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August / September 2015 BuildHoustonOnline.com 1

www.buildhoustononline.com

August/September 2015

S A F E T Y P R O F E S S I O N A L S : T H E N E X T L E A D E R S I N C O N S T R U C T I O N

• DOL “White Collar” Overtime Exemptions• Rebranding the Construction Industry• ERISA Compliance Audits: Are You Ready?

CREATIVE COLLABORATIONmaking history, building the future

What happens when Construction, Safety, and “It’s Never Been Done” team up.

ALSO

2 BuildHoustonOnline.com August / September 2015


Letter from the Chair

“Lunch atop a Skyscraper” is a famous black and white photograph of construction workers eating lunch precariously perched high atop a crossbeam of the RCA Building at Rockefeller Center in Manhattan. Those eleven men pictured in the photograph are seen sharing meals, laughing, reading the paper and smoking cigarettes, all while dangling – untethered – 840 feet off the ground.

Like many in the construction industry, I believe that our most valuable asset is the men and women on our jobsites. Scenes like the one portrayed in 1932’s “Lunch atop a Skyscraper” are certainly cringe worthy today. Fortunately, society, business owners, contractors, workers and the government began demanding safety on the jobsite.

Beyond regulation, we have an entire industry dedicated to the safety of the craft worker. Innovative entrepreneurs are developing high-tech tools and equipment to keep a worker from harms way. Digital tools, like tablets, have even integrated into the daily safety routine. Incentive-based recognition programs – for company and worker alike - have made an impact on jobsite safety too.

ABC offers four programs in which contractor members can participate. The Safety Training and Evaluation Process (STEP), and the Craft Training Evaluation Process (CTEP) are excellent programs to not only gauge an internal safety and training program but allow for benchmarking against contractor peers, and provide a sharing of “best practices.” At the recent July ABC Membership Breakfast meeting the association awarded 70 contractors with STEP awards, including 49 in either Diamond or Platinum level (the highest level of acknowledgement). The Greater Houston area has some of the most safety conscious contractors anywhere. If you have not yet participated in the STEP program now is a good time to start. Another great safety program is the ABC National Safety Awards. It is the premier industry safety award, demonstrating an outstanding safety commitment to employees and owners. Lastly, the ABC/OSHA partnership is a voluntary program in which contractors work cooperatively with OSHA to demonstrate and implement effective safety and health programs.

Safety on the jobsite has come a long way since the days of “Lunch atop a Skyscraper”, and thankfully so. If you are committed to jobsite safety and are interested in learning about new developments in construction site safety, ABC is an excellent source. Visit our website at www.abchouston.org to learn about the numerous safety programs ABC offers.

Lunch atop a

Skyscraper

DarleneeastHoles Incorporated2015 ABC Greater Houston Chair


Contents

Also in this issue

711121820

DOL White Collar Overtime ExemptionsProposed Changes to Salary Levels

Rebranding the Construction Industry How Individual Companies Can Improve Recruitment Efforts Industry-Wide by Appealling to the Next Generation of Skilled Workers

ERISA Compliance Audits: Are You Ready?Under ERISA, The Department Of Labor Has Broad Authority to Investigate or Audit a Company’s Health Plan for Compliance with Various Federal Laws.

The Shift: Changing Ourselves FirstA Shift Means Throwing Out Methods That Don’t Support Integrated Safety While Implementing Methods That Do Support It But Are Not Mainstream, Yet

Safety Professionals: The Next Leaders in ConstructionFormalizing Safety Plans and Improving Technology Create Safer Craft Professionals

AdvertisersAggregate Technologies....................14American Mat & Timber.....................14Andrew Myers, P.C.................................6BE&K Building Group, LLC..................9Brookside Equipment..........................9Buyers Barricades...............................14

Cherry Companies...............................14Coastal Welding Supply, Inc.............10Coastal Ice................................................2The Compliance Alliance.....................5Cokinos, Bosien, & Young..................19Craig & Heidt, Inc.................................23Efficiency Shoring and Supply.........13

GP Radar System.................................28Interface Consulting............................19Locke Solutions Precast Division...10Marek Brothers Systems, Inc...........10National Trench Safety, LLC................6Porter Hedges LLP...............................17Scott-Macon Equipment...................23

Cover Story

15 Sierra Pines II joins E. E. Reeds other landmark projects such as ET I-IV, Westgate Office Complex, DNA Westway Campus, and The Mark, as one more success story.

E.E. Reed Construction, L.P. & The Compliance Alliance

ABC LEADERSHIPChairDarlene EastHoles Incorporated

Chair ElectMike HollandMarek Brothers Systems, Inc.

Vice ChairWarren AdamsonS&B Engineers and Constructors

SecretaryMatt Frey Skanska USA Building Inc.

TreasurerTodd FryKarsten Interior Services

2015 BOARD OF DIRECTORSBrian AndersonG.R. Birdwell Construction

Rusty BarnhillForce Corporation

Leonard Bedell Mobil Steel International

Kerry BennettISC Constructors, LLC

Robert BurelsmithE. E. Reed Construction, L. P.

Tahnee CoulstonZachry Industrial

Sam CraigCraig & Heidt, Inc.

Matt DanielKBR Building Group

Matt ElliottSpawGlass Construction Corp.

Laura Price Gautreau Polk Mechanical

Dinesh GhiaGilbane Building Company

John GolasheskyTurner Industries Group, LLC

Brandon Mabile Performance Contractors, Inc.

John MarshallSatterfield & Pontikes Construction Inc.

David McCleskeyKBR

Rod Molyneau JACOBS

Phillip Morgan CB&I

Joe Orr Baker Concrete Construction, Ind.

Rodney Page Ref-Chem L.P.

Tim RickettsChannel BioRefinery & Terminals

Wendell RychlikW.T. Byler Company

William SanchezOxford Builders Inc.

