Texas Hill Country Building Savvy July 2021

July 2021

Texas Hill Country | Homebuilding Industry Publication

HARBOR CUSTOM HOMES At Horseshoe Bay

A BUILDER’S PERSPECTIVE Steve Zbranek

GAIL DAVALOS Workforce Network

JEFF AND HEATH JACKSON Father and Son Building Team In High Demand

PLAY WHERE YOU BELONG

APPLE ROCK GOLF COURSE | HOLE 10

There is no better time for your family to join the club, create memories and enjoy an abundance of amenities in the secluded Lake & Hill Country. Located in the heart of Texas, The Club at Horseshoe Bay Resort is a sprawling property recognized as a tropical oasis.

FOR MORE DETAILS PLEASE CONTACT MEMBERSHIP AT 830.598.7846 OR MEMBERSHIP@HSBRESORT.COM 2

Building Savvy

SAVVY’S A-LIST A-LIST SAVVY’S Architectural Photography

Air Conditioning Jason Roberts Classic Services AC 210.789.2033 830.358.1499 www.jasonroberts.biz www.classicairconditioningandheating.com Architecture

Delineations Architectural Photographer 830.693.9408 Jason Roberts and Associates www.delineations.com 210.789.2033 www.jasonroberts.biz Banking Hill Country National Bank

Building Materials 512.756.7363 BMC www.hillcountrynationalbank.com 512.977.7400 www.buildwithbmc.com Building Materials MG Building Materials

Guido Companies 830.257.2300 210.344.8321 www.mgbuildingmaterials.com www.guidoconstruction.com Cabinetry

Carpentry

Granite Countertops

Doors Rendi’s Trim Carpentry The Front Door Company 830.220.1983 210.340.3141 www.thefrontdoorco.com

Flooring Accent Granite & Marble Sunn Carpets and Flooring 830.693.1144 210.349.7866 www.accentgranite.com www.sunncarpets.com

Destination Resort

Electrician The Club at Horseshoe Bay Resort

Home Technology Garage Doors

JPI Electric 830.598.3917

Hollywood-Crawford HomeSmart

210.233.6638 www.jpielectric.com

210.494.3434 325.388.9278

www.hsbresort.com

Elevators

Home Warranties Centricity Hill Country Lighting 727.385.7599 Lighting

JPI Electric Home Elevator of Texas 210.233.6638 210.340.5702

830.257.2425

www.jpielectric.com www.homeelevator.com

Mortgage Company Aligned Mortgage River Hill Group 210.874.1630 210.844.1542 www.alignedmortgage.com Terry Kemmy Keller Williams,

Roofing

Pest Control Accurate Pest Control 830.798.4371 210.495.0499 www.williamsonroofing.com www.accuratepest.net Williamson Roofing

www.hollywoodcrawford.com www.homesmartanywhere.com

Electrician

Real Estate

Title Company

Plumbing

Independence Title Diamond Plumbing 512.454.4500 210.967.6100 www.independencetitle.com www.dptexas.com

www.hillcountrylighting.com StrucSure

Fireplace Installations Integrity Fireplace Installations Turn 2 Flooring 210.294.1383 Flooring

512.560.9550

www.sunncarpets.com

Kohutek Construction

830-624-4450 www.strucsure.com Painting Flawless Painting

Insulation 830.265.0170 Klar Insulation 210.296.5499

512.949.7000

Roofer Window Coverings & Interiors Kendall County Roofing Custom Creations & Interiors 830.331.2650 830.693.8206

www.kendallcountyroofing.com

www.customcreationsandinteriors.com

Specialty Electronics and Appliances HomeWerks 210.499.5760 www.sanantoniocentralvac.com

Insurance Hotchkiss Insurance 210.581.0420 www.hiallc.com 210.248.2556

Turn 2 Flooring

Lumber and Millwork Roddis Lumber 210.226.1426 Residential | Commercial www.roddislumber.com

| New

Specialty Glass and Mirror B&T Glass 210.656.8507 www.btglassandmirror.com Build | Renovation

Title Company Cori Pearce, Owner Luxury Iron Doors and First American Title 512.560.9550 | turn2flooring@gmail.com Interiors 817.918.2323 TX 78738 AMS3827 GroupRR 620 S, Bee Cave, www.firstam.com 210.366.0490

DISCLAIMER: Any articles included in this publication and/or opinions expressed therein do not necessarily re ect the views of N2 Publishing but remain solely those of the author(s). The paid advertisements contained within the Building Savvy magazine are not endorsed or recommended by N2 Publishing or the publisher. Therefore, neither N2 Publishing nor the publisher may be held liable or responsible for business practices of these companies. NOTE: When community events take place, photographers may be present to take photos for that event and they may be used in this publication.

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TERRY KEMMY

“ Te r r y i s s o c r e a t i v e when it comes to advertising properties in i n n o v a t i v e w a y s . We l o v e his creative thinking.”

TE R RY K EMMY

Realtor ® terry0372@kw.com 210.844.1542

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[From The Publisher]

Crisis and Competition

Lead to Innovation Lack of materials and labor lead to housing shortages, which in turn, lead to soaring home prices, overcrowding, evictions and homelessness. We’re in a crisis situation, but with crisis comes innovation and alternative solutions. In our industry, some of the things that might have been considered far-fetched ideas just a few years ago have advanced to the point where they are beginning to challenge the status quo for how future homes will be built.

On that note, our Savvy Special Report article explores

the box and watch the moves of pioneers posing to bring new ideas,

the advancement of 3D printed houses. Stronger, faster

new contractors and new products into the mainstream. Challenge

to build, more affordable and more resilient, 3D printed

yourself to “never to say never,” and you’ll be among the survivors in

houses are no longer just concept homes. While they

the next millennium of home building.

remain a great solution for building houses for disaster relief and for impoverished communities, 3D-built homes

Terry Kemmy

that look and feel like the single-family homes they sit side

Publisher

by side with are now being built for sale in cities across

210.844.1542

the world, including Austin.

