MWBE and City of Houston

The City of Houston is growing and growing fast.  In fact, the entire four county area around Houston is growing at twice the rate of the average growth rate in the US.  Growth is good!  As they say, “If your not growing your dying”.  With this tremendous growth comes many great things including higher property values, more prosperity for all in the area and more infrastructure such as highways, bridges, schools and hospitals.

The bad news is that many of these government funded projects have requirements that mandate certified, MWBE Texas contractors or WBE contractors or DBE contractors compete and bid for the planning, designing and building of these municipal works endeavors.   With so much growth and so many projects at the Federal, State and local levels,  general contractors that are qualified to do the work, are in short supply or have very long lead times.   To make matters worse, MWBE contractors, WBE contractors, DBE contractors and SBE contractors are feeling pressure also.   So much so that at times they have to pass on jobs or not bid jobs because of the lack of follow up they will be able to provide.

According to DLB Industries, a certified, Texas WBE & DBE materials procurement specialist company,  “many large projects come with mandated, set aside goals for HUB and other WBE, DBE, SBE certified contractors that cannot be met.”  Recent projects out for bid such as convention centers, airport terminal expansions, hospitals, bridges and schools have large set aside requirements that will be very hard, if not, imposible to reach.  General Contractors spend a tremendous amount of time, energy and money on trying to find qualified sub contractors that can satisfy not only  the scope of work but also get, keep and maintain their WBE or SBE certifications throughout a project.    DLB says that ” a WBE or similar sub contractor losing their certification during a project is an absolute disaster and so, large Gernal Contractors are very cautious when vetting companies to fullfill set aside goals to try and avoid the extreme confusion, loss of time, loss of money, penalites and overall loss of continuity when an WBE or SBE sub cannot perform. ”

The City of Houston is struggling with this very issue currently.  The $9.7 billion North Houston Highway project, the I-10 White Oak Bayou, The LBJ Hospital, the Bush Airport Expansion and the George R Brown Convention Center addition are just a few of the projects containing large set aside goals for DBE, WBE and SBE sub contractors, at the same time.    So, with talent spread very thin, General Contractors are having to implement creative and expensive teams to find, nurture and retain qualified sub contractors. This process can take many months to yield a potential candidate and even then does not ensure that the sub contractor keeps their certifications updated and stays in buisness untill the close of the project.

Set aside goals are here to stay and become more complex everyday.  Most large cities have their own DBE type departments which establish the guidlines and protocols for their, specific city.   These protocols may vary significantly from city to city and may change often. General Contractors must take this into account when bidding and performing work under specific city guidlines.  For example, the City of Houston has established the Office of Business Opportunity,  which is a well organized department established to help and outline for small businesses some of the efficient ways to participate in City of Houston, State of Texas and Federal jobs.

The City of Austin has a similar Department called the office of Small and Minority Business Resources, whose function is similar to that of Houston’s yet contains various concepts and requirements that differ slightly.  A general contractor must know or at least be aware of these subtle yet important differences when bidding jobs in each, unique market.  Specialty contractors including material procurement firms exist to help contractors with these needs.   As the Texas market, population and need for public works projects increases, the need for qualified, certified sub contractors to help Prime Contractors reach set aside goals will only increase.  For more information about DBE, WBE, HUB and SBE certifications feel frer to call DLB Industries at (512)-637-4229 or their Houston office at (281) 231-8133.

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Colorado WBE, MBE Contractors

Large municipal projects just keep coming and the lack of materials, talent and equipment continues to be a problem.  Similar to what happened in Houston for WBE & MBE contractors a few years ago, the lack of Colorado Certified WBE & MBE contractors and WBE, MBE & DBE subcontractors in Colorado is becoming a big problem.

According to the Denver Division of Small Business Opportunity, (DSBO),  “the need for WBE, DBE & MBE contractors and subcontractors in Colorado has never been greater and the number of applicants to the certification program has never been smaller”.  Not sure where it all ends but one thing is for sure, a certified DSBO is a valuable designation to have in the current environment.

