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Reshaping the Construction Industry

We've heard from many construction executives in Houston who are watching the race for City Controller with great interest, largely because of one of the key issues being raised by candidate Bill Frazer: the city’s controversial drainage fee. The reason construction executives have been watching this closely is because some of them would be awarded contracts to build the drainage projects to be funded by the fee. But, the problem is there seems to be mismanagement of the fee – or at the very least it seems to be under-performing in a way that doesn't live up to the hype.Bob Price at TexasGOPVote first noted these problems:The 2012 drainage fee collections were only $108 million, $17 million less than targeted. 2013 and 2014 estimates are even lower, at $103 million for each year. This produces a three-year shortfall of over $60 million. It should also be noted that the ReBuild Houston website posts an interim report reflecting estimated 
Construction Citizen's picture
August 28, 2013
Hi there.  The Chamberlin Man here. Did you know the extreme heat can be pretty tough on your parking garage?  Major expansion and contraction is happening day and night, and with the weight loads they manage, the wear and tear they endure and the heavy traffic in and out, it's no wonder parking structures commonly require regular maintenance and repair.If you are interested in learning more about how to maintain and extend the life of your parking structure, check out these articles from three really smart fellas who know a lot about it:  
The Chamberlin Man's picture
August 27, 2013
As I continue to travel around Texas to visit with construction company owners who are disgusted with some of the bad actors in their industry, I’m struck by just how candid many are willing to be.  Their conviction comes through in testimony before the Texas Legislature and in interviews.My latest conversation was with the President of Texas Fifth Wall Roofing Systems Inc., Todd Hewitt, who also chairs the Texas Construction Association’s board.  Hewitt speaks modestly about his company, which does business all over Central Texas.  “Work has come back.  We had a little slow spot last year, and we're peddling as fast as we can to keep up now,” he said.He said the actions taken by the legislature this year to crack down on worker misclassification are a good start but much more needs to be done.  “There's been a lack of consequences, and that's what's led us to this situation we're in right now,” Hewitt said.  “There are a few contractors who are really prepared to speak on the issues.  
Scott Braddock's picture
August 27, 2013
Editor’s note:  Construction Citizen is proud to partner with AGC America to bring you AGC Chief Economist Ken Simonson's Data DIGest. Check back each week to get Ken's expert analysis of what's happening in our industry.More metros and states add jobs in latest year; Reed, MHC, AIA differ on starts Construction employment rose in 201 out of 339 metropolitan areas (including divisions of larger metros) in the 12 months through July (the largest number of gainers since March 2012), declined in 90 and was flat in 48, according to an analysis of Bureau of Labor Statistics (BLS) data that AGC released Friday. However, July 2013 employment exceed prior July highs in only 19 metros, while 28 metros remained at least 50% below past July peaks. (BLS combines mining and logging with construction in most metros to avoid disclosing data about industries with few employers. Because metro data is not seasonally adjusted, comparisons with months other than July are not meaningful.) Houston-Sugar Land-Baytown added by far the largest number of construction jobs in the past year (13,000 construction jobs, 7%).  
Ken Simonson's picture
August 26, 2013
It has been three years since we began reporting about wage theft and worker misclassification here on Construction Citizen.  In September 2010 Jim Kollaer reported that twenty-three states at that time had signed Wage Theft and/or Worker Misclassification bills into law.  That number has now grown to thirty and may continue to grow as local governments grow tired of waiting for Congress to pass legislation on these issues at a national level.Back in 2010, there were two federal bills under consideration: The Fair Playing Field Act (SB 3786) and The Employee Misclassification Prevention Act (HR 5107).  Neither of these ever made it out of committee.  