Where crisis spawns innovation, competition also breeds it. Building materials manufacturers compete with global innovators anxious to break into our ripe American marketplace just like our domestic automakers do. We’re also seeing a trend with homebuilders based

RESIDENTIAL DESIGN STRUCTURAL ENGINEERING INTERIOR SELECTIONS WIDEEFORMAT PRINTING

in other states as well as some from overseas moving into our enticing Texas markets. All of these activities put more choices on the table and challenge contenders to continually raise the bar in order to grow or maintain their market share. At the same time, all must sharpen their pencils to compete.

End buyers ultimately benefit from the creativity that stems due to competition. Our Focus Section explores the style trends and some of the alternatives that the surfaces industry now offers to mimic natural stone, marble and wood aesthetically with products that are more resilient, easier to install and cost far less. This means even the most affordable housing can also be fashionable housing.

Can you imagine where the domestic automotive industry

518 MAIN STREET, MARBLE FALLS

would be had our American-born brands not had to face

WWW.DELINEATIONS.COM

the competition from Asian and European automakers?

830.693.9408

As they’ve always said, the automotive and housing industries run parallel, so now is the time to think outside

5

[Resort News]

HARBOR CUSTOM

HOMES to Break Ground at Horseshoe Bay

By Stacey Persinger, Director of Membership

H

orseshoe Bay Resort Development is excited to announce the pending

and three Robert Trent Jones, Sr. award-winning golf

closing on 106 lots in Summit Rock selection of gated communities as well

courses in Texas’ premier golf community. Summit

as the remainder of the Estates of Siena Creek inventory.

Rock has been featured as one of Golfweek’s Top 100

“Both Summit Rock and Siena Creek reflect the highest quality of residential

courses in America.

development and lifestyle offering,” said Ron Lynn Mitchell, Vice Chairman/

Harbor Custom Homes, founded in 2014, is a real

President/ CEO Horseshoe Bay Resort. “We are anticipating an exciting Texas Hill

estate development company involved in all aspects of

Country Modern product offering, their financial strength and quality home building

the land development cycle including, land acquisition,

history will play an important role in the residential development at Horseshoe Bay.”

entitlements, construction of project infrastructure,

Harbor Custom Homes® is committed to building quality homes in some of the nation’s most scenic and fastest-growing areas. The homes will accommodate homebuyers’ desire for more space including dedicated office space with innovative

home building, marketing, sales, and management of various residential projects in Washington, California, and Texas.

home technology, flex rooms, and covered outdoor living with easy access to

“We have made a significant commitment to grow our

outdoor recreation.

business model in the Austin metro marketplace,” says

Construction commences soon on 4- and 5-bedroom homes in the Summit Rock Golf Course community. The lots range from a quarter acre to one and a half acres ranging in price from $800,000 to $1,200,000.

Sterling Griffin, President and CEO of Harbor Custom Homes®. “With the acquisition of the Summit Rock lots in Horseshoe Bay, combined with our current inventory, we have a solid foundation for the future. The

Horseshoe Bay has seen rapid growth as a result of Austin’s expanding employment base and the subsequent migration of households to the Lake and Hill Country

acquisition of these Horseshoe Bay lots is a natural progression of our strategy to be a commutable

regions.

distance to Austin while providing upscale housing in

Many Harbor Custom Homes residents at Horseshoe Bay receive exclusive access,

from Austin combined with decreasing inventory in

upon approval of the resort, to Summit Rock’s members-only Jack Nicklaus

the bedroom and rural communities like Horseshoe

Signature Course. Residents will also enjoy a new clubhouse (soon to be built),

Bay offer a great opportunity for our company.”

the scenic Lake and Hill Country regions. Urban flight

6

To learn more about the thoughtful designs, please visit www.harborcustomdev.com

OUR SERVICES DRYWALL CUSTOM TEXTURES VENETIAN PLASTER NEW CONSTRUCTION

7

RESIDENTIAL COMMERCIAL FAUX FINISHES INTERIOR & EXTERIOR PAINTING

[Focus Section]

Sizzling Surface Fashions

By Beverly Smirnis

The Best of Mother Nature

Artistic Tile promotes symmetry using bookmatched

Geo Fancylight Petrified Wood from the Antolini Precioustone Collection features

stone slabs.

translucent varieties that can be lit-up from behind.

Cost Saving Solutions Thick, large-format porcelain slabs can be laid in one piece to create kitchen countertops as a cost-saving alternative to using authentic marble or stone countertops. Photo, courtesy of Ceramics of Italy.

The hardworking Everform™ Solid Surface Collection, previously known as Formica® Solid Surfacing, now includes 38 beautiful looks.

8

Wilsonart’s Calacatta Quartz Collection recreates the look of Calacatta marble in quartz.

The new engineered hardwood collection from Mullican Hardwood Flooring, Madison Square, offers designers and owners a beautiful highperformance product for a very affordable price.

Easier Update Solutions

Up until this point, no Rigid Core flooring product was stable enough

Wilsonart Engineered Surfaces’ Wetwall Water-Proof Wall Panel System

to be installed under cabinets and islands. Armstrong’s Empower Rigid

is an innovative, patented, water-proof solution bringing high-end style

Core is the first product on the market to offer this benefit, while its

and exceptional performance without the need for grout or intensive

Diamond 10® Technology coating keeps it 100% waterproof and provides

demolitions.

best-in-class scratch and stain protection.

Color Trends The trick to incorporating green – or planning an entire room design around it – is to treat it like a neutral. Layer it with other neutrals or pop it with color say Moen design experts.

9

Arizona Tile’s new Flash collection includes a 3-by-12-inch tile, shown

BLANCO Coal Black sinks are the latest addition to its SILGRANIT color

here in Light Blue, laid out in a vertical stack pattern.

palette for sinks.

The Latest in Hardware Finishes

Viaggio Hardware’s newest finish option is Titanium Gray, with warm undertones and an effortless blending of gray and bronze.

Outdoor Elegance

Golden Champagne hardware by Amerock glows against a grey canvas.

