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News SUMMER 2004 Chamberlin’s Restoration Expertise Gives a Ft. Worth Landmark a Second Life Cats may have nine lives, but who has heard of a skyscraper having two lives? That is exactly the case in Ft. Worth, Texas. Chamberlin’s restoration team is hard at work in downtown Ft. Worth. Their task: to restore a landmark and give it new life through a complete metamorphosis. Ft. Worth and developer/owner TLC Green Property Associates I, L.P. agreed to abate, renovate and develop the building. This $65 million project would turn the Bank One tower of office spaces into The Tower, a high-rise condominium with over 300 residences and 30,000 square feet of retail stores, restaurants and offices. The Bank One office tower at 500 Throckmorton and Fourth Street in Ft. Worth was damaged by a tornado that rocked downtown and destroyed several buildings in its wake in March of 2000. While the other buildings were rebuilt, the Bank One tower was left abandoned for almost three years. To begin the project, CST Environmental removed hundreds of thousands of square feet of plaster containing asbestos from the vertical structural columns and other areas. Being that this is a very delicate process, Chamberlin was called in to Plans were made to demolish the skyscraper and seal the outer walls to create an airtight use the land for parking, but the discovery of atmosphere inside the building. asbestos and the high costs of abatement and Chamberlin’s team installed a special implosion made that plan impractical. In late reinforced polyethylene material on 2003, principal architects, Corgan Associates, Inc., the outside of the building sealing unveiled new plans to give the 37-story building all window openings without glass a second chance at life, complete with a new use, using batten strips and fastening a new name and a new design. The City of anchors as required. (Continued pg. 3...see TOWER) Another Perfect Storm INSIDE this issue… Liability Insurance . . . . . . . . . . 2 Bank One Tower Transformed . . . . . . . . . . . . . . 3 AGC Scholarship Recipients. . . . 3 Projects in Progress. . . . . . . . . 4 Guest Column By: With rising premiums and shrinking coverages, owners and contractors have described the current general liability insurance environment as the “perfect storm.” But this is by no means the first perfect storm. The fact is, over the past 20 years the construction industry has seen some tumultuous times in both cost of insurance and in scope of insurance coverage. As you may recall, in the mid 1980s the insurance industry introduced a whole new general liability coverage format that Edward G. Britt, Jr. contained numerous changes. This new general liability coverage (Continued pg. 2...see INSURANCE) (INSURANCE Continued from pg. 1) format was developed in response to the “perfect storm” of the early ‘80s. Two new emerging areas of significant losses for the insurance industry caused this storm: asbestos and pollution claims. The cost of these claims had never before been priced in the cost of insurance for the insured. In response to the losses from asbestos and pollution claims, the insurance industry reacted by doing two things. First, they raised premiums dramatically to cover the losses they were encountering. Second, they severely restricted the coverage afforded in their policies by issuing endorsements to the general liability policies that essentially excluded any coverage for losses arising out of an event that involved their insured where pollution or asbestos was the source of the claim. Today, we are experiencing an event similar to that which we saw in the ‘80s. It is the same type of “storm” but with more and different ingredients. In metaphorical terms, instead of wind and rain, we have stronger elements like lightning, thunder, smoke and fire. The components in today’s insurance market storm are EFIS, mold, terrorism and construction defects on residential buildings (i.e. condominiums, apartments, homes, town homes, etc.) This storm, like the one in 1986, is being caused by the substantial losses the insurance industry has suffered on risks that underwriters never anticipated and, therefore, had not adequately priced in the cost of insurance to their insured. This, in turn, has not only increased premiums but has also reduced the number of companies willing to write insurance. But, most importantly for building owners and contractors, it has eliminated some important insurance coverages. As a result of this “perfect storm,” current insurance policies may look the same as their predecessors on the surface, but they are indeed quite different. As a certificate holder you can no longer fully trust certificates of insurance to fairly represent the coverage depended upon in the past. These changes are of particular concern in regard to existing construction contracts. Some of the changes in coverage will likely not be in compliance with the contractual terms of work currently under contract and in progress. Additionally, since standardized contracts and remedies contemplating these changes have not yet been developed, it is likely