US
Developers Journal
Summer 2008
www.usdevelopersjournal.com
Town & Country
Focuses on Neighborhood Transformations
Nogama Construction
Shaping the infrastructure of Puerto Rico for the last 60 years
Principal Builders
Leading with open communication, honesty and transparency
Johnson Fain
Creating powerful and
memorable cityscapes
THE MAGAZINE FOR CONSTRUCTION EXECUTIVES
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Editorial Editor in Chief: Anthony S. Jacobs
Correspondents: Angela Floyd Aryeh Katz David Chodack Kathleen Schmitt Larissa Redins Marianne Rogoff Olga Tsyganova Shannon O'Neill Suzanne Mason Shelley Seyler
Editorial Department: Richard Callahan Brandon Roberts Hayley Gold Jacob Skeeters Kelly Rice Matthew Tropea Todd Rogers Todd McNann
Vendor Relations: Hayley Gold Fabian Norwood Mike Richards James Tingley
Published by Bull Run Media LLC Kalena Alston-Griffin, Partner Keyla Carr, Partner Alonzo Ellis, Partner
Publisher:
Kalena Alston-Griffin
Copy Editor:
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Design Department:
Philippe Duquesnoy, Design Director Karyn Dowty, Senior Designer Sheryvonn McDonald Ashish Kansara Jay Vandewani
Our Summer Quarterly edition comes out while many are bracing themselves for the aftershocks of the recent stock market plunge. The summer’s stories are a testimony to the strength of time-tested business practices and the importance of rock-solid relationships. Here at US Developers Journal, we continue to be encouraged and impressed by the durability of numerous companies from around the country. We are optimistic that our fall publication will be able to continue with our theme of endurance and optimism in these challenging economic times. Making the Team “I grew up playing team sports,” says Scott Reay of Principal Builders. “It requires discipline and pride. You develop a sense of accountability, of not wanting to let your teammates down.” Principal Builders successfully puts into practice what Reay and his partners view as the sine qua non of thriving in the construction industry: teamwork. They are hardly alone in their devotion to this philosophy. For 28 years, it has brought Master Builders nothing but success as they make sure that every member feels valued from start to finish. These are only two examples of many companies who have learned there is indeed strength in numbers. Time-Tested Wisdom While it is important to be open to new ideas, many businesses also seem to know when they should keep their course steady. Over the past 50 years, Robert Brun’s motto hasn’t changed: “Work hard and be fair.” Fifty percent of their business stems from repeat customers which proves that they are doing something right. The Nogama Construction Corporation also attributes its overall and consistent success not to a secret formula, but rather to a true passion for the work and a few savvy business practices that have stood the Nolla family in good stead and continue to guide the business. They are convinced that these guidelines will steer them into the future. Bright Futures & Goodwill Even with current market concerns some companies are able to take care of not only themselves, but others. Spathies Construction is one example, looking out for the people of Chicago with their affordable housing program. Despite the mortgage crisis, they boast a remarkably low foreclosure rate of less than one percent with their residents. By fostering reliable partnerships, focusing on careful planning, maintaining precise budgets, and, above all, remaining committed to improving the lives of others, Bill Spathies is confident that Spathies Construction will continue to thrive. SBI Builders, Inc. has received numerous accolades for creative achievements but also for affordable family housing. Part of their mission is “to fulfill our duties as a corporate citizen.” SBI takes this very seriously; they are currently partnered with the non-profit Opportunity Builders and president Dan Silverie works with two international orphanages. SBI has been a rock-solid presence in the San Francisco Bay area for 30 years and they are sure to continue down this road. Throughout the industry, companies are forging ahead, finding the strategies that not only keep them strong but that will also ensure their survival and even success during these turbulent economic times. The resilience that has rebounded in the industry deserves more than praise during this historic moment for our country and ever-globalizing market economy.
Advertising Sales & Marketing Department:
US Developers Journal
Bjorn Michals William Lee Yin
Us Developers Journal
Summer Edition 2008
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Feature Story Johnson Fain William Fain is the managing director of urban design and planning for Johnson Fain Partners, an architectural and planning firm based in Los Angeles, with 100 employees and gross revenues of $27 million a year.
Summer Edition 2008 page 28
Company Spotlights Johnson Fain, CA
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Canyon Construction, MD
p. 40
Town & Country Homes, (A K. Hovnanian Company) IL p. 11
Stevens Construction, FL
p. 43
Omaha Construction Services, Inc.(CSI), NE
p. 16
JS Vig Construction, MI
p. 45
Nogama Construction, PR
p. 19
Master Builders & Specialist, Inc., LA
p. 48
Arviso Construction Company, Inc., NM
p. 22
Cincinnati United Contractors, OH
p. 59
Borghesi Building and Engineering Co., Inc., CT
p. 22
Colorado Hardscapes, Inc. CO
p. 61
Principal Builders, CA
p. 28
Newmech Companies, Inc. (CorVal Group), MN
p. 64
CE Hall Construction, GA
p. 32
The Deltona Corporation, FL
p. 66
USA Shade, TX
p. 34
Builderguru Contracting, Inc., MD
p. 68
Building Corp II, NY
p. 38
KanBuild Inc., KS
p. 69
Town & Country
page. 11
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p.
