USdj_Spring_2008

US

Developers Journal

Spring 2008

www.usdevelopersjournal.com

D-A-S Construction Co. Holaday-Parks Inc. Abel Construction TRENDS: Green building and Sustainable Structures

PN HOFFMANN

Focuses

on

Neighborhood

Transformations

THE MAGAZINE FOR CONSTRUCTION EXECUTIVES

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Us Developers Journal

Spring Edition 2008

Editorial Editor in Chief: Anthony S. Jacobs

Correspondents: Mark Bodnarczuk Joanne Cheong Paul Gregory Matthew Hancock Holly Martinelli Olga Tsyganove Rebecca Visor

Editorial Department: Hayley Gold Todd McNnann Kelly Rice Todd Rodgers

Vendor Relations: Mike Richards

Published by Bull Run Media LLC Kalena Alston-Griffin, Partner Keyla Carr, Partner Alonzo Ellis, Partner

Publisher:

Kalena Alston-Griffin

Copy Editor: Sarah Thomas Tina Crowther

Design Department:

Philippe Duquesnoy, Design Director Karyn Dowty, Senior Designer Ashish Kansara Jay Vasdewani Sandeep Lahirir

The current market environment, has forced a thinning of the herd. Although, it continues to challenge many in the industry, it appears to have missed or simply grazed the companies featured in our Spring Quarterly edition. While there are a variety of success strategies woven throughout this issue, three common themes; Diversification, Value, and Relationships clearly stand out as the defining approach to making these companies stronger.

Diversification Monty Hoffman of PN Hoffman, began revising its business model to include commercial business in addition to their neighborhood redevelopment undertakings. This strategy has allowed them a buffer for the residential side of the business that has experienced slowed growth recently.

Troy Abel of Abel Construction began with small diverse projects but soon grew to offer a wide variety of services: site infrastructure, excavation, sewer and waterline installation, storm water management, structural concrete and curbing/paving. Furthermore, they service both the private and public sectors, enabling them to work on a broad array of projects, including: residential subdivisions, industrial sites, schools, shopping malls, municipal utility systems, highway bridges and golf courses. This strategy has allowed them to continue servicing a niche while leveraging protection of diversification.

Value Carl Frommer of Sierra Group recognizes that costs are clearly a decision factor for many, but points out the potential tradeoffs when only chasing costs. “ A competitive price is only good if you are happy with the end product” They offer a unique cost plus zero method for fast track projects, which include zero markup on subcontractors, materials and change orders, without compromising quality.

Dan Adams of Atlantic Meeco, points out this same concept quite simply “the lowest price isn’t necessarily the lowest cost.”

Relationships Joe Schlenk and John Nicholson of Deltec commented on how they rely on their vendors as true partners, “We have very close relationships with our vendors.” Enabling them to better manage supply inventory and reduce costs. These relationships have not only saved them money but also have allowed them to maintain service levels with a national client base that in many cases will never a need to meet face to face with a Deltec representative.

Sister Lillian of Mercy Housing points out how their vendor selection strategy depends on the relationship “We choose the people we work with based on their skills, experience and track record for performing on time.” states Sister Lillian, “We also prefer to use firms that believe in Mercy Housing’s mission...” Some of the companies donate portions of their work to support the organization’s goals of improving the economic status of residents, transforming neighborhoods and stabilizing lives.

Understanding the importance of Diversification, Value, and Relationships will continue to guide us during a time when there are increased challenges to manage the confluence of globalization and environmental sustainability. This edition touches on each of these areas as they continue to be top of mind for all of us in the industry.

Anthony S. Jacobs Editor in Chief:

Advertising Sales & Marketing Department: Bjorn Michals William Lee Yin

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Spring Edition 2008

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Feature Story PN Hoffman: In 1984 Monty Hoffman decided to leave his job in Pennsylvania and drive to Washington D.C. with a few friends. He found a ‘Help wanted’ sign and began working in a construction company.

SPRING Edition 2008 page. 44

Company Spotlights Holaday Parks, WA

7

Adams Craft, WY

42

Atlantic Meeco, OK

11

PN Hoffman, DC

44

D'Asign, FL

14

USA Shade, TX

50

Deltec, NC

18

Global Entertainment (ICC), AZ

53

HRI, LA

21

Atrion, RI

57

D-A-S Construction, OH

23

Morse Electric, IL

59

Mercy Housing, CO

28

Collins Electric, MN

62

Abel Construction, PA

31

J & S Construction, TN

64

Sierra Construction, WY

37

ADI, CO

68

CC Builders, WY

40

Al Shankle, CA

72

Holaday-Parks Inc.

page. 7

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D-A-S Construction Co.

page. 23

Spring Edition 2008

Abel Construction

page. 31

Global Insight : Four Global Forces

City Spotlight: Wyoming

page. 70

page. 34

Departments Green buildings and substainable structures:

16

City Spotlight: Wyoming

34

Value management in the construction industry

48

Four Global Forces That Will Shape Organizational Culture for the Next 50 Years:

74

Trends Green buildings and sustainable structures:

page. 68

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Spring Edition 2008

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PARTNERS Vendor

Page

Vendor

Page

Academy Mechanical

74

L & L Drywall

43

Affiliated Metal Industries, Inc.

52

Masiongale Masonry

67

McDonald Machine & Fabrication

52

Airefco

9

Aries

33

Miele

Air Tec Company

10

MJ Griffith Paving

27

Archeon

74

M & D Electric

25

Art Window

25

Norsouth

31

Buchanan Yonushewski Group

31

Northern Interiors

27

Coal Construction

69

Pennsy Supply

33

Columbia Hydronics Company

10

Perkins Janitorial

27

Cookeville Glass & Mirror

67

Rochelle Platt Window Treatment

26

Daktronics

55

Rock It Stoneworks

67

DMP

39

Roy Anderson Group

20

Duo-Fast

20

Sauder Worship

67

EchoStar Technologies

55

Serv Pro

67

Ehrenkrantz Eckstut

47

Sherwin Williams

56

Eide Industries, Inc

52

SK & I

47

Fornelli Cleaning

26

State Pipe & Supply

10

Stetson Building Products

61

75-76

Gensco

9

Gex Pro

61

S & S Heating

26

Gibbs Construction

20

Terra Structures

33

Giorgi Interior Systems

27

Texas Forest Products

13

Hunt Construction

55

The Courrough Consulting Group

47

The Welding Shop

67

In Control

9

Jemison

61

Thomas Fence

26

JRC Professional Builders

13

Veritas

69

Kapton Caulking & Building Rest.

26

Washington Air Reps

10

LJ Carpet

67

Weese Langley Weese

31

Wyoming Windows

39

Lowe's

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Us Developers Journal

Spring Edition 2008

Construction Goliath Minds the Local Market

By Todd Rogers & Olga Tsyganova Holaday-Parks Inc., the northwest mechanical construction giant, has glided through the current recession and plans to keep growing. Ran as a family business since 1889, the company has experienced a steady increase in revenue since 2003, averaging an annual 135 million dollars in gross annual sales. Gerald Parks, General Manager of HoladayParks, Inc., explains, “Seattle has

“When times are good, we upgrade everything we own,” lagged behind the rest of the country during the recent wartime recession. Because of this, there has been zero impact on my business. The area is lucky to have Starbucks, Boeing, and Microsoft.

It’s one of three places that has not had a significant decline – only about 0.1 %.” The company has all

trades in house, and occasionally subs out minor work, reminiscent of the way Andrew Carnegie operated his steel empire.

Holaday-Parks Inc. has been incredibly successful in maintaining and growing during this difficult time. Gerald Parks suggests that knowing when to switch between public and private sector work can make a real difference when facing a downturn. ”Change

the business mix – private versus public work,” he says, “Right now very little public work is available around Seattle. We know that they wait for the downturn. We know when the best time is to make our bid.” Keeping close track of local economic trends rather than simply minding national news allows for Holaday-Parks, Inc. to know when to make bids and to whom.

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Another part of the company’s formula for success is their method of appropriations. “When times are good, we upgrade everything we own,” explains Gerald, “We make sure IT, trucks, equipment are all up to date. We don’t buy – we lease instead. If there is a downturn, property can be returned.” The leaseto-update strategy allows the Holaday-Parks, Inc., not only to safeguard itself financially during difficult economic times, but also to promote employee satisfaction and safety. For example, the company’s Fairbanks Alaska branch, recently obtained a water jet machine, and currently uses to cut countertops, granite and marble. “This is the kind of thing I’d like to do more of,” says Gerald, “It keeps the cash flow and benefits workers and customers.” Constantly upgrading to more modern, advanced and cuttingedge equipment allows the company to enjoy the benefits of a highly trained, modernized workforce.

Such commitment to safety and improvement has paid off in recent awards. Holaday-Parks, Inc. was the first place winner of the SMACNA (Sheet Metal and Air Conditioning Contractors National Association) 2007 Safety Excellence Award for outstanding achievement and best safety and health record within the 400,001-500,000 man-hour category. The company continues to emphasize pre-project planning, safety education as well as worker feedback and recognition on all projects.

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Spring Edition 2008

Currently, the Holaday-Parks Inc. is seeking to expand its offices, increase warehouse space and move its detailing unit offsite to successfully address the needs of several projects. The company is currently involved with the construction of Four Seasons Hotel Residences, scheduled for delivery in September October ’08, as well as two large-scale projects, one for Microsoft and the other for they have a large scale project whose deadlines are coming up in November of ’08. Holaday-Parks Inc. future goals include growing the service area to allow for more opportunities during times of recession, maintaining its equipment, and getting into non-competitive work.

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Us Developers Journal

Spring Edition 2008

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CALIFORNIA HYDRONICS CORPORATION COLUMBIA HYDRONICS COMPANY FLOWTHERM SYSTEMS

Serving Northern California, Western Nevada & Pacific Northwest

Manufacturers Representatives, Distributors &

Listed Packaged System Manufacturers

CHC California Division

CHC Columbia Division

Hayward, CA 6 Rocklin, CA 6 Santa Clara, CA Reno, NV

Anchorage, AK 6 Boise, ID 6 Missoula, MT Portland, OR / Vancouver, WA 6 Seattle, WA 6 Spokane, WA

(510) 293-1993

(360) 883-2600

FlowTherm Systems Hayward, CA

(510) 293-1993

“Thank you” to Holaday Parks, for allowing CHC to be a valued part of their Design Build Team!

www.chchydronics.com

HYDRONICS 6 STEAM 6 PLUMBING 6 HEAT TRANSFER

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Spring Edition 2008

Article Headline

“Weathering the storm” Atlantic-Meeco Kelly Rice & Rebecca Visor

Atlantic-Meeco, based in McAlester Oklahoma, has become one of the industry leaders in marina building. With 46 years of experience in the building of docks and marinas to provide water access to waterfront development, it is difficult to find a company that comes close to their level of expertise. They have had amazing success, more than doubling in the past five years and Paul Durlacher the CEO of Atlantic-Meeco projects similar growth over the next five years.

needed to produce a marina or dock from start to finish, performing at their peak when they are on the ground floor “the earlier you can get in the better” as Paul Durlacher states.