Christina StoneGaughan, Stone & Thiagarajan

Henry Villarreal Turner Construction

Ben WestcottAndrews Myers Mark WilliamsBechtel Construction Services

Lohn ZyliczD.E. Harvey Builders, Inc.

Build Houston Magazine4910 Dacoma StHouston, Texas 77092(713) 523-6222

Publisher/Owner: Associated Builders & Contractors of Greater HoustonExecutive Editor: Jennifer WoodruffAssistant Editor: Megan BrannAccount Manager: Janice PetersGraphic Design: Robert Chevis


713.263.7661 Email: [email protected]

Website: www.tcagoingglobal.com© 2015 The Compliance Alliance LP. All rights reserved

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On June 30, 2015, President Obama and Secretary of Labor Perez released a 295-page Notice of Proposed Rulemaking (NPRM), seeking public comments on proposed changes to the “white collar” overtime exemption regulations. The NPRM,

along with a Fact Sheet and FAQs, are available on the Department of Labor’s (www.dol.gov).

Proposed Changes to Salary LevelsThe “white collar” overtime exemptions include the executive, administrative and professional exemptions which all require a minimum salary as one of the required elements to qualify for the exemption. The DOL’s proposed changes to these exemptions would increase the salary requirement to a level equal to the 40th percentile of weekly earnings for full-time salaried workers. Currently, based on 2013 data from the Bureau of Labor Statistics (BLS), this would amount to a minimum salary of $921 per week or $47,892 annually. The DOL expects the 40th percentile will increase to $970 per week or $50,440 annually by the time a Final Rule is issued in 2016.

The DOL also proposes to increase the minimum required annual compensation for the “highly compensated” exemption. Currently the annual compensation requirement is $100,000. The DOL proposes to increase the total annual compensation requirement to the annualized value of the 90th percentile of weekly earnings of full-time salaried workers which is currently $122,148 annually.

President Obama claims that under the new salary level, five million additional workers will be eligible for overtime pay if they work more than 40 hours per week. It is estimated that the proposed increases to the salary levels will result in the transfer of more than $1 billion per year of income from employers to employees. It is estimated that the new regulations will have the effect of reducing the number of white collar employees who are exempt from overtime by more than fifty percent.

No Changes to Duties Tests ProposedSurprisingly, with respect to the duties tests to qualify for the white collar exemptions, the DOL “is not proposing specific regulatory changes at this time.” Rather, the DOL only “seek[s] to determine whether, in light of our salary level proposal, changes to the duties tests are also warranted” and “invites comments on whether adjustments to the duties tests are necessary, particularly in light of the proposed change in the salary level test.”

Specifically, the DOL seeks comments on the following issues:• What, if any, changes should be made to the duties tests?• Should employees be required to spend a minimum amount

of time performing work that is their primary duty in order to qualify for exemption? If so, what should that minimum amount be?

• Should the Department look to the State of California’s law (requiring that 50% of an employee’s time be spent exclusively on work that is the employee’s primary duty) as a model? Is some other threshold that is less than 50% of an employee’s time worked a better indicator of the realities of the workplace today?

• Does the single standard duties test for each exemption category appropriately distinguish between exempt and nonexempt employees? Should the Department reconsider our decision to eliminate the long/short duties tests structure?

• Is the concurrent duties regulation for executive employees (allowing the performance of both exempt and nonexempt duties concurrently) working appropriately or does it need to be modified to avoid sweeping nonexempt employees into the exemption? Alternatively, should there be a limitation on the amount of nonexempt work? To what extent are exempt lower-level executive employees performing nonexempt work?

DOL Seeks CommentsOnce the proposed changes are published in the Federal Register, employers will be able to provide input electronically by accessing the Federal eRulemaking Portal at http://www.regulations.gov, where interested parties can find, review, and submit comments. The deadline for comments will be established once the NPRM is published in the Federal Register. u

B Y G . M A R K J O D O N

DOL Proposes Revisions to “White Collar” Overtime Exemptions

ABOUT THE AUTHORG. Mark Jodon, office managing shareholder for Littler’s Houston office, is board-certified in labor and employment law by the Texas Board of Legal Specialization. Mark represents companies in all aspects of HR and employment-related matters. He can be reached at (713) 652-4739 and [email protected].


Same-Sex FMLA LeaveThe Supreme Court, on June 26, 2015, recognized the right of same-sex couples to marry in every state. Employees will now able to take FMLA leave to care for same-sex spouses with a serious health condition. The Dallas Federal Judge had blocked the Obama Administration’s expansion of FMLA rights to same-sex spouses, but the Supreme Court’s decision effectively overruled that Judge’s stay. Bottom line – there is now FMLA leave for same-sex spouses in Texas.

Do Your FMLA Forms Put You at Risk of Violating GINA? Your Rights Under the FMLA.Under the FMLA, covered employers (employers with 50 or more employees) have the right to ask employees requesting leave for a serious health condition about the condition necessitating leave. The Department of Labor issued forms to assist covered employers in getting this information. Now, however, the Department of Labor has stated that those very forms could lead to a violation of GINA, or the Genetic Information Nondiscrimination Act. Therefore, the Department of Labor has now issued modified forms.

What is GINA?GINA is a little known statute that covers all employers with 15 or more employees. It prohibits employers from discriminating against employees based upon genetic information (genetic tests results and information concerning the employee’s family member and/or family medical history). GINA also specifically prohibits employers from requesting genetic information from employees or applicants. Recently, a Georgia Federal Court awarded two (2) employees a 2.23 million dollar damage award against their employer for violating GINA. In that case, the employer required the employees to supply DNA swabs during the employer’s investigation to determine who was surreptitiously leaving feces in the workplace.

Other Potential Violations of Gina Would Include:• Asking applicants or employees if cancer runs in the family;

• Requesting family medical history as part of fitness for duty screening;

• A manager who makes an effort to overhear an employee’s conversation about a relative’s health condition (even if the manager does nothing with the information); and

• Using Facebook to discover information on family medical history.