Us Developers Journal
Nogama Construction
page. 19
Summer Edition 2008
Principal Builders
page. 7
Company Spotlights Alta Construction, TX
p. 72
Custom Mechanical Systems, IN
p. 91
Emerald Construction, VA
p. 73
MBR Construction, Inc., FL
p. 93
J & S Construction, TN
p. 75
Benton Construction Company, USVI
p. 96
Lone Star Railroad Contractors Inc., TX
p. 78
Spathies Construction, IL
p. 99
KOP Construction, WA
p. 80
MK Plumbing, CO
p. 102
SBI Builders, CA
p. 83
Bruns Building and Development, Inc., OH
p. 104
Geotechnics Incorporated, CA
p. 86
Brittan Industries, CA
p. 106
CP of Bozeman, MT
p. 89
Departments Profiting From the Dubai Construction Boom
p. 52
Tips For Selecting Editing Software For Construction
p. 54
Prefab Offices Setting Trends
p. 55
Trends in Green Building and Sustainable Construction
p. 57
Emerald Construction
page. 65
J & S Construction
MBR Construction
page. 67
page. 85
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Johnson Fain
Diversity in a Global Fashion By Richard Callahan & Olga Tsyganova Johnson Fain has a unique approach to their projects and business, focusing on diversity in their services and an international reach in their projects. William Fain is the managing director of urban design and planning for Johnson Fain Partners, an architectural and planning firm based in Los Angeles, California. The company was founded 70 years ago by William Perreira, a well-known architect of the 1920s and 1930s, who designed the Transamerica pyramid in San Francisco, among other buildings. Johnson Fain has existed in its current configuration since 1993 and has a tradition of urban architecture, with several high buildings, planned communities, and urban mixed-use projects under their belt. The company specializes in architecture, design interiors, and urban design and planning. With 100 employees and an annual revenue of $18 million, Johnson Fain relies on subcontractors for engineering, electrical, mechanical, structural, and plumbing services. Headquartered in a historic car dealership with 27,000 square feet of space and high ceilings, Johnson Fain is set apart from the crowd for many things, one being their wide-reaching scope and diversity of projects. With a client list that ranges from the MGM Tower to the Shanghai New Jiangwan Town in China, their influence truly resounds around the world.
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Projects in the City of Angels Johnson Fain brings more than simply new buildings to the Los Angeles skyline. They pride themselves on building “with civility” for each and every project, says Fain. They view their work as greater than just one building; it is also an extension of the city around it, interacting with and being a part of the larger community. A perfect example of this is their recent $500 million Dodgers Stadium project. Fain stated, “It is an outfield extension of the city, rather than just another development project,” Fain added. The improvements on this important facet of the community will bring fans the most modern amenities while simultaneously preserving the essence of the 46 year old historical venue. The design will meet silver LEED sustainability standards and is enacting the “Next 50” plan for Dodger Stadium that designates this as the home of Los Angeles baseball for the next 50 years. Sports fans will be in for a treat when they attend games at this new stadium. Surrounding the park will be Dodger Way, which will look directly into the park and features restau-
our parking structures are more than just about cars
The company has existed in its current configuration since 1993 and has a tradition of urban architecture. rants, shops, and will host a Dodger experience museum that showcases the history of the team. Another addition will be the Green Necklace, a ring of gardens and open plazas designed to interconnect all levels of the stadium. Lastly, fans will be able to enjoy breathtaking, 360-degree views of Santa Monica Bay, the Santa Monica and San Gabriel Mountains, and the Dodger Stadium Diamond at The Top the Park. Another unique aspect of Johnson Fain is their work in the international sphere. They are currently working with investors to develop 125 million square feet in Beijing, China, a project they won after competing with eight different companies from around the globe. Johnson Fain’s plan for the city’s first Central Business District includes office, residential, and retail space and features more than 500 different buildings all anchored by a “City within a City” featuring the world’s largest tower. Keeping with Johnson Fain’s style, this development will add distinctiveness to the Beijing’s skyline while also blending with the rest of the city’s culture and architecture. Staying Optimistic Like the rest of the globe, the firm has felt the effects of the current economic crisis in different ways. Being involved in the housing sector, this began with the mortgage crunch. “Many projects are not moving ahead, they are pausing. I think it will be a while yet,” Fain predicted. They have also been affected by the ever rising cost of materials, particularly as growth and demand increase in China and India, creating more competition for materials. Remaining cautious but optimistic, Mr. Fain thinks back to a time 25 years ago when Johnson Fain “rose from the ashes as a new and stronger company.” Referred to by some as a “phoenix,” Johnson Fain has a history that relies on their own renaissance: “By 1989, we knew we were over the threshold and by 1994, we had reorganized and adopted our present format,” added Fain. Part of this revival was thanks to their diversity of projects and this remains an important aspect of Johnson Fain’s success.
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Having a good, consistent supply chain also contributes to their ability to thrive in today’s economy. They rely on quality engineering firms to do the work that is outside their area of expertise and they look to suppliers like Herman Miller to provide furnishings for their completed projects. They have developed good relationships with their partners and often work with the same vendors. Though the state of the economy is bound to affect plans for the future, Johnson Fain is committed to a “solid ten-year effort head, promoting from within and becoming a bigger player on the international scene,� says fain. The company also hopes to expand its diversification efforts; they particularly want to produce 3-D renderings in-house. However, they recognize that continuing to do some outsourcing will help contribute to their growth. Having already survived one rebirth, this seasoned company is sure to plow through the current economic crisis with their eyes set on their goals for the future. With hopes to increase their international projects, their projects are certain to continue to benefit both the domestic and international landscapes.
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Town and Country Homes, Inc. A K. Hovnanian Company
by Richard Callahan & Shelley Seyler
Everyone in the construction industry recognizes the importance of location. At Town & Country Homes, they balance the importance of natural surroundings and having “room to breathe” with proximity of good schools, health care, entertainment, and shopping.