Beverly Smirnis is the co-founder of Building Savvy magazine and publishes its flagship Dallas/Fort Worth edition. She and her business partner and husband, Steve Smirnis, have served as judges for the Porcelain pavers can be dry-laid on top of gravel, grass, or sand or professionally installed to create breathtaking terraces, patios and pool

International Builders’ Show Best of IBS Awards and judged numerous homes for builders association parade events across the country.

decks. Photo: courtesy, Ceramics of Italy.

10

11

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12

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13

[From The Trades]

A Plumber’s PERSPECTIVE

By Dale Nash

Mexico in turn, temporarily diverted its natural gas supply from its refineries who then halted the production of resin creating a force majeure in which manufactures turned it’s purchasing back to Asia. Obviously, a much further transportation cost than if we were able to purchase from our neighboring country or domestically. Once the return of domestic resin suppliers began to ramp back up from its multiple hurricanes dilemma, low and

P

behold a winter storm, one so bad in the south, it simply put them back out of the game.

andemic, Hurricanes, Texas Freeze, Political Decisions and it’s

The steel market has been on a progressive rise due to several

Shift in Power, just to name a few disruptive events in only under

factors. For starters, there was a tariff put on foreign suppliers

one years’ time. All factors in what seems to be playing out in a

noted as section 232, in 2018. I personally feel that our domestic

combined fashion thus creating an adjustment like we’ve never quite

manufacturing of steel needed to be ramped up before such a

seen before.

section be implemented, yet our government also had its reasons as to why they did it at the time. In early 2020, COVID reared its ugly

We’re all aware of lumber pricing skyrocketing, but it doesn’t

head in which many domestic plants already in production shut

necessarily quite end just there. The plastic resin and steel markets

down and eventually forced us to purchase internationally.

are seemingly following a similar path. In late August last year a new demand raised concern as well, the PVC pipe and fitting market. When

Although new steel mills are being built in the United States, they are

hurricanes pounded the gulf coast last year, it put a huge strain on the

not yet all up and running. Steel pricing continues to soar at an all-

refineries that produce the resins necessary to create plastic products.

time high and has manufacturers that produce things such as water

Pipe and fitting manufacturers as well as others, began scrambling to

heaters, steel tubs, FHA stud plates, steel gas pipe, screws and nails,

purchase resin resulting in higher price tags from other countries such

etc. continually raising prices on what seems to be on a quarterly

as Asia and Mexico.

14

basis. Water heater manufacturers for example, have implemented

In areas such as San Antonio where the pay scale is significantly

increases of anywhere from 8 to 10% on three separate occasions

lower for trades than some other areas, the very houses that they

since November of 2020. Other manufacturers using steel for their

play a big role in building could become merely a pipe dream in

products have also followed suit in some cases. Steel supply is not

obtaining if there is not a significant change to follow. This not only

just a domestic problem right now, it is an international one. And

applies to trades, but even recent college graduates who continue to

although some “economists” state that we may see steel pricing

struggle in finding a good paying job in the area.

begin to decline later this summer, the writing is on the wall and I

Builders may be raising their prices to levels that could place the

cannot even fathom such a theory at this time.

first-time home buyer out of the market, leaving only out of state

What’s the result? Here’s an equation for you….

investors as prospective buyers of inventory.

A 300% rise in PVC pipe and fittings since May of 2020, plus a 95%

The uncertainty of this situation continues to be ongoing. It’s a

rise in steel pipe and fittings since May of 2020, plus a continued

frustrating one, pricing continues to rise in a fashion that mimics

demand by the housing market equals hmmm… the answer is not

previous inflation paths, certain product availability is becoming

good.

scarce, while government paychecks enable a “sloth like” behavior when it comes to returning to work. All of this presumably points

Plumbers are not only scrambling to purchase pipe and fittings,

towards a heightened awareness while we continue to tread in

but also for many other products that contain the plastics, steel

unknown waters.

and other chemicals necessary to complete their jobs. Senior purchasing agent Mike Dugi of Diamond Plumbing in San Antonio now describes his position with the company as a relentless daily pursuit dealing with multiple suppliers in order to keep his inventory

About the Author

at an acceptable level.

Thus the contracted pricing for materials once established merely

Dale Nash, a Master Plumber, is President of Diamond

diminishing into a simple form of question, “do you have any of this

Plumbing and a member of the Plumbing-Heating-Cooling

in stock, may I have it, and how much will you be charging me for

Contractors Association. Diamond Plumbing specializes in

it if you do?” Followed up by a “thank you.” Allocations for many

new residential construction, custom and production homes,

products have already begun and has now even put some plumbing contractors at the risk of not completing their work.

plumbing remodel, general plumbing services, water softener

What does this do to the Texas housing market you should ask?

sales and installation.

My hypothesis is this....

HILL COUNTRY LIGHTING

1800-A Broadway, Kerrville, TX 78028 sales@hillcountryligh�ng.com

830 257-2425

15

[Savvy Builder]

JEFF JACKSON CUSTOM HOMES

L

ike several others before him, Jeff Jackson fell in love with the Highland Lakes area as a special retreat from the dusty plains of West Texas. The Lubbock home builder had purchased his first home in the Horseshoe Bay area nearly 20 years ago. When one of his clients wanted Jeff to build a home here in the Hill Country around 2017 Jackson decided it was time to move here and get on with living his dream.

“My dad, for the longest time, wanted to live and retire here around the lake,” said Heath Jackson, Jeff’s son and building partner. “Obviously, we know so many people from Lubbock and West Texas who have moved here, or at least built second homes here….and this just feels like home to us.”

16

Jeff has always loved architecture and home design and for years admired the craftsmanship of other builders and remodelers.

“I loved walking into a new home and seeing what an amazing product someone had built,” Jackson said.

“Everything that goes into a home from design to the finish product is what

something I always thought was fun. The creativity that goes into a home was appealing

got me to love this industry. I decided one day to

to me. It’s an incredibly fun process and I became hooked. I began working for Jeff in

give it a try and a friend of mine helped me get

2011 and have loved getting to know the clients and the subs.”

started.”

Jeff’s advice to newer builders is fairly simple and straightforward…start small and don’t

Jackson went on to grow a successful custom

reach for the stars right off the bat. “This isn’t an easy career, and it has lots of obstacles

home building business in Lubbock and four

and bumps in the road. And it’s so easy to overextend yourself and get overwhelmed.”

years ago decided to relocate to Central Texas.

