INTERNAL ANALYSIS

STRENGTHS

The company holds tremendous value in real property, including office and warehouse spaces. The real properties are located throughout western Washington, an area considered as one of the top real estate markets in the past few years. While the pandemic has uprooted office suites globally, there may be an upcoming need for office buildings and suites outside of the downtown core with smaller floor plates. The company may dispose of these properties, gaining a financial lump sum while decreasing overhead of operating multiple properties which are not fully occupied by the company employees.

The company owns and maintains a large fleet of heavy and light equipment which offers a competitive advantage over other general contractors and construction managers who may have to procure their equipment from suppliers. The ability to control the equipment proves valuable in times of need since they have a large facility owned and operated housing the equipment.

It appears the company tracks all projects in a database to be utilized for pre-construction services, including value engineering. The databases offer a deep history on western Washington project's data points including schedule, budget and building systems to name a few. The ability to compare a new project for risk factors is incredibly valuable for the project's success including the company's profit. When reviewing a proposal, the company can cross reference and compare similar projects for potential discrepancies. The discrepancies can offer a competitive edge on bids. In addition, another proactive measure is the company's safety policy which aims to keep workers safe through training programs and keep compensation insurance rates low.

The executive officers and senior level employees have long tenures with the company. These employees often have long standing relationships with clients, suppliers and subcontractors. The networking capabilities and understanding of each client's expectations including nuances and operations gives the company an interpersonal advantage over new businesses who may be entering the market. These executive members are appointed by a rotating board of directors. This appointment and rotation offers the company the ability to grow and gain insights through a variety of points of view.

WEAKNESSES

The project managers currently oversee multiple projects, pulling their focus in multiple directions. The current company's organizational structure lacks the ability for select roles to specialize in project types, including being project and client focused. The job site roles are stated only select projects utilize a field engineer, commonly known as a project engineer. The lack of a field engineer leaves the current project manager to manage multiple projects and the administrative efforts on a job site, furthering the burden and detracting from a project and client focus. An additional weakness for human capital is that construction managers are utilized on all projects. The current organization does not differentiate between specialties. The overlap of a construction manager and project manager for projects that are not multiple prime contracts can create a convoluted and overlapping of responsibilities of the two roles on a project.

OPPORTUNITIES

• Evaluate the current employees workplace locations to possibly dispose of properties or square footage based upon employees who will be opting to continue to work from home.

These employees may all share a number of open office docking stations.

Given the expansive heavy and light equipment fleet, there may be opportunities to reduce the overhead costs. Is there a current preventative maintenance cycle which can utilize condition monitoring technology? (Equipment 2018) The technology could identify problem equipment and prolong existing equipment, while increasing job site safety. It is recommended the equipment preventative maintenance be transferred to the project costs. The transfer should generally not affect the profitability or project due to lower operating costs overall versus rentals.

The company currently does not have a sustainability or building technology sector as part of their value engineering or post construction services. The current market is concerned with sustainability and building technology to improve the health of the building and tenants. The additional division could provide additional services to clients while increasing cash flow.

The company's organizational structure should be maximized with its current tenured employees into roles more specialized, including elimination of select roles such as forensic scheduling. This is generally performed by senior project managers and superintendents. The company's organizational structure should include additional divisions for project types and a sustainability sector.

THREATS

The buildings of the 21st century feature building equipment and technology that advances at a rate hard to keep up with. Clients expectations and tenants needs should be adaptable. The lack of a sustainability and building technologies sector further sets back competitive edge over other companies. The pandemic has pushed capabilities into the next phase of technology quicker than most have adapted to. This includes touchless operations, mechanical air exchange and energy efficiency.