aFounded in 1958, Town & Country has built more than 25,000 town homes and single-family houses. A K Hovnanian company, Town & Country’s homes range in price from $160,000 to $500,000 and are located in the Chicago area, the fifth largest housing market in the United States. Andy Konovodoff became president of Town & Country Home’s Chicago Office in September 2004. His dad, who did business with the Hovnanian brothers years before, was also a general contractor which exposed him to the industry throughout his childhood. “Dad had me do a little bit of everything,” said Andy, including work on contracts with Hovnanian. In the early 1990s, he started working for Hovnanian, moved to Chicago in 1995, and climbed his way up to become president of Town & Country in 2004. Their Services Town & Country’s specialties include single family and town homes, some of which are estate size, as well as Active Adult Communities. They hold their “bread and butter” in single and multi-family homes,” though they are migrating into mid-rise and assisted-living residences. Town & Country sub contracts all their trade work bringing their extensive management experience and innovations to projects such as Wonder Home Technology. This unique aspect of some Town & Country homes caters to those in the ever-changing mid western climate. With upgraded insulation for higher comfort and lower energy bills, and HVAC design with fresh air intake systems for more efficient
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heating and cooling, the home owner is able to avoid some increased energy costs while also increasing their home’s comfort. Also included in this aspect of the construction and planning is an Optimum Valued Engineered Framing System for a stronger-framed home. Drainage planes, draft stoppers, low-E glass, Smart Trim, block-wall construction, and every-bay baffling provide additional construction quality and safety details. All this proves what their Web site says: “We sweat the construction and safety details so you never have to think about them.� In their Chicago office, Town & Country has added DesigerEXPRESS, homes that are move-in ready for those in a time crunch. Inspirations Design Studio provides guidance for selecting details that will make the home individualized for each family. National Recognition On March 1, 2005, Town & Country became a K Hovnanian company, partaking in what is considered to be the largest private homebuilder acquisition transaction ever completed. Since its founding and 1959, K Hovnanian has built 277,000 homes and is the sixth largest home builder in the United States. Hovnanian Enterprises, Inc. has since helped Town & Country develop their residential communities. Town & Country has also been recognized in other ways. In 2004, Builder Magazine ranked them as the 52nd largest builder nationally. As a family-owned business in an
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industry comprised of companies who often build between five and 20 houses a year, this is a remarkable accomplishment. Recent Projects Town & Country is currently working on a “Hunt Club” in Oswego, Illinois which consists of 300 units of single-family homes that range from 2,200 to 3,500 square feet. In Wauconda Illinois, they are constructing Domenella, single family homes that range in size from 1,800 to 3,300 square feet. This development is adjacent to their very successful master plan, Liberty Lakes, which is almost completely full. In 2007, Town and Country’s 70 employees produced revenues of $186 million. So far in 2008, revenue is at $93 million, but this success has not come easy.
Managing their supply chain is also a priority. Managing Today’s Worried Markets It is perhaps impossible to escape the current economic crisis, especially for those businesses in the housing industry. Town & Country is no exception and has “absolutely” been affected by the housing crisis, said Andy. Transportation costs and oil-based commodities like copper have inevitably increased in price, another problem making business more difficult. “The consumer’s ability to purchase money is impaired. Re-sales and new home purchases work hand-in-hand, but with the current difficulty to get a mortgage, the consumer is in a catch 22 situation.” Consumer confidence is also affected by the bankruptcy of competitors. Town & Country sees competition as desirable insofar as it “keeps your blade sharp,” said Andy. Training and maintaining the talent pool, ensuring that it “stay(s) on pace…in the current economy, can keep you awake at night,” he said. The industry as a whole is concerned with the future and it is assumed this will not turn around tomorrow.
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With growth a year or two away, Town & Country plans to “maneuver the down-turn, work with the banks, and take advantage of land opportunities. Re-tooling, sharpening skills, sharpening processes, getting ready for when housing improves; that’s what companies need to shoot for,” said Andy. Working in this market also requires that Town & Country pursue those who are “not encumbered by trying to sell a house,” said Andy. People who are “entry-level” purchasers or renters are examples. Managing their supply chain is also a priority. “We have good resources and use the same people, employing second and third generation trades,” said Andy. They have three to five trades in each discipline which also helps Town & Country’s stability. “We are all weathering the current storm together,” said Andy. Town & Country’s long-term relationships have allowed them to maneuver through the current down turn. These relationships have also allowed them to stem
the increase in prices of commodities, steel, and trade contracts, among other costs. Optimistic for the Future Town & Country views the current crisis as a relatively short-term problem and managing this crisis is necessary to plan for growth when the market comes back. Town & Country intends to take advantage of land opportunities and the excessive inventories of finished lots. In five years, they plan to build 1,000 to 1,120 units a year. They are also going to increase their Web presence and cater to the retail market through the Web. The Internet has already helped them transition some aspects of their business, changing from paper to email start orders and Web scheduling. “We want to become the UPS of home-building. To feature smooth-sailing from start to finish with increased reliance on re-tooling our process via the dynamics of new technology and being able to save because of our good trades,� said Andy.
USdevJournAd.indd 1
7/28/2008 3:34:06 PM
Omaha Construction Services, Inc (CSI) By Brandon Roberts & Angela Floyd
Omaha Construction Services, Inc. (CSI), a comprehensive, construction management firm in Omaha, Nebraska, is a company that delivers. Founded in 2005, CSI is a wholly-owned subsidiary of R&R Realty Group, a commercial real estate company headquartered in West Des Moines, Iowa. Under the direction of Dan Biere, President of CSI, they have sustaining revenues of over $40 million dollars. CSI’s specialty is commercial, municipal, industrial, and condominium residential construction projects. CSI provides its clients with complete assistance in all phases of the build-
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ing process, from planning and design of both new construction and remodeling projects. Their comprehensive construction services include prebond, pre-construction, construction, and leasepurchase opportunities. Offering an expansive array of construction delivery systems, including construction management agency, design-build, construction management at risk, and general contracting services, CSI’s quality work is evident in the recently completed $4 million Magnolia Hotel renovation in downtown Omaha. Current projects include the $17 million construction project at
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Glenwood High School in Glenwood, Iowa and the $14 million construction of the j Lofts condominiums in Omaha. A cut above the rest, CSI is customer-focused from start to finish. “We do not merely assist our clients; we work as a true partner,” states Biere. “We represent clients first by understanding their objectives, then acting in their best interests at all times. We respond to concerns, maintaining open communication at all times, but more importantly, we do things the way our clients want them done.” This is why referral business comes easy for CSI. They go the extra mile
to deliver these results. Dan Biere, a graduate from Iowa State University, majored in Construction Engineering and has 26 years of experience in all aspects of the construction business. He is committed to maintaining longterm relationships with its subcontractors and suppliers in order to continually deliver a seamless, positive experience to his clients. In addition, they provide a full-time construction project manager on-site, from the beginning of the project until the end. The construction industry is facing challenges due to the current market; however, CSI’s diversified services
help them to cope. Not limited to condominium residential projects, CSI is heavily involved in public-sector work as well. With regard to the rising cost of goods, CSI relies on its experience managing projects and making future projections to help them stay within budget, stay competitive and get results for their clients. To top it off, their unparalleled management expertise and services provide clients with optimal control over time, cost, and quality and ensure an outstanding finished project every time. Construction Services Inc. plans for the future include expanding geographically, extending into more construction delivery models, and delivering an increasingly strong financial performance. Being all about their clients, combining the best of outstanding construction management and unmatched customer service are among many of the practices they call standard which is why CSI has emerged as the company that delivers to every client, on time, every time.