The biggest challenges the Jacksons face, like many other area builders, are the

His son and business partner Heath stayed back in West Texas during the initial transition to finish up a few projects.

constraints put upon them by both architectural country committees and municipalities.

Additionally, supply and demand had been a real challenge for this entire industry the past 18 months or so, with a seemingly constant shortage of materials and escalating cost of goods and materials.

“Heath is an excellent builder in his own right,

Jeff and Heath work with a variety of architects and designers. Who they end up using

and I’m glad we’ve teamed up,” he added. “He’s

really depends on the personal preferences of each new client. Within the Texas building

made it possible for us to take on more, do more

industry, the Jackson’s are considered innovators bringing new architectural styles and

and grow our business here.”

fresh ideas to the Texas Hill Country region.

“We are much more than just designers and builders,” adds Jeff. “We listen to our

Heath, who typically refers to his father as Jeff,

customers to create homes that are truly their own. Our hands on attention to detail

not dad, became hooked with construction

in every phase of the building process…from the architectural design through the

awhile back. “Seeing the kind of homes Jeff was

completion of construction…is what makes us such a great father-son duo. And most, if

building for clients and watching the process was

not all, of our clients would agree.”

17

The Jacksons have close relationships with several loyal subcontractors, suppliers and partners.

Here’s what a few of them had to say:

“They are extremely enjoyable to work with, and always very

“They are so down to earth. Jeff isn’t one to get uptight, even

professional. They are very fair to their subs and their clients

when things don’t always run smoothly. Great builder!”

really love them.”

Julie Causgrove, C&D Appliance

David Dilworth, Straightway Landscape

“We appreciate how flexible they always are. They are both very

“I’ve worked with a lot of high-end builders. I can say Jeff and

understanding. The Jacksons are usually on time with us, as

Heath are very approachable and very easy to work with.

far as scheduling, which means they are very organized with

They understand when problems arise and work with us as

how they run a project.”

partners to resolve them equitably.”

Julia Adams, Centerline Services

Leno Garza, Builders First Source

“The look of their finished homes is always spectacular. Both

“They are easy to work with. Jeff is like a personal friend,

Jeff and Heath are very hands on and stay close to the jobsite

more than a business relationship to us. Very laid back;

as it progresses. They just have great coordination with their

extremely loyal. He’s a great man, and he builds a beautiful

team, and I know their customers are always extremely happy.”

home.”

Justin Browning, Browning Poolscapes

Kasey Hanes, Highland Lakes Heating & AC

18

WILLIAMSON

ROOFING

At Williamson Roofing we want to do everything possible to build long-term relationships with our clients. We are committed to providing our clients with quality workmanship and products. Our goal at Williamson Roofing is to give you a long-lasting final project. We keep an open communication throughout your project to help the process go smoothly. We install metal, tile, shingles, gutters, chimney shrouds, metal wall panels, and custom sheet metal, along with just about anything else made of metal for the outside of your home or out-buildings. If you’re looking for a roofing company that you can trust, let Williamson Roofing be your go-to source. Send us your plans and we will work hard to exceed your expectations no matter how difficult the job.

METAL

TILE

SHINGLES

RESIDENTIAL

COMMERCIAL

GUTTERS

830.249.7939 Williamsonroofing.com

RICHARD WESTON

830.798.4371 Richard@WilliamsonRoofing.com

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Totally Connected 19

[Savvy Finance]

By Steven Bankler, CPA

W

ith the strange and confusing sales and use taxes facing Texas builders, it’s easy to get in the weeds with your tax payments. But did you know that forgetting to remit sales tax in Texas can be prosecuted as a first-degree felony?

The Steep Cost of Forgetting to Pay Sales Tax

Which Goods and Services are Taxable in Texas?

The taxability for a building contractor on each project comes down to whether it’s a residential or commercial property, whether it’s new construction or a repair/remodel, and whether you use separated billing or lump sum billing.

20

•

Residential vs. commercial property: In Texas, residential

taxes. No matter who that person is, though, the business owner is

property refers to a family dwelling, multifamily apartment or

rarely off the hook.

housing complex, nursing home, condominium, or retirement

A 2018 Texas Comptroller’s decision against a construction-materials

home. Homeowners-association-owned and apartment-owned

business owner illustrates that point. While the owner fell victim to

common areas designated for tenants’ use are also included.

managers and assistants who stole from the business, the Comptroller

Everything else is considered nonresidential (or commercial)

found that the owner was personally liable for $140,415 in unpaid

property, and these two types of properties are taxed differently.

sales tax plus fraudulent penalties and interest after assuming some

For instance, the labor for residential construction is not taxed,

of the check-collecting duties himself.

while the total amount charged for a nonresidential remodel, repair, or restore nonresidential real property is.

•

There’s no doubt that sales and use tax rules and regulations can get complicated. But it’s critical to understand the rules on each

New construction vs. repair/remodel: The Texas Comptroller

project and trust the people you enlist with your collections, taxes and

defines new construction as all-new improvements to real

bookkeeping.

property, including initial finish-out work to the interior or exterior of the improvement. New construction also includes the addition of new, usable square footage to an existing

Steven Bankler has more than 44 years of experience in the accounting

structure. Labor charges for work performed on newly

industry. Steven’s expertise lies in consulting, planning, tax, and asset

constructed residential structures are not taxed, while the

protection as well as exit strategy services for closely held businesses. He

supplies, materials, equipment, and taxable services on both

also provides litigation support (both as a testifying expert witness and a

residential and commercial new builds are. Furthermore, the

consulting expert), business negotiations and estate planning. Visit www.

labor to repair, remodel, or restore residential real property

bankler.com for additional tax strategy tips and to learn more about Steven

is not taxed, but the total amount charged for remodeling,

Bankler, CPA, Ltd.

repairing, or restoring nonresidential real property is.