What Employers Should DoGiven the above, by requesting such information they are entitled under the FMLA, employers may get information protected by GINA.

Therefore, employers requesting information under the FMLA should make sure the request includes the following “Safe Harbor” language issued by the DOL:

The Genetic Information Nondiscrimination ACT of 2008 (GINA) prohibits employers and other entities covered by GINA Title II from requesting or requiring genetic information of an individual or family member of the individual, except as specifically allowed by this law. To comply with this law, we are asking that you not provide any genetic information when responding to this request for medical information.

The new forms issued by the Department of Labor contain this “Safe Harbor” language.

Also, employers may wish to eliminate any section of their leave information requests that ask doctors for information regarding how the condition, for which leave was requested, was diagnosed. This section of the request form is most likely to bring forth information that could lead to a GINA violation.

By taking these measures, employers can acquire the information concerning leave they are entitled to under the Family and Medical Leave Act without running afoul of GINA. u

FAMILY AND MEDICAL LEAVE ACT (“FMLA”) AND GENETIC INFORMATION NONDISCRIMINATION ACT (“GINA”)

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ABOUT THE AUTHORBoard Certified in Labor and Employment Law by the Texas Board of Legal Specialization, Anthony G. “Tony” Stergio has extensive experience in the defense of State and Federal employment discrimination claims, wage and hour compliance, non-competition agreements and employment policy design and review. He speaks frequently at employment-related seminars and also counsels clients regarding developments in various areas of State and Federal employment law. www.andrewsmyers.com.


Safety to Marek means: having a complete understanding of the job at hand. At Marek, we don’t rely on luck to maintain a safe jobsite, we rely on training and communication to ensure each and every employee has a complete understanding of their task at all times.

Safety to Marek means: having consideration for the family that depends on you and for the company that employs you. For more than 75 years, Marek has valued its employees, customers and community by being leaders with safety on every project, every time.

Mandatory New Employee Safety Training | Specialized Equipment Training | Fleet Safety Program | Ongoing Education and Support Bilingual Safety Courses and Guides

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In today’s construction industry landscape, everything comes down to the bottom line. Find the most cost-efficient means to deliver your product or service and then shave off another 5 percent. While remaining competitively priced is and should

be a priority in every business venture, when does the price of cost-cutting practices outweigh the benefits? In the construction industry, it’s when decades of such practices finally come to a head, resulting in the omnipresent shortage of skilled workers that, based on the economic principles of supply and demand, will soon cause labor costs to skyrocket.

In order to avoid these dire straits, the industry must once again invest in the people upon whom its success rests. Proper employee training, long-term growth opportunities and competitive wages are a start, and companies across Houston are beginning to make these investments. Equally important, however, is educating those outside the construction field ― especially the industry’s future workforce ― that these changes are being made and that a career in construction is not only viable, it’s desirable.

This shift in perception starts with individual construction companies, and it requires efforts by all of them to achieve the widespread impact necessary to revive an industry headed for wreckage. That’s the good news. This revival starts with you. The other good news? You don’t have to pay big bucks for big results. With a savvy marketing strategy, every construction company can contribute to the development of a new generation of skilled workers.

Make It ALL About EmployeesIn order to recruit new employees, your marketing efforts need to highlight the value you place on current employees. The key is to ensure any overarching branding can apply to both your customers and your employees. For example, Marek, an interior construction company based in Houston, recently rebranded its company with a new look and the tagline “strength from within.” The premise of the entire campaign is that by investing in a skilled workforce, a company priority since its founding in 1938, Marek is able to provide unsurpassed quality. Make a focus of your marketing to

recognize that your company’s success is only possible because of the people you hire, and that message will have an impact even in marketing pieces directed at potential customers.

Give Credit Where Credit is DueMedia coverage and email marketing are both low-cost methods for gaining exposure for your company. When your business hits a milestone, closes a bid or completes a project, share those successes by sending a press release to local media outlets and sending an email or eNewsletter with the announcement. Be sure to name individual employees responsible for the accomplishment and call out any training or advancement your company has provided. Again, clients see the work you’ve done and potential employees see that hard work and craftsmanship are valued.

Appeal to the Next Generation of Skilled WorkersMillennials grew up with technology and want to work for a company that operates in the modern age. In addition to email marketing, an up-to-date website featuring sleek, clean design and seamless functionality conveys that construction, though an age-old profession, is still a modern industry advancing with the times. Dedicating a page of your website to the training, compensation and advantages your company offers its employees is also a must. Reach out to local high schools to plan a career day educating its students on opportunities in your field and use new technology, like BIM, as a selling point. Show the next generation construction is an industry with an eye on the future and you’ll attract a wave of inventive young minds who may have overlooked the profession otherwise. u

ABOUT THE AUTHORJohn Lowery is the CEO, founder and president of Houston advertising agency Design At Work. With more than 30 years of industry experience, he developed a four-step methodology to empower clients to reach their target audiences. Prior to founding Design At Work in 1990, John worked as an art director for both Jay Advertising and Space Industries, Inc. He is an active member of Vistage, a top-tier executive training program, and a board member of Devereux Texas. Design At Work works with several clients in the construction industry, including American Subcontractors Association – Houston Chapter, The Detering Company, Karsten Interior Services, Marek and Pieper-Houston Electric.

Rebranding the Construction IndustryHow Individual Companies Can Improve Recruitment Efforts Industry-Wide

B Y J O H N L O W E R Y


With changes in the health care reform law, ERISA compliance is at the forefront. Although many employers are in a very good place from a compliance perspective with their retirement plans, unfortunately this doesn’t always exist in

the context of health and welfare plans.

Under ERISA, the Department of Labor (DOL) has broad authority to investigate or audit a company’s health plan for compliance with various federal laws.