Because Atlantic-Meeco has been around for so long, the company has a lot of experience in overcoming the challenges that come

along with building on or near water. Every system they build is “storm engineered” built to weather adverse conditions. They manufacture subcomponents, fabricate all equipment and do most of their own instillation. By manufacturing the components, they are able to obtain the highest quality products that they can be confident to stand behind.

How does a company grow so quickly while maintaining its leadership status? Dan Adams Vice President of Atlantic- Meeco attributes a large part of this success to their highly experienced staff in all departments from manufacturing, installation and sales.

They specialize in building docks and marina’s for developers typically giving water access to a waterfront development. They coordinate the construction process by providing all materials

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They also have buying power, which allows them to provide the level of quality that represents the Atlantic-Meeco name while still being competitive in cost. Dan Adams recognizes “the lowest price isn’t necessarily the lowest cost” and since they project their future needs years in advance, they are able to communicate their needs to their vendors insuring their needs are met.

Staying on top as the industry leader requires a good understanding of the function of the dynamics of the marina base and development segment.

They diversify how they serve and the areas they serve during the slower seasons. Because they are a National company, Atlantic-Meeco is not affected by local downturns the way a local or regional company might be. This enables them to deal with the natural seasonal ebb and flow of the levels of work, as different regions have varying boating seasons. The industry itself has been thriving due to the changing population demographics; not only is there a shortage of boating slips across the country, but as baby boomers retire and buy second homes on the water, the demand will continue to grow.

Because many of the Atlantic-Meeco’s projects usually involve working with developers, the company and its leaders Paul Durlacher and Dan Adams are very aware of the importance of individual boaters to their clients. One philosophy that runs deep within the company is “satisfying our customer by satisfying their customer”

In the end, Paul Durlacher, CEO of AtlanticMeeco, boils down their success and their reputation to one simple rule: “you just have to do it better” than your competitors.

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Spring Edition 2008

“you just have to do it better” than your competitors.

MicroPro

TM

&

MicroPro advantages:

Lighter, more natural wood appearance.

Approved for aluminum contact.* Better corrosion protection for exterior code-approved fasteners and hardware.

First wood preservative to receive Environmentally Preferable Product (EPP) status.

MicroPro Preservative is Environmentally Preferable Product certified by SCS.

TEXAS FOREST PRODUCTS, INC. 1215 S. Montgomery St. • P.O. Box 610 Gilmer, TX 75644-0610 Phone: 903-843-3811 Fax: 903-843-3123 www.texasforestproducts.com

*See MicroPro ™ Fastener and Hardware Information Sheet. Smart Sense / MicroPro treated wood products are produced by independently owned and operated wood treating sm facilities. MicroPro™ is a trademark of Osmose, Inc. Colors shown in photo images may differ from actual product samples. “Treated Wood Just Got Greener ” is a service mark of Osmose, Inc. © 04/2008

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D’Asign Todd McNann & Rebecca Visor

A truly family-owned and operated company, D’Asign Source is based in the Florida Keys where it is well known for high-quality construction work.

D’Asign started in the 1960’s as a manufacturer of cast stone products, but has since expanded to become the largest design/build firm in the Keys.

Tony, Franco, and Amedeo are the three D’Ascanio brothers who own and run D’Asign, a

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Spring Edition 2008

company started by their father.

Franco is the CEO, but the work and the profits are shared among the brothers. Tony is in charge of construction, Amedeo takes care of architecture, interior design, and permits, and Franco is the electronics and outdoor person.

The variety of talents of the brothers are a part of what enables D’Asign to be such a high-caliber design/build firm; each brings his strength and passion to a different part of the company. The

familial line of the company will not end with these three brothers, either. All have children currently in college studying topics such as architecture and engineering.

One main reasons that D’Asign has been such a success is that they do the highest level of work.

They began by making excellent cast stone products, then in the 1980’s added interior design elements, such as floor coverings, cabinets, and lighting. It was not until the 90’s when the D’Ascanio brothers began building whole houses. Today, their services cover nearly everything a potential home builder could want; they even offer real estate services such as listing and selling.

D’Asign typically builds high-end houses, such as vacation homes and villas, and specializes in tropical designs, due in large part to their base and experience in the Florida Keys. They continue to make cast stone products, products they use in their outdoor plans, where they also use trees and plants from a D’Asign nursery. For interior design ideas, customers can visit the 25,000 square foot showroom, where D’Asign employees can help them choose the best option for their home.

In the past, business lined up as far as two years in advance. Now, due to the economic downturn, business is still booming, but the wait is down to two months, a good turn of events for the many D’Asign customers. D’Asign management focuses on keeping all clients satisfied, with customer service being one of the top priorities. They recognize that while the cost of their services might be high, the quality of the work and their commitment to customer satisfaction makes it worth it.

The D’Ascanio brothers are continuing to plan the growth of their business. They would like to expand to include work on projects like marinas, with the ultimate goals being to build resorts and to expand out of Florida.

The D’Ascanio brothers can be aggressive when it comes to their business, a trait that benefits their customers. These brothers aggressively drive both their employees and contractors to do the best job they can for the lowest price possible. In the end, they deliver, which is why this company is thriving.

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Trends in Green Building and Sustainable Construction

By Matthew Hancock

About forty years ago, Whole Earth Catalog, a national publication widely read by an entire generation of baby boomers, popularized the phrase “we are as gods, and better get good at it.”

This was one of the early attempts of raising public awareness about the rapidly growing problem of natural degradation.

Through this phrase, the magazine embraced the fact that progress was inevitable, that we were, as human beings, remodeling our planet to match our ambitious vision of a self-designed future. At the same time, little attention was given to the evaluation of long-term sustainability of that complex vision.

Since then, there has been a growing concern over the limited quality of life that we are predetermining for our posterity by draining the finite resources available, and recklessly contaminating those we have not yet

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used up. The international construction community has not escaped the new demands of environmentally-minded generation. The advent of “green building” symbolizes far more than a tree-hugging fashion trend, but a change of attitude towards the commitment to a vision less driven by rampant consumerism and more by sustainable development.

The “carbon footprint,” as the catastrophic impact of carbon dioxide emissions has been termed, has been directly linked with construction. According the United States Green Building Council (USGBC), 39% of carbon dioxide emissions in the United States are linked to the construction and operation of buildings. Buildings are also responsible for 68% of US electricity consumption, can account for 30% of all raw materials use, and make up 40% of non-industrial landfill waste. These ever-growing figures pose an even more imminent threat as less-developed countries enter a new

phase of economic development. In China, for example, some 220 billion square feet of new space will be developed for various uses. Figures such as these have put global warming in the limelight of national and international political policy agendas, and since then opened up enormous economic advantage.

Green building prolongs the life of municipal infrastructure, extends the life of landfills, and increases the prominence of new markets, such as new carbon-reducing technologies.

Such prospects are an incentives and opportu-

nities to advancing the role of the construction industry from simply remaining a service provider to becoming a host and leader for a truly innovative, sustainable future. Architect Edward Mazria, a leader in the field of green design, has commented: “In the year 2035, three-quarters of the built environment in the US will be either new or renovated [representing more than 300 billion square feet of construction.

This transformation over the next 30 years represents a historic opportunity for the architecture and building community to reverse the most sig-

nificant crisis of modern time, climate change.�

Local and federal US government are also endorsing the green build movement through incentives like tax breaks, and a preference for hiring sustainable construction for city-financed projects.

More and more municipalities are adopting the USGBC LEED (Leadership in Energy and Environmental Design) guidelines for new and renovated buildings. This has led to a dramatic increase in the number of sustainable projects built

by LEED-Certified general contractors. Promoting the LEED concepts

Us Developers Journal

such as sustainable site development, efficient use of water, conservation, use of renewable energy reduction of waste and enhancement of indoor environmental quality are just some of the ways in which green building is changing the culture associated with the construction industry. It is estimated that 5% of the building market has become interested in the prospects opened up by the green building. Securing a national and international commitment to green building has never been as important as now.

As the rates of development continue to grow exponentially, there has never been a better time to implement and further extend green building practices.

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DELTEC:

Round and Proud in their Niche Hayley Gold & Olga Tsyganova DELTEC, a manufacturer of prefabricated circular homes, has recently become a leader in promoting a sustainable environment. The company’s new initiative, “building green”, has attracted much attention from the media. The company has invested over half of a million dollars to make eco-friendly renovations to their Asheville-based offices and

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manufacturing facility, making this project one of the largest solar-panel installations in the state of North Carolina. Since the end of 2007, DELTEC has been using 100% sustainable power to manufacture their unique homes, and has a fully staffed Green Building Department to assist their customers.

The company sells an average of 500 homes per year, and sales have been steadily increasing over the last six years, even in the face of the mortgage clampdown.

According to Joe Schlenk, Director of Sales and Marketing, “the crisis hasn't had the same effect on us as it has on many conventional builders, given that we are a niche business.” The purpose, design, engineering and competitive cost of DELTEC homes sets it apart from the rest of the industry. Strategic design allows the structures to withstand the harshest of the elements, severe seismic conditions and 175 mph hurricane winds. Homes have survived, in near-perfect condition, disasters like Hurricane Katrina, Hurricane Wilma and Charlie. Deltec has never lost a home to high winds of any kind.

The secret is the rare design: flat walls are joined to form a circular shell for the house, which is far more aerodynamic and pressure-resistant than the traditional “box design”.

DELTEC manufactures all the structural components and offers their clients design and support services.

