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Towne Construction Services:
Providing turnkey solutions for the commercial and municipal sectors
Towne Construction Services of Batavia, OH has created a niche by providing General Contractors a single point of contact with multiple capabilities Written by Kevin Doyle Produced by Stephen Marino
www.towneconstructionservices.com
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dentifying an opportunity and having the wherewithal to take advantage of it is a formula that often yields success.
As a case in point, consider Towne Construction Services of Batavia, OH, the self-performing specialist in asphalt and paving, curbs, site concrete, excavation and underground utilities. The company, in business since 2005, spun out of the real estate development property and management company Towne Properties, where TCS President and CEO Chris Bortz was working as legal counsel. “They were building condominiums and struggling to find construction level services. There was a huge amount of work and not enough contractors to fill it. In 2008, we created an internal group to address some of the needs,” Bortz recalls. The company formed to focus on commercial and municipal site development opportunities, a decision that coincided with the collapse of the domestic construction industry under the weight of The Great Recession. “A lot of contractors had disappeared. My strategy was about finding opportunity. It turned out I was right and
probably too right. We had explosive and virtually unmanageable growth from 2011 to 2014. We were in the right place at the right time as the market turned and projects that had been sitting hit the front burner and we were positioned to take advantage. Now we are stabilized and growing from a plan instead of shooting from the hip. Now our growth is more strategic,” Bortz says. Today the company employs 150
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and generates annual revenue of approximately $30 million. Seventy percent of its commercial portfolio is made up of bid work awarded by General Contractors and 30 percent is generated by developers acting as General Contractors. Residential work is almost exclusively direct to the homeowners. “The commercial side is more business to business facing. We created a niche and provide
General Contractors a singular point of responsibility by combining asphalt, site building, concrete, utilities and excavation. Our original DNA when we started was decorative concrete and backyard settings such as pool decks and patios,” Bortz explains. The company’s TowneScapes arm continues as a well-regarded specialist in stamped/decorative concrete, pavers and natural stone patios, pool decks, and walkways as well as landscape design and
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Towne Construction Services | 6 installation, outdoor rooms/ kitchens, outdoor fireplaces, pergolas/arbors, and pool houses.
Valued Relationships Towne Construction Services integrated capabilities enable it to stand out among competitors. The company works tirelessly to cultivate long-term relationships and repeat business and stands on its good name. “Reputation is sacrosanct. It takes a long time to build and can be ruined overnight. Standing by our relationships and our commitment
to provide real value for our customers is critical,” Bortz says. “If we have to lose money on a job to preserve a relationship, we will take that. We’ve had a few jobs where we took it on the chin for our client – we want them to be happy and are in it for the long haul.” Vendors and suppliers are held in equally high regard. “Finding the right vendors is not much different that finding the right client. We need a true partner that is tough. The [construction] world changed
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Towne Construction Services | 7 because of 2007-08 and the way the General Contractor words a contract and the amount of vendor and insurance liability that is passed on. We don’t take advantage of our vendors; we make sure we take care of them, and they us. We have top-rate, terrific vendors,” Bortz says.
Day to Day Given the region’s harsh winters, the company executes work within a short seven- to nine-month window, always cognizant of meeting deadlines. “A lot of our activities are weather dependent – everything we do is not under a roof. We have capacity to do more, but won’t because we don’t want to miss schedules and get too stretched. We need to be ready for wild cards while also keeping open for key customers that are in crisis and in need,” Bortz says. Current projects include the installation of concrete wall in and apartment building and its adjoining parking garage in Columbus. Also in progress are the build out of a Holiday Inn Express, elementary and middle school projects in Fairfield, and sub-division work for clients that specifically requested the company. Ensuring job safety is of utmost
importance. TCS maintains current OSHA certifications and holds daily toolbox safety talks. “There is no job worth a limb or a life,” asserts Bortz. To curb cell phone use and texting among both drivers and site equipment operators the company now collects cell phones and is providing hands-free systems in its vehicles. The company typically selfperforms 90 percent of all project work, subbing out electrical, plumbing and trucking services. With a limited number of Project Managers and Superintendents on staff, Bortz
“Reputation is sacrosanct. It takes a long time to build and can be ruined overnight. Standing by our relationships and our commitment to provide real value for our customers is critical.” - President/CEO Chris Bortz
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Towne Construction Services |10 says some employees take on dual Superintendent and foreman responsibilities at job sites. “There is no one to fill the jobs, so you need to be efficient and innovative to meet the market conditions,” Bortz points out. Due to the prohibitive cost of new equipment – for example, off-road dump trucks run about $50,000 used as compared to $350,000 new – Bortz buys used equipment, financed over a three- to five-year period. “The way I look at it, if you pay one-third of the cost and you put $50,000 in, you’re still way ahead.
There is a never-ending need for maintenance, but if you get three to five years beyond the finance life, it’s more than paid for itself,” he says. Of course, that approach requires a top-flight maintenance team and a service culture that extends from the top all the way down to the operators. Bortz values the company’s membership in the Associated Builders & Contractors for “keeping a finger on industry l egislative issues and as a good resource for HR and IT and the nuts and bolts of running a company.”
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People, Etc. Bortz traveled a circuitous path to arrive at his current position. Initially a middle school teacher, he earned his law degree and served six years on the Cincinnati City Council. “Then I found myself knee deep in a construction company. A strange, crooked road got me here and I love what I do and how it is different every day,” he says. While long stretches in the office are unavoidable, Bortz enjoys being in the field. He stresses internal communication and is committed to cultivating a team environment.
“When there is a sense of loyalty, when people feel like they have a home and the people around them care and there are incentives for performance and that they are respected, it translates into a better product and margin. That happens when you engage 150 guys on a regular basis, “ Bortz explains. “The most important thing you can do is surround yourself with folks who are smarter than you, that know more than you do, and have no problem telling you when you’re dead wrong,” he adds. Early on, the company was able to land high-end talent from companies that closed during
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Towne Construction Services | 13 the recession. Now, developing talent and leadership from within is key to the company’s continued success.
“We don’t take
“We want to build, maintain and develop our internal talent and teach our culture. For our PMs and Supers, 50 percent of the job is finding and training their replacement. We are all trying to get better and only want guys that want to grow with us,” Bortz notes, adding that some of the company’s top employees are in their early to mid-30s.
vendors; we make
advantage of our
sure we take care of them, and they us. We have top-rate, terrific vendors.” - President/CEO
It’s an approach that figures to sustain Towne Construction Services well into the future.
Chris Bortz
COMPNY INFORMATION Company Name: Towne Construction Services Country: U.S. Industry: Construction Est: 2005 Revenue: $30 million Premiere Service:
Specialist in asphalt and paving, curbs, site concrete, excavation and underground utilities.
President/CEO: Chris Bortz Website: www.towneconstructionservices.com
www.towneconstructionservices.com
500 Kent Road Batavia, OH 45103 T: 513-561-3700 C: 513-349-4711