The DOL’s Employee Benefit Security Administration (EBSA) is responsible for protecting the integrity of pensions, health and other employee benefits, and are charged with administering and enforcing ERISA, as well as numerous other laws that impact health and welfare plans including the Internal Revenue Code, COBRA, HIPAA, and now ACA. The Administration’s budget also calls for additional funding and aggressive monitoring of employee benefit plans, employee classification, and wage and hour issues by the Department of Labor and the IRS.

While the exact figures have not been released, clearly they are serious about meeting their audit commitment through the hiring of more than 15,000 employees, matching the recent hiring levels of the IRS.

The DOL conducts more than 3,000 audits each year of which they estimate 3 out of 4 plans they audit has some sort of failure. They have stated a goal to audit every American business for compliance by 2018.

Did You Know:• As of June 2012, one out of three employers has received

ERISA compliance notices and the DOL intends to audit all employers by 2018

• The DOL and IRS are now auditing groups with fewer than 100 employees

• Employers have 7 days to respond with the 24 items requested (their request letter can be more than 40 pages long) or face a financial and benefit audit.

• Penalties range from $100 to $110 per day per employee with a three-year “look back” provision for ERISA language, with up to a $500,000 maximum

• For companies subject to Form 5500 filing, there is no statute of limitations on the look-back period.

Employers should be prepared to produce the required documentation to demonstrate their compliance with ACA. ER’s should maintain and be able to produce: • Records of the steps they have taken to comply with ACA’s

requirements, including plan participation information and communications with participants.

• Plan amendments or procedures that were adopted to comply with ACA, as well as contracts and agreements with service providers

• Notices that were provided under ACA

There are some common areas of risk, and smaller companies tend to bear the brunt of these especially among employers with fewer than 500 employees


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Summary plan documents are often the main target of audits. The second most-frequent item in DOL audits is related to the Health Insurance Portability & Accountability Act (HIPAA) – employers should review HIPAA rules thoroughly and make sure their plan is in compliance.

Putting together a plan document that satisfies the requirements of ERISA and putting together a summary plan description that satisfy the requirements of ERISA are absolutely essential to being in compliance.

Don’t Get Caught Off Guard It is important for organizations to conduct an internal audit with their benefits plan consultant or ERISA counsel. Employers are urged to gather the necessary tools to measure, illustrate and monitor compliance risk. Knowing the organization’s compliance risk via a proactive compliance assessment and then tracking on-going compliance efforts is the best way to prepare for and ensure your health and welfare plans are compliant.

You never know when an audit is coming. Prepare ahead of time so that documentation can be easily presented instead of having to scramble at the last minute. u

ABOUT THE AUTHORChrist Taylor Insurance is an Employee Benefits and Insurance Brokerage firm doing business for over 50 years in southeast Texas, and long-time ABC member. We provide solutions to small and medium size companies in the areas of Healthcare and other Benefit programs, as well as Life Insurance and Retirement Plans. Contact the Christ Taylor team at 713-850-7747 or www.christtaylor.com


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Nestled in a dense forest of trees in The Woodlands and framed by extensive landscaping, Sierra Pines II, makes history while presaging the future for tilt-up construction. It’s the first Six-Story Class A2 Tilt-Up construction in Texas and it was built

by E. E. Reed Construction L.P. (E. E. Reed).

E. E. Reed has their construction fingerprint on over 1000 Texas projects and is known for their master level expertise in tilt-up construction. In the last decade alone over 145 office projects, 30 of which were LEED, arise from over 20 million square feet to grace the Houston skyline. Further, E. E. Reed has become a leader in industrial construction with over 182 industrial projects totaling over 25 million square feet of facilities. This level of expertise and market share is acquired and sustained through excellence at every level with safety leading the way.

Since 2002, E. E. Reed has worked with The Compliance Alliance L.P. (TCA) to achieve safety objectives. For over 30 years TCA, like E. E. Reed, has been an industry leader performing over 10,000 safety audits on almost every major construction project in Houston while launching many construction safety “firsts” of its own. From the first short service worker designation of its kind to web-enabled predictive analytics for construction — practices

launched by TCA and now mainstream — TCA develops new ways to solve old problems. Today E. E. Reed employs TCA’s newest science-based solutions for traditional safety issues that best practices have not resolved. This means E. E. Reed’s projects enjoy a level of safety performance not typically seen in mainstream construction.

This collaboration has never been more important than in the construction of this landmark Texas Tilt-Up. Sierra Pines II rises up in a community that sits on over 7,000 acres of protected green space and protecting those trees was paramount to the construction process. Environmental sensitivity and the challenge of raising the first Six-Story Tilt-Up in Texas on a very tight site dictated that safety drive every action taken. And it did.

The result? Sierra Pines II joins E. E. Reed’s other landmark projects such as ET I-IV, Westgate Office Complex, DNA Westway Campus, and The Mark, for diverse and prominent clients such as Schlumberger, Valero, NASA, and Gyrodata, as one more success story.

One more flawless build. One more perfect safety outcome. u

CREATIVE COLLABORATIONE. E. Reed Construction’s Texas Tilt

Class A Six-Story First for Texas

Mark Reed President,

E. E. Reed Construction, L.P.

Brad Mitchell E. E. Reed Construction, L.P.

Superintendent, Sierra Pines II

Tara Maria AmaviPresident,

The Compliance Alliance

Brian Owrey E. E. Reed Construction, L.P.

Senior Project Manager, Sierra Pines II


COVER STORY


Construction and Maintenance Education Foundation (CMEF) will be developing accelerated training programs in various crafts to swiftly move the craft professional from the classroom onto the jobsite.

CMEF Director of Education Glen O’Mary said craft training curriculum should meet the needs of the current job market; and with hundreds of thousands of jobs to fill in the industry, CMEF will begin to offer more efficient training programs to supply that market.

“We do not want to waste time and effort spending full days in the classroom, especially if time can be spent providing more efficient training. CMEF is adapting training courses to be faster and still provide exemplary hands-on training,” O’Mary said.