Windows are typically provided by

Deltec and are pre-installed in the walls. The walls can also be provided with a pre-stained or painted siding. Deltec applies operational strategies that are not characteristic of the home building industry and leverages a sophisticated purchasing department under the direction of John Nicholson, Director of Purchasing. “We are very close with the vendors we work with,” says Nicholson, “and as a result, Duo-Fast Carolinas not only provide

friendly, energy-conserving floor plans, structural and non-structural options that allows their clients to achieve their own desired level of sustainability. Their commitment to the environment stems from their employees who are “close to the environment and see it as giving back to the community.”

DELTEC emphasizes that environmentally friendly development “is not more expensive, is not difficult – it is just a different approach to

DELTEC has had a green philosophy since their inception in 1968. materials such as nail fastener, and actually manage the supply for us by constantly checking our inventory and ordering in advance of the dips;”. “We have great relationships with these vendors.”

The homes not only offer a beautiful and original façade, but also boast unparalleled panoramic views from the inside, allowing the blending of the inside and outside world. DELTEC has had a green philosophy since their inception in 1968. Recent green and sustainable initiatives have put forward eco-

home construction.” In addition to engaging in national advertising, the company’s innovative vision and mission has gained attention from national media like Fox News, CNN, MSNBC, DIY, ABC World News Tonight, and the popular television show Extreme Makeover: Home Edition, during which DELTEC helped rebuild a new home and a church for two deserving families.

DELTEC now averages over ten million dollars in annual gross sales, and has nearly doubled in the last five years.

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P E R F O R M P E R F O R M A N C E P E R F O R M A N C E

P E R F O R M A N C E

Given the time and right equipment, anyone can build a building.

Given the time and right equipment, anyone can build a building.

But to consistently finish projects that set the industry standard in But to consistently finish projects that set the industry standard in construction takes something more – it takes dedication to quality, construction takes something more – it takes dedication to quality, attention to detail and per formance that is without peer. attention to detail and per formance that is without peer.

P E R F O R M

P E R F O R M A N C E Since 1955 Given the time anyone can build P E R F and O R right M A equipment, N C E Since 1955 800-688-4003 www.rac.com P E R F O R M A N C E

a

800-688-4003 www.rac.com But to consistently finish projects that set the industry st

Given the time and right equipment, anyone can build a building.

construction takes something more – it takes dedication t

But to consistently finish projects that set the industry standard in construction takes something more – it takes dedication to quality,

attention to detail and per formance that is without peer

attention to detail and per formance that is without peer.

Since 1955 800-688-4003 www.rac.com

Given the time and right equipment, anyone can build a building. thethe time and right equipment, anyone can build a building.

But to consistently finish projects Given that set industry standard in the time and equipment, can build a building.

But consistently finish projects that setanyone the industry standard in construction takes something more – Given ittotakes dedication toright quality, But to finish projects set dedication the industry construction takes something more – that it takes to standard quality, in attention to detail and per formance that is consistently without peer. construction takes more – itistakes dedication attention to detail andsomething per formance that without peer. to quality,

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construction takesSince something more – it takes dedication t 1955 Since 1955

www.rac.com attention to 800-688-4003 detail and per formance that www.rac.com is1955 without peer 800-688-4003Since 800-688-4003 www.rac.com

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construction takes takes construction attention to to detail detail attention

Congratulations HRI on your success and growth.

Since 1955

HRI and Gibbs—a valued partnership in Rebuilding and Revitalizing Historic Properties

American Can Apartment Complex New Orleans, Louisiana Owner/Architect: HRI, Inc.

Spring Edition 2008

Since 1955 1955 Since

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800-688-4003 www.rac www.rac 800-688-4003

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5736 Citrus Blvd., Harahan, LA 70123 504-733-4336 www.gibbsconstruction.com

P E E R R F F O O R R M M A A N N C C E E P

BUILT WITH PRIDE

Pres Kabacoff: Transforming Communities Kelly Rice Todd Rogers Olga Tsyganova

As the construction and development industry tries to keep pace with the rapid demands and challenges of today’s fluctuating market, vision must often be sacrificed to assure the survival of a business. However, for Pres Kabacoff, CEO of HRI Properties, vision is never to be compromised in the face of a challenging business environment. Kabacoff sees HRI as a proponent of urban reform, revitalizing downtrodden urban areas by building vibrant and sustainable communities. HRI turns dilapidated schools, warehouses and hospitals into swank new complexes with housing, commercial, entertainment and office functionality. Kabacoff’s vision has led to tremendous success. HRI, founded in 1982, has completed 34 large-scale projects, and averages 21.1 million dollars in revenues. The company has been dubbed “an urban crusader…a catalyst in resuscitating the urban core,” by Urban Land Magazine.

1Pres Kabacoff comes from a family of developers.

His father, Lester Kabcoff, moved to New Orleans in the 1940’s, and constructed many of the city’s hotels.

After practicing real estate law, Pres also entered into the development business by working with his father who, according to Pres, developed the “Hilton Hotel” and “Beau Shane” in Hilton Head. However success does not come without bruises, explains Kabacoff, “I have been battered fighting to keep our projects going – this is a “brain damage” business.”

HRI often pursues projects that are often rejected by other companies due to multiple complications that come with commitment to old, historic places in run-down neighborhoods. “It is very difficult to get these kinds of projects approved because of the environmental issues as well as the income status of potential buyers.” Political and activist opposition has become a new deterrent. HRI’s River Garden Project in New Orleans’s Lower Garden District required the relocation of the district’s current residents, and there are those who believe that the area will financially disallow the former residents’ return into the

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upgraded neighborhood. In Urban Land, Mr. Kabacoff has been quoted addressing the issue of mixed income housing: “Many of today’s developments segregate the wealthy from the poor. This separation further disfranchises our marginal societies and isolates them from others, if you get a mix of folks together, from a social perspective, it’s healthy for all income strata. Having this openminded attitude presents opportunities for our community.”

To promote a healthier social and richer economic environment can be very time consuming. According to Kabacoff, “projects take as long as six years to complete.”

HRI project timelines tend to be lengthier than average because of prohibitive costs and difficulties in

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HRI often pursues projects that are often rejected by other companies due to multiple complications that come with commitment to old, historic places in run-down neighborhoods.

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procuring public financing. To keep the results consistently impressive, Pres Kabacoff stresses the importance of selecting contractors who focus on quality, which is why HRI often hires union labor for its long-term projects. Because of HRI’s unique niche in the development sector, the company does not have many competitors and focuses on streamlining and reinventing design and build methodology. With the help of government incentives, and dedication of the 260 employee team, HRI’s projects are diligently carried out to completion and often stimulate growth and development of mixed-income communities.

D-A-S Construction Co.

Focuses on Cleveland Revitalization Todd McNann & Paul Gregory and Green Building Jeff Troxell, President of D-A-S Construction Co., who began his building career in the trades when he was just a kid out of high school, has a simple business credo: to establish and retain a highly satisfied clientele by providing unparalleled service and consistent, quality solutions. His philosophy has proven to be a sound one as demonstrated by the fact that most of the company’s business currently comes from repeat customers. This should not be a surprise considering the company’s client satisfaction surveys, which are conducted after the completion of each project, average an astounding 99%.

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Founded in 1986 and headquartered in Cleveland, Ohio, D-A-S Construction Co., a family owned and operated commercial construction company, specializes in banking, retail, office, medical and institutional building and rehab. The comp-any does most of its work in Northeastern Ohio, but is open to good opportunities elsewhere if the client requires it.

D-A-S Construction Co. has completed, on the average, 14 projects per year for Walgreens in Ohio and Pennsylvania.

It was to be expected that the mortgage clampdown would affect the company’s banking niche, as well as the nursing home boom, as the elderly find it harder to sell their homes, but D-A-S sees the revitalization of Downtown Cleveland as a huge opportunity. A good portion of the rehabilitation work that D-A-S has performed over the last several years has involved converting buildings that served a previous use – old apartment buildings, warehouses - into lofts, condominiums, commercial buildings as well as mixed use space. Rehab has definitely been an area of opportunity in the Cleveland market, as it has been in many mid to large cities. Furthermore, despite the huge profits to be made in development, D-A-S has resolved to stick to construction, its area of expertise.

Jeff says that although the city of Cleveland insists on following particular guidelines, they have been more than reasonable to work with as they do their best to accommodate rehabilitation work that is ultimately good for the city. He adds: “Particularly on larger projects, it is always best to communicate with the city as early on in the process as possible and they will guide you through potential areas of concern for them, which allows us to address them as early on in the project development process as possible.”

In addition to rehab work in Cleveland, the company has been turning its attention to green building, seeing it as yet another way to differentiate itself, offer clients a true value for its professional services and open doors. Says Jeff, “We make an effort to be green even in our own facility” and D-A-S, a member of the Cleveland Green Building Coalition, has created a recycling center to salvage their own internal refuse.

Last year, over 86% of the construction waste generated on the company’s project sites was recycled. To date, D-A-S believes it is the only general contractor in Northeast Ohio that has made a commitment to send all of its project dumpsters to a recycling facility.

Jeff points out the fact that many green building techniques cost little or no more than traditional ones.

The company currently has one project manager on

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staff who is LEED (Leadership in Energy and Environmental Design) Accredited and several other employees who are in the process of obtaining their Accreditation. Jeff says that Leed Certification of buildings does entail additional costs upfront, but over time, it pays off. D-A-S even reaches out to its vendors to come onto its premises and hosts trade shows regarding green products and services they now offer to educate the staff in better carrying out these products and practices on job sites.

Jeff emphasizes the importance of the small renovation portion of the business. Even though the company’s annual revenues average 55 million and its projects run as high as the 10 to 15 million in range, it wants to retain focus on what got them there, so it accepts small as well as big projects. Currently, the company is expanding its portion of construction management services as they have found it lends itself favorably to the ideals of green building and

provides greater value to its customers in the way of professional services.

D-A-S Construction Co. is dedicated to creating a safe work environment and encourages its employees to take a proactive approach to safety. Due to the company’s commitment to safety, it celebrates over two years without a lost-time claim and has received numerous awards for its safety program including the Governors in Excellence Award in 2007, to recognize companies that have exhibited excellence in Workers Compensation management. D-A-S was one of only six companies in the state of Ohio and the only construction company to receive the award.

Today, D-A-S employs over 100 skilled professionals and has earned CWRU’s Weatherhead Top 100 and Top 25 Family Business Awards.