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Nogama Construction By Brandon Roberts & Shannon O'Neill Nogama Construction Corporation is a highly accomplished Civil and mechanical Engineering company that has helped to shape and support the infrastructure of Puerto Rico for the past 60 years. The family business, founded by Miguel Nolla and partner in 1948, has grown steadily and gained a stellar reputation. But even in light of numerous accolades and consistent growth, the company has remained true to its roots. JosĂŠ J. Nolla Vila, the current vice president of the business, and the third generation of Nolla leaders, is following in the footsteps of his father and grandfather in the construction business. Among his six siblings, JosĂŠ was the only one to fall in love with construction and to join the family business that has become an influential force in the development of Puerto Rico. It is hard to overestimate the reach and expertise of the Nogama Construction Corporation. Under the leadership of Luis M. Nolla Marquez, CEO, Jose Gonzalez-Nolla, President, and Jose J. Nolla Vila, their specialty and current focus is infrastructure: jobs such as water and filtration plants, sanitary plants, hospitals, and housing and office remodeling projects constitute the majority of current projects. A few recent accomplishments include finishing El Yunque Water Filtration Plant, and the completion of a medical office building in the city of Manati. Civil and mechanical trades are held in house, while electrical and HVAC are subcontracted. Nogama has a roster of remarkable projects in both the public and the private sector. The company was placed in charge of the reinforcement of the Arecibo Observatory, the location of the biggest radar monitor in the world, and also headed the development of the infrastructure
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Nogama has a roster of a remarkable array of projects in both the public and the private sector. for the new Convention Center District in the capital of San Juan. The company does a wide range of projects from residential, industrial, and commercial. Nogama has had success in all of these areas. Although he was not able to disclose the exact nature of the upcoming project, Nolla Vila noted that Nogama is excited to be bidding jobs for the upcoming Puerto Rico Water Facilities construction.
What is the key to Nogama’s continued success, even in recent times of uncertainty? It is no secret that the market conditions have had a negative effect on the construction business in general. Nolla Vila acknowledges that Nogama has felt the effects of the downturn indirectly, noting that some projects have been postponed as a result. He also stated a concern about the rising cost of steel, which Nogama offsets by buying in bulk. The
overall and consistent success of Nogama Construction Corporation is not due to a secret formula, but rather to a true passion for the work and to a few savvy business practices that have stood the Nolla family in good stead and continue to guide the business. José states that bidding jobs correctly is crucial “Don’t do it [take on additional projects] just to keep working,” he warns. He also cites the importance of managing subcontractors and suppliers effectively and consistently. “[With] so much volatility in the market, they need to have stability,” he notes, adding to “always bid out and keep honest.” Nogama keeps a list of pre-qualified vendors and subcontractors they contract with regularly, selected for performance, economic stability, and quality of work.
With the Nolla Family at the helm, Nogama Corporation sails into the future with time-tested confidence and a dedication to continued success. Though the current instability of the market is a concern, Jose has a positive attitude. He knows that the company might lose a job now and again, but maintains that Nogama’s reasonable bidding practices, strong relationships with their partners, and their infrastructure expertise will ensure that Nagoma remains rock-solid. By keeping it simple and focusing on the strengths of the company, Nogama seems poised for success in the next five years similar to that they have experienced in the past six decades.
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Arviso Construction Company, Inc. By Brandon Roberts & Larisa Redins
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Today, the company is well known for its integrity and quality
In operation since 1982, Arviso Construction is truly a family operation. Although the business is now run by three brothers, their father, Olsen Arviso Sr, originally started this successful company. Believing that dedication is the key to success, the Arviso brothers learned first hand about the construction business during their summer breaks. Today, the company is well known for its integrity and quality, so it is no surprise that over 90 percent of the business that the company receives is repeat business. Dedicated to Improving Lives The Arviso owners are proud of their Navajo roots – as a result, they believe that they should strive to improve the economic situation of any tribe that they conduct business with as well. As a direct result, the company believes quite strongly in recruiting, training, and employing individuals of native descent. Company Services The company is well known for successfully executing large scale projects, particularly in remote and rural areas. Arviso is specifically well known for its school and office building construction projects. With that said, the company does provide a number of different services that include Construction Management, Design/Build and Design/Assist Delivery, and Pre-Construction Services. Furthermore, the company also offers Self Performed Concrete, Value Engineering, Fast Track Delivery, Risk Management, Quality Control, Safety Services, and more.
Projects The company has worked on a wide array of different types of buildings in the past. Some of these buildings include senior centers, large multi-purpose buildings, supermarkets, apartment complexes, residential developments, health clinics, offices buildings, schools, and courthouses, among others. One interesting project of note was a project that the company completed for the popular TV show, “Extreme Home Makeovers.� The show asked the company to complete the concrete work for a Veteran Memorial in Tuba City, Arizona. This project was especially challenging in that the company only had 48 hours in which to build a sturdy and reliable foundation. The company is currently working on the Native American Broadcast Center which is a local Native American Broadcast radio station. They are also building Wingate High School in Ft. Wingate, New Mexico. Superior Workers As mentioned, the company has a superior reputation. They have established successful relationships with approximately 250 different local subcontractors. In fact, the owners of the company adhere to the belief that your
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company is only as good as your subcontractors. As a result, the brothers only work with people that they trust can get a job done in a timely manner, within budget, and to the standards of quality that they require. Typically, each trusted subcontractor gets three bids, with the lowest bid generally winning. Of course, before proceeding, Arviso ensures that this bid was in fact an accurate and realistic one. Arviso in the Future While Arviso has completed plenty of interesting projects in the past, they are also looking forward to the future. The company hopes to grow to a respectable size and to expand their market into the private sector. Above all else, Arviso will always maintain its high standards of quality.