These changes to CMEF’s training will be more cost effective and provide better-quality for the construction community which the Foundation serves – the craft professional and their employers. Workforce Development Coordinator for Turner Industries Carla Thompson is currently working with CMEF through the Craft Training Committee to provide such changes.

“Accelerated training offers the option of reducing the time burden on employees wanting to complete craft programs. It also allows a contractor and CMEF the independence to determine how training is structured and managed,” Thompson said.

How is the expedited training a benefit to the new industry? The new programs aim to fill craft worker demand at a faster pace. The training programs will be targeted to various crafts, pipefitting and electrical, for example.

“A great benefit is a quick response time to grow helpers on the jobsite which will meet the looming labor shortages in the region,” Thompson iterated.

“We’re constantly improving our curriculum to meet the construction industry’s needs. This is just a prime example of what CMEF is doing to fill the gaps in our workforce,” O’Mary said.

For more information on the training CMEF provides, visit www.cmefhouston.org or call 281-478-3900. u

we’re constantly improving our curriculum to meet the construction industry’s needs.

This is just a prime example of what CMEF is doing to fill the gaps in our workforce.

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W. Edwards Deming, the author of industry changing books such as Out of the Crisis, The New Economics, Quality/Productivity/and Competitive Position, and The Essential Deming—Leadership Principles from the Father of Quality,

states that the Law of Large Numbers persistently plays out a singular reality: 97% of issues are process-related and only 3% are related to rogue behavior by employees. But when it comes to safety, companies often treat these issues in the reverse. Typically 97% of the time we punish the contractor, subcontractor, or employee and if we are progressive then 3% of the time we may address our own approach to safety rather than blame the worker.

I don’t believe all industry processes, minus safety, meet the 97% process/3% worker rule and safety stands alone as an outlier thus justifying the practice of punishment first, change last. If you do, read no further.

Logic requires we look at what we are doing as owners and employers at the management level to perpetuate a system which results in collective lying and looking good rather than being good. It starts at the top, with owners who establish the reward system for billions of dollars in major capital projects, and filters down to every employee or contract worker who must thrive within that reward system.

The biggest problem is what I call The Game of Opposites. You know The Game. It’s everywhere, not just in safety. Like The Patriot Act is not very patriotic. The Affordable Health Care Act is not affordable…and the list goes on.

“Safety First” when it’s really “Low Bidder First”. “Stop Work Authority” which states “everyone is authorized” to stop work during the commission of an unsafe act or the existence of an unsafe condition. Right. Try being that person and see what happens.

Hard bid jobs are problems in and of themselves because the cost of safety puts the safest contractor at an even greater disadvantage. He may be the real low bidder with only his cost of safety putting him over the top---but no one cares. Low bid wins.

There are many more examples of the problems such as manipulating EMR and TRIR because these numbers can be devastating to your ability to do business, and much more. But it all leads to the same place: the low bidder model puts safety last. If we look at the long term cost to industry and society in terms of persistent outcomes---no meaningful reduction in fatalities in the last two decades---the cost is astronomical. How can we really put safety first?

If owners change, everyone changes.

For instance, if owners:

• Quit limiting prequalification to EMR and TRIR---numbers everyone has become experts at manipulating and which can be extremely misleading---putting smaller but extremely qualified contractors at a disadvantage while giving larger general contractors the advantage merely because they have no self-perform labor, not because they have a great safety management reputation; and

• Openly separated the cost of safety from the overall bid allowing “low bidder” to be a big spender but only on safety; and

• evaluated the bidders’ safety plan on its own merit and approach PRIOR to evaluation of price; and

• threw out the obvious under-performers in regard to safety before looking at price; then

Things would change very quickly. But let’s not hold our breath.

A better approach is to shift the energy of safety within your operation until it becomes integrated. To do this requires action and courage because many traditional best practices in safety are not effective and a shift means throwing out methods that don’t support integrated safety while implementing methods that do support it but are not mainstream, yet.

Are you ready to change yourselves first? If so, tune in to our next issue for a list of practices that, while popular, really aren’t effective at sustaining safety. u

THE SHIFTTHE SHIFTTHE SHIFT CHANGING OURSELVES FIRST

B Y T A R A M A R I A A M A V I

SAFETY


ABOUT THE AUTHORTara Maria Amavi, (formerly Tara Templeton Hart, name changed due to identity theft) is the Founder and President of TCA/The Compliance Alliance L.P. TCA has provided services to almost 1000 companies nationwide and TCA’s proprietary tools, methods and means have been ranked #1 in the world for managing contractor safety. The TCA Safety System® is peer acknowledged as a method based upon TCA’s own trade secrets which get better results than traditional safety methods and, therefore, saves lives. Ms. Amavi has been named one of Houston’s 50 Most Influential Women by Houston Woman magazine, and has also been named one of the Who’s Who in Safety by Compliance Magazine. Ms. Amavi is a sought after public speaker, has appeared on local & national radio and television programs including five appearances on The BusinessMakers, a radio show hosted by John Beddow & Russ Capper. Ms. Amavi may be contacted at [email protected] or 713.263.7661.

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CHANGING OURSELVES FIRST


What can be said about safety on the jobsite that probably hasn’t already been said? More importantly, what can be said about safety on the jobsite that still needs to be said?

The emerging mantra of “Safety Comes First,” is shouted from the thousands of workplaces committed to a safer jobsite; and the number of voices is growing. Unfortunately, there are still companies and individuals who are taking shortcuts when it comes to employee safety. The Occupational Safety & Health Administration (OSHA) reports that eliminating the “fatal four” (falls, struck by object, electrocutions, caught-in/between) would save 478 workers’ lives in America every year, OSHA reports. What are leaders in the construction industry doing differently to eliminate injuries and fatalities? What upcoming technology will help construction professionals avoid the worst? And who are the next leaders in safety?