•

Lump-sum vs. separated contracts: What type of contract is the work being performed under? A lump-sum contract that does not separate labor charges is taxed as a service, and the customer is not taxed. Instead, the builder owes the tax on the purchases of equipment, incorporated materials, consumable

Lot Loans | Interim Construction Loans Commercial & Consumer Loans

materials, and taxable services. A separated contract shows one price for the labor charges and another price for the materials used in the project. The builder is considered a retailer of the incorporated materials and must collect sales tax from their customer to pay to the state.

Penalties for Non-payment of Sales and Use Tax Texas considers sales tax a “trust fund” tax, which means that you hold the amount you collect in taxes “in trust” for the state until those funds are due for payment. In essence, you are collecting and holding the state’s money.

Many business owners don’t collect the correct sales and use taxes because of the confusing rules we outlined. That mistake can be costly enough, but collecting and then neglecting to pay the taxes comes with even more problems. At that point, you’re holding on to (and maybe even spending) money that’s not yours. Businesses that neglect to pay sales and use taxes may face stiff penalties, which

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might include felony charges for the person or people responsible

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for collecting and paying it. That responsible person may be an

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officer, director, or employee whose job is to collect, account, or pay

21

[Savvy Special Report]

Stronger, Faster, and More Affordable and No Longer Just a Concept 3D-Printed Homes May Be The Answer for the Future of Housing

“House Zero” a 2,000 square foot, 3 bedroom, 2.5 bath home and a 350 square-ft, 1 bedroom/1 bath accessory dwelling unit is ICON’s latest project in East Austin designed by Lake|Flato Architects.

3D-printed houses could help address severe housing shortages that have led to soaring home prices, overcrowding, evictions and homelessness across the U.S. The next evolution will be market-rate houses that compete side by side with traditionally built homes.

A

faster, cheaper way to build homes that cuts down on material waste is worth considering. What if a new technology could also reduce the need for human labor at a time when home builders are struggling to

find enough skilled workers to meeting housing demand? What if a buyer could get a home that looks and lives similar to the one down the street but is proved to be safer, more resilient, better able to withstand fire, flood, wind, and other natural disasters than conventional homes?

ICON, an Austin-based construction technology company, says its 3D printing system can do the work of 10 to 20 workers in five or six different trades. And unlike humans, the machines can work up to 24 hours a day. ICON first showed off 3D-printed homes at the South by Southwest festival in 2018 using a Vulcan printer that could create an 800-square-foot structure for about $10,000. Since then, ICON has printed more than two dozen houses and structures over the past few years. These include quick affordable disaster relief housing projects and social housing. Seven of the houses were 3D-printed last year for homeless people at Community First Village in Austin.

22

ICON’s 3D-printed houses are created by inputting a home’s architectural plans into a Vulcan printer positioned on the jobsite that communicates with a large concrete extrusion machine. Early pioneers of the technology have developed their own proprietary cementitious mixtures which are manually mixed and fed into the extrusion machine. Next, the computer provides specific print paths for the extrusion machine to follow to generate uniform layers of semi-solid concrete that cure to form the structural frame. The printer

ICON’s newly unveiled Vulcan construction system can 3D print

Layers of semi-solid

homes and structures up to 3,000 square feet, is 1.5x larger and

concrete cure to form

2x faster than the previous ICON Vulcan 3D printers.

the structural frame.

replaces the traditional methods of building the structure, insulation, sheathing, moisture barrier, and finishing. For now, the rest of the

To move beyond a niche market and into market-rate housing, the pioneers of 3D home printing

house is built traditionally.

will need to significantly ramp up production and persuade buyers, developers and regulators

While ICON’s Vulcan printers produce the structural frames on the job site other

that 3D printed houses are safe, durable and pleasing to the eye. They’ll also need to train workers to operate the machines and install the walls.

companies locate their 3D printers in a factory environment. Oakland, Californiabased, Mighty Buildings promotes 350-square-foot backyard 3D-printed

ICON is moving in the right direction in building 3D printed homes that are city-

studios, known in the industry as

permitted and built for sale. They will compete side by side with traditionally built

“accessory dwelling units.” By 3D printing more elements of a house, including

homes. In East Austin, the first floors of four new homes are 3D printed and upper

floors, ceilings and the roof, they deliver

floors are now being finished using conventional construction practices. The

a monolithic shell that increases the

houses range from 1,000 to 2,000 square feet and took between five and seven

airtightness, reduces the thermal leakage, and increases the overall energy efficiency of the structure, making it easier and less

days of printing time. Starting prices will be in the mid-$400s, which is close to the current median home price in Austin.

costly to meet California’s zero net energy standards. Mighty Buildings’ mini houses can be used as extra bedrooms, playrooms, gyms or home offices. Modules are

Mighty Builders is teaming up with a Beverly Hills-based developer to create the first 3D-printed

transported by truck to the owner’s property,

zero net energy home development in Rancho Mirage, California, an upscale community near

then put into place using a crane. The unit

Palm Springs. The first 15 lots sold out quickly. and with a waiting list of 500 homebuyers,

size is limited by the dimensions of the truck

more similar community plans are in the works, say its developers. Rancho Mirage’s 1,450

bed and the clearance heights of tunnels

square foot, single-story homes will have backyards with 700-square-foot guest houses and

and overpasses.

swimming pools in their backyards. Both the primary houses and guest houses implement

Similar progress has been made with 3D-printed concept homes and communities worldwide. In 2017, a 400-square-foot home was printed in 24 hours in Russia. In Mexico a 3D-printed neighborhood is being built for families living on $3 a day. An Italian company is building TECLA, the first 3D-printed home made from clay—combining the newest 3D

Mighty Builders’ now proven 3D built process. The developers say the selling prices from the mid-$800s at Rancho Mirage are about 40% less than comparable quality homes built traditionally. Mighty Builders is also investing in research and technology to adapt their processes to larger single-family homes and developing a fiber-reinforced version of their proprietary material. With structural properties similar to steel, they aspire to unlock multistory and multifamily opportunities with 3D printing.

What’s next? ICON is working with NASA to develop systems for creating infrastructure and habitats on the Moon and eventually Mars. One of the NASA collaborations s was a student-led and designed prototype rocket landing pad for upcoming lunar missions. Never say never!

technology with the oldest housing material.