Borghesi Building and Engineering Co., Inc. By Brandon Roberts & Olga Tsyganova Borghesi Construction has been in business since 1942 and Max Borghesi, the founder, is still with the company; but that does not mean that the company is standing still, or stuck in the past. It is a very vibrant, modern company as you can see from their website at www.Borghesibuilding.com. With 25 employees and annual revenues of between $25 and $30 million, they are well poised to move into the future. Although they started out as masonry contractors, they now specialize in the design-build approach, meeting with customers and going through the whole design-build process from beginning to end for commercial and industrial projects.
This is why Borghesi Construction has relationships with most of its suppliers and subcontractors that go back 20 years or more and they use them again and again. They don’t do residential projects and the only trade they keep in-house is finished carpentry. The rest they sub out to trusted associates, people they have worked with for many years. When Allan Borghesi became a partner in 1968, he had a background in engineering. He redesigned the company and steered it in the direction that they follow today. Jeff Borghesi joined in 1972 and now heads the construction activities. In 1987, Gary joined and now handles sales, marketing, and is also a partner in the company. He says that the mortgage crunch has not really had any effect on their business, since they don’t deal with residential projects. In fact, they have recently been working mostly on refrigeration warehouse spaces and these have not been affected by the mortgage meltdown. Business has to go on no matter what happens in the residential sector. Gary Borghesi has a simple formula for thriving and even growing in this market. Continue to provide quality service, respond in a timely manner, and continue to advertise. If
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you assume that you have all the business you need and that is all the business you will ever need, then you are going to stand still and eventually stagnate. That’s not the way Borghesi Construction does business. Part of providing quality service and responding to clients and prospective clients in a timely manner means having good relations with reliable vendors and sub contractors, people that can be trusted to take their jobs as seriously as you take your job. This is why Borghesi Construction has relationships with most of its suppliers and subcontractors that go back 20 years or more, and they use them again and again. Two typical projects that they completed recently were the 100,000 square foot Napoli Food refrigeration warehouse and a 70,000 square foot warehouse for Pennsylvania Steel Corp. One of the most interesting projects they have been involved in is Akdo Intertrade, a 110,000 square foot warehouse and show room, on a contaminated site, where the local municipality had to approve it all. There were a lot of efforts involved, and it was successfully completed in 2007. In the future, they are planning some retail development projects, including a new CVS and a new Dunkin Donuts, plus an R & D Dynamics Industrial mfg building even though the rising cost of goods has driven prices up by 30 percent in the last two years. Gary Borghesi is most concerned with the next project and making sure they get paid from completed jobs. In terms of competition, Borghesi thinks healthy competition is great, although he is concerned with people who bid too low on projects. Gary Borghesi graduated from Worcester Polytechnic Institute in 1985 with a degree in Civil Engineering and started sub-contracting for Borghesi Construction. The company hired him in 1987. Since then, he has bought in as a partner and part-owner of the company and he sees it moving ahead into a bright future. In the next five years, he plans to keep the company on their present course and retain the same volume of work, comfortable with where they are and what they are doing.
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Principal Builders By Hayley Gold & Aryeh Katz
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Ask Scott Reay what makes his outfit, Principal Builders, a success, and he’s just as likely to point to his high school basketball coach as his 25 years in the commercial construction industry. And after speaking with him a while, you come to understand why. Principal Builders is an attempt to put into practice what Reay and his partners, Jon-Michael Johnson and Mark Christensen, see as the sine qua non of success in the development business: teamwork. This is not just some catch-phrase the trio pays lip service to. Reay and his partners literally breathe the idea. Whether amongst themselves in the office, with clients, tenants, tradesmen or vendors, Principal Builders thoroughly understands its role as a ‘team member.’ “I grew up playing team sports,” says Reay, “and continued through college. It requires discipline and pride. You develop a sense of accountability, of not wanting to let your teammates down.”
“We’re successful because people trust us,” says Reay. And how’s the team doing? A simple look at the numbers indicates a knockout record. In 2007, the firm saw $39 million in sales. That’s up from $4 million in 2003 when the company was founded. Reay says the company is trending towards $55 million in sales for 2008. Principal Builders came together when its three principals – all formerly employed at nationally based DPR Construction Inc. – realized that they had lost contact with the most important part of the building business: the customer. “The more senior you get in an organization,” explains Reay, “the further away you get from the customer. As an exec, for instance, you might spend 80 percent of
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your time on personnel issues, not being a builder. We were all in upper management when we recognized that these roles – as prestigious as they may sound – really don’t let you be close to the client, and that is what we wanted, what we really missed.” Setting up in San Francisco, the company took the unusual first step of deliberately limiting their field of operations to the San Francisco Bay area in order to be as close to their clients’ projects on a daily basis as possible. The approach worked. “We’re successful because people trust us,” says Reay. “We do what we say we’re going to do, when we say we’re going to do it. And when there’s a challenge, and when there’s conflict, we’re on the spot to absorb the pain. Not the subcontractor or the landlord or the tenant – us. It’s important to us that there be amicable resolutions [to problems] because that’s the best form of marketing. Fifty percent of our clients are repeat business – and the other 50 percent we compete for in various ways.” Principal Builders just recently completed 155,000 square foot project for Babcock & Brown, a repeat customer.