DLB Industries, a Certified Texas WBE, DBE & DBE contractor who has enjoyed a great reputation in the Texas market for over fourteen years, has been receiving bid requests and solicitations from clients for various Colorado project.   In fact, the need has become so great that DLB has opened an office in Aurora, Colorado and is making plans for various jobs in and around Denver.

Being able to consistently deliver, on time, materials such as re-bar, piping, air handlers, gypsum, electrical equipment and paving components is not an easy task and is getting harder every day.  With the cost of insurance and liability coverages constantly increasing and freight and delivery costs constantly going up and now with a shortage of diesel, large projects continue to require hands on, day to day management with superior administration personnel.

With Denver and Aurora being the fastest growing cities in Colorado and considering that Denver is the 6th fastest growing city in the US and with the forward looking calendar of new, large, municipal projects and the countless number of smaller projects on the very near horizon, certified WBE, MBE & DBE contractors and subcontractors in Colorado will be needed for many years to come.

For more information on Colorado, Certified WBE, MBE and DBE contractors and subcontractors, call or write to DLB Industries in Austin, Texas .

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Houston Texas WBE / DBE Subcontractor

Houston is growing. Growing fast.  And growing in many areas including not only population but in commercial construction, government sponsored, public construction including highways, bridges, hospitals, schools and more.  There currently exists a strong demand for skilled labor and specialized construction personnel.  The demand is far outpacing the supply and many projects have either been delayed or have  been rebid to adjust estimates and budgets upward because of the labor shortage.  According to the Houston Chronicle, most retailers and service providers in the greater Houston area report that they are understaffed by more than 25%. In addition to this shortage, many General Contractors are very limited on the number of qualified Houston WBE , DBE and HUB subcontractors that are available.  The Houston Office of Business Opportunity   has adopted a Certification process for vendors, subcontractors and suppliers who want to do business with the City of Houston or any agencies thereof.  This certification is important for General Contractors when needed to reach their Houston WBE, DEB or MBE subcontractors goals for a particular  public works contract of almost any size.  Without the Houston Certification for a qualified WBE, DBE or MBE subcontractor, many  projects can become more expensive or delayed or both.  DLB Industries is a HUB certified and TxDOT certified, WBE, DBE and MBE subcontractor and has been filling the need General Contractors have for HUB goals for over 12 years.  From material procurement to invoice and credit note management to onsite personnel, DLB remains a leading Texas DBE, WBE & MBE subcontractor.  According to Diana Lerma-Bounds, president of DLB, they have noticed a sharp increase in the number of state wide contractors who cannot find properly certified, Texas and Houston DBE, WBE & MBE subcontractors that have enough experience and capacity during this boom time.  “Its just amazing that we cannot find enough, qualified people to satisfy the needs of all the General Contractor’s needs right now” says Bounds and she added, “Given the forward looking, major project schedule on the horizon, it may get worse before it gets better”.

Texas WBE, MBE & DBE subcontractors can qualify for jobs in specific cities or counties by becoming certified for that city’s Business Opportunity plan.  Houston certified DBE subcontractors and Austin certified DBE contractors, once certified by TxDot, can apply for these special certifications, allowing them to bid and work jobs in that City that require that certification.  These certifications are reducing the pool of qualified Texas DBE subcontractors that are available for specific City or County jobs.   For more info about Texas or Houston DBE, WBE & MBE certification processes, please contact DLB Industries.

 

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WBE, HUB, TxDOT certified Tier 2 contractor

Supply chain issues have plagued many businesses around the world since the beginning of the pandemic, but few have been impacted quite like the construction business. Whether it’s a lack of building materials to a shortage of actual workers, construction companies have been wading through one challenge after another for years.  Maurice Rahming, from MarketPlace, says, ” Post pandemic things have not gotten better. We were optimistic as we looked at coming further from the pandemic that the material would become more and more accessible, but the opposite kind of happened. We’re still looking at extremely long lead times — as far as, in some cases, up to a year — when we talk about different types of equipment and steel that’s needed on projects.”  Given the boom in private sector, heavy construction combined with local road works and bridges projects combined with TxDOT’s ever increasing, multi-billion budget, it is no wonder that heavy equipment is hard to find and very expensive to rent or purchase when you do find it.  Add all that to the COVID, supply delays and inflation fears, some equipment is just no available.  So what does the estimator or project manager do?