Safety Starts With a PlanSafety research usually operated under the basic assumption that simply adding more safety programs would yield better results. Initial observations of this research indicated that most construction safety professionals explicitly focused on the ‘buckshot approach’, where safety programs are applied in an informal manner under the impression that creating more safety programs would improve site safety.

Matthew Hallowell and John Gambatese’s safety assessment released in 2007, “A Formal Model for Construction Safety Risk Management,” stated, “While some construction firms have the resources to fund a safety department capable of implementing most applicable safety programs, a vast majority of firms must operate under a’ limited budget and are forced to select the small subset of programs believed to be most effective.” But in the last eight years, many construction companies are taking their “buckshot approach” and putting it down on paper. Teal Construction Company Safety Manager John Shead said the company’s safety program has evolved in the last two years, going from an informal program to a formalized, written program. In a spirit of full assessment, Teal also hired an outside safety consultant to aid in their progress.

“We hired the (consultant) to get a fresh look at what we are doing now and how to make improvements,” Shead said.

And to encourage a safer mindset, Shead said, “Once a month in a full company meeting,

Safety Professionals: The Next Leaders in ConstructionFo rmalizing Safet y Plans and Improving Technology Create Safer Craft Professionals

B Y M E G A N B R A N N


safety is a prominent topic. During that discussion, employees that have shown they have excelled in safety including correcting and responding to items brought up in 3rd party spot inspections at their sites are recognized in front of the full company assembly.”

Turner Industries’ Safety Manager Chris Loosemore said he’s seen accountability and ownership move into the key indicators at the safety level.

“Where behavioral culture was the key indicator, I believe we have moved to the fact that all decisions are based on a behavior; and those behaviors should be held accountable and taken ownership of,” Loosemore said. “Investigations have also evolved in recent years to identify more gaps in system/process breakdowns.”

When asked how Turner Industries “rewards” employees, Loosemore rephrased the question.

‘”Rewarding’ employees is a terminology that we tend to stay away from. Recognition of employees’ efforts is our goal with something as simple as providing a lunch once a month to a crew who participates in basic safety programs such as behavioral-based observations, safety committees and positive interventions. We also recognize those employees who sustain a safety behavior/culture with yearly achievement recognition programs where we present employees with items like BBQ pits to televisions, etc.,” Loosemore said.

Formalizing a safety plan has proved to yield better and more thorough results, especially when adding more efficient technology into the safety mix.

Go-Go Gadget - SafetyEvery safety professional can turn into Inspector Gadget when they can have instant access to information; calling on any data when they require it.

“Instant feedback through the use of items like iPads is emerging as instant discovery and feedback for safety concerns. Pictures in the field can be relayed to superintendents and project managers creating a discussion on how to approach the deficiency and correcting it in the shortest time possible,” Teal Construction’s Shead said.

Not only do tablets create communication between the jobsite and project managers, but it also can be a useful tool for instruction.

“What we see now emerging in this field is the smart tablet that walks the employee through the proper steps of a task by identifying the proper PPE and equipment by just entering the task in the tablet. Before, it was left upon the retention of the training the employee had and their interpretation of what was going to be required from a PPE stance. Although training will always be a crucial element in safety, now we can virtually guide the employee through their selection process via a smart tablet and ensure the

employee understands their hold points and hazards associated with the task,” Loosemore explained.

Loosemore also sites these gadgets, or technology, are an effective tool for the safety of the construction professionals. However, he clarifies, what is working at one location and with a certain group of employees may not be “effective” at another location. Even so, Loosemore still credits technology as being universally effective.

“Where once safety was just a clipboard and pencils, technology now assists jobsites with tools like iPads and tablets providing the ability to place GPS chips on PPE, for example, that will register when inspections need to occur and ability to pull an employee’s entire safety training up, all with the push of a couple buttons,” Loosemore added.

Shead credits the ability to report information as one of the most effective tools for Teal Construction.

“We are currently using web reporting to showcase safe and unsafe behavior at the jobsite. In jobsite safety audits unsafe behavior is documented by photographs and quotes directly out of the OSHA handbook, but beyond this safe behavior is highlighted so that those involved can develop a sense of pride in their safety practices just as one can develop pride in a job done well. Everyone wants to feel pride in their work, this includes safety practices,” Shead said.

And when one craft professional feels pride in their work that could create a happier and more satisfied employee – which is something the construction industry is seemingly good at. Safety Professional Meets the ‘Happy’ Craft ProfessionalThe 2015 Best Industry Ranking report by TINYpulse study found that construction workers are the happiest employees in the workforce, and that partly has to do with the improvements in training and safety.

“Once they’re ready for the workforce, the industry has a long history of providing new workers with apprenticeships so they can learn the skills required to move on to tackle more challenging work,” Linda Dinham, Fast Company, reported. “These apprenticeships allow craft professionals to be happier and to do the work safely.”

Even with positive changes; there are still components lacking from the safety field and culture. Shead said he would like to see safety features incorporated in building design.

“I would like to see design start to address issues in tie off points for construction and future building maintenance as falls are still the chief concern in building accidents. With permanent tie off points on roofs and inside the structure were a worker is likely to service raised equipment, would help to mitigate the worker’s likelihood of exposure to falls,” Shead explained.

Loosemore said he believes there is room for improvement from the craft professional. He added that, he “feel[s] that what is


lacking is the personal commitment from employees. The fact is if there was a “magic program” to prevent incidents from occurring we would have it now. The real reason incidents occur is because humans have to make choices. All too often individuals choose to make the wrong choice or take a shortcut.”

Safety professionals are tasked with improving the mindset and creating a positive, safe work environment. Many companies have various ways of creating this environment, from the safety benefit programs discussed to actively checking in with the jobsite and everything in between. What works best for one company, as Loosemore indicated, may not work for all companies.