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On an operational level, Reay explains that managing the people who do the work for them is also critical to the company’s success. “Understanding what it takes to make a drywaller successful – knowing their business as much as they do – helps you manage the process so that you give them a chance to succeed. They have to be part of the team, too. And if you don’t do that
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– if you don’t manage for success, what can go wrong, will go wrong.” With only 51 employees, Principal Builders is lean. All trade work is contracted out, and Reay believes that staying small is an advantage in the current building climate. He says they haven’t yet been affected by the current mortgage crisis, but he’s “waiting for the other shoe to drop.”
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Is there anything that keeps him up at night? “My two teenage daughters,” he chuckles. When asked if his high school basketball coach is the person most responsible for his current success, Reay nods. “After my father.”
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CE Hall Construction By Matthew Tropea & David Chodack There is an old saying in the construction business: you should either stick with four employees or less, if you want to stay small or have at least 20 employees if you want to get big. Anything in between is considered a recipe for disaster.
On the other hand, the commercial side has not been impacted and so Gene Hall is not overly concerned. He is found that there is a cycle to this business. “There is the residential side, the commercial side and renovations in between.” He says philosophically. One way or another, he manages to keep the work coming in and keep his business steady and growing. As a general contractor, Gene Hall sees that the relationships with his vendors and subcontractors has been very important to the success of CE Hall construction. “Getting the right subcontractors to produce quality work with integrity and take responsibility for their part of the project is extremely important,” to Gene. CE Hall construction does all the carpentry, cleanup work and concrete work in-house, while everything else, from the plumbing, to the electrical, HVAC, the site work and masonry are all done by subcontractors, who must be relied on to do their jobs right and uphold the reputation of CE Hall construction.
Fortunately for Eugene Gene Hall, he doesn’t worry about things like that. He founded his company, CE Hall Construction Inc. in 1989 and in 1990, he turned it over to God. As he says, “God is my CEO. Once you leave it in his hands, you have no worries.” And CE Hall construction company Inc. has not looked back since. With only 15 employees, in defiance of traditional industry wisdom, the company still managed to generate revenues of $30 million in 2007 as a general contractor specializing in churches, office buildings, banks and country club clubhouses. The company started in light commercial contracts and high-end custom homes, then moved into medium commercial contracts and large developments and it is now an extremely diversified company, with a simple motto: “If it is vertical, we build it.” The market has definitely affected the residential side of the business. In fact, Mr. Hall feels that the market has been oversaturated with developments and speculative homes because there is no one to buy. “The residential market is dry.”
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To Gene, reputation is everything, since he doesn’t advertise. He lets word-of-mouth and his company’s reputation do the advertising for him. His top projects so far, have been the University of Georgia Forestry Education Center and the Enclave clubhouse. Mr. Hall has seen a 10 percent increase in the cost of goods. Due to the increased demand in the world market, but in spite of this and the other demands of running a multimillion dollar business, he has no worries and he sleeps like a baby, because “God is in the drivers seat.” On the other hand, as a successful businessman, he believes that competition breeds success and so he always pushes for competitive bids and strives to create his own success. In fact, he says, it was working for ABS, a company that is now a competitor, that taught him the meaning of integrity. Gene Hall was born in Baltimore MD and moved to Savannah Georgia, at the age of 12. At 18, he joined the Carpenters’ Union and began work as a general contractor for a company in Atlanta, before moving back to Savannah
and starting CE Hall construction Inc. When he envisions his company five years in the future, he sees the company still building commercial and high-end residential structures and doing renovations in between. In fact, that’s really all that Eugene “Gene” Hall has ever wanted to do. He loves what he does, he is successful and provides jobs for many other people. Why should he change now? He doesn’t see any reason. Gene just wants to keep the faith and keep on building.
USA SHADE: Merging Towards Success By Hayley Gold & Olga Tsyganova
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. Saunders, one of the co-founders of USA SHADE, grew up in Cape Town, South Africa. He emigrated to the United States in 1986, armed with a back pack, $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 found-
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FERRARI Your obvious partner for architecture Fabric Architecture "Allowing natural light, freedom of design, and style, textiles provide unique solutions to everyday issues."
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country and has nearly tripled in size. ing 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.
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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 partnership 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 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
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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.
Building Corp II By Matthew Tropea & Suzanne Mason
When you think of the state of New York many think of cities such as Brooklyn, Harlem, or most famously New York City. Middletown, N.Y probably wouldn’t be a city you would think of in association to New York, but it when comes to the locations of construction companies Middletown is up there against the well known cities. Middletown is home to Building Corp II, who focuses in on the commercial spectrum of construction for the lower Hudson Valley. Building Corp II was established in 1999 by Joe Gringras after his partner retired. He named the company Building Corp II in homage to the original Building Corp. The company specializes in developing special needs housing.
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As for Gringras, he started out in the construction business in 1970’s. He moved to Texas and learned how to work with machinery, then moved back to New York and worked as a laborer. Once he became involved in management, Gringras never looked back. Building Corp II is very hands on with their approach in the business. They stay involved during the entire process from the bidding to the grandopening. “[People should] plan for 10 percent overhead and strive for 10 percent profit. [At Building Corp II] we have to be sure to have all our ducks in a row. We have become a well oiled machine that constantly re-feeds the business,” says Gringras. This has remained true in the different projects that the company has been involved in. Along with doing work for
The company specializes in developing special needs housing churches, they have also done work for Christian Faith and Family (CFFC) and the Center for Discovery, which is a campus for autistic children. Although Building Corp II has enjoyed success in their sector of the market, they have noticed the effects of the rising costs of goods. Commodities such as fuel, cooper, and steel have all increased. This has made things difficult at times particularly when trying to stay within a budget. For example, an increase in the price of
steal increased the budget for a job by $16,000 in a single day. As for Gringras competitors, he has noticed that they have been dropping their prices. He recognizes some competitors need to work for a paycheck rather than work for profit. To proactively combat those challenges, Gringas stays on top of the business and makes sure he is competitive while producing the highest quality product. Because of this, Building Corp II typically gets about six out of every 10 bids jobs that they bid on. Looking towards the future, Building Corp II wants their company to grow to annual revenues of over $20 million a year. By staying in his company’s niche, Gringas is confident his company will continue to handle the workload that is in front of them.