Well, we asked DLB Industries, a HUB certified, minority, women owned business that question and here is what we got. “It is no secret, over the last 10 years that costs have sky rocketed in the Texas market for materials, supplies, equipment and labor….all the things we use every day.  Estimators must often overbid and price projects at 20%+ premiums just to stay even.  When it comes to finding basic equipment such as scissor lifts, boom lifts, water trucks and even scaffolding, it just can’t be found.  We all have to just put on our big boy pants and pay more then figure out how to pass the costs on or cut budgets elsewhere, its just that simple.”  Many WBE, DBE and MBE firms find themselves priced out of inventory for many of these things.    At the same time, large contractors,  Tier 1 and Tier 2 sub  contractors find themselves under more pressure to use WBE, DBE and MBE firms more and more.  Not sure where this ends but it will force the inefficient and non-competitive firms out of business thereby putting more of a workload and strain on those still here.

New sources for water trucks, water towers and other equipment will eventually arrive to fill this void but in the mean time it will be a scramble for equipment and equipment operators.

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Top 5 Water Truck Rentals in Austin Texas

Finding non-potable water, in large quantities, for job sites or anywhere else, is a big PAIN!!  And, its getting harder every single day.  Water towers, trucks, sprayers, water trailers etc,  are all in high demand and the supply of equipment just cannot keep up.  If you do find one or some to rent, then you have the real issues to deal with….turnkey service, delivery, insurance, drivers, maintenance, pick up, etc.   Given this, we have spent some time investigating and outlining the Top 5 Water Truck Rentals in Austin, Texas.  This is a subjective list based on customer service, price, inventory availability and total volume of rentals in the past five years.

  1. DLB Industries LLC; HUB, TxDOT, WBE, MBE, DBE certified: Austin, Tx 512-637-4229
  2. H & E Equipment Leasing; San Antonio & Buda, Texas, 210-284-3379
  3. NIECE Equipment Leasing & Sales; Buda, Texas,  888-643-2372
  4. Holt Heavy Equipment Leasing & Sales; San Antonio, Texas; 800-736-8228
  5. Herc Equipment Leasing; Pflugerville, Texas; 888-777-4372

There are many benefits to leasing versus buying equipment. Every group has its business objectives, financial constraints, and operational goals that should be considered before deciding on the best acquisition method for the equipment. For most companies, leasing equipment offers flexibility, predictability, and lower risk. Equipment leasing is becoming increasingly more popular as businesses are experiencing the advantages and strategic value equipment leasing brings. In fact, according to Dos Mundos Developments, Inc., the global leasing industry has grown over 120% in the past decade, with North America representing over 35% of the total global market share in equipment leased.

Pros: Leasing Equipment  

Leasing equipment allows you to use the equipment for a fixed amount of time without the burden of ownership. The advantages of leasing are:

1. Conserve cash flow

2. Hedge against equipment obsolescence, parts inventories and storage

3. Keep strategic flexibility for managing your balance sheet

4. Select your own path with flexible end of lease options or renewals

5. Simplify administration, bookkeeping, millage logs, fuel efficiencies

Pros: Purchase Equipment

1. By owning your equipment, you are entitled to make any modifications to the machine. Owning also means maintenance is your responsibility so you can make sure that issues are resolved ASAP. This means you won’t have to wait for a leasing company to resolve the issue or approve the needed maintenance.

2. Buying can be easier because there are no agreements and contracts you must follow. You decide what type of equipment you want and its yours for use.

3. If you own equipment, you have the ability to sell at the end of it’s use, allowing you to recover some of the cost spent.