“Teal emphasizes the safety aspect of each job to our superintendents and project managers. Hazard mitigation is integrated into our daily work routine and progress evaluation. Third party inspectors check that our superintendents are doing their inspections, check our subcontractors, and offer guidance on complying with OSHA regulations as it applies to each individual work site and situation,” Shead said.

“Creating a positive safety culture has to start at the top. Safety is a value from our owner down through our vice presidents and top management. Their ownership of safety as a value is filtered down to our site managers and on to our front line supervisors and ultimately our employees see that safety as a value and not as a task that has to be performed,” Loosemore said.

So What’s Next?Safety professionals are eliminating workplace injuries on a daily basis through formalized safety programs and tools. Improvements in worksite morale for employees, new editions of PPEs, and unified safety initiatives are all great tools for jobsite safety improvement.

“We are also offering safety training to subcontractors where they are lacking and will work with subcontractors hand-in-hand to improve their safety programs,” Shead said.

With these tools in hand, the bar can be set higher for safety expectations in the construction industry.

“Improvement itself is the goal, to constantly be improving and driving toward a “Zero Incident” achievement,” Loosemore said. u

WHEN SERVICE M A T T E R S

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Houston, TX 77035

Phone: (713) 721-7070 WWW.SMEQUIPMENT.COM


Each year, ABC members join as one powerful voice to inform congress about the issues affecting the construction industry and to showcase the opportunities and diversity ABC members contribute to our industry and the economy. The

Greater Houston Chapter sent six business leaders to meet with congress and tell them about their own businesses and share the obstacles and successes of the Texas business environment. Facts and bill numbers were recited, but the story of local businesses improving the quality of these congressional districts proved to have the most profound impact. Facts tell and stories sell. There are thousands of special interest groups competing for the ear of congress each session, and it is important for these groups to inform and keep lawmakers accountable for their own industry. Although the Supreme Court decisions stole the spotlight, ABC Houston had an agenda of topics important to the future of the construction industry.

“Ambush” Election RuleIn 2014, the NLRB issues a controversial final rule overhauling its procedures for union representation changing the union election process by reducing the amount of time from petition to election from a median of 38 days to 14. In addition this rule requires that employers hand over their employee’s names, home addresses, and phone numbers. ABC is actively fighting these new rules by supporting the defunding of the ruling from the appropriations committee, passing of H.R. 1768 which prevents the rule from taking affect, and in the courts right here in Texas through a lawsuit between ABC of Texas and the NLRB.

Crystalline Silica OSHA RuleIn April, the new silica ruling has taken affect and will ultimately cost the industry $5 billion annually. This new OSHA regulation requires contractors to lower silica levels in their workplaces to unreasonable levels without proof that is technological and

economically feasible. ABC is contacting appropriation committee members in congress to limit OSHA’s funding for the silica ruling.

Project Labor AgreementsProject Labor Agreements need to be removed from federal contracting. Union contractors only make up 13.9% of the market and cost on average 12-18% more per project, which comes from the American tax payers dollars. Government-mandated PLAs act as a special interest kickback to politically powerful labor unions and prevent competitive bids that provide the highest quality work for the best price.

Tax ReformThree fourths of contractors are structured as a “pass-through” entity which pays an average of 12% more taxes per year than other U.S. C-Corps. These inconsistent tax categories along with the ACA surtax, means some construction companies are paying up to 44% in corporate taxes per year. ABC is in support of comprehensive tax reform by repealing the Estate tax, increasing and indexing the Completed Contract Method threshold and opposes any proposal that widens the statutory rate gap between pass-through entities and large corporations. Taxes are a necessity, but all companies should be treated equal no matter of size or industry.

ABC Houston spoke to each Texas Representative informing them of the issues above. Some Reps were knowledgeable, however many were not aware the problem existed. The construction industry needs leaders who will be the voice for ABC and its members. Taking the time to attend an ABC Legislative Week is a rewarding investment for yourself, your business and the industry. Next summer, ABC Houston will be back in Washington DC walking the long marble halls of our nation’s capitol making the industry a better place. Make the investment and come join us in 2016! u

ABC HOUSTON VISITS THE HILLB Y A U S T I N T O M L I N S O N


In The KnowPEOPLE ON THE MOVEWesley Guidry, Cherry Companies Vice President of Portable Concrete and Asphalt Recycling has recently announced the promotion of Patrick Bridges to Divisional Manager. Patrick has been with Cherry for 5 years and has served in a number of roles that began as a heavy equipment operator. With the large growth Cherry is experiencing in recent years, the company is excited to see Patrick step up and thrive in his new position.

Legal 500 recently announced that Coats Rose was ranked among the leading construction law firms in the U.S in their 2015 directory of law firms. Coats Rose Director Patrick E. Gaas was recognized for his work in the area of industrial construction. For 27 years, The Legal 500 has been analyzing the capabilities of law firms across the world, with a comprehensive research program revised and updated every year to bring the most up-to-date vision of the global legal market. Gaas is recognized in the State of Texas as a leader in the field of Construction law. Gaas represents owners, contractors and design professionals in large, challenging commercial and industrial disputes and transactions, both domestically and internationally, and in both the public and private sectors.

Builders Equipment & Tool Company, dba BETCO Scaffolds, has strengthened its outside sales force by re-hiring Donald Brooks as a sales representative. Mr. Brooks will have the day-to-day responsibility of servicing existing and new customers

in the Houston area market. In addition, he will be responsible for extending BETCO’s significant customer base and continuing its growth as one of the leading suppliers of a variety of scaffolding to commercial, industrial, retail and government clients.

Mr. Brooks has over 19 years of experience within the construction

and scaffolding industry. During that time, he has worked and developed relationships with many clients across the region. Donald’s

commitment to exceeding customer expectations, maintaining communication with clients, completing projects on time with ever changing schedules, and an eye for safety and professionalism are just a few of his outstanding qualities.