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Mercy Housing: Bring Hope to Communities Kelly Rice & Olga Tsyganova

Since it was founded in 1981 by the Mercy Sisters of Omaha, Mercy Housing has been developing, financing and operating affordable, program-enriched housing for individuals in need. The organization has participated in the development of over 34 thousand units of housing across the country. Of that, approximately 70% has been rented and 30% sold. "Housing is very basic, but you would be surprised how many people lack something so basic," says CEO Sister Lillian Murphy. She has

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been with Mercy Housing since 1987. "There are not a lot of people who serve the low income population (those who make below 80% of the median income) because there just isn't a lot of money in it," says Sister Lillian Murphy. You need to be able to generate additional income to support the development.” Mercy Housing is a thriving non-profit organization, which provides a wide array of housing options, loan funds, and community programs for various populations all over the country by working with co-sponsors, private investors and healthcare partners.

Mercy Housing purchases some of their properties from HUD, which sells their foreclosed properties to non-profits in bulk.

“Home ownership is not for everyone,” explains Sister Lillian in response to high foreclosure

rates, “[There were] people bought homes but didn’t realize the cost associated with home ownership and couldn’t afford to make the payments. Folks get evicted and are looking for affordable housing. There is a real need to provide them with some options.”

According to Sister Lillian, the organization prefers to rehabilitate old properties instead of engaging in ground-up building because the acquisition of a rehab is much more costeffective than land acquisition and new construction. Mercy Housing develops properties by working with general contractors and architects. “We choose the people we work with based on their skills, experience and track record for performing on time.”

States Sister Lillian, “we also prefer to use firms that believe in Mercy Housing’s mission...”

Some of the companies they work with donate portions of their work to support the organization’s goals of improving the economic status of residents, transforming neighborhoods and stabilizing lives. Mercy Housing has recently been involved in several large-scale projects including The Heritage properties in Savannah and Chamblee Apartments in Atlanta, where the work was done by Bill Johnston of Norsouth. Other projects they were involved in were the Malden Arms Rehabilitation where Dennis Langley, Principal of Weese Langley Weese did the architectural work and The Legacy at City Park South in Denver, which was completed by the Buchanan Yonushewski Group and lead by Brad Buchanan.

In addition to developing foreclosed properties into affordable housing, Mercy Housing also provides people with preconstruction loans and bridge loans. Funding for loans comes from co-sponsors, healthcare systems, independent investors and corporations. These investments are then used to alleviate poverty and enrich communities by helping residents develop their full potential. The team at Mercy Housing believes that affordable housing and support-

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ive programs improve the economic status of residents, transform neighborhoods and stabilize lives. This is why the housing developed by the organization provides more than just a place for people to live. Mercy Housing also provides educational programs, which supply computer labs and lead after-school sessions in their family properties. It stimulates economic development by increasing disposable income that would otherwise go to rent. Mercy Housing works in geographic areas such as Southwest, Southeast, Midwest, California, Colorado, and Idaho and remains a non-profit, public-benefit developer.

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Abel Applies Construction Expertise to Aging Infrastructure Problem Todd McNann & Paul Gregory CEO Troy Abel is at the helm of Abel Construction Company headquartered in Mountville, Pennsylvania.

He Troy became CEO in 1995, but the company was founded back in 1972 by his father. A native of York, Pennsylvania, Troy learned the business from the ground up as he started working at construction sites at the age of 11. He has been both formally and informally educated on all aspects of his trade. Growing up in the industry has enabled Troy to successfully lead the business into new directions while staying focused on what the company does best: providing a solid and quality service to its clients.

Abel Construction began with diverse small projects but soon grew to the point where it now offers a wide variety of quality construction services: site infrastructure, excavation, sewer and waterline installation, storm water management, structural concrete and curbing/paving. Furthermore, serving both the private and public sectors, the company has worked on site improvements in the course of a broad array of projects, including: residential subdivisions, industrial/commercial sites, schools, shopping malls, municipal utility systems, highway bridges and golf courses.

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Article Headline In 2005, Troy formed a sister company, Abel Recon, to address the mounting problem confronting municipalities saddled with aging, eroding infrastructure. He was keen enough to recognize that as time went on, structures built from out-of-date materials would deteriorate and that the need for updates would be huge. With a proven knack for handling work in any municipality, Abel Recon draws on its long experience and know-how in the construction industry to provide cutting edge services, including embracing infrastructure cleaning and evaluation, structure rehabilitation, cured-in-place pipelining, pipeline grouting and chemical root control.

Abel Construction was able to branch out and staff Abel Recon not through traditional means of hiring new employees, but rather shifting a significant portion of their existing labor resources.

They invested the time and energy to retrain their staff in the skill sets required to perform the new tasks proficiently, an investment that has undoubtedly paid off. Tony Kreider, VP of Business Development, says that it makes sense to put money and resources into retraining current staff when you have the kind of dynamic group of hardworking, intelligent and bright individuals that they have.

The formation of this seasoned staff did not happen by mistake as

Tony Kreider, VP of Business Development, says that it makes sense to put money and resources into retraining current staff when you have the kind of dynamic group of hardworking, intelligent and bright individuals that they have.

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Tony Kreider states, that “recruiting good, productive employees are a staple of our business.�

The company demonstrates how sincere this statement truly is in many ways. Abel Construction actually promotes knowledge about the construction industry throughout their community through various public forums in order to help the younger generations realize that there are other options out there besides going to college with no vision of what they really want for their future.

It’s this kind of time and commitment spent by the company that has many times paid dividends back to the company itself along with the surrounding community, and will most likely do so for years to come.

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City Spotlight: Wyoming Holly Martinelli

In the heart of the Rockies, Wyoming is known as the 'Cowboy State' and once was the home of 'Buffalo Bill' Cody. It is the ninth-largest State in the USA and has the smallest population.

The spirit of the Wild West is alive and kicking in Wyoming, with its open spaces, rugged country and breathtaking scenery.

When you look to Wyoming real estate, you will find many small towns out in the middle of the country and larger cities that offer a country western feel. Most of your real estate options are going to include homes, farms, and apartments or condos in the cities. Currently Wyoming is experiencing a housing boom in certain areas of the state.

Cheyenne is experiencing an oil boom due to a recently opened oil refinery, which has resulted in a need for additional labor and new construction of housing in

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the affordable range of $200,000 or more. Ranching is still a major industry here, and one of the world’s largest rodeos – Cheyenne Frontier Days, held annually in July – has drawn visitors to the State capital since 1897. Visitors to Wyoming can also choose to spend time at one of the many guests or working first hand Wyoming’s special frontier heritage. Geographical attractions include 11 major mountain ranges, prairies, grasslands, parks, forests, lakes and rivers. The world’s first national park, the huge Yellowstone National Park (website: www.nps.gov/yell), is located on top of one of the earth’s few ‘hot spots’ – a place where the earth’s crust is so thin that the hot, molten core can influence surface conditions.

Yellowstone’s violent volcanic history has resulted in a unique environment of geysers, bubbling

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hot pools, alpine lakes and great canyons. Old Faithful Geyser, the park’s most famous attraction, erupts almost hourly, sending jets of boiling water into the air. Just south of Yellowstone is the beautiful Grand Teton National Park, with ample hiking, cycling and horseback riding opportunities; and the mountain valley town of Jackson, which in winter becomes one of the world’s premier ski spots. Jackson Hole is another town experiencing a slight increase in construction as a result of the picturesque views and ability to enjoy the best of nature for every season.

Jackson Hole is on the western side of Wyoming at the base of the Teton's and Yellowstone National Park making it one of the most picturesque cities in Wyoming. South of Jackson is Bridger-Teton National Forest. The Shoshone and Arapaho Native American tribes live east of this forest, on the Wind River Indian Reservation.

Heading northeast, Cody, Buffalo Bill’s hometown, is best known for the Buffalo Bill Historical Center – often called ‘The Smithsonian of the West’. Cody is also home to Old Trail Town, a collection of pioneer buildings and relics of the Big Horn Basin area. Further east is the dramatic Big Horn Mountains, with the charming towns of Buffalo and Sheridan nestled at the base of the range. At Buffalo, the Jim Gatchell Museum of the West offers fascinating insights into frontier history. In the northeast, the majestic Devil’s Tower National Monument rises over 360m (1200ft) from the valley and attracts thousands of climbers.

Back towards the center of the State, the National Historic Trails Interpretative Center, which chronicles the great westward immigration of the 19th century, is located in Casper.

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Carl Frommer, CEO of Sierra Group: Leadership Grounded in Values Todd McNann & Olga Tsyganova

The Sierra Group, led by CEO Carl Frommer, focuses on building, servicing and maintaining financial and commercial institutions with a “can-do” attitude. Seventy percent of the company’s business involves construction and remodeling of bank interiors throughout the state of California as well as several neighboring states. The company happily takes on work in high-traffic facilities that are open to the public, enthusiastically bids on unique smaller projects, and welcomes fast-track projects. “We have 650 banks under contract and building maintenance because we are a one-stop service solution for our clients,” says Carl Frommer, “We also provide a call center for our clients ready to dispatch tech people at any time to do any necessary repairs.” Integrity and consistency in deliverables has been the company’s motto since its inception. “Sierra Group was built around quality. Not only quality of product, but also service. A competitive price is only good if you’re happy with the end product. What a concept, quality and competitive in the same sentence,” boasts Sierra’s

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website, and for a good reason. In the recent years, the company has averaged 16.4M dollars in revenue, and brings in many repeat customers.

CEO Carl Frommer was born in Madrid, but emigrated from Europe in 1968. He served as a sergeant with the 82nd airborne division in the infan-

“We make fair, competitive bids that don’t underminequality. Value is a euphemism for higher prices.We provide real value at low but fair cost.

Consistency is key.”

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try, and is veteran of Grenada.

Carl’s experience in the military service helped him develop the necessary leadership skills that his current position requires.

He learned the construction business from the ground up starting as a laborer hauling drywall, and quickly advancing through the ranks into management. He has held positions of a superintendent and vice president, prior to his role of CEO. Before starting the Sierra Group, he worked with another company that

specialized in building banks and in 1992 served as a Vice President, overseeing architectural and field operations. This was where Carl was able to hone his skills at upper management and gained experienced in this unique and challenging niche.

“I was groomed to be CEO, but became disillusioned with the way the business was being run.

I didn’t agree with financial model or ethics.

