Construction Subs Gain Pay Headway

Court provides recourse for subcontractors under the McGregor Act bond; new Green Building Certifi cation Institute assists LEED professionals.

Employee Training at Intermodal Hub Becomes National Model

An entry-level logistics workforce training program recently began at Hillwood Properties’ Alliance Global Logistics Hub in Fort Worth. Photo: Courtesy Hillwood.

With tough times impacting the economy, a pilot program began recently to train entry-level employees for the businesses and industries at Hillwood Properties’ Alliance Global Logistics Hub in Fort Worth. The goal is to introduce an international program.

The NAFTA corridor’s Interstate 35 sits on the doorstep of Alliance. The global logistics hub features an intermodal facility with two Class I rail lines and the world’s first 100% industrial airport as well as state and interstate highways and the FedEx Southwest Regional Sort Hub. The industrial park is home to 150 companies and distribution centers.

The Alliance Global Logistics Hub played a central role in the development of a new national model, entry-level logistics workforce training program with Workforce Solutions for North Central Texas and the Manufacturing Skill Standards Council of Wash., D.C.

NASCO (or North America’s SuperCorridor Coalition Inc.) joined the partnership to assist with the workforce certificate program as part of its core Knowledge Corridor Initiative.

The MSSC is an industry-led, training, assessment and certification system focused on the core skills and knowledge needed by the nation’s production and supply chain logistics workers. The initial training is being funded by a grant from the Department of Labor, Steve Boecking, Hillwood vice president, told Texas Construction magazine.

The Tarrant County College’s Corporate Services campus at Alliance, off IH-35W in north Fort Worth, is the National Center of Excellence for training the trainers of the certificate programs. In addition to student classes, the program will offer training for instructors across the country to learn how to teach the certification program.

NASCO’s intent is to help the national logistics training program - shaped by industry - to successful launched all along the tri-national NASCO Corridor through the heartland of North America. The program goal is to become established quickly as the national standard worker training credential for entry and intermediate-level front-line workers in the logistics, materials handling and supply chain management industry.

From Mexico City to Quebec, NASCO members and supporters have signaled that high-quality, entry-level logistics workforce development training is a need essential for economic development of the industry.

“The ultimate goal is to increase the size and skills of the available workforce for entry-level warehousing employees,” Boecking says. “We’ve been working on establishing the program for about three years. Our first class started May 20.

“It will be global and it will be great for employers,” he adds. “We started out with a grant funding us to train about 250 people.” That should run out in August, he says, and the program anticipates more grant funding.

The week-long classes are taught at Tarrant County College’s Corporate Services campus at Alliance.

The MSSC training and certification system provides a certified logistics associate certificate and a mid-level logistics technician certification credential to participants for employment in the industry anywhere in the U.S. and the rest of North America.

The certifications offer front-line logisticsworkers a chance to document their skills and provide a way to secure higher wages, Leo Reddy, CEO of the Manufacturing Skills Standards Council, said in a statement.

“We get a larger and well-trained workforce for the companies located here,” Boecking says. “Before the economy downturn we were targeting high school kids. Now we’re targeting dislocated workers and training returning military veterans.” He adds that the pool of prospective associates is larger than originally anticipated and “while the demand for associates is not high right now, there will be associates trained to create an inventory for when business does turn around.”

Texas Supreme Court Confirms Rights of Subcontractors to Sue GCs

In Dealers Electrical Supply Co. v. Scoggins Construction Co. Inc., the Texas Supreme Court confirmed the right of a construction subcontractor to bring a claim against a general contractor when the sub has missed the strict notice requirements for a claim on a McGregor Act bond.

If a subcontractor is not paid for work on a private construction project, it can file a lien on the property. But if the construction is on a public project for a unit of government, a bond is filed and the subcontractor’s usual recourse is to sue on the bond under the McGregor act.

A claim on a McGregor Act bond has stringent and complex notice requirements: if they are not sent or sent one day late, the subcontractor will have waived its right to the bond claim. Many subcontractors are small companies that are not represented by lawyers. By the time they realize they are not going to be paid, it may already be too late to file a bond claim under the McGregor Act.

Dealers Electrical Supply, an electrical parts supplier with headquarters in Waco, filed suit against Diamond Industries, a San Benito-based electrical subcontractor; and Hidalgo County-based Scoggins Construction Co., the general contractor; and its president and sole shareholder, Bill R. Scoggins.