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Canyon Construction By Jacob Skeeters & David Chodack Canyon Construction Corp. is based in Frederick, Maryland, but it is a lot more than just a local contracting company. In fact, in the 16 years since it was founded, in 1992, Canyon Construction Corp., under its President, James W. Ferrell, has become a full-service construction company, as well as a prime contractor, specializing in Construction, commercial and industrial, office/warehouse condominiums and office research facilities in the Baltimore Washington Metropolitan area. But Canyon Construction Corp. does not restrict its work to the Baltimore Washington Metropolitan area. It has completed projects for the U.S. Navy as far away as Charlestown SC, as well as work for a steel company in Canton Ohio and for Georgia-Pacific
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Corporation in Kansas City MO, providing a full range of pre-construction and construction services from initial construction program development to successful completion and client occupancy. As a specialty prime contractor, they provide a complete building shell, including concrete footings and foundations, floor slabs, structural steel, roof and wall systems and then they farm out the electrical work, plumbing, engineering etc. to trusted subcontractors with whom they have a close working relationship. The mortgage clampdown has not really affected their business in a big way, because most of their work is in the commercial sector, rather than the
At Nucor Building Systems, we combine the financial strength of a Fortune 500 company, the experience of the largest steel products producer and the largest recycler in the nation, with the personal service of a neighborhood business. As a top metal building manufacturer, we are proud to have Canyon Construction Corp. as an Authorized Nucor Builder.
www.nucorbuildingsystems.com
Part of running a successful construction business is having a reliable supply chain of vendors and subcontractors that you can count on, people and companies that share your values and take pride in their work. residential sector of the market and his residential sector that has mostly been hit by the mortgage crisis. Commercial building goes on as long as there is demand. It is not affected by the ups and downs of the mortgage market the way the residential market is. Canyon Construction Corp. has a simple formula for maintaining and even growing its business in this market or any market. Just do quality work and give the customers more than they expect. Let your work speak for itself.
Part of running a successful construction business is having a reliable supply chain of vendors and subcontractors that you can count on, people and companies that share your values and take pride in their work. Canyon Construction Corp. maintains long-term business relationships with vendors and subcontractors who have proven themselves trustworthy and count them as partners in its success. Canyon Construction Corporation and their design build team
are providing total design and construction for a new Baltimore facility for W.O. Grubb, a regional construction crane rental and steel erection company headquartered in Richmond, Virginia. Completed in 2006, the new facility has 9,100 square feet for a twostory office and 23,900 square feet of crane maintenance area. The office area houses business development, engineering, estimating and administrative functions while the crane maintenance area with its 30 ton top running crane
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services the construction cranes in Grubb’s large rental fleet. R.E. Michel Company, headquartered in Glen Burnie, Maryland, is a regional supplier of heating, ventilating and air conditioning units and parts with facilities from northern New York to Florida and from Maryland’s Eastern Shore to Missouri. Canyon completed two projects for R.E. Michel under contract. The Waldorf project was a 5,000 square foot addition to their existing facility. This space increased the storage capacity in their well established Waldorf facility. The new Westminster facility has 3,000 square feet of show room and 17,000 square feet of warehouse and distribution area and replaced their previous
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lease for rental space. Both projects involved Canyon providing turnkey facilities from design to construction. Like everyone else, Canyon Construction Corporation has been hit by the increased cost of materials and has to pass most of it on in the form of higher bids, but so far it has not been a serious drawback to business. Rising costs have always been a part of the construction business and over the years, the Canyon Construction Corporation and its President James W. Ferrell, have learned to adapt and thrive. If there is one thing that keeps Mr. Ferrell up at night, it’s thinking of ways to get even better and give customers even better service. As for worrying about his
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competitors and the state of his industry, every smart businessman does that. If you don’t think about your competitors then you will fall behind. If you do think about your competitors, then you can use them for inspiration and drive your self to get better. Five years from now, Mr. Ferrell sees Canyon Construction Corp. even more successful than it is today. You can not sit still. You either grow or stagnate and James W. Ferrell and Canyon Construction Corp. have no intention of stagnating.
Stevens Construction By Jacob Skeeters & Larissa Redins
Despite the economic downturn, there are companies that still manage to increase their market share in the construction industry. One example is the Florida-based company, Stevens Construction. Founded in 2003, the company’s management boasts more than a century of combined construction experience.
Stevens Construction mainly concentrates in the building of commercial offices and health care facilities from 3,000 to 40,000 square feet. Projects range from $150,000 to $10 million with an average of $2 million per project.
Services
Stevens Construction has built an excellent reputation based upon referrals and “word of mouth” advertising. The company was named “Builder of the Year” in 2006 and “Contractor of the Year” in 2007 by the Lee Building Industry Association. The company recently received the award for “Best Office Project” and “Best Renovation Project” at the LBIA 2008 Summit Awards.
Stevens Construction provides three main services: Construction Management, Design Build, and General Contracting services. Stevens Construction specializes in Construction Management providing clients with detailoriented services that includes pre-planning, design, construction, as well as engineering and management expertise.
Successes
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Stevens Construction has also won Aurora awards for two consecutive years by the Southeast Builder’s Conference. The Aurora Awards honor the best in residential and commercial construction in a twelve state region. The company won in 2007 in the hospitality category for South Seas Island Resort Lagoon Pools and Cabanas at the Pointe and in 2008 in the health care category for St. Mark’s Surgery Center in Fort Myers. Notable Projects One of the more notable builds within the past few years is the construction of South Seas Island Resort Lagoon Pools and Cabanas at The Pointe. The hotel itself consists of a 12,000 square foot clubhouse facility that surrounds a pool complex. The clubhouse features waterfront dining and bar areas, activity rooms for both children and adults, and video arcade. Other notable features include two swimming pools with fountains, spas, pool attendant buildings, and cabanas. The company is currently building an additional project at the Captiva Resort. Construction is underway on a Kid’s Pool Complex which will feature a 120’ cyclone-curved waterslide and a 50’ vertical slide upon completion. Other current projects for the company include: Florida Hospital Medical Office Building & Ambulatory Surgery Center, renovations at the Florida Hospital Wauchula Emergency Room, Mount Dora Ambulatory Surgery Center, Barnes Chiropractic office, and a 15,000 square-foot helicopter hangar for EMS flight operations, which also includes offices, crew quarters and two apparatus bays for EMS ground personnel. Future of the Company With respect to the future, the company is an ambitious one and wishes to expand its Design Build service offerings. Within approximately five years, Stevens Construction plans to expand three offices in Florida. Recently, the company opened its second office to serve the central Florida market in Maitland. However, with their current success level as an indicator of the future, the company will surely continue to make their mark in the construction industry.