I don’t believe in lying or exploiting clients,” explains Carl. Consistency has been a key aspect in Sierra’s timeline-driven environment. Sierra Group uses the same sub-contractors for their project – the dedication, according to Frommer, leads to predictability, which clients appreciate during crunch-time projects. Now, the company subs out 98% of its work, and maintains an excellent reputation with its clients.

Carl Frommer founded the Sierra Group 12 years ago and business has been booming ever since. “I can speak the banks’ language and I know their needs,” says Carl, “We make fair, competitive bids that don’t undermine quality. Value is a euphemism for higher prices. We provide real value at low but fair cost. Consistency is key.” The Sierra Group also offers the unique Cost Plus Zero Method for fasttrack projects - “You’ll see highly competitive construction costs and accelerated construction time. This unique program includes a zero markup on subcontractors, materials and change orders, without compromising quality.” Innovative, collaborative, progressive and consistent – these are the qualities the Sierra Group is known for in their industry, and why the company is trusted by many of the top Fortune 500 companies and financial institutions.

wireless is not created equal.

It’s a given, wireless is here to stay. But before you jump in you owe it to yourself and your clients to discover why DMP revolutionary two-way wireless technology adds up—to success.

quality. integrity. innovation.

Isn’t it time you called DMP? 800.641.4282 www.dmp.com DMP is an ISO 9001:2000 Registered Company.

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CC Builders: Success by Word of Mouth Todd McNann & Olga Tsyganova When Colorado native Clint Cook founded CC Builders in 1980, he knew that custom building was bound to take off in Wyoming. “It’s all about knowledge of the market and your niche,” says Cook. CC Builders operates from Jackson, Wyoming – a quiet area known for its breathtaking views and ski resorts of the Grand Tettons mountain group as well as picturesque charm of its valley estates.

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Knowing the history of the land has given Clint Cook an edge on other local businesses.

“Jackson had a lot of indigenous wealth that came from the ranchers who had land at the turn of the century,” Cook explains, “Now that land is worth a small fortune.” It seems that in a prosperous area such as Jackson, where construction comprises the largest portion of local businesses – 23% to be exact, competition would be too intense for a small business.

However, unlike many small builders today, Clint Cook is not worried about competition or the mortgage market decline. “Most of my clients build with cash. I rarely work with people who use financing. A regular person with a mediocre income couldn’t afford moving to Jackson,” Cook points out, “Here, “affordable” housing starts at a million.” Yet the secret to CC Builders success story is not in advertising or cutting costs, but in staying small and remain-

ing committed to providing the highest quality custom services.

When asked about how he manages to maintain high quality standards with the rising costs of goods, Cook pointed out that fuel is the company’s largest expense. Everything else depends on the knowledge and commitment of the company’s management team. “We do not take any shortcuts,” Clint Cook emphatically points out, “For that, my superintendents deserve a lot of credit. They are aware of how each job needs to be done in order to deliver the best results for our customers,” explains Cook. CC Builders does not advertise, and operates completely based on referrals. “We get lots of repeat work,” says Clint, “Custom is all about quality.”

Clint Cook starting learning about the construction business back during his college years: “I worked at a ski area putting up a lift. I quickly

realized I enjoyed working outside. I trained in building with a guy in Aspen, Colorado. From then on, I knew that a house is one of the biggest investments a person can make, and I realized that there was a great growth potential.” After moving to Jackson, Cook formed a partnership with his roommates - a doctor and a nurse by profession. Together, they finished the first house. Based on good reputation and references, Clint’s business boomed and became self-perpetuating, with no need for any kind of advertising aside from referrals.

“I love the flexibility this job offers me, and I enjoy the people around me. The better the people that surround you, the easier your job will be,” comments Cook, “I find it satisfying to provide jobs for people I care about. In return, I know I have a crew I can depend on and I find it satisfying to provide service that I can be proud of.”

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Adams Craft Builders: Beating the Market Punch Todd McNann & Olga Tsyganova

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Since founder Bob Adams established Adams Craft Builders in 1997, the company seemed marked for undeterred success in the carpentry business, with revenues steadily climbing every year. However when the unsuspected mortgage crunch hit around 2006, the custom home market which Adams termed his “bread and butter” at the time, encountered a tremendous decline. “My dad always told me, ‘get into something that is solid and secure,’ ” reminisces Adams, “but I am proud of what I do and I wake up every morning saying, this is what I really love.” It is this undeterred perseverance as well as dedication to close and open communication with clients as well as vendors that has allowed Adams Craft Builders to cruise through the challenges of a fluctuating market.

Adams Craft Builders average 2-3 million dollars in gross annual sales, and brings in a net annual income of up to 10 million dollars, even in the face of a severe drop in demand for custom home carpentry and the ever-increasing cost of raw materials. While Adams Craft Builders provides all carpentry needs from project inception to completion, most of the other necessary trade work is subbed out. “Keeping in touch with all contacts, especially vendors, is key,” says Adams, “and not being afraid to ask for work. Word of mouth is a powerful thing for a business like ours.”

Bob Adams continually places special emphasis on close contact with his clients.

Perhaps it is his bachelors in psychology and experience as an owner of a picture frame shop that have honed his ability to keep his company especially personable and sensitive to clientele needs.

Since Adams Craft Builders broadened its scope and

reached into the areas of commercial remodeling and residential development, lessons learned from the custom building adds a special personal touch that Bob’s clients can appreciate.

Certainly, there are challenges to working with subcontractors and the occasional finicky client in addition to cash flow issues, but Bob expressed that being "fair, responsive, and grounded" keeps everyone happier. “Despite my phenomenal staff, I find face time important. The more I am in touch with my clients, the smoother everything goes. Networking through our clients tend to be far more effective than advertising alone,” explains Adams.

The future for Adams Craft Builders looks as challenging and promising as its beginning.

Association of Homebuilders and the Southeastern Wyoming Homebuilders Association. “We are continuing to keep our name out there, through references and advertising.

We are letting people know that we are ready for work.” explains Bob. The future for Adams Craft Builders looks as challenging and promising as its

beginning. The area around the company’s home base of Cheyenne, Wyoming is undergoing many changes, political and economical, which Adams feels will provide new opportunities.

Although Adams is looking to continue pursuing projects in specialized home building, he also plans to get deeper into commercial building.

Currently, the company is working on several miscellaneous projects, including internal portfolio project, and a 22 townhouse projects that Adams currently drew plans on, just to name a few.

Adams Craft Builders are also part of numerous associations such as the National

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PN Hoffman

Focuses on Neighborhood Transformations; with Condo, and Mixed-Use developments, in Washington D.C. area

Hayley Gold & Paul Gregory

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In 1984, Monty Hoffman decided to leave his job in Pennsylvania and drive to Washington D.C. with a few friends. He found a ‘Help wanted’ sign and began working in a construction company. Ten years later, he started his own company, bought a row house on 16th St., converted it to condominiums, and immediately sold them all. This was the beginning of PN Hoffman and Development, which has grown into a development dynamo, with a total of 385 million in gross sales last year.

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Touting its credo, “Fine Urban Living,” the company’s specialty is the development of upscale condominiums and buildings for mixed-use, which complement the existing architecture and environment.

Mr. Hoffman, Founder and CEO of PN Hoffman acknowledges that the mortgage clampdown may have an affect on business, but remains upbeat (his three kids, he says, are the only things that keep him awake at night), maintaining that the cutbacks will only result in “a thinning of the herd.” Before the market slow down, PN Hoffman had begun revising its business model to include commercial business besides its neighborhood redevelopment undertakings. Most recently, inflation in the construction industry, showing itself primarily in increases in labor costs and material costs, the company has responded with effective quality cost control measures. PN Hoffman’s Chief Estimator, John Newell, has found ways to reduce expenses via more efficient sourcing methods, as well as appropriate financial tools, like hedging.

PN Hoffman currently has 40 professionals on board and subs out specialized trades – architecture, engineering and design, while quality-assurance is done in-house. Monty Hoffman says that developing long-lasting relationships with suppliers and vendors has been critical to the success of his business model.

Currently, one of the company’s major projects is on the Southwest Waterfront, in partnership with Struever Brothers, Eccles & Rouse, another development firm and the District of Columbia. Everyone involved believes that revitalizing the Waterfront will yield many

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benefits, among them: more affordable housing, first source hiring, workforce development, increased tax revenues and one-of-a kind tourist attractions.

Consistent with their mission, the people at PN Hoffman have turned their attention to cutting edge green building. Two phrases neatly summarize the company’s environmentally aware outlook: “If it is good for the environment, it is good for the residents” and “Healthy living through healthy design.”

PN Hoffman has committed itself to the U.S. Green Building Council’s LEED (Leadership in Energy and Environmental Design) green building rating system. The company’s joint development (with SJG Properties) of The Alta at Thomas Circle will be among the first LEED-

Certified condominium buildings in D.C. and PN Hoffman intends to utilize green products and services for future projects.

PN Hoffman has received widespread recognition. The company has been nominated for the Jim C. Davis Award for Outstanding General Building Contractor for Renovation and Restoration and has received praise from the Washington, D.C. Economic Partnership for its work in revitalizing the Downtown/ Chinatown and Penn Quarter areas. In addition, PN Hoffman has received numerous awards for individual projects.

Proud

We are to work with PN Hoffman

on DC’s Southwest Waterfront www.eekarchitects.com

,

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Value Management In Construction

by Joann Cheong

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The construction industry is one of the leading and continuously growing industries in the country nowadays. But there may have something missing to keep it always on the top-Value Management.

Generally, Value Management is a method of management particularly dedicated to motivating people, developing skills, and promoting synergies and improvement with the aim of maximizing the overall performance of an organization.

However, Value Management in construction industry plays a very important role in terms of its quest for continuous improvement and innovation. And because Value Management is a method of management, particularly dedicated to motivating people, developing skills, and promoting synergies and innovation, therefore it aims in maximizing the overall performance of an organization. In other words, the idea of Value Management in construction industry can be applied to the strategic planning of the business and improvement in performance on top of delivering Best Value.

Value management in construction can be applied through the following: Value Management throughout the project cycle normally, a project has a planned series of workshops incorporated with the project program beginning at project description- strategic level, and continuing through to construction technical level. During the operations stage, lessons learned workshops and post occupancy evaluation studies assist in improving future projects in addition to the utilization of the new facility.

