Performance Contractors, Inc. by North American Constructors Journal

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Performance Contractors, Inc.:

Consistency Equals Long-Term Success Performance Contractors, Inc. services clients from the US Gulf Coast to the Southeast US/Atlantic Coast and throughout the Midwest. Written by Kevin Doyle Produced by Stephen Marino

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f you were asked to pick a single word to describe Performance Contractors, Inc. of Baton Rouge, LA, consistency surely fits the bill. Established in 1979 by co-founders Art Favre and Ron White, the company has earned a sterling reputation as a trusted partner that delivers work of the highest quality. With expertise in nearly 20 construction disciplines, the company averages employing approximately 8,000 craftsmen and services clients in multiple industry segments from the US Gulf Coast to the Southeast US/Atlantic Coast and throughout the Midwest. Annual construction revenue is approximately $1.2bn and the company is licensed to perform construction in 31 states. It is a member of the Associated Builders & Contractors (ABC) and the Engineering and Construction Contracting Association (ECC). “Actively participating with construction associations provides the ability to assist all of us in gathering and sharing the knowledge with our peers, which is critical to the continuing success of our construction industry,” says Vice President Willie Lefever. There is no secret to the company’s success. “It is our people. We have ‘known’ resources and a learning curve over

40 years. We’ve grown from within, our people know the culture of the company and they understand the expectations of them and the company as a whole. When you can keep that core group of resources within the company and grow the company at the same time, it’s a win/ win for everybody,” Lefever says. He notes that while competitors have the resources to take on big projects, they lack workforce stability. Conversely, the average manager or supervisor for Performance Contractors has been with the company for 15 to 20 years. “Avoidance of constant turnover makes

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a difference in your delivery model. Our clients know when we bring a team to the job most of our site management and supervisors are going to have 1520 years of experience at the project level and at least five-plus years at the craft level. For us, itâ&#x20AC;&#x2122;s not about being the biggest. We want to be the best,â&#x20AC;? stresses Lefever, himself an industry veteran of more than 40 years who holds a degree in Civil Engineering and Construction Management and joined the company in 2005.

Key Projects Garyville Major Expansion Project: The expansion of the Marathon Oil Refinery in Garyville, LA was one of the

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Performance Contractors, Inc. | 6 first Mega Projects in the US in recent years, starting construction in 2008. This expansion of the existing Marathon Refinery utilized the latest design and materials to expand the refining capacity to handle many different grades of crude oil and made it one of the largest refineries in the country. Performance Contractors was the first contractor selected, and its scope of work included the Crude Unit, Coker Unit, Sat Gas Unit, Ground Flare System, multiple furnaces, OSBL pipe racks, and all existing plant tie-ins. Manpower peaked at just over 3,000 craft workers as Performance completed 13,900 tons of steel erection, installed 470 pieces of process equipment, and shop fabricated and erected 874,000 feet of

process pipe. IHI – Elba Liquefaction Project: The approximately $2bn project in Savannah, GA consists of 10 movable modular liquefaction system (MMLS) trains using Shell’s proprietary technology. These new units connect to Kinder Morgan’s existing re-gasification terminal at Elba Island, which was modified to receive liquefied natural gas (LNG) from the new liquefaction facilities. Performance’s scope of work included 770 modules and 775,000 manhours over a 38-month duration. Phillips 66 – Lake Charles Gasoline Isomerization Project: Phillips 66’s new Gasoline Isomerization Unit in

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“Our people know the culture of the company and they understand the expectations of them and the company as a whole. When you can keep that core group of resources within the company and grow the company at the same time, it’s a win/win for everybody.” - Vice President Willie Lefever

Lake Charles, LA was constructed in modular fashion, with major components and structures fabricated offsite, then shipped to the facility, and installed and connected onsite. Performance’s scope of work included major civil and mechanical packages for the Isomerization Unit, a civil package and general contractor package for installation of a 200,000 lb/hr Boiler, and mechanical construction of OSBL piping and structural upgrades within the existing facility.

training before arriving onsite. We believe that a well-trained employee is more efficient and a safer employee,” Lefever says. The company’s Brother’s and Sister’s Keeper program encourages employees to watch out for one another and mandates job site audits by company managers and safety professionals, as well as employee safety observations.

Safety is a top priority around the clock and the company’s plan has three primary components. Placing personnel in the proper position based on training and experience is crucial.

“Observations are stored in our database and are accessible to each job site. We also have a Peer-to-Peer Program that is a ‘no blame, no name’ system that encourages correcting the issue immediately and not directing blame,” Lefever says. “Our Regional Safety Managers and our Corporate Directors are frequently visiting the sites and conducting corporate safety audits.”

“We use our hands-on assessment and training facilities that are located in four strategic areas of our company to ensure all employees have the right

Finally, an Employee Assistance Program provides assistance to employees outside of work with Mental Health, Home/Work Life and

Safety Culture

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THE LEADER IN ELECTRICAL & INSTRUMENTATION

SERVICES INSTRUMENT & TECHNICAL SERVICES

MAINTENANCE SERVICES

ELECTRICAL CONSTRUCTION

RENEWABLE ENERGY

TELECOMMUNICATIONS & SECURITY SYSTEMS

POWER DISTRIBUTION

PANEL & MODULAR CONTROL BUILDING SERVICES

POWER ENGINEERING & DESIGN SOLUTIONS

COMMISSIONING & START-UP ASSISTANCE

MISSION CRITICAL CONSTRUCTION

MMR appreciates its relationship with Performance Contractors which has led to a successful partnership on over 300 projects throughout the United States.