there will continue to be gaps between contractual requirements and actual coverage provided. Obviously, any gap between these two could work to the detriment of the owner-contractor relationship. Eventually, standardized contracts and remedies addressing these changes will emerge. Until then, owners and contractors alike need to draw upon the resources of their insurance agents, attorneys, and other counselors to identify potential problem areas and develop creative solutions. the endorsement from the various insurance companies. Additionally, depending upon whether you are an owner or contractor, exclusions can apply differently. When evaluating risk and risk management solutions, owners and contractors alike must be aware of the impact these coverage limitations have on the overall operations of both parties. Considering the volatile and mercurial nature of the insurance industry today, it is absolutely critical that all parties to a construction contract fully understand their obligations and the extent those obligations can be transferred to an insurance carrier. Some of these obligations i.e., construction defects, EFIS and mold can have catastrophic economic ramifications to the party assuming these liabilities in the event they cannot be transferred to an underwriter. Involving your insurance agent and legal counsel in the initial negotiation of a construction contract is more important today than ever before. With the current “storm” brewing, the expression “buyer beware” is definitely in vogue in today’s insurance environment. In addition to serving as President and Partner of Bowen, Miclette & Britt Inc., the author is the President of both Camden Capital Mortgage, Inc., and Foster Insurance Services, Inc. He has more than 30 years experience in the insurance industry and holds a Bachelor of Science Degree in Economics. The adjacent tables identify common exclusions and limitations in use today on general liability and umbrella liability policies. Almost all insurance companies are mandating their Exclusions Resulting From Present Day Issues use as a condition The following exclusions and limitations apply primarily to residential of underwriting a owners’ and contractors’ general liability and umbrella liability policies. particular account or class of business. It is EFIS – Exterior Finish Excludes coverage for injury or damage connected to the important to note Insulation Systems manufacture, sale, distribution, installation or service there is wide variation (Synthetic Stucco) of an EFIS system. of the definitions in Mold Excludes virtually all coverage for claims arising out of presence of, exposure to or inhalation of fungi, including all varieties of mold and bacteria. These exclusions are uniformly attached to general liability and umbrella liability policies for owners and contractors. TRIA – Terrorism Excludes coverage for liability or property losses arising out of terrorist acts. This is of particular concern for large property owners in perceived target areas. Coverage buy-back is usually available. Absolute Pollution Excludes coverage for injury or damage connected to the treatment, transportation, disposal, storage, monitoring or clean up of a pollutant. Absolute Asbestos Excludes coverage for injury or damage in any way connected to asbestos or manufacturing products containing asbestos. Residential Construction Excludes coverage with respect to liability arising out of the Defects completed operations hazard in connection with property intended for habitation. *Note: There is little standardization on what types of structures are to be considered habitational. Most include single-family dwellings, apartments, condominiums and townhouses. Some variations may provide limited coverage if claims are brought within a specified time limit. Other variations may include coverage for completed operations, but only for work initiated after the inception date of the policy thereby effectively excluding completed operations for all previous work. Exclusions Made In The 1980s Mayor White Presents AGC Scholarships to Chamberlin's Lyle Coston and Adam Matthys ( TOWER Continued from pg. 1) Bank One Tower Transformed After asbestos abatement, Turner Construction acquired the task of removing the entire interior and exterior skin of the building. Interior and exterior walls, air conditioning equipment, plumbing and wiring were extracted until only the skeletal concrete frame remained. Chamberlin was responsible for the removal of all exterior glass, glazing, mullions, louver panels and temporary building wrap. In order to remove the exterior skin, eight swing stage scaffolds, one scaffold for each side of the building, were rigged. The swing stage work began at the 6th floor and worked its way up to the 38th floor at roof level. Removing the remaining glass on the structure was no walk in the park, and safety was a big concern.While Chamberlin was working on the demolition of the upper levels of the building in the middle of downtown Ft. Worth, new construction was taking place below. Chamberlin had to develop a 100 percent safe and creative plan to prevent any and all debris