4. You have complete control over what type of equipment you get because you aren’t limited to what is available at a leasing company.  If there is a specific model/brand in mind you have the ability to find exactly that.

Please check our next blog post about insuring leased construction Equipment.

 

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HUB & WBE certified water trucks & water towers

This is Boom time in Central Texas for many things including the heavy construction business.  Each day brings announcements of new hospitals, schools, highways, bridges, Court Houses and that’s just the public sector.  There are also many new high rises, office towers, shopping centers and residential subdivisions popping out of the ground all across Central Texas.   This activity has brought unprecedented growth and commerce to the area but it has also caused some supply side issues with materials, labor and heavy equipment.   Cranes, dozers, excavators, lifts and loaders are all in short supply.  This is especially true for water trucks and water towers.

With TxDOT’s ever increasing annual budget that brings road way projects requiring on site water in remote areas and with many cities and counties adopting dust abatement type ordinances for both private and public sector projects,  “on site” water has become a thing.  Water trucks and water towers are in short supply and if you need this type equipment that must also satisfy your HUB, WBE or DBE requirements, you may be going down a long, hard path.   Many large equipment providers such as Holt Cat  or Niece Equipment   have waiting lists for both new water truck purchase orders and for water truck rentals.

This demand and the lack of inventory has brought companies from outside the State to our local area to help with the back orders .  This is both good news and bad news.  While the added inventory does help to keep moving projects forward,  it also brings with it administrative problems such as outdated or non-compliant certifications, licenses, equipment and drivers.  These issues can cause big, big problems, delays and lost revenue.   A local,  TxDOT, HUB certified  company has decided to offer a solution.

DLB Industries, a TxDOT HUB certified, woman and minority owned business, has recently rolled out an equipment rental service that offers short and long term rentals or turnkey water delivery services via 2,000 & 4,000 gallon water trucks as well as 12,000 gallon water towers  for heavy projects.  DLB has entered into various agreements with large, national and state wide equipment leasing companies offering water trucks and towers.  They have put the correct drivers, bonding and insurance in place and can get on site water to large projects anywhere in Texas, Oklahoma and Louisiana with 72 hours notice.  They offer one time, short term and long term arrangements for all job-site, non-potable water.

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DBE, WBE & HUB Subcontractors

 

Disadvantaged Business Enterprises in Texas (DBE) can be certified as a TxDOT HUB DBE, by meeting the standards of a socially and or economically disadvantaged business as provided by TxDOT and in compliance with federally mandated size requirements.  A certified DBE must be at least 51% owned by one or more individuals that meet the provisions outlined by the Office of Small And Disadvantaged Business Utilization (OSDBU).

DLB Industries LLC, an Austin DBE, WBE & MBE is honored to be a certified DBE in Austin with offices also in San Antonio and Dallas, Texas and are very proud of our service to the construction industry for the past fourteen years.   Whether we are providing on site oversite or complete project management to include invoicing, credit notes, waivers and change orders, we pride ourselves on being available to our GCs 24/7 and for ensuring the fastest possible turnaround for billings and payments.

Women Business Enterprises in Texas (WBE) can be certified as a TxDOT HUB WBE, by meeting the standards of business ownership as provided by TxDOT and in compliance with federally mandated size requirements.  A certified DBE must be at least 51% owned, controlled and operated by one or more women that meet the provisions outlined by the Women’s Business Enterprise National Council (WBENC).

DLB Industries LLC, an Austin WBE  and is honored to be a certified through the TxDOT certification program. We operate offices also in San Antonio and Dallas, Texas and are very proud of our service to the construction industry for the past fourteen years.   Whether we are providing on site oversite or complete project management to include invoicing, credit notes, waivers and change orders, we pride ourselves on being available to our GCs 24/7 and for ensuring the fastest possible turnaround for billings and payments.

DLB Industries LLC, as a DBE, WBE, MBE and HUB sub contractor,  appreciates the fact that we are here to provide a seamless service without being in the way, late or the cause of confusion in the invoicing and billing systems.

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