Cost Cutting Versus Value Improvement is for the past many years, value analysis and value engineering were associated with cost cutting. But through applying value methods on projects, it became clear that best value ws not about cost cutting, but rather improving the understanding of the clients requirements and business needs. This is now important to the present concept of Value Management in Construction industry.

But, how will Value Management in construction industry are achieved? Well, it is crucial that to be able to provide the best value management in construction projects to clients in the construction industry is to keep and maintain a tight workforce with higher management supervision and clear direction. To be more specific, you have to make sure that project teams have:

Understanding the clients needs if there is a poor understanding of the client need or if it is not clearly stated in the clients instructions, usually, the result is poor value all the way through the project lifecycle with wasted resource in management time, production time, design time, and the cost of change. Having clear client directions will need skilled facilitation in order to change whatever misconceptions there is.

An understanding of the essential business needs and success criteria of clients, users, and stakeholders A clear performance concise in terms of value objectives. The skills, expertise, and knowledge needed No areas of ambiguity with respect to policy issues and expected outcomes. An effective team with good communications. The determination to eliminate unnecessary costs and to seek innovative solutions

External challenge is important in achieving improvement in the construction industry. To date, all strategic and tactical workshops, facilitators who are external to the project team are involved. This is to make sure that there is no undue political or commercial pressure taken to bear on the project team. Additionally, this will also ensure that areas of uncertainty are identified and dealt with.

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USA SHADE:

Merging Towards Success Hayley Gold & Olga Ystganova

In the last 15 years, the public has become increasingly aware of the dangerous effects of exposure to intense sun. Skin cancer is now the most rapidly increasing form of cancer affecting America, and millions of people are turning to the shade construction industry for yet another solution. This puts the Dallas-based USA SHADE in a position to satisfy a major consumer demand. According to an interview with CEO John Saunders, USA SHADE enjoys 65-70% marketshare in the American shade industry. “We have recognized and are energized to meet this enormous growth potential,” says Saunders. Smart planning and smart merging is the secret of the company’s success.

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Saunders, one of the co-founders of USA SHADE, grew up in Cape Town, South Africa. He immigrated to the United States in 1986, armed with a backpack, $850, and a college degree.

“We are in charge of our own destiny, and we have to start somewhere,” Saunders chuckled. He kept in touch with fellow countrymen Tony Leyds and Claude Centner, who were later to become his partners in founding California-based Shade Structures and FabriTec Structures, the precursor of what was to become USA SHADE. John worked in corporate America for eight years, focusing on several different consumer products, but he disliked the lack of loyalty that had tainted his experience. This led him to start his own business.

Shade Structures, FabriTec and Dallas-based Sun Ports were all founded in the early 1990’s with each primarily focused on their respective west coast and southwestern marketplaces. In 2004, the former rival companies merged to create USA SHADE. This dynamic partner-

ship features five recognized brands: Sun Ports and Shade Structures focus on modular shade structures, FabriTec Structures offers high-end tensile fabric structures, VPS (Vehicle Protection Structures) specializes in hail protection for the automotive industry and Shade Concepts focuses on the wholesale and distribution arena.

This merger not only empowered USA SHADE to be the industry leader, but also allowed both companies to complement each other’s strengths – Sun Ports as the premier manufacturer in the industry, and Shade Structures/FabriTec as the top sales and marketing organization. “It was a good match,” said John Saunders, “We were able to diversify into multiple market segments that previously had minimal penetration. Although there are many competitors in our business, they are all regional without the same far-reaching capabilities and capacity.” Since the merger, the company has expanded to 19 office locations nationwide and in Mexico

and has enjoyed gross annual sales of about 90 million dollars, doubling the revenue prior to the merger.

Clients find that choosing the right shade provider is crucial to the future success of the project, according to USA SHADE, “Selecting the wrong company can subject clients to numerous problems including: inferior and/ or unsafe products, improper installation, construction delays, budget overruns, meaningless warranties, poor service, and more.”

To date, USA SHADE has completed over 175, 000 structures throughout the country and has nearly tripled in size. By allowing multiple wings of the company to keep their unique brand names, USA SHADE has been able to keep the market recognition that was developed prior to the merger and broaden its base to be widely recognized as the most comprehensive provider of shade solutions in the United States.

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Global entertainment Sees Bright Future in Multi-Purpose Facility Niche The way in which Global Entertainment Corporation’s President and CEO Rick Kozuback got into the multi-purpose events center (MPEC) construction business proves that one never knows what the future holds. A native of Grande Prairie, Alberta and Canada, he began his career as a school teacher,

eventually becoming Head of the Physical Education Department and Athletic Director in Penticton British Columbia. Rick coached the Penticton Knights Junior Hockey team from ’80-’82, then joined with business partners to buy the team. He was Coach, General Manager and Owner from ‘82-‘86; in ’86, the team won the Canadian National Championship. From

Todd McNann & Paul Gregory

‘86-‘89 he was Head Coach at the University of Wisconsin-River Falls, helping his team win the ’88 NCAA Championship. From ’89-‘81, Rick was the Head Coach and General Manager of the Tri-City American Western Hockey League and from ‘91-‘93, Coach of the Phoenix Road Runners International Hockey League (an affiliate of the LA Kings).

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Article Headline

In ‘94, he collaborated with a group of Canadian investors to found the Western Professional Hockey League (WPHL). The League began its first season in 1996 with six teams. Rick finally stumbled into the development business when it became evident that he could not provide adequate space for existing and prospective franchises. He saw that retrofitting existing venues would not be enough, that he would have to build new ones. As a result, in ’98, he formed International Coliseums Company to be the developer of multi purpose arenas.

Global Entertainment Corporation is headquartered in Phoenix, Arizona.

Global was formed in 1999 and through a reverse merger acquired the WPHL and in 2000 ICC. Global went public in ‘04 after purchasing Cragar Industries, itself a publicly traded company.

Marketing Systems (GEMS), Global Entertainment Ticketing (GetTix. net), Cragar Industries Inc. and Global Properties I. Global Entertainment’s International Coliseums Company (ICC) is an industry leader in the development of multipurpose events centers, with a strategic focus on small to mid-size municipalities. ICC’s comprehensive set of services allows public entities to partner with a single firm with the knowledge and skill sets required for successful MPEC development.

The company has adopted a practical, no-nonsense approach to planning a project. They buy the land and uses a standardized model for the design, concession stands, etc.

Today, Global Entertainment comprises seven subsidiaries. They are: the Central Hockey League, the International Coliseums Company (ICC), Encore Facility Management, Global Entertainment

The ICC’s projects include: The Budweiser Events Center, in Loveland, Co., that opened in September, ‘03; the Dodge Arena, Hidalgo, Texas, that opened in October ’03; the Chevrolet Centre, in Youngstown Ohio, in October, ‘05; the Santa Anna Star Center, in Rio Rancho,

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NM, in October, ‘06; The Broomfield Events Center, in Broomfield Colorado, in November, ‘06; the Tim’s Toyota Center, in Prescott Valley Arizona, in November, ‘06 and The Greater Wenatchee Regional Events Center, in Wenatchee, Washington, which will open in Fall of this year.

Currently the company is developing event center projects in Allen Texas and Independence Missouri for openings in the fall of 2009.

Based on the massive success of his company thus far, Rick Kozuback appears more than justified in believing that five years from now the seven subsidiaries of the company will be standing on their own feet with respect to profits.

Today, Global has 250 employees. The company’s revenues for 2007 totaled 27 million; 32 million is projected for 2008.

To learn more about Global Entertainment Corporation, please go to www.globalentertainment2000.com

INFORM.ENTERTAIN.AMAZE.

Scoring. Video. Sound. Daktronics Integrated Systems.

tel 800-DAKTRONICS (325-8766) www.daktronics.com sales@daktronics.com

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Atrion Hayley Gold & Olga Tsyganova Since 1987, Atrion Networking has helped its clients realize the linkages between improved information technology capabilities and company performance. Atrion, a Rhode Island based company, specializes in the fusion of business and technology and is affiliated with 1nService, a collaborative consortium of advanced technology integrators, which allows it to service companies based not only locally in New England, but in those nationally and internationally as well. Through an integrated approach to client service drawing together a multiplicity of professionals with various areas of expertise, Atrion offers innovative solutions that not only satisfy a client’s technological needs, but also empower their clients to take the next steps in modernizing their company’s culture and advancing towards a vision-based future. Through specialized IT solutions individually developed based on an unbiased, in-depth evaluation of every client’s infrastructure and vision, Atrion encourages strategic planning that engages and educates the company, encouraging comprehensive implementation, and a fast return on their client’s investment. As this New England innovator continues

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to grow, the company remains dedicated to its core beliefs in simplicity, flexibility and value.

Recently, Atrion has exhibited signs of continued growth.

On April 21, 2008, the company announced its acquisition of the interactive multimedia company, Shazamm, allowing it to offer customized technical and aesthetic client business solutions. Since then, it has made the decision to move Shazamm into a new space in Pawtucket, Rhode Island: the recently renovated Hope Webbing Mill Complex in Hope Artiste Village. This 650,000-square-foot mill building features a mixed-use facility for artists and

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small businesses, and IS an obvious choice for housing Atrion’s artistic arm.

While continuing to grow, Atrion chooses to work mainly with small local builders. “The next wave is building to accommodate our data centers,” explains CEO Tim Herbert, “there are five classes of data centers, ranging between “hot spaces and cold spaces. We are also working with a few companies to help “green” our data centers. There is a myriad of ways to reduce waste. We are putting in heat and light controls to help reduce power and cooling etc.

This goes into consideration when we plan projects for our clients as well.” Atrion is one of a handful of companies who has rightly forged the connection between construction requirements and IT integration. As it continuously expands, so does its vision for the future: “Atrion is the fusion of business and technology. We are building something different here, something great and lasting.

We are building client relationships, not client business.

And we are providing the Ultimate Client Experience in the process.” By example, Atrion opens the door inviting comprehensive collaboration between IT and construction specialists in order to truly integrate spaces of business, physical and virtual.

Morse Electric: Award-Winning Family Business Moving into New Frontiers Kelly Rice & Olga Ystganova

Business leaders have long recognized the importance of shifting focus from cost-cutting efficiency strategies to emphasizing the importance of planning and diversification. Morse Electric, ranked one of the top 50 contractors in the US by EC&M, is no exception. A leader in commercial, industrial and utility markets, the company has grown by 38% during 2007. CEO Don Morse attributes this success to strategic planning, market awareness, and investing in human capital.