Coats Rose Director Thomas R. Barber has been elected by his peers to serve as Chairman of the statewide governing council for the State Bar of Texas Construction Law Section. In addition, Director Ian P. Faria has been elected to a three-year term on the statewide governing Council for the State Bar of Texas Construction Law Section. Coats Rose Associate Mason P. Hester has also been re-elected to serve the final year of his three-year term on the Council. Hester previously served as statewide Chair of the Young Lawyers committee for the State Bar of Texas Construction Law Section.

Sabra Phillips has joined The Marek Companies headquartered in Houston, Texas as the Director of Talent Development. Phillips

will lead Marek’s talent and workforce development program focused on enhancing the skills and careers of people at

all levels of the Marek team across the award-winning subcontractor’s offices in Houston, Dallas-Ft. Worth, San Antonio, Austin and Atlanta. Phillips’ career includes 18 years of experience managing talent programs, most

recently serving as Vice President and senior human resource advisor for Primary Services.

PROJECT NEWSThe Lone Star College System (LSC) selected Satterfield & Pontikes Construction (S&P) to build additional learning spaces at the LSC-CyFair campus that will address campus growth needs and the

area’s shortage of skilled workers. S&P will provide Construction Manager at Risk services as part of Phase I of the 2015 General Obligation Bond program. S&P will construct a new 50,000-square-foot Information Technology & Visual Communications Satellite Center, which will include classroom space with high-level computing infrastructure, and a 5,000-square-foot lab addition for the LSC-Cypress Center Workforce Education Facilities. S&P will also provide BIM-based preconstruction services to include project budgets, management plans, design phase cost planning and construction documents. Stantec will provide

Bridges


architectural services for both buildings. Estimated completion time for the $13.5 million IT & Visual Communications Satellite Center is May, 2017. The $1.4 million Workforce Facilities expansion is expected to be complete in November, 2016.

COMPANY NEWSMobil Steel International, Inc. achieved its highest half-year production in the past decade fabricating steel for a diverse portfolio of projects. The Houston-based company fabricated steel on projects along the Houston Ship Channel, in West Texas, Louisiana and Colorado supporting infrastructure development in oil and natural gas shale plays, as well as expansion of refining and chemical facilities. According to President and CEO Leonard A. Bedell, Mobil Steel fabricated steel to build a seamless pipe manufacturing facility, a CO2 capture facility, and crude oil gathering systems and pipeline projects in Texas, Louisiana and Colorado. The Company fabricated steel for a $2 billion fertilizer plant expansion in Louisiana. Mobil Steel also fabricated steel for a major bank in the Greater Conroe region, as well as other commercial buildings in Greater Houston.

KBR Building Group, a subsidiary of KBR, Inc. for the past seven years, has been acquired by global construction firm Pernix Group, Inc., of Lombard, Illinois. The acquisition completed financial close on June 30, 2015. Moving forward, the company will once again operate under its original name, BE&K Building Group. The company offers a wide variety of construction management services and project delivery methods nationally to clients in the advanced manufacturing, commercial/mixed-use, healthcare and institutional sectors. BE&K Building Group’s headquarters will remain in Greenville, South Carolina. In addition to Greenville, the company has full-service regional operations in Houston; Charleston; South Carolina; Research Triangle Park, North Carolina; and Washington, D.C. BE&K Building Group’s national leadership position in key market sectors, together with its outstanding safety record, technical innovation, preconstruction services and design-build delivery expertise, will expand Pernix Group’s commercial domestic operations and strengthen their portfolio for international business opportunities. Pernix Group is consistently listed as one of Engineering News-Record’s Top 50 American Contractors Working Abroad.

As of July 1, 2015, TCA launched its first trademark licensee. Simpler than a franchise, a trademark licensee expands brand influence, revenue, and market share for its host (TCA) while maintaining its own independent business identity. TCA is excited that Noe Barcenas, an 11-year loyal and trusted TCA officer, has agreed to help launch this opportunity. According to Tara Amavi, Founder and President of TCA, Noe will have his own business

identity, Lone Star Safety Solutions, while still promoting TCA’s brand. Noe is also an authorized TCA Safety System® service provider—able to offer TCA’s tools, methods, and means to his clients. TCA is proud to be Mr. Barcenas’ first client thus enjoying the best of both worlds.

Ford Nassen is pleased to announce that the firm has again received the highest possible ranking – “Band 1” – from the highly regarded Chambers USA directory of top lawyers. Independent and objective, Chambers USA is carefully researched and widely considered to be the most reputable law firm directory in the world. Its rankings are based on thousands of interviews with leading practitioners and clients from coast to coast. Ranking criteria include technical legal ability, professional conduct, client service, diligence, commitment and other qualities most valued by legal clients. Jeffrey A. Ford, John W. Nassen, George C. Baldwin were individually recognized in the area of Construction Law.

AWARDS AND SPECIAL RECOGNITIONMetal Building Manufacturers Association (MBMA) recognized NCI Building System’s Houston manufacturing plant for achieving an incident rate equal to 50 percent or below the industry average through the 2014 calendar year, a challenging statistic to attain for full-time manufacturing plants. For the past nine years, the Houston facility has been acknowledged by the MBMA for its unwavering commitment to safety.

Mobil Steel International, Inc. received its ninth consecutive American Institute of Steel Construction (AISC) quality certification renewal earlier this year, reaffirming Mobil Steel’s commitment to producing quality steel fabrication. AISC certification highlights that Mobil Steel has the personnel, knowledge, organization, and equipment, as well as the experience, capability, procedures and commitment to meet AISC steel fabrication standards. u

PRSRT STDUS POSTAGE

PAIDHOUSTON TXPERMIT 2597Published by Associated Builders & Contractors of Greater Houston

4910 Dacoma St. Houston, Texas 77092(713)523-6ABC (877)577-6ABC

Call Jim Cardoza at 713-253-7072or e-mail [email protected]

For more information about our Safety Program please contact

Matt Johnson at [email protected]

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