Herman Stewart Brochure by North American Constructors Journal

Herman/Stewart Construction

Experience plus

teamwork

equals success Herman/Stewart Construction of Lanham, MD provides General Contracting expertise for multiple sectors across the United States Written by: Kevin Doyle Produced by: Stephen Marino

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or Herman/Stewart Construction of Lanham, MD the combination of staff stability and extensive experience has translated into long-term, repeatable success. Established in 1990, Herman/Stewart is under the direction of Vice President Terry Varner. The company holds licenses to work across the continental United States, specializing in hospitality, senior living, assisted living, retail shopping centers, retail rollout and food service building projects, including LEED initiatives. Varner says Herman/Stewart’s

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|Herman/Stewart Construction| 1 success is directly attributable to its work force. “To be successful in the world we live in today and the industry we work in, it takes two things – your staff and your sub-contractors. Our Business Development team could be on fire securing opportunities but if I don’t have the right subs and the right staff to produce the work, there’s no value in it,” he says. The company today employs 100 office and field staff, maintains a vast network of trusted sub-contractors, and generates USD $60-$90 million

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annual revenue. In 2015 alone, Herman/Stewart executed nearly 100 jobs in 19 states.

jobs, they end up being long-term partners,” Varner notes.

And what of that abundant experience? According to Varner, the average Herman/Stewart employee has been with the company for 13 ½ years.

When actor Robert Redford decided to add brick-and-mortar locations to his portfolio as a complement to his upscale Sundance catalogue, Herman/Stewart got in on the ground floor so to speak.

“We consider each other family. We’ve been in business 26 years and we have employees who have been here since day one. If you hire good employees, and you don’t micromanage them and let them do their

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Noteworthy Projects

“We were fortunate to build their first store and continued to build them around the U.S. They’ve been very successful,” says Varner. Sundance plans to build up to 150 stores over

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“To be successful in the world we live in today and the industry we work in, it takes two things – your staff and your sub-contractors.” - Vice President Terry Varner the next several years. Herman/Stewart also oversaw construction of well-known international chain Nando’s Peri Peri first U.S. restaurant in Washington, D.C. The 3,800sf location features reclaimed vintage wood flooring as well as exposed brick on its interior walls. “There are approximately 1,100 of them world-wide but fewer than 30 in the U.S. and we’ve built over 75 percent of them,” Varner says. Herman/Stewart is also the General Contractor on the Hail+Hog Kitchen

and Tap, a Washington Redskinsthemed restaurant opening this spring in Ashburn, VA. “That’s pretty highprofile project for us,” Varner says. Included among the company’s numerous clients are AT&T Mobility, AAA Mid-Atlantic, Columbia Sportswear, Qdoba Mexican Grill, 24 Hour Fitness, Tommy Bahama, Bobby’s Burger Palace, Top Shop along with a wide range of hotel chains

Efficient Operations The extensive sub-contractor network they have cultivated through

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the years is crucial to Herman/Stewart’s success. “General Contractors used to do a lot of work internally, whether it was concrete, carpentry, framing or drywall. Now most General Contractors sub out 98 percent of the work. If your subs are not an extension of your team, there is a shortfall,” says Varner. The company maintains subcontractor groups in each of its key market segments because, as Varner explains, “a great plumber for a restaurant may not be the right plumber for a hotel.”

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“We do have a core group of subs that work for us on a frequent basis because they’ve proven they have good competitive pricing and that they perform,” Varner notes. “And we try to add new subs on every job because you can never have too many of the right subcontractors and vendors. “Typically Superintendents have weekly meetings with the foremen of the trades that may be working on site for that week or the next two weeks. From that they develop the two-week schedule and that goes to the Project Manager and the team, the Owner or the Owner’s Representative, and the

|Herman/Stewart Construction| 6 Architect for discussion and comment. It’s a great tool to use because things do change at a quick pace,” Varner explains. Varner says the company makes it a habit to complete all work that is reasonable on any given day. “Construction doesn’t get done in a normal sequence, so if there’s anything you can do, then do it. Don’t put it off. It’s just good management,” he says. The company regularly takes advantage of training programs and

seminars offered by the Retail Contractors Association (RCA), attending when possible and assimilating all available information for internal use. And, to demonstrate the importance of sub-contractors to its success, the company planned an Appreciation Night in April for its core sub-contractors in conjunction with a meet and greet for an invited group of prospective sub-contractors who could work with the company on future projects.

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“If you hire good employees, and you don’t micro-manage them and let them do their jobs, they end up being longterm partners.” - Vice President Terry Varner

Safety Measures It is the job of the full-time Safety Officer to make sure the company’s safety program is followed to the letter. This includes regular visits to job sites. “He will write up our staff and sub-contractors if he finds things that are potential violations. He lets everybody in the field know when there is a problem. It is easier for us to identify and fix a problem before OSHA or somebody else comes to visit your job site,” Varner states. All of the company’s Superintendents

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have either received or are working toward obtaining their 30-hour OSHA certifications. “That’s becoming a requirement to work on a lot of sites. Safety has to occupy a very important place in your business model. You have to do everything you can to maintain a safe work environment,” Varner says.

Staff Retention and Training Varner says problems Herman/Stewart faces are no different than those their competitors grapple with, most notably when it

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|Herman/Stewart Construction| 9 comes to finding the right employees. “I don’t know that we do anything unique. We spend a lot of time meeting people and interviewing people and, hopefully through that process, we vet them out,” he says. “We introduce them to our other employees and hope that they see that we are a fair and reasonable firm that is good to its employees.” Herman/Stewart has brought on summer interns on occasion but most often works through referral agencies when seeking new employees.

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For his part, Varner maintains an open door policy and all are welcome to voice their opinions. “Anyone can knock on my door at any moment. I interface with the Estimators, I interface with the Project Managers and I still interface with the Superintendents, whether on the phone or making job visits two or three times a month,” says Varner, who also travels extensively for the company. As the company moves forward, Varner says there are no immediate plans to seek international work. Herman/Stewart currently has ongoing jobs in 10 states and, Varner says, “has enough work to do right here in the United States.”

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