Don’s father founded Morse Electric in 1944. When he passed away in 1959, Don was in college pursuing a degree in electrical engineering. He decided to help his mother run the family business. After completing his apprenticeship in his early thirties, Don Morse took over the company that at the time grossed about 1 to 2 million dollars in annual revenue. Since then, the company has worked on many large projects for clients such as Chrysler, General Motors, Target, Wal-Mart, General Mills, ABC Supply, Kraft Foods, Home Depot, Lowes and Frito-lay, just to name a few.

The 1999 Family Large Business Award Winner has taken a proactive approach to business, diversifying their projects, reaching out to new geographical areas and hiring the best self-motivated people in the business. “Hire the best - they want to succeed,” stresses Morse. The company prides itself on investing in their personnel and in state-of-the-art equipment to maximize its diverse portfolio of services to meet and exceed the demands of chosen markets. “There was a perception at the beginning,” explains Morse, “that effectively reacting to the changing markets was sufficient - ‘we are electrical contractors and this is what an electrical contractor does.’ We’ve moved away from that. Instead of thinking ‘this is going to be a bad year so this is what we should do’, we think ‘it’s going to be a bad year unless we change or preemptively take action’. There is no reason to allow these business words - bad year - to dictate what business will actually be like. We have become very proactive.”

This model for success has allowed the family company to reach a milestone of over 100 million dollars- in

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annual revenue, which will probably be over 150 million dollars this year.

“Some companies wait for business to come to them. In our case, if the work isn’t where we are, then we go to where the work is or find something new,” says Don Morse, “we were the first in the area in peaker plants, for example.” Currently, Morse Electric is moving into new exciting markets such as renewable environmentally friendly wind energy.

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“This market will take us to a whole new level.”

The next step for Morse Electric will be getting into solar energy. Morse Electric prides itself on providing professional, specialized services to the highest standards of quality, operating throughout the United States, and will be expanding into other countries in the near future.

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Chicken_BullRunMay08

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The brand new electrical distributor with 100+ years’ experience.

The problem with trying something new is sacrificing the benefit of experience. Until now. When Gexpro delivers a new productivity breakthrough, profitability tool, or delivery standard, you know we put it to the test with a century of experience. And when customer needs always come first, that chicken or egg question becomes rather pointless.

2235 Corporate Lane Naperville, IL 60563 630-718-6500 www.gexpro.com

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Collins Electric

Todd McNann & Rebecca Visor

Collins, a St. Paul-based company, is approaching its 60th anniversary in a time when the housing boom and the economy in general are both slowing. While this might seem to be a hard time to be in construction, Collins is not just getting by, but thriving. Named the 15th largest low voltage residential company in the United States by CE Pro magazine, they have continued a steady 10 to 20% growth each year, and, though the executives recognize the impact the economy could have on business, they are confident the diversity and quality of the services they offer will keep business going strong. They are now a $60 million dollar company with over 280 employees.

A major part of Collins’ continuing success is the diversity of their services. Sixty years ago, they began by focusing primarily on industrial-based maintenance work. This work included industrial work with Ford Motor Company, as well as traffic management and signal work. They later began to include more work in the designbuild market, and 15 years ago, moved more into the housing market, including condomium remodeling. They now offer total project partnering, from initial conception through final construction, including cost estimat-

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ing, budgeting, engineering, and on-going maintenance, including 24-hour emergency service.

One of their more recent areas of growth has come from senior housing complexes, as well as college dormitories, where Collins helps set up the complicated wiring necessary for the data and television structure of multi-family buildings. They provide residential services wiring everything from home security systems to media systems to central vacuum systems. For media systems, they can set up one consolidation point for voice, data, audio, and video services in such a way so that it will be easy to adapt for future technological advances.

Collins can be a one-stop shop for electrical services, claiming that if there is a wire, they can connect it. This is proven by the numerous other areas in which Collins does work. While a good portion of their business today comes from low voltage work in singleand multi-family homes, Collins provides services in areas across the board. They have maintained the traffic management and signal work the company began with while adding retail work for corporations including CVS/pharmacy, Lowe’s, and Home Depot, among others. They continue to work with Ford Motor Company on industrial work, as well as Xcel

Energy Power Plants. They also provide medical wiring, which can be particularly complicated on the infrastructure as well as security services including setting up security systems, closed circuit TV’s, card access points, fire detection, sound masking, and public address systems.

A major part of Collins’ continuing success is the diversity of their services.

Collins competes with both larger and smaller companies, something that takes flexibility and sales know -how. While smaller companies can undercut Collins’ bid, it frequently means the smaller company uses less professional workers who pay little attention to detail. If customers would like to hire the smaller companies, however, and take advantage of the lower price, Collins offers them another option. These customers can hire Collins employees as

consultants, who then supervise the workers. This way, customers can save money while retaining Collins’ high standard of work.

Collins is also a mainstay in the community, supporting numerous local groups and events such as the Northeast Metro 916 StudentBuilt Home project. This project is a year long effort, that allows high school students to experience all parts of building a home.

Collins provides support by helping to educate the students on the electrical industry while giving them training in the actual work.

Collins also volunteers its people and services to St. Paul’s Winter Festival, an event celebrating winter, for which Collins lights up the ice maze, snow sculptures and the bulk of Harriet Island.

Collins is proof that construction companies can succeed, even in a difficult economic period. They do this by providing excellent high and low voltage electrical work in a wide variety of arenas. Through their work and their volunteering, they have made themselves an integral part of St. Paul and the surrounding areas.

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J&S Construction: A Company of Principles

Todd Rogers & Olga Tsyganova

Since J&S Construction was founded in 1957, the company has completed over 5,000 projects and currently averages 30 million dollars in gross annual sales. J&S Construction utilizes the T.E.A.M. Build method of project delivery, in which they form a single contract with their client to provide for architectural & engineering design services as well as construction services. This allows J&S to plan and execute on a stringent timeline, and the results speak for themselves: J&S Construction has received the Achievement Award from The Tennessee Center for Performance Excellence twice; completed over 550,000 man hours without a lost time accident; and were given the Commissioners Award for Excellence from the State of Tennessee.

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The company’s motto only allows for employee “Building Relationships by J&S Construction started feedback, but drives the Building Trust,” has led to a out as a small residential measure of productivity: high feedback rating from “We need to know how we their clients: 100% of proj- company and from there can accomplish the same ects completed over the things by working smarter, went on to hard bid. past year (ending on 3/31) and that requires everyone’s have received a service participation. We learn to questionnaire rating of “delighted/pleased” do the same things in less time, using more costfrom the company’s clients. “We have a 'good effective methods. As you can see, integrity and a day report' here at J&S,” says CEO Johny Stites, strong work ethic are perquisites for working and “our employees are required to check whether succeeding within this work culture.” they are detracting or adding to our success

J&S Construction started out as a small on a daily basis.” This self-reflecting tool not residential company and from there went on to

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hard bid. Now they have evolved into a designbuild enterprise and doing nearly 100% negotiated design build projects. J&S has comfortably grown into their 100+ employee workforce, several of whom are award-winning architects and engineers. “Construction is America’s 2nd most risky business, next to the restaurant business,” says Johny Stites, “The Master craftsman used to be the most respected man in the country, but now things have changed because of the lack of professionalism in the industry. If you are going to be a doctor or a lawyer, you have to get a certain amount of training. In construction, you can put a sign on the side of your truck saying and start selling. This is why we only hire workers with a high level of integrity and a strong work ethic.

We’ve been doing this for 50 years, and we’ve transcended being a contractor and are committed to gaining and maintaining our clients’ trust.

Trust is the most important thing in this busi-

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ness.” J&S frowns in low-balling bids, saying that the practice is deceptive: “Some contractors do what they do to get their foot in the door. They bid low and make it up on change orders. Some clients go for the low bid, but it forces me to use people I don’t regularly use due to their lack or experience, and complicates producing quality projects on time,” says Stites.

J& S Construction is continuing to measure and improve their processes. They plan to institute a new process to manage fixed price projects to avoid breaking budget by predetermining areas that may present obstacles and plan for costavoidance. In addition, the company wants to increase the awareness of their heritage: “The average construction company doesn’t last five years. We are 50 years old, and I want to build pride in our workforce for keeping us going,” Stites says proudly.

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ADI Kelly Rice & Rebecca Visor

cooking, clerical, and cashier. Construction is one of the more popular fields, and clients can be trained in framing plumbing, electrical, rough out, and painting. Those who complete the construction course leave certified. But the training provided by ADI goes far beyond teaching job skills. ADI does not merely want to prepare its clients for a specific job; the goal is to prepare them for life and to provide them with a career. ADI’s training begins with discovering individuals’ areas of talent and building upon those.

Aspen Diversified Industries (ADI), an entrepreneurial, non-profit organization located In contrast to many programs for the disadvanin Colorado, is a taged or disabled, all of ADI’s company out to employees, including the help the commu- ADI does not merely want to non-disabled, work together nity. Incorporated prepare its clients for a specific to get the job done, providin 1991, and a ing a normalizing atmosphere job; the goal is to prepare for the clients and helping part of Pikes Peak to provide them with more Behavioral Health them for life and to provide opportunities to familiarize Group (PPBHG), ADI themselves with the working them with a career. was started in order world. This means that clients to provide opportuwho choose to leave the ADI nities for portions of environment will be able to do so successfully. This the populations whose potential was not being type of atmosphere, in addition to the training, has realized, including disadvantaged, disabled and allowed close to 10% of ADI’s disabled employees to non-disabled people. Currently, ADI has over move off of public entitlements over the past two 200 employees of which over 50% are disabled years. Helping client move off of public entitlements or disadvantaged. is only one way in which ADI helps the communities ADI provides its clients, the term they use for the people they are helping, with training in many different fields, including construction, janitorial services,

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it is a part of. Another is by providing local businesses with a new source of hardworking employees and by allowing these employees to become contributing members of society.

Working with these populations can be extremely rewarding, but there are some challenges. One challenge is the cultural stigmas about people with mental challenges or youth that have fallen out of the judicial process. People tend feel that the mentally challenged cannot perform to normal standards and that youth with troubles are more trouble than they are worth. Beyond that are the difficulties inherent in working with these populations. ADI understands these challenges and include vocational professionals on staff. These professionals stay on the job site and deal with any issues that may arise, mainly focusing on ensuring the clients and employers have a successful working relationship. To date, they have never had an employer pull out due to any negative circumstance, or say that they would never work with ADI again.