from falling and seriously injuring someone. Chamberlin waterproofing Project Manager, Bryan Payne, faced the challenge by coming up with a creative solution that was two-fold. First, the team put together the “swing stage diaper.” “In order to prevent falling debris,” Payne said, “we attached a mesh netting directly to the building beneath the floor in which we were working. The debris net was attached using self-drilling screws and anchored into the existing curtain wall frame system.” The debris net hung under the swing stage and attached to the top of the back rail thereby catching any debris that might fall. Secondly, and most uniquely, all remaining glass was completely covered with an elastomeric sheet membrane. “This sheet membrane, which is actually designed for below grade waterproofing, bonds tenaciously to glass,” Payne said. The Chamberlin crew was then able to safely break the windowpanes to the inside of the building without the risk of losing shards of glass below. Once the glass was removed, the glazing was cut and the mullions were detached and then demolished with pry bars. After the demolition was complete, the process began to transform the building into The Tower. Chamberlin restored the concrete frame by utilizing high strength mortars to patch the spalling and damaged concrete beams and columns on the exterior of the building. An elastomeric coating was installed on all exterior exposed concrete surfaces after the completion of the entire exterior wall package to provide a new cosmetically appealing look and also to protect the concrete skin from future water infiltration damage. Chamberlin also constructed 372 new apartment balconies and installed a concrete topping on each to create positive drainage. The building now has an entirely new exterior building envelope. The former tower, slick with reflective windows, now is encased in a cool, blue-green shell with inset balconies that create a sort of basket weave effect. The lower level is reconfigured from its familiar angled concrete columns into a box base skirt consisting of five floors and two below grade levels that contain retail stores, restaurants and office space. The roof of the skirt features patio areas, a dog-walking path and a swimming pool for the condo owners. The Tower is scheduled to be finished and occupied in early 2005. Payne reflects on the project with pride: “One thing that I consider the most unique about Chamberlin’s role in this project versus other projects is the degree in which we were able to impact the schedule. All finishes, dry wall, etc. could not take place until our work was complete and the new glass was installed.” Chamberlin’s 20+ employees working on the exterior skin went the extra mile, sometimes working seven days a week in order to stay ahead of the curtain wall contractor’s work. Undoubtedly, it was the Chamberlin team’s commitment and creative problem solving that enabled them to both meet the project deadline and save the owner money. Chamberlin’s Superintendent, Paul Watson, applied his years of experience and lead crews to complete the demolition work 30 days ahead of schedule and under budget — a feat companies with less manpower and experience may have not been able to deliver. Matthys and Coston with Mayor White at AGC Breakfast honoring scholarship recipients. Congratulations to Chamberlin’s very own Lyle Coston and Adam Matthys on receiving The Associated General Contractors of America’s Excellence in Leadership scholarship awards. Mayor White presented the awards to Lyle and Adam. Both are project estimators at Chamberlin and are pursuing their Bachelors of Science in Business Management at The University of Phoenix, Houston campus. After the ceremony Lyle and Adam expressed their gratitude to the AGC: “We would like to thank the members of the Excellence in Leadership committee for helping young people like us achieve our goals of becoming leaders in the construction industry.” The Excellence in Leadership forum began awarding scholarship money in 1996 and as of this year has provided over $100,000 in scholarship funds to 41 students pursuing degrees related to careers in construction. After two years of studying Environmental Engineering at Texas A&M Corpus Christi, Lyle Coston followed his desire to pursue a career in construction. The common sense nature of construction had always been an attractive option, so Lyle began working in a field operations position with a small waterproofing contractor in Austin. In fairly short order Lyle was offered a position in the office developing estimates and managing projects. When the opportunity came nearly four years ago to join Chamberlin in the estimating department, Lyle jumped at the chance. Lyle’s knowledge has continued to grow in Chamberlin’s waterproofing and caulking business as he has become involved with many larger, more complicated projects including the UT MD Anderson Ambulatory Clinical Building project and the Federal Inspection Services Superstructure at Intercontinental Airport Houston. Adam Matthys’ story is similar to Lyle’s in that he also left college initially to become involved in construction