(800) 880-5090 | MMRGRP.COM

relationship issues to name a few.

Training and Retention While the company excels at retaining personnel, Lefever acknowledges the lack of skilled workers needed to meet workforce needs across the industry is due, at least in part, to the industry’s inadequate promotion of the number of well-paying opportunities that exist. That is clearly not the case at Performance Contractors. “Art Favre, our President and Owner is still here and there are quite a few people sitting on the floor I’m on with 38 years at Performance. When

people come here, they don’t leave. Fifteen years is the average and the average for top management and site management is extremely high,” Lefever points out. The question is: Why? “Our company has maintained a consistent focus on delivering our core construction services while avoiding the external pressures seen across our industry to either merge or acquire additional companies or services outside of our wheelhouse,” Lefever says. “Our people are focused solely on executing projects.” Additionally, the company offers

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Performance Contractors, Inc. | 9 comprehensive training programs covering all disciplines of work, especially at the Project Controls/ Services and Management levels, as well as craft specific skills training. The company also takes advantage of training provided by various industry associations and recruits Construction Management candidates from universities across the country, providing them with internal training across every phase of operations. “Performance will spare no expense to educate and train our employees. The company has provided huge investments in our professional and craft training facilities and will continue to advance our programs and facilities to support our project requirements,”

Lefever points out. Finally, every employee reaps the rewards of the company’s performance. “If the company does well, our owner puts some of that money back in the employees’ pockets at the end of the year. So everybody understands that and it makes a difference how people come to work every day. We reward for performance,” Lefever says.

Day To Day Having been around his grandfather’s civil construction company, Lefever says he has always had a passion for planning and executing projects.

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Performance Contractors, Inc. | 10 “I love to take a project from an idea through completion and operation. I pursued my Engineering degree to understand the design basis and why things are the way they are when you see them on a drawing. I enjoy getting involved earlier in the project curve, getting some of our construction expertise into the Engineering office to perform constructability and value engineering in an effort to improve the final design. Everybody learns from issues on projects and it’s our job to learn from them, whether they are our mistake or somebody else’s,” he says. Lefever takes on many roles and responsibilities as Vice President, such as oversight responsibility for the Corporate Estimating and Corporate

Quality departments; development and execution of Engineer, Procure and Construct (EPC) projects including establishing the prime contract relationship and contracting partnering relationships with engineering firms; and as an Executive Sponsor for major project(s) execution, from the initial client pre-screening activities and contract negotiation/award through project completion. Lefever estimates that roughly 60 percent of the company’s work comes in the form of repeat business with long-standing clients. Performance has relationships spanning 25+ years with over two dozen of their clients, many of which they work for annually. Their relationship with ExxonMobil, for

sunbeltrentals.com

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“Our work history and long-term relationships with most of our subcontractors assists us with providing our clients with proven general contractor project delivery services.” - Vice President Willie Lefever

instance, hasn’t gone a calendar year since 1980 without at least one project between the two of them. “You ride the waves up and down with them but it’s up to us to satisfy them regardless of the job. Part of why we’re successful is because we have the wherewithal to do a five-man job or a 5,000-man job,” he notes. For example, Performance has been working for Chevron for 20 years, handling continuing services agreements on Chevron’s small cap projects and turnarounds, and a large percentage of its large cap projects.

“Over the last 15 years you could almost call it an alliance. They know when we plan the turnaround and ramp up to perform the work the same people are coming back to that unit that worked on the unit last time. It’s pretty rare that you get that, ”Lefever says. As a result of Performance’s consistency, Chevron asked the company to go to California to provide turnaround resources for work on the West Coast – a perfect example, Lefever says “of deliver and they’ll help you grow your business with opportunities inside their infrastructure.”

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day,” he says. On the daily work front, no two days are alike. “Things come up daily. A lot of things come up that pull you into a meeting, pull you into a response to a questionnaire or survey, pull you into an issue that needs solving now, or pull you into an opportunity you didn’t even know about,” Lefever says. “I love the people and the challenges associated with building projects successfully. Our industry is constantly changing, so there is never a dull moment. The opportunity to see a project from its conceptual beginning through completion is what keeps me coming back every

Regarding managing sub-contractors, the company maintains an extensive Master Subcontractor Database. Subcontractors go through a rigorous pre-qualifying process, including detailed annual analysis of safety and quality performance criteria. The company requires all qualified subcontractors to sign a Master Subcontract Agreement as a prerequisite for bidding work. “Our work history and long-term relationships with most of our subcontractors assists us with providing our clients with proven general contractor project delivery services,” Lefever says. “Anyone in our

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Performance Contractors, Inc. | 13 database has met our company and client criteria. In our Baton Rouge area everyone went to school together, or worked on projects together, so there is alot of history. Everyone knows there is a core group of companies. S uccess comes down to work history and people.”

Looking Forward In a November 2019 press release, Art Favre said: “We have always strived to be the best, not the biggest. We’re proud to be a multigenerational company; we take care of our people and the communities we serve. Our performance, safety standards and integrity are unmatched in the industry and that has allowed us to compete at the highest caliber for the last four

decades, and for many more to come.” Lefever says the company is looking to expand judiciously within other industries. For example, though still not recognize. by many companies as a power contractor, Performance does have an alliance with a utility company that gives it the opportunity to be in about 40 different facilities. “We can’t rely solely on oil and gas but we also don’t want to spread ourselves too thin. We’ve chosen our sweet spot and we will stay in it,” Lefever concludes. Given its reputation and the valueadded experience it provides all of its client-partners, that shouldn’t be a problem.