23

[Builder’s Corner]

The Custom Home Market

By Steve Zbranek

A Builder’s Perspective

F

orty-two years ago, I entered the home building industry as a superintendent trainee with a

That was then.

national production building company. Looking

Today it is hard to recognize the industry that I grew up in, and continue to

back, life in this industry was simple then.

succeed in. Lots are expensive and scarce. Construction crews are busy and

Lots were cheap and plentiful, building supplies were

expensive. The support industries mentioned above are all doing the same

abundant and construction crews were always coming

things, but are so backed up that they can’t predict completion or service

around looking for work. Our support industries such

deadlines for clients (except Title Companies who seem to have adjusted

as surveyors, title companies and mortgage companies

the fastest). This “new normal” has caused every builder to re-think their

were all able to take as much business as builders could

programs, production schedules and prices. The most senior new home

send them and still wanted more. Mortgage rates were

builders have been through several of these “events’ in the past such as fuels

as low as 10.39% for a 30-year fixed rate loan, and new

shortages, 17% mortgage rates, the collapse of the mortgage industry and

production homes started at $ 49,900.

others. To them (us) this is just the next big challenge.

24

While the Covid pandemic shut down much of America, the

if ever. While we only build pre-sold homes (not specs), there are signs

demand for new homes, for some reason, soared. In our firm,

on all of our projects and we often receive calls from prospective home

Zbranek & Holt Custom Homes we always felt blessed to receive

buyers interested in purchasing those homes. In one case, a caller asked

2-3 new calls per week from families interested in building a new

to speak with the new homeowner so he could make them an offer to

custom home in Austin or the surrounding areas. Now we’re

sell. The house was in the framing stage on the water and the guy was

getting 2-3 calls each day.

calling from his boat.

Talking to fellow builders this is not unique to our team. From

The cost to build is going up, but not nearly as fast as the value of what

the outside this new demand could be viewed as “Home

we are building. Land continues to be scarce and will be the initial driver,

Builder Heaven.” From the inside, there are more challenges

and ultimate challenge to new home costs. Six of our last 10 Lake

to delivering a new home than I have seen in my 42-year

LBJ new home starts began with us tearing down an existing home to

homebuilding career. The accelerated demand has caught

“recycle” the lot. Lumber is the anomaly in our current market. No one

many building and industry support companies unprepared.

thinks that the current levels are sustainable but no one can predict when

Let’s begin with lumber. During Covid the mills shut down

supply finally will catch up with this high demand.

until they could adjust to social distancing rules and worker safety. Now they are gradually reopening but are way behind the demand curve. Wholesale lumber is priced per board foot or PBF. A year ago, that number was close to $350 PBF. Last week it was $1650 PBF. Even at these horrible prices lumber is also in short supply. We often wait for the lumber distributors to receive a shipment to their yard, which is then usually gone the same day. This affects not just lumber but all wood products (trim, doors, cabinets etc.).

The labor shortages reported on the local news exist in our world as well. Surveyors are taking 6-8 weeks for products that were once delivered in three. Appraisers are overwhelmed with

Most of us expect to see some relief by the summer or early fall.

However, waiting for lumber costs to retreat to start building a new home could mean missing this economic sweet spot. Having 3.5 – 4 percent interest rates mitigates a lot of lumber numbers. And, while lumber will probably be lower at some point, the other line items in a builder’s budget will continue their seasonal, and typical increases.

For perspective, back when those of us who remember 10.5 percent as a good interest rate, on a $650K loan the monthly payments were $5,946 a month. Today, a $650K loan at 4 percent is $3103 monthly. That’s $33,600 in savings in one year. Focus on the economy and hire a builder you trust to focus on the rest.

new business and there are not enough of them to keep up.

Loans are now taking months to close versus weeks. A national window company suffered a COVID outbreak and shut down,

About the Author

leaving dozens of window orders in limbo. When they finally re-

In addition to serving two terms as

opened, we learned that the hardware supplier for that company

Chairman of the Lake Travis Chamber of

had shut down and they were unable to get materials to build

Commerce, Steve Zbranek was also the

the windows.

Founding Chairman of Leadership Lake

The lead time to receive almost everything it takes to build a home is extended. Then, we receive emails form vendors stating that due to the price of copper going up our next electrical bid will be 15 percent higher. Due to the price of steel rising, metal roofs, garage doors and structural steel used in foundations will be 10 to 12 percent higher on the next bid. The list goes on. This “Builder Heaven” is handing us more challenges than most in our business have ever seen.

Travis, served on the Board of Directors Lakeway Police Memorial Foundation and was recognized as both Business of the Year and Citizen of the Year by the Chamber. A decorated US Air Force Veteran, Steve is a 42-year Custom Home Builder in San Antonio, Austin, Horseshoe Bay & Texas Hill Country. He’s a two-time National Master Builder of the Year, was inducted in the Austin Builders “all of Honor”

What is the “good news” in all of this?

and his company Zbranek & Holt Custom Homes was recognized three times by

First, a home buyers largest concern on the investment of a new

the Austin Business Journal as “Custom

home is that they might pay more to buy it due to these “Covid

Builder of the Year.” Zbranek is also a

costs” than they can sell it for in the future. That does not seem

Past President of both the Greater Austin

to be the case, in Central Texas anyway. In the resale market

and Greater San Antonio Home Builders

you hear of multiple offers, often higher than the asking price.

Association. For more information visit

The homes also have the shortest time on the market in years,

www.zhcustomhomes.com

25

[Workforce Network]

Wo rkfo rc e Ne tw o r k, In c .

Buy or Build your Workforce?

T

he mission of Workforce Network, Inc. is to build a regional career pathways system to cultivate skilled workers in the industries that drive economic prosperity in the Highland Lakes. To do so requires collaborating with stakeholders in business, education, city and county leadership, and social support agencies. The initial spark for workforce training in Burnet and Llano counties was kindled by Crider’s associate, Gail Davalos, in 2014.

Workforce Network, a 501c3 nonprofit organization, in an indirect way has ended up supporting the construction trades.