Dealers were not paid for electrical materials furnished for use in the Ruben Hinojosa Elementary School owned by the Mercedes Independent School District. The materials were supplied under a joint check agreement between Dealers, Diamond and Scoggins. A joint check agreement is a credit facility frequently used to help a small subcontractor with low or unestablished credit obtain supplies on credit from a supply house.

The case was tried to a judge in the 398th District Court of Hidalgo County in Edinburg in April 2006. Judge Aida Salinas Flores agreed with the plaintiff that the company could sue on the grounds of the joint check agreement and under the Trust Fund Doctrine. The Trust Fund doctrine holds that, when a general contractor on a construction project receives funds from the owner, the money is held in a trust for subcontractors and suppliers. The general contractor has a fiduciary duty to use that fund to pay suppliers and subcontractors, and for direct overhead.

The judge awarded Dealers $135,910 as damages, attorney fees and interest against Bill Scoggins and Scoggins Construction. Scoggins appealed to the 13th Court of Appeals in Edinburg, which reversed the trial court on the basis that the McGregor Act bond claim was Dealers’ exclusive remedy in the case.

The Texas Supreme Court granted Dealers’s petition for review and reversed the 13th Court’s holding and reasoning. The Texas Supreme Court rejected the exclusivity theory upon which the 13th Court founded its opinion. The court reasoned that the Court of Appeals’ holding was contrary to the text and the purpose of the McGregor act and The Construction Trust Fund act. The Texas Supreme Court held that the McGregor Act is not an exclusive remedy just because a bond was issued.

Ben Aderholt of the Houston office of Looper Reed & McGraw represented Dealers Electrical Supply before the Supreme Court.

Green Building Credential Maintenance Program Created

The Green Building Certification Institute launched a credentialing maintenance program recently for LEED accredited professionals, or LEED APs, and Green Associates with a goal of ensuring that LEED professional credentials will remain relevant in an evolving marketplace.

With the launch of LEED v3 in April, GBCI created a number of changes and enhancements to the LEED professional credentialing program, including the introduction of the LEED Green Associate and realigning the specialties within the LEED AP program to better reflect market practice areas.

More than 130,000 LEED APs obtained their credentials between 2001 and June 2009. CMP will ensure that those credential holders who tested under previous versions of LEED for New Construction, LEED for Commercial Interiors or LEED for Existing Buildings continue to demonstrate a level of knowledge that places them at the forefront of a constantly evolving green building marketplace, according to GBCI.

A number of activities qualify to earn LEED credential holders credit toward their credentialing maintenance. They include continuing education as well as the practical application of LEED on projects and participation in the green-building community. A CMP Guide is available at www.gbci.org that outlines CMP-eligible activities and the requirements for maintaining LEED AP and LEED Green Associate credentials.

GBCI plans to launch an online tool for registered CMP users to track activities.

Turner Marks Completion of 25 Green Texas Projects

Dallas-based Turner Construction boasts more than 59 LEED Accredited Professionals on its staff in Texas, 19 Green Advantage professionals, and has built more than 25 green projects in the state.

Employees who become LEED-APs are entered into a lottery to receive the use of a new Toyota Prius hybrid for three years. Turner has a goal of reducing its carbon emissions by 5% over the next five years by reducing electricity consumption in all offices and reducing fuel consumption in company-owned and leased vehicles. Other initiatives include utilizing Turner’s online Construction Waste Recycling Reporting system, utilizing Building InformationModeling, renovating offices to meet LEED standards, purchasing green office supplies and providing green training for employees.

Turner’s LEED APs have enabled the company to complete 85 projects that have been LEED Certified by the U.S. Green Building Council. An additional 131 Turner projects are LEED Registered. The firm’s sustainable work has grown to 40% of its backlog.

Recent Texas-based green projects constructed by Turner include the headquarters for architecture firm Corgan Associates Inc. (Hidalgo County Silver); a bank branch for JP Morgan Chase (LEED-silver); Pat Lobb Toyota (LEED-silver); the Embrey Engineering Building at Southern Methodist University (LEED-gold); the Haworth Showroom in downtown Dallas (LEED-gold); and Walmart’s green prototype store in McKinney.

