring. The draft changes are open for a 30day comment period and can be found on the RRC website at: https://rrc.texas. gov/about-us/resource-center/forms/proposed-form-changes/. Commissioners will need to approve a final version of the form at a future meeting before it goes into effect. More actions are in the works to aid RRC’s work on flaring. The agency is working to improve reporting to get a better picture of how much gas is flared or vented and the specific reasons for doing so. The agency is also developing an integrated online system that will allow flaring information from different types of users, such as inspectors in the field or technical specialists in Austin, to be accessible in one place. Oil and gas production is a critical industry that fuels our lives and provides us with many everyday products that we depend upon, and has helped recent energy independence for the United States. Methane emissions related to the extraction of crude oil and natural gas have gone down by 23 percent since 1990, according to the EPA’s 2020 Inventory of U.S. Greenhouse Gas Emissions and Sinks. And, despite considerable growth in the Texas oil and gas industry between 2003-2018, the EPA’s 2018 Toxics Release Inventory, published in 2020, shows a 42 percent drop in the release of toxic air chemicals over the same period in the state. Source: Texas Railroad Commission
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Seven Steps to Correctly Wear a Respirator at Work Seven Steps to Correctly Wear a Respirator at Work Following these simple steps will help you properly put on and take off your Following these simple stepseveryone will help you respirator, and keep you and elseproperly safe. put on and take off your respirator, and keep you and everyone else safe.
Wash Your Hands ➊➊ Wash Your Hands
WashWash your your hands withwith soapsoap andand water or alcohol-based hand rubs hands water or alcohol-based hand rubs containing at least 60% alcohol. containing at least 60% alcohol.
Inspect the Respirator ➋ ➋ Inspect the Respirator
Inspect damage.IfIfititappears appearsdamaged damagedorordamp, damp, Inspectthe therespirator respirator for for damage. do not use it. do not use it.
Put ononthe Put theRespirator Respirator ➌➌
Cuprespirator the respirator in your hand Cup the in your hand with the nosepiece at your with the nosepiece at your fingertips and the straps hanging fingertips and the straps hanging below your hand. below your hand.
Cover your mouth and nosewith with Cover your mouth and nose the respirator and make sure there the respirator and make sure there are no gaps (e.g., facial hair, hair, are no gaps (e.g., facial hair, hair, and glasses) between your face and and glasses) between your face and the respirator. the respirator.
Adjust the Respirator
Adjust the Respirator ➍➍
Place both hands over the respirator. Repeat until you get a proper seal. Inhale quickly and then exhale. If you If youuntil can'tyou getget a proper seal,seal. try Place both hands over the respirator. Repeat a proper feel leakage from the nose, readjust another respirator. Inhale quickly and then exhale. If you If you can't get a proper seal, try the nosepiece; if leakage from the feel leakage from the nose, readjust another respirator. respirator edges, readjust the straps.
the nosepiece; if leakage from the respirator edges, readjust the straps.
➏ Remove the Respirator
➏ Remove the Respirator
Placethe thestrap strap over over your your head Place head and and rest at the top back of your head. rest at the top back of your head. If you have a second strap, place If you have a second strap, place the bottom strap around your the bottom strap around your neck and below your ears. Do not neck and below your ears. Do not crisscross straps. crisscross straps.
IfIfyour nose yourrespirator respiratorhas hasa metal a metal nose clip, use your fingertips from both clip, use your fingertips from both hands to mold the nose area to the hands to mold the nose area to the shape of your nose.
shape of your nose.
➎ Wear Wear the Respirator ➎ the Respirator
Avoid touching the respirator while usingtouching it. If you do, your hands. Avoid thewash respirator while
Note: If you reuse your respirator, wearreuse gloves when Note: If you your inspecting putting respirator,and wear glovesonwhen the respirator.and Avoid touching inspecting putting on your face (including your the respirator. Avoid touching eyes, and mouth)your yournose, face (including during the process. eyes, nose, and mouth)
using it. If you do, wash your hands.
during the process.
➐ Dispose of the Respirator
➐ Dispose of the Respirator
For more information, see the quick video, "Putting On and For more Taking Off ainformation, Mask". see the
quick video, "Putting On and Taking Off a Mask".
Remove the respirator from behind. Do not touch the front.
www.osha.gov
If the respirator does not need to be reused because of supply shortages, discard it in a wastedoes receptacle. Wash your hands. Ifclosed-bin the respirator not need to be reused
because of supply shortages, discard it in a closed-bin waste receptacle. Wash your hands.