“Our current shortage in the number of skilled trades workers is the result of a perfect storm that has been brewing for years of experienced workers retiring, younger workers’ negative perception of a trades career, and inconsistent skills training, now exacerbated by unprecedented health and weather crises,” says Fay Crider, President of Workforce Network, Inc. “It would be nice to have a quick fix, but our approach is to help build a pipeline of skilled workers for our trades contractors for the long-term.”

Davalos recalls a news article about a new Marble Falls healthcare

Marble Falls Economic Development Corporation director Christian

employer offering 500 new jobs within three years. “This was both

Fletcher welcomed Davalos’ idea to develop local job training for

exciting and concerning,” she says. “I knew that many of their entry-

high demand industries -- healthcare, hospitality, and construction

level and mid-level jobs required a certification or license, and I knew

-- that drive the economy of the whole Highland Lakes region. The

that our workforce did not have those credentials.”

Marble Falls EDC Board approved seed money in 2015 and have made annual investments to expand job training into a number of

The same week, Davalos read another article about an Austin-based

occupations, including plumbing and electrical trades training.

non-profit who successfully trained unskilled workers for skilled occupations. “If they can do it, so can we!”

26

The Burnet and Llano Economic Development Boards, City of Horseshoe Bay, Llano County, and Hill Country Builders Association have also made investments in recent years to sustain job training for Highland Lakes workers. The investments by the EDCs qualify for a matching grant from Texas Workforce Commission. So far, more than $300,000 in public grants and private donations have funded training for 146 adults in seven high-demand occupations.

“Together with our partners, we’ve built a trade school for plumbers and electricians that is approved by the U.S. Department of Labor Apprenticeship Training Program,” says Davalos. “This is important because the state licensing agencies offer an incentive to apprentices in a DOL-approved program.”

For example, the State Board of Plumbing Examiners can credit an apprentice in a DOL Apprenticeship Training Program with up to 1000 hours toward the 4000 on-the-job training hours required to sit for a Tradesman licensing exam or toward 8000 hours required to sit for a Journeyman licensing exam. Also, the Electrician Division of Texas Department of Licensing and Regulation offers an early exam opportunity at 7000 hours of the required the 8,000 hours on-the-job requirement for a Journeyman.

background check, and academic and work readiness.

“We are now recruiting first and second-year apprentices for the Electrician class that starts August 9,” says Julie Farmer, who joined the Workforce Network team in 2019 and oversees the trades training program. Adults who are working in the trade or want to enter the trade can contact Ms. Farmer at 830-613-1240.

“There is an uncomfortable tension between plumbing and electrical contractors’ immediate need for skilled, licensed employees and our approach to helping them gain higher employee productivity from their unlicensed apprentices,” adds Davalos.

“Our program can also accelerate their path to licensing. It may take longer, but not as long as it could take. For example, it is possible for a plumbing contractor to send their apprentice to our class and gain a licensed tradesman plumber within 18 of hire, while benefiting from his or her improved skills and productivity on the job in the meantime. That tradesman can do residential plumbing work without direct supervision, can drive a company truck and even train apprentices in residential settings.”

For information on training for the licensed trades, contact Julie Farmer at 830.613.1240

So far, 26 plumbers and 16 electricians have graduated from the program. About half are now licensed and other graduates are still accumulating the required work hours needed to apply for examination.

“The students engage in friendly competition to see who can get licensed first. The training definitely builds the apprentices’ confidence to pass the state board exam. And their employers notice the improvement in their skill level in the first few months of training,” says Davalos.

Fifteen adults enrolled in this year’s plumbing class that began in May and will run through January 2022. The Electrician Program begins August 9, 2021 and will run through April 2022.

The classes are held at Hill Country Builders Association at 1401

RTC

Broadway, Marble Falls and taught by master’s and journeymen one night a week. Students must complete assignments in between classes. Coursework combines classroom and hands-on training from NCCER, a curriculum based on industryapproved best practices. NCCER is four-level curricula that adheres to the Department of Labor standards. The focus of

Rendi's Trim Carpentry

the program is Level 1 and Level 2 which teaches skills for residential applications in new construction and maintenance.

Excellence in Carpentry & Craftsmanship

A grant covers the student fees for twelve adult apprentices in

Rendi Ornelas, Owner

each program. Eligibility requirements for the grant include age 18 years or older, U.S. Citizen or Permanent Resident, live or

830.220.1983

work in Burnet or Llano counties, be a worker/jobseeker, agree to

27

[Savvy Trucks & Toys]

Battle of the SUVs: As American-Born Brands Raise the Bar, Japanese-born Rivals Answer Back « GMC’s Yukon AT4 gets unique front fascia to improve the Yukon’s approach angle, dark gray wheels with all-terrain tires, front tow hooks and skid plate, a heavy-duty air filter, adaptive suspension dampers, hill descent control, and a two-speed active transfer case along with some extra creature comfort features inside. »

C

ompetition is stiff in the mid- and full-size SUV categories. As American-born brands promote their stand-out features, Japanese-

born brands such as Acura and Lexus answer with matches to challenge them, while adding luxuries and technology to rival them.

$36,255, our Platinum 4WD tester featured the turbocharged 3.0-liter V6 good for 365 hp and 280 lb. ft. torque, 20-inch wheels, sport-tuned suspension, the Trailer Tow package. adaptive headlights, unique taillights, a two-piece sunroof, and upgraded leather upholstery and steering wheel. With Premium Tech option adding massaging front seats, 10.1-inch touchscreen and 14-speaker Bang & Olufsen audio and premium aluminum wheels, our tester was $60,935.