Elizabeth McPherson's picture
August 23, 2013
On August 8, the Fe Y Justicia Worker Center (FJWC) held their annual Gala at St. Mark’s Episcopal Church in Houston.  The event was a celebration of the Center’s accomplishments over the past year as well as a fundraiser to benefit their ongoing efforts to improve working conditions for low-wage workers in the Houston area.  Guests bid on auction items, had their photos taken in the photo booth, enjoyed a delicious meal and live mariachi music, listened to keynote speaker David Bacon, and learned how they could get involved in their community.  The evening ended, as always, with the announcement of the Worst Employer Award.The Fe Y Justicia Worker Center, formerly known as the Houston Interfaith Worker Justice Center, is a non-profit community-based organization which advocates for improved working conditions and standards in the Houston-area.  Each year they select three of the most unethical cases of injustice to workers from the list of those they assisted with that year.  Guests at the gala are then given a ballot with descriptions of each case and are asked to vote for which employer performed the worst wrongdoing.  This year’s nominees included Full Service Construction, Inc., after company owner Fernando Chapa pulled out a gun and pointed it at community members who tried to appeal to his sense of morality after he successfully evaded Small Claims Court’s attempts to serve him.  
Elizabeth McPherson's picture
August 22, 2013
A research report that was published last month by the Foundation of the Wall and Ceiling Industry (FWCI) has industry leaders talking about their workforce development programs.  TitledAttracting Young People into Construction Field Positions, the report focuses on the need for employers to make their workplaces more attractive to the new generation which is now entering the job market.  It resonates with one of the themes we have been reporting for the past three years, as the construction industry approaches a critical shortage of skilled workers.Steven Etkin, Executive Vice President and CEO of the Association of the Wall and Ceiling Industry (AWCI), said:“As the construction industry continues its recovery, competition for new young workers with other industries – construction, agriculture, and oil and gas – is going to intensify.  
Elizabeth McPherson's picture
August 21, 2013
Compliance with wage and hour laws can be difficult for employers in the construction industry.  With work hours fluctuating due to weather, availability of materials and employee turnover, maintaining proper time records and pay practices is a challenge.The U.S. Department of Labor (DOL) is responsible for enforcing the Fair Labor Standards Act (FLSA), the source of most federal wage and hour requirements.  During the last fiscal year, the DOL conducted thousands of investigations and collected more than $280 million in back wages from employers.Thomas Perez, the newly confirmed Secretary of Labor, has listed wage and hour enforcement as one of his top priorities, and the construction industry is among the DOL’s targeted industries.  So it makes sense to be prepared.  Look out for these common FLSA compliance problems:  
Vianei Lopez Braun's picture
August 20, 2013
PPI remains tame; multifamily starts surge; MHC expects mild rise for total startsEditor’s note:  Construction Citizen is proud to partner with AGC America to bring you AGC Chief Economist Ken Simonson's Data DIGest. Check back each week to get Ken's expert analysis of what's happening in our industry.Click here to view July PPI tables and here to complete AGC’s Worker Shortage Survey.The producer price index (PPI) for finished goods was down 0.2%, not seasonally adjusted (and was unchanged, seasonally adjusted), in July but up 2.1% over 12 months, the Bureau of Labor Statistics (BLS) reported on Wednesday. The PPI for inputs to construction—a weighted average of the cost of all materials used in construction plus items consumed by contractors such as diesel fuel—was flat for the month and rose 2.0% year-over-year. The PPI for residential construction inputs fell 0.1% in July and was up 2.1% from a year earlier; and for nonresidential construction, -0.1 and 1.8%. Major construction inputs that dropped in price in July and for the year included copper and brass mill shapes, -2.2% and -6.2%; aluminum mill shapes,  
Ken Simonson's picture
August 19, 2013
Do airports ever stop expanding?  With more and more people traveling for business and pleasure, it seems not. Now the Dallas/Fort Worth International Airport has launched the major construction phase of its $2 billion Terminal Renewal and Improvement Program (TRIP), a seven-year ongoing renovation that Marek Brothers is thrilled to be a part of.The renovation involves the airport's four original terminals that opened in 1974, which were originally called 2E, 2W, 3E, and 4E, and are now terminals A, B, C, and E.  The project is designed to improve parking and modernize the terminals with more self-service technologies and more efficient passenger traffic flow.  There will be dramatic improvements in passenger services including ticketing, security checkpoints, and concessions.  Design concepts call for more retail space and the consolidation of concessions areas into "villages" reminiscent of DFW's globally acclaimed International Terminal D, which Marek completed in 2005.Our current scope includes exterior and interior framing, furdowns, special metal pan ceilings and typical acoustic ceilings as well.  
John Hinson's picture
August 19, 2013