1-800-321-OSHA (6742) TTY 1-877-889-5627
1-800-321-OSHA (6742) TTY 1-877-889-5627
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OSHA 4015-05 2020
Wash your hands.
Remove the respirator from behind. Do not touch the front.
OSHA 4015-05 2020
Wash your hands.
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PERMITS
8 Steps to Follow
When Completed Construction and Failed to Pull a Building Permit By Helen Callier Contributing Writer
T
hree years ago, one of the most devastating storms to hit the Texas Gulf Coast caused over $125 billion in damage and made a horrendous impact in the Houston area. Today, the PermitUsNow continues to receive phone calls from Contractors, Architects, and property owners with pleas for assistance in obtaining building permits to restore and in many cases, rebuild homes. From General Contractors working on multi-family buildings to single family residences attempting to help those in need. Below is one such call to our toll-free line with the Contractor’s first name being changed. Hi, my name is Sam and I like to know if you handle permits after construction is completed. You see I was just finishing that last part of the roof on a small room addition and a City Inspector stopped by. My heart sunk when I saw the Inspector get out of his city vehicle. He walked back towards where I was working; and he identified himself as the City Inspector. He then asked to see the building permit. I told the Inspector that my in-laws are elderly and have been living in a hotel for a long time after their home became unbearable to live in after being flooded by hurricane Harvey. They have spent most of their savings and I was simply helping them get back home. I was able to purchase the materials at a discount, did a lot of the
work myself with a couple of licensed trade folks I know; and I am basically finishing the roof now. Please, is there anything you can do? All work was done to code, I made sure of that so my in-laws can be safe. Helen, does your company pull permits in cases like this one with a city violation and if so, how much will it cost? Sam, the work completed is way beyond a refresh or repairs, since you moved internal structural walls, added a new 400 sq. ft. sunroom, installed new windows, and extended roofing. The jurisdiction will require you to provide a set of plans and go through major departmental reviews. This will take some time to obtain a building permit. Sam asks, so how long do you think it will take? My elderly in-laws do not have the money and I really need to get them out of the hotel. I understand you are wanting to save your in-laws money and at this point, this is a huge challenge to be able to do so after construction is completed. Have you thought about contacting City of Houston Housing, or a local Church or the County, as they have programs to assist elderly with housing needs.
We get it. Times are tough for thousands of people across the Houston area that are still in need of repairs, renovations or even a new home after hurricane Harvey. For a Contractor taking on such a project, the right thing to do is to pull the appropriate building permit based on type of construction being done. To avoid pulling a building permit, places your customer at risk. To assist those contractors facing a challenging situation as described in the story about Sam above, consider below 8 steps to follow when pulling a building permit
after construction has started or is completed.
• Be truthful with customer and let them know that you failed to pull the necessary permit and you are stopping work to resolve issue • Identify all work completed • Obtain the necessary plans based on scope of work along with the required prerequisite documents • QA/QC package before submitting to jurisdiction permitting center • Prepare permit application and follow the necessary steps to submit package electronically • Track reviews online and make sure to respond to any comments in a timely manner • Pull permit then post on job site. • Request City Inspection
Conclusion InInConclusion Keep in mind that professional and quality work first starts during the preconstruction phase on any job. During this phase, building permits are to be pulled to comply with local jurisdiction codes and ordinances. Skipping this step costs your customer money and creates unnecessary stress on your end. If you find yourself in a situation where failed to pull proper permit, review the 8 steps for pulling a building permit after construction is started or completed. And you can always call the PermitUsNow at 1.844.PERMIT.4 team to answer any question and for assistance. #BuildSafe
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"[This pandemic] is just an offshoot of those disasters,” Tony Council, president of TLC, said. “Now, instead of it being a hurricane or flood, it’s a pandemic. So, one thing that we must do in all those situations is clean up and reinvigorate the city. It just seemed natural for us to go into the Coronavirus disinfecting.”