Now in its sixth generation, the Ford Explorer was

If you’re looking for a luxury level mid-sized SUV, Acura’s best-selling 4th-gen MDX is

one of the first three-row family-oriented SUVs. It

hard to beat and just earned the highest possible safety award from the Insurance

was originally built on a truck frame, but later models

Institute for Highway Safety. Known for offering impressive value for the money,

had moved to front-wheel-drive layouts and car-like

the MSRP on the 2022 model is $47,925 including a what Acura calls Absolute

unibody construction. The 2020 model marked its

Positioning, its new one-to-one mapping of the pad to screen. Just like a smart phone

return to the rear-wheel-drive layout, dramatically

or tablet, you can move the Apps and Favorites around to position them to your

improving handling and overall balance, while unibody

liking then control selections using muscle memory, something you can’t do with

construction remained. Interior room is expanded.

a touchscreen interface, or other pad type interfaces that rely on a cursor. Acura

While the 2021 Explorer can be had for as low as

follows the trend of allowing buyers to pick both their exterior and interior colors. It’s

28

sleek exterior is longer and wider and its drive is stiffer than before, increasing the stability of MDX on the road.

Inside, the Acura team put lots of thought into legroom and headroom, storage, and making the seats easy to fold down. New rear suspension allows for a lower floor in the third row and panoramic sunroofs are now standard. The middle seat in the second-row bench can be folded down to lend a nice wide console with cupholders and additional storage, or it can be removed to leave a walkway from mid to rear.

Drivers who prefer to give up some driving comfort on-road for the better off-road performance of a truckbased SUV. The GMC Yukon is one of the few still around. Its 5.3-liter V8 gets 355 horsepower, 383 lb-ft

« While the 2021 Ford Explorer can be had for as low as $36,255, luxury level trim and options topped our tester over $60K. »

of torque and is rated to tow up to 7,900 pounds. The new Yukon is 6.1 inches longer than its predecessor allowing more legroom for rear passengers and more cargo space. Folding down the second- and third-row seats opens up a massive 122.9 cubic feet of space behind the front row and the loading floor is lowered, making it easier to load big items. New independent rear suspension makes the newest Yukon ride more smoothly while an air-ride suspension system option gives you four-inches of adjustment; lower 2 inches for easier access or add 2 inches for higher ground clearance in off-road mode. It was included on our AT4 trim level tester, the off-road-oriented Yukon available in 4WD only. Standard price for AT4 is $64,800. Ours sported the AT4 Premium Plus package, adding a max trailering, rear media and nav upgrades, a premium tech package, active response 4WD, panoramic sunroof and power-retractable side steps. The Premium Plus upgrade and a few other upgrades (paint, heated and power-release second row seats), boosted its price to

« Our Acura MDX tester was the SH-AWD (Super Handling All-Wheel Drive) with a turbocharged 3.0-liter V6 getting 355 hp and 354 lb-ft of torque along with wider tires and more powerful brakes. With top-of-the-line Advance trim, its MRSP was $60,650 including a head-up display and a surround-view camera system offering a top-down view of the MDX and its surroundings for tight parking situations. »

$75,600.

Onto its rugged frame, Lexus packs all the leather, tech and power equipment that its other luxury vehicles have, but the Lexus GX 460 is decidedly different due to its truck-based platform with locking differential and permanent four-wheel drive. It is designed to be a three-row luxury SUV that can take you anywhere.

MSRP is $59,100. Our Luxury trim tester came with adaptive suspension which greatly helps the ride quality and it sported red seats that we loved. Extras included the Off Road Package with multi-terrain and panoramic view monitors, transmission cooler, fuel tank protector, crawl control and multi-terrain select drive modes.

Additionally, with the Mark Levinson sound package and a Sport Design package, its sticker was $71,255 including delivery.

« Lexus GX 460 packs lots of luxury into its truck-based GX 460. Even adding its offroad package, premium stereo and sport appearance package, our tester’s price tag was less than the AT4 Yukon. »

29

[Savvy Youth Initiative]

CASA ÜBER ALLES Awards First Scholarships

By Todd Eidson

The Hill Country Builders Association Community Charitable Fund / Casa Über Alles Building Trades Program recently awarded their first scholarships to two Fredericksburg High School seniors.

A

total of $10,000 went to well-qualified Fredericksburg High School applicants who plan to pursue post-secondary education in the construction industry. Blake Penick, son of Gayla Penick and Derrek and Jordan Penick, will be continuing his construction education at Texas State Technical College in the fall of 2021. Sloan “Tripp” Dennis, son of Sloan and Chelsea Dennis will be attending Texas State University.

Both recipients may re-apply for additional awards during the application cycle prior to the expiration of their current awards.

After five years of building homes at FHS, we are excited to have finally reached the point where we can monetarily give back to students and recognize their hard work and dedication to this program. This scholarship was the ultimate goal of our six years of fundraising. Our ability to grant these funds would not be possible without the generous support of Mike and Nancy Shaw, who have been amazing donors to our program.

The Casa Über Alles program is a small, local solution to a nationwide

Over four years, more than 100 high school students have

shortage of trained tradespeople to construct or remodel homes. The

participated in the program. A core group of about 10 local builders

American construction industry has lost more than two million skilled

have dedicated over 2,000 volunteer hours in the program, working

and unskilled workers since 2006. It is currently estimated that 12

side-by-side with students every day of the week for four years.

million skilled workers will be needed by the end of 2021 to fulfill all of

To date, four homes have been successfully constructed and

the home construction demand.

auctioned, raising over $200,000.00 to help fund the Fredericksburg

This program gives local high school students the opportunity to

High School Building Trades curriculum, shop space, tools, and

work hands-on with industry experts and professionals over the

supplies, as well as the scholarship endowment. Initial funding for the

course of the school year. These building mentors assist the building

first home was raised solely through Hill Country Builders Association

trades teacher in providing students with real-world work experience.

fundraisers over a three-year period, dating back to 2015. The Shaws have enthusiastically and continuously supported the program since

Together the builders and students build fully functional, small

the first house was completed in 2017.

concept homes on the high school campus throughout the academic year. Upon completion, the homes are auctioned and the proceeds fund the following school year’s home build project and scholarship endowment.

30

PHOTOGRAPHY • VIDEO PRODUCTION • GRAPHIC DESIGN In addition to creative services for “Building Savvy” magazine, photography & graphic design by Jason Roberts has been published in Texas Monthly, Luxury Home Magazine, Cowboys & Indians Magazine, and many other quality periodicals as well as numerous applications for print and electronic media for a wide variety of clients.

210.789.2033 www.jasonroberts.biz 31

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