and worked in operations for a small waterproofing contractor. Adam joined Chamberlin over three years ago, and, at a very young age, was given the responsibility of managing projects. With many successful projects under his belt, including the Galleria expansion and the Inn at the Ballpark, Adam was promoted to an office position where he could put his firsthand knowledge and experience with a variety of waterproofing systems to work as an estimator. Adam humbly acknowledges, “The AGC Excellence in Leadership scholarship boosted my confidence level and reinforced my goal of finishing my formal education.” PROJECTS in Progress… Ashton Place — Dallas, TX ISEP — FIS Building Superstructure/APM Station and Platform — Houston, TX New Construction Roofing Owner: The Hanover Company Architect: Gromatzky Dupree & Associates General Contractor: Hanover R.S. Limited Partnership Scope of Work: Roofing, sheet metal and flashing Contract Amount: $280,000 (approx.) Project Description: 21-story residential tower in Dallas Arts District New Construction Waterproofing & Roofing Owner: The City of Houston Architect: PGAL Architect General Contractor: Clark/Mission A Joint Venture Scope of Work: Roofing, sheet metal, flashing, below grade waterproofing, expansion joints, joint sealers, traffic coating, resinous flooring Contract Amount: $1,500,000 (approx.) Project Description: Basement plus 2-level above grade international flight inspection terminal and parking garage Panalpina — Houston, TX New Construction Waterproofing Owner: HICTC Houston, L.L.C. Architect: Burns & McDonnell General Contractor: D.E. Harvey Builders Scope of Work: Tilt panel sealants, slab on grade sealants, site paving sealants, epoxy coating, diamond hard sealer Contract Amount: $250,000 (approx.) Project Description: 375,000 square foot distribution warehouse and office Park Lane Village — Lewisville, TX Roof Replacement Owner: TCP Realty Scope of Work: Roofing and sheet metal Contract Amount: $75,000 (approx.) Project Description: Single-ply re-roof and installation of standing seam metal roof on shopping center North Lake College — Irving, TX Harris County Juvenile Justice Center — Houston, TX Remedial Waterproofing Owner: Dallas County Community College District Architect: Exterior Consulting Innovations, Inc. General Contractor: Chamberlin Roofing & Waterproofing, Ltd. Scope of Work: Masonry restoration and plaza planter waterproofing Contract Amount: $1,300,000 (approx.) Project Description: Athletic department, gymnasium, classrooms and student services buildings New Construction and Remedial Roofing and Waterproofing Owner: Harris County Architect: Morris Architects General Contractor: Satterfield and Pontikes Construction, Inc. Scope of Work: Roofing, sheet metal, flashing, security sealants, water repellant, pavers, masonry restoration, sheet damproofing, window sealant Contract Amount: $1,200,000 (approx.) Project Description: Re-roofing and waterproofing of 8-story courtroom, administration offices and youth detention center West Hills Mall — Huntsville, TX Roof Replacement Owner: TCP Westhills Partners, L.P. Scope of Work: Roofing and sheet metal Contract Amount: $170,000 (approx.) Project Description: Tear off and reroof 66,000 square feet over TDC offices and Kerr’s Store Texas Stadium — Irving, TX Remedial Waterproofing Owner: City of Irving, TX Scope of Work: Pedestrian deck coating system Contract Amount: $100,000 (approx.) Project Description: Home of the Dallas Cowboys Jack S. Blanton Museum of Art — Austin, TX University of Houston MD Anderson Library — Houston, TX New Construction Waterproofing Owner: University of Texas at Austin Architect: Booziotis & Company Architects General Contractor: Skanska USA Building, Inc. Scope of Work: Below grade waterproofing Contract Amount: $160,000 (approx.) Project Description: 60,000 square feet of Phase I of Art Museum New Construction Roofing Owner: University of Houston MD Anderson Architect: Morris Architects General Contractor: Gilbane Building Company Scope of Work: Roofing and sheet metal Contract Amount: $700,000 (approx.) Project Description: 50,000 square foot library on University of Houston campus SPECIALTY CONTRACTING SERVICES WATERPROOFING/CAULKING ROOFING/SHEET METAL ROOF MAINTENANCE/LEAK REPAIR • • • • • • • • • One source roofing & waterproofing • Roof surveys, evaluations & budgeting • Custom maintenance plans Joint sealants • Expansion joints Membrane waterproofing • Damproofing/flashing Elastomeric wall coatings • Water repellants/ Traffic coatings metal flashing BRANCH OFFICES HOUSTON BUR EPDM rubber Modified bitumen PVC/TPO thermoplastic • Metal standing seam • Roof related sheet metal • Gutters/downspouts Call our nearest local office or 1-800-749-1432 DALLAS 7510 Langtry Houston, Texas 77040 Ph. (713) 880-1432 Fax (713) 880-8255 2346 Glenda Lane Dallas, Texas 75229-3317 Ph. (214) 273-9110 Fax (214) 273-9120 Active Members of: HOUSTON AMERICAN SUBCONTRACTORS ASSOCIATION HOUSTON CHAPTER • Professional mechanics • Service 24 hour/ 365 days a year • Free estimates AUSTIN/SAN ANTONIO 204 West Powell Austin, Texas 78753 Ph. (512) 275-1600 Fax (512) 275-1603