Mason Contractors: Misclassify Employees in Texas, Get Penalized

Construction subcontractors are celebrating new laws in Texas that will allow them to enforce government contracts, penalize competitors that get an unfair advantage by misclassifying employees as independent contractors, prohibit bid shopping by government entities, and create a pathway to careers in the construction industry.
 

“The legislation recently signed into law will improve the business environment for construction subcontractors and make the construction process more efficient and potentially less costly,” said 2012-13 American Subcontractors Association President Walter Bazan Jr., Bazan Painting Co., St. Louis, Mo.

On June 14, Texas Gov. Rick Perry (R) signed into law three bills:

• HB 586 waives the state’s sovereign immunity in construction contract disputes, allowing certain design and construction companies to sue state agencies for breach of contract.
• HB 2015 amends the Labor Code, requiring that employers ensure that workers performing under government contracts are properly classified as an employee or independent contractor.
• HB 1050 prohibits bid shopping after a government entity has made a selection and changes design-build requirements. The new law also restricts a local government entity from entering a contract in an amount greater than $50,000 “to purchase construction-related goods or services through a purchasing cooperative” under certain circumstances.

On June 10, Gov. Perry also signed into law HB 5, which creates increased opportunities for high school students to pursue vocational education. “This law takes a huge step toward addressing our state’s shortage of skilled workers by giving young people a pathway to lucrative careers in construction trades construction, including welding, logistics, automotive technology, agricultural science, and heating, ventilation, and air conditioning,” said ASA of Texas President Mackie Bounds, Brazos Masonry Inc., Waco, Texas.

All of the new laws will take effect on Sept. 1, 2013, except HB 2015, the worker classification act, which will take effect on Jan. 1, 2014.

Bounds Awarded C. DeWitt Brown Leadman Award

By Tim O’Toole

Each year, the Mason Contractors Association of America presents the C. DeWitt Brown Leadman Award to an individual who has provided exemplary leadership in advancing the masonry industry. All of the individuals who have received this prestigious award have demonstrated a tireless dedication to our industry through years of volunteer support and hard work. They have helped to ensure that our industry remains vital for the nearly 500,000 people employed through masonry.

MCAA Chairman John Smith presented the 2013 C. DeWitt Brown Leadman Award to Mackie Bounds of Brazos Masonry Inc. in Waco, Texas, during the MCAA Annual Meeting at the 2013 MCAA Convention in Las Vegas.

Bounds grew up in the retail carpet business. He came in contact with the masonry world at the age of 16 while working as a laborer. Since that time, he has always worked in some phase of construction.

Upon graduating, he pursued a career in landscaping, became a landscape designer and at the age of 21 owned and operated a successful wholesale greenhouse and plant leasing business. Bounds moved to Texas in 1980 and worked in Waco for Barsh Construction and Kent Mill & Supply (architectural design and woodworking manufacturer) as an estimator. Throughout this time he remained fascinated with the masonry industry and continued to take advantage of opportunities in masonry.

In 1982, Bounds became Vice-President of Al Brown Masonry (a commercial masonry contractor) and helped the company grow into one of the leading masonry contractors in the southwest United States. In 1989, Al Brown moved to Colorado and Bounds decided that the time was right to pursue his dream. After careful planning and crafting of a business plan (along with a policy and procedure manual) to operate a commercial masonry contracting firm, on March 21, 1989, Brazos Masonry Inc. (BMI) was born. Shortly thereafter, James Clay and Walter Dossett joined as partners in the business and BMI quickly became recognized by their competitors as a leader in the industry.

Bounds also had a strong conviction for giving back to his industry. He became the first subcontractor to be elected to the Board of Directors of the Central Texas AGC and subsequently was elected to the National AGC Board of Directors. In 1995, he was elected as the first President of the Central Texas Mason Contractors Association and was subsequently appointed to the Board of Directors of the Texas Masonry Council. Bounds has remained on the Board of the Texas Masonry Council and has served on many different committees.

Since 1997, Bounds has served on the Board of Directors of the Mason Contractors Association of America including serving as President. As President of the MCAA, he worked to lead the industry back to where it once stood (and that is the priority of every construction project that he is associated with).

Bounds energy, excitement and excellent leadership skills has taken Brazos Masonry Inc. to the top of the masonry industry.

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Tim O’Toole is the Director of Marketing, Education, and Information Technology for the MCAA. He has a Masters in Business Administration from Webster University and has worked in the masonry industry since 2003.