Hamilton Form Co. Receives 2009 Best of Richland Hills Award

Hamilton Form Co. Ltd. has been selected for the 2009 Best of Richland Hills Award in the Concrete Equipment & Supplies category by the U.S. Commerce Association.

The USCA “Best of Local Business” Award Program recognizes outstanding local businesses throughout the country. Each year, the USCA identifies companies that have achieved exceptional marketing success in their community and business category. The 2009 USCA Award Program focused on quality, not quantity. Winners are determined based on the information gathered both internally by the USCA and data provided by third parties.

Hamilton Form’s production facility recently underwent an upgrade. Skylights were added across the length of the roofline to provide day lighting in the plant to reduce electrical usage. Additionally, the facility’s roof was sprayed with insulation and a reflective paint to reduce heat build-up in the plant. High-powered air circulation fans were installed on the roof to increase airflow and draw heat out, making the plant a more comfortable work space, as well.

Hamilton Form builds custom steel forms and plant production equipment for the precast/prestressed concrete industry. The company provided forms for many local projects including stadium risers, walkways and wall forms for Cowboys Stadium, bridge forms for the High-Five Connector and bridge and precast pavement forms for State Highways 161, 183, 114 and Loop 12.

Balfour Beatty Construction Project Wins New Mexico Project of the Year

Dallas-based Balfour Beatty Construction won a Project of the Year for 2009 by the New Mexico Chapter of the American Subcontractors Association.

Balfour Beatty served as construction manager for the $280-million Buffalo Thunder Resort & Casino. Criteria for the ASA-NM Project of the Year award included the impact of the project on community, innovative design and construction techniques, and the teamwork exemplified among general contractor, owner, subcontractors and architect/engineers. Seven other major New Mexico projects were nominated for the award

The size of the Buffalo Thunder project, which is a Hilton property, makes it the largest resort in New Mexico at 700,000 sq ft. The project used between 600 and 800 local laborers on the project.

Cherry Named Ernst & Young Entrepreneur of the Year in Houston

Leonard Cherry, owner of Houston-based Cherry Cos., received the Ernst & Young Entrepreneur of the Year 2009 Award in the Construction and Industrial Services category in the Houston and Gulf Coast Area.

The award recognizes outstanding entrepreneurs who are building and leading dynamic growing businesses, according to Ernst & Young LLP. An independent panel of judges selected Cherry for the honor.

The Ernst & Young Entrepreneur of the Year honors entrepreneurs who have demonstrated exceptionality in such areas as innovation, financial performance and personal commitment to their businesses and communities.

As a Houston and Gulf Coast Area award winner, Cherry is eligible for consideration for the Ernst & Young LLP Entrepreneur of the Year 2009 national program. Award winners in several national categories, as well as the overall national Ernst & Young Entrepreneur of the Year award winner, will be announced at an annual awards gala in Palm Springs, Calif., on Nov. 14.

Cherry Cos. provides services for industrial, commercial, residential, and interior demolitions, asset recovery and waste management.

Port of Houston Authority Chairman Earns Engineering Award

Port of Houston Authority Commission Chairman James T. Edmonds was awarded the American Council of Engineering Companies Engineering Excellence Award in Transportation for a project that Houston-based Klotz Associates completed in 2008 for PHA’s $95-million, 100-acre Bayport Phase I Container Yard.

Klotz Associates implemented a technically challenging application of roller compacted concrete, or RCC, on the container yard. The two, 9-in. layers comprised the largest multi-layer placement of RCC to date and the first-ever in Texas, demonstrating effective use of RCC for future PHA and other industrial projects. The project used sustainable materials, managing fluctuating engineering design, budgetary and scheduling issues and was completed ahead of schedule.

Gilbane Golf Classic Charity Event Yields $74,000 for MDA

Houston-based Gilbane Building Co.’s Second Annual Gilbane Golf Classic, benefiting the Muscular Dystrophy Association, had a sell out with a full field of 54 teams in the tournament. All sponsorships were sold out and the event raised more than $74,000 at the Sugar Creek Country Club.

The Gilbane Golf Classic is a charity event that helps local families living with neuromuscular diseases. Proceeds from the tournament directly benefit MDA to underwrite summer camp for “Jerry’s Kids” and fund research.