While ADI is a non-profit, that doesn’t mean they aren’t still a business. Strategic goals include providing excellent service while delivering a strong financial performance. ADI combines the best of non-profit and business worlds, providing valuable services to customers while bettering the lives of their clients. As Paul D. Sexton, Sr. Vice President, says, “There are two ways to go through life- you can go through life and leave a stain, or you can go through life and leave a mark.” ADI is unequivocally out to make a mark.

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Global Insight:

Four Global Forces That Will Shape Organizational Culture for the Next 50 Years

By Mark Bodnarczuk Studies have shown that the forces, trends, and pace of the business environment have the single greatest influence on shaping organizational culture. But there are even more global forces affecting the business environment in subtle, but profound ways that define how organizations must interact with customers and respond to competitors in order to achieve sustained business performance. The Breckenridge Institute速 has identified Four Global Forces that will shape organizational culture for the next 50 years: a) Advances in Science and Technology, b) Global Redistribution of Knowledge, Power, and Wealth, c) Competing Political, Cultural, and Religious Ideologies, and d) Sustainability of the Physical Environment.

Advances in Science and Technology The 20th Century discoveries in quantum physics that led to the development of solid-state electronics, information technology, global telecommunications, the media, and the Internet combined with the mapping of the human genome and the development of nanotechnology have changed our world forever.

These scientific and technological advances have extended the biological range, speed, and accuracy of the

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human senses and enhanced our ability to communicate. The global village that has emerged because of our ability to know what is happening on the other side of the earth instantaneously has irrevocably changed the human experience of space and time that existed for more than 10,000 years. Despite the continued expansion of silicon-based memory, the information processing capability of the human brain remains more or less constant, so this global force places enormous and immediate stress on people's ability to manage ever increasing levels of data and information. Advances in science and technology will continue to have dramatic affects on the business environment and the ways in which organizational culture evolves in response. So consciously creating an organizational culture that effectively interacts within the frenetic changes created by advances in science and technology is a key strategy for controlling your organization's destiny.

The Global Redistribution of Knowledge, Power, and Wealth Peter Drucker was a true visionary.

In 1997, Drucker predicted that the under-population of developed countries in North America, Japan, and Europe and the sharply rising

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birth rate in developing countries had irrevocably changed the landscape of the world's economy for the next 100 years. Global advances in science and technology combined with demographics have flattened the playing field for emerging nations like India and China. For example, calls made by Americans to customer service centers are often routed seamlessly to technical experts in India or other emerging nations. Economic growth in developed countries like the U.S. cannot come from putting more people to work or from an increased number of domestic consumers, so it must come from the increased productivity of knowledge workers, which creates increasing pressure to do more with less. This trend will only intensify as the global redistribution of knowledge, power, and wealth runs its course. We believe that the global redistribution of knowledge, power, and wealth has already dramatically changed the workplace and will become one of the biggest issues that corporate culture must contend with. Consciously creating a corporate culture that mitigates the down sides and pressures of the global redistribution of knowledge, power, and wealth and identifies and capitalizes on myriad new opportunities is the key strategy for controlling

an organization's destiny.

Competing Political, Cultural, and Religious Ideologies For thousands of years, people around the world have developed different languages, cultures, religions, and political ideologies, often holding strong convictions that these belief structures were reality itself.

Today's conflict about competing political, cultural, and religious ideologies is not so much a conflict about different beliefs as it is a conflict about the nature of belief itself.

Typified by Stephen R. Covey's claim that we see the world as we are, not as it is, reality is now viewed as a social construct: reality is man made.

Because the media makes it so easy to create and globally disseminate new structures of reality, the world has become an unregulated marketplace of differing ideologies that compete for people's time, attention, and resources. As traditional views are increasingly undermined, people become more deeply committed to maintaining and defending their way of life, sometimes even by force and intimidation. Many suspect that a new global super culture and global belief system is forming, but have little or no idea what that ideology will look like. As more and more people come to believe that reality can be constructed, the media-world becomes a kind of global stage upon which groups of people act out their reality in the hopes of convincing others that their way of believing is the way. Consciously creating a corporate culture that interacts within this global cultural relativism is the key strategy for controlling an organization's destiny.

Sustainability of the Physical Environment The combined pressure exerted on our physical environment by the other three global forces has raised serious questions about the earth's ability to sustain the lifestyle of billions and billions of people. While the goal of a sustainable society is a popular notion, it has been difficult to implement, especially when it impacts business and economic growth. Some have tried to weave the theme of corporate responsibility and sustainable development into the fabric of the global business environment in the hopes of reducing the size of our ecological footprint on the earth. Others argue that the earth is the best teacher of sustainable practices, insisting that a more complete scientific understanding of nature's organizing principles can be applied to the design of a more sustainable, ecologically balanced society. Still others argue that we must mitigate the daily bombardment from the media to buy and consume products and services, and instead purchase only what we need from environmentally friendly sources. Some futurists argue that more rapid advances in science and technology hold the answer to sustainability. On this view, the modeling of carbon-based (human) intelligence in silicon-based computer systems, and our ability to manipulate biological and genomic processes are early precursors to our ability to break free of the earth as a life support system and develop alternative environments that do not require the earth's ecological systems as we currently know them. Regardless of the view

adopted, the sustainability of the physical environment will continue to play a powerful role in shaping the business environment in which organizations interact. Consciously creating a corporate culture that mitigates the negative affects of this subtle, but powerful global force is a key strategy for giving an organization long-term direction.

Bottom-Line: Organizations cannot control the direction that these powerful global forces will take over the next 50 years, but they can control how they respond to these forces. In fact, Harnessing the Power of Culture™ within an organization and transforming it into a more predictable resource is the single biggest factor in transforming these challenges into a distinct a competitive advantage.Mark Bodnarczuk is the Executive Director of the Breckenridge InstituteŽ, a research center for the study of organizational culture based in Boulder, Colorado.

He is an author, researcher, consultant, teacher, and facilitator with more than twenty years of experience working with companies in the area of high-tech, basic and applied research, pharmaceuticals, health care, retail as well as government and non-profit organizations. Mark has published widely in the areas of corporate culture and leadership development and is the author of two books, Diving In: Discovering Who You Are In the Second Half of Life and Island of Excellence: 3 Powerful Strategies for Building Creative Organizations. He has a BA from Mid-America University, an MA from Wheaton College, and an MA from the University of Chicago.

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Al Shankle Construction

Perseverance and Success Achieved Through Good People and Strong Values Todd Rogers & Paul Gregory Al Shankle, CEO of Al Shankle Construction, was raised on an Arkansas cattle ranch, and began his career striving for a structural engineering degree. Early on he was forced to drop out of college to provide for his new family. He chose the construction industry as the means by which to accomplish this new and exciting endeavor.

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He began this new career working for an established company. His tenor consisted of 22 years of service; during that time he was able to achieve becoming President of that company. At that point, he decided that the time was right to found his own company. He founded his company in 1980, along with help from many of his previous employees from his other employer. His new “start up company” achieved success by resolving to make a strong commitment to clients. This commitment and resolve are where Al found the inspiration for his motto: “Excellence

To date Al Shankle Construction Company has built 450+ million square feet of industrial space. built upon quality, value and service” and “treating people the way he wanted to be treated.” The results suggest that he has benefited from his good intentions and strong values.

He hardly ever receives complaints from clients about quality issues and his company has been honored with numerous awards, among them the prestigious Golden Nugget, which recognizes the contractor that builds a building considered “the best in the West.” This award is quite an honor and this is evidenced by the intense competition from 500 other companies, from 12 Western states and 9 foreign nations, including Canada, Australia and Japan!

Operating out of two locations, Mira

Loma, California and Minden, Nevada, Al Shankle Construction Company services the industrial, commercial and institutional markets. The company has made its way into the elite of contractors utilizing cutting edge tilt-up construction techniques to achieve extraordinary aesthetic effects. This commitment to quality and customer service continues to afford Al success for his company as well as his clients.

To date Al Shankle Construction Company has built 450+ million square feet of industrial space. The company’s projects range in scope from $1 to $15 million. These include a 38 acre shopping center; indus-

trial projects from small “mom & pop” facilities to 500,000 square foot distribution facilities; multiple projects in excess of 250,000 square feet and three major public high schools. Furthermore, the company has the capabilities to handle work throughout the country: locations of successful projects include the states of Arizona, California, Connecticut, Colorado, New Mexico, Nevada, Texas and Tennessee.

Al recognizes that his team has been indispensable to his success. The company currently employs about 75 people, 20 managers and office staff, while the balance works in the field.

One other cornerstone of the company’s success is the ability to efficiently and effectively deploy resources and successfully construct and complete multiple projects simultaneously, at any one time the company is working on three to four projects. Many employees have over 25 years of

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service with Al (one has 45) and several are 2nd or 3rd generation employees. The VP of Construction in the Nevada office is a second generation employee. The California office presently has three generations working today and adding considerable value to the company. Al’s partner has been with him 45 years she has been a loyal confidant managing the financial division of the business. Her daughter is in charge of all tenant improvements and assists with the extra load that all contractors face. Al’s partner has a grandson who is presently training to become a Superintendent and rounds out the third generation of the California office.

The company outsources some trades and subcontracts out all design work. Al emphasizes that it is important to recognize the value of good architects and make them an integral part of the team. Also, in additon to the success of the company is the network of quality subcontractors that Al has worked with for years. Al recognizes that the subcontractors have to be an extension of his company’s values to ease the completion and success of any project. Al Shankle Construction has also enjoyed lasting, mutually profitable relationships with numerous vendors.

The company has proven nimble in dealing with the recent

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market downturn, serving end-users as well as developers. Annual revenues range from $24 to $60 million. Al’s next goal is to train employees and place them into positions to carry forth the commitment of excellence for the future. Presently the managers of construction for both offices are in place and ownership will be gifted to them during the upcoming years. Al’s Grandson will be coming aboard this year after working for a multi – billion dollar company for the past two years. He will work along side of Al learning the development side of the business. He along with the two managers (VP’s) of construction will complete the team necessary to ensure the company will maintain the same quality that the clients have come to expect. Al and the employees are excited about carrying on the successful tradition that they have built through years of hard work and an uncanny dedication to upholding their core values.

For more information about Al Shankle Construction Company, please go to www.alshankleconstruction.com