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TRANSPORTATION
VIA Board
Takes Action to Address Opportunity Gap Caused by Underfunding By Subcontractors USA News Provider
T
he VIA Board of Trustees took action Tuesday to create a path toward addressing VIA’s history of underfunding and redesign the regional transit system for a post-COVID-19 future. Advanced Transportation District Board members, who also serve as the VIA Board, agreed to table the notice to the City of San Antonio and Bexar County of their intent to order a referendum on an additional 1/8th-cent sales tax for transit in November, so that discussions could continue with City and County leaders. A vote on the resolution will be held at a Special Called Board Meeting on July 2, 2020. This required administrative step allows the Board to call for an election to reallocate a 1/8th-cent share of the existing sales tax. Currently only half of a one cent sales tax, made available by the Texas State Legislature to support transit, is being used in that capacity. The statutory deadline for calling a November ballot item is Aug. 17, 2020. The Board’s good faith action encourages continued progress in ongoing discussions with the Mayor, County Judge and VIA leadership who are working together toward securing a sustainable funding source to preserve essential service. “I am proud of the Board’s action. They are passionate about representing the riders and fighting to reverse the historic trend of underfunding transit in a community that relies on VIA as a lifeline,” VIA Board Chair Hope Andrade said. “We are unified in our mission and will continue advocating for our riders until we find a solution that moves us forward, together.” VIA is the least-funded major transportation agency in the state. The result has been a lack of frequent and reliable service that has been exacerbated in recent months by the social and economic effects of COVID-19.
By securing an additional 1/8th cent of sustainable funding, VIA could begin to address chronic underfunding and help bridge the opportunity gap affecting our most vulnerable populations who lack equitable mobility options. VIA has outlined a plan for new investments that would be made possible by sustainable funding. They include strengthening service at the core of its service area and innovating with new types of service—like mobility on demand options—in further, less dense areas. The “Keep San Antonio Moving” plan is designed to preserve essential transit service as part of the region’s recovery and will help avoid the most severe service and labor cuts caused by forecasted financial shortfalls. Board Secretary Ezra Johnson, who voted against the motion to delay the vote, said it was not reflective of his continued respect for the Board Chair or his fellow Trustees, rather out of concern and frustration for delayed action. “I return to my point about preparing for the future to absorb these systemic shocks than we were able to this time,” he said. Without a sustainable source of funding, “we are not going to be in a position to protect our riders unless we are in a better stronger position than we are now.” Trustee Kristi Villanueva, who voted for the motion, urged trustees to remember the people VIA serves and recounted times in her life when she was without access to reliable personal transit, she instead relied on VIA. “I was that little girl, I was that single mother, riding the bus … Public transit helped me,” said Villanueva, who is now President/CEO of the West San Antonio Chamber of Commerce and a small business owner. She asked her fellow trustees to have “a little patience” and allow Chair Andrade and VIA leadership to continue seeking common ground on the issue with City and County leaders.
Source: VIA Metropolitan Transit
TRANSPORTATION
DART Rail Generates $10.27 Billion Near Rail Stations By Subcontractors USA News Provider
A
new study looking at construction near Dallas Area Rapid Transit (DART) light rail stations shows just how productive and important it is to the overall North Texas economy, generating billions of dollars in revenue, taxes and jobs. Researchers from the Economics Research Group at the University of North Texas (UNT), led by Michael Carroll, Ph.D., reviewed 81 development projects completed within a quarter mile of DART stations with a total property value of $5.138 billion between 2016 and 2018. "The projects themselves added billions in economic activity for the DFW economy," explained Carroll. "Further, these projects will serve as a catalyst for future economic growth. As the economic landscape fills in around the initial projects, we will see growth in a wide variety of sectors."
UNT Researchers concluded: • The total economic impact of the projects created $10.27 billion for the DFW economy and 61,017 construction jobs. • The projects generated $286.4 million in state and local tax revenue. • Projects within a quarter mile of the Downtown Dallas to Bishop Arts streetcar route saw $200.7 million in development with a corresponding economic impact of $454.7 million. • The streetcar projects created 2,701 jobs over the period and generated $12.6 million in state and local taxes. • Properties surrounding DART stations rent for substantially more than surrounding projects. Residential properties have a 17.9% rent premium and commercial and office space have premiums of 23% and 5.8% respectively.
"The trend to develop communities and activity centers near rail stations is one that extends across the nation," said Gary Thomas, President/ Executive Director at DART. "Connectivity and multi-modal access are increasingly important in a Texas that is rapidly urbanizing this is especially true in the Dallas/Ft. Worth region." DART's 93-mile light rail system, with 64 stations, is the longest light rail system in North America and was built at a cost of $5.5 billion. The most recent light rail expansion project was the SOC-3 Blue Line Extension from Ledbetter Station to UNT Dallas, which opened in October 2016. Recent focus has been on system enhancements such as rail replacement in the Dallas Central Business District (CBD) completed in 2019, and Red/Blue platforms extensions, which are under construction. Source: DART
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