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JS Vig Construction
By Jacob Skeeters & Marianne Rogoff Joseph S Vig Jr. or ‘Joe’ became president of J. S. Vig Construction Company in 1997 after the passing of his father, Joseph SR. Joe Sr., a Korean War Veteran, founded the company in 1965 in Taylor, Michigan. He worked for another construction company for ten years after his time serving the country befor deciding he wanted to be his own boss. The business Joe Jr. has inherited is,a family business. “I have been blessed with inheriting a good organization with good people,” said Vig. Vig, who joined the company in 1994 after graduating from University of Michigan and brief stint with a commercial real estate company, has plenty of company. His sister Valerie joined the company in the mid 1980’s and
now occupies the position of COO, his sister Renee works in the accounting and human resources division. In addition his brother in-law, Dennis Levco, is a Vice President within the company. Currently, J.S. Vig has 24 employees including some in-house carpenters and concrete workers. J.S. Vig Subs out steps 2-16 of the construction process more often than not. Their services consist of: project feasibility, site selection, zoning planning and permit approvals, design- build, construction management, cost estimation and budgeting, cost segregation and project scheduling. According to Joe Jr. “We are construction managers; we manage the risk of our clients.”
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Historically, J.S. Vig Construction has done industrial and commercial office work. Part of their diversification strategy is to take on more hospitality and telecom projects. They have performed jobs for a wide variety of clients, everyone from the Archdiocese of Detroit to the United States Border Patrol and more than a half dozen fortune 500 companies. Private, Public, Municipal, local, state and federal, no job is too large or complex to tackle. That’s probably why the company’s gross annual revenue more than doubled to 54 million dollars last year, up from 20 million the previous year, and continues to be one of Michigan’s’ fastest growing companies. With all of its employees being part of the large JS Vig family, the founding core values remain the key to the company’s success, even as the business has evolved from a hard-bid construction company to a full-service negotiated bid construction management company. “We spend time with high-level people in preconstruction activity and place high value on customer service and good relationships,” stressed Vig. The down-turn of the subprime mortgage market did not directly impact Vig’s business until the first quarter of 2008, when he noticed a number of his clients were affected. To maintain and continue growing in the current market, the company believes in geographic and product-type diversification. Besides retail and hospitality, for example, they have built structures for public and private colleges, such as a new training center for Wayne County Community College in Taylor Michigan and the Everest Institute in Detroit. Though Vig does the majority of their work close to home, they also have performed on projects as far away as Austin Texas. Managing the supply chain is vital when doing business close to, or away from home. “We have a number of key subcontractors and we treat our subs as family. The ones that have been working with the company for along time always tend to come in on budget and on time even during troubled times and the rising cost of materials. Our primary criterion for selecting our subs is more than just a marketing slogan: Integrity, Honesty, Safety, Quality, and Customer Satisfaction. We expect our subs, as part
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age
of our family to uphold these values when working for us,” said Vig. “We don’t chase the work—we rely heavily on referrals, that’s why it is important for our subs to do as we do. We have “beat” this philosophy into our supply chain,” Vig emphasizes. JS Vig recently completed a major recreation center, gym and aquatic facility in Romulus. Other projects include built for the U.S. Border Patrol and the Great Lakes research lab for NOAA (National Oceanic and Atomospheric Administration). A Detroit-based real estate developer hired the company to convert a 1940’s hotel in Austin, Texas into a mixed-use structure; one issue was that the building was terribly outdated having been converted into a living structure back in the 80’s. The cost of goods has affected business, with material price increases as bad as four years ago, especially the escalating prices of steel and copper. “This makes it challenging to pencil out cost estimates for clients,” said Vig. What keeps Vig awake at night? It’s the uncertainty in the capital markets, the demand is there, the issue is financing. He does not worry about competitors in the industry. “We operate in a space where we have good competition yet are very blessed we get to stay out of the open bid market.” Assuming the company can stay where it is Vig feels “We are good to go.” He realizes that the industry is becoming more sophisticated and comments,“We adapt to current trends like the green movement, our clients demand that we be very knowledgeable.” Looking toward the future J. S. Vig is on track to remain a 50 million dollar company, without being volume oriented. “In the next five years, we are looking at opening an office in Raleigh, North Carolina; we’re focused on expanding our involvement with LEEDcertified projects and our range of service to real estate developers who have been loyal to us.” Currently, the company is doing some internal fine tuning and wants to continue its close relationships with its clients because as Joe says with a smile, “If our clients are happy, we are happy.”
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Master Builders & Specialists, Inc. By Jacob Skeeters & Shannon O'Neill Master Builders & Specialists, Inc. is a homegrown construction company that tackles both commercial and industrial projects. The company has been serving the community of Lafayette and surrounding Louisiana for 28 years. Dedicated to a team approach, Master Builders & Specialists, Inc. has made significant strides since founder and general contractor Kenneth Fuselier acquired the company in 1980. Citing his innate competitive drive and his entrepreneurial spirit, Fuselier steadily grew the business and built a strong reputation for finishing projects promptly and within budget guidelines. Master Builder & Specialists, Inc. stands out from the competition by maintaining positive relationships with clients from start to finish—from contract negotiation to project completion and beyond. This focus on communica-
Master Builders & Specialists, Inc. self performs approximately 30% of all of their projects. tion yields results. In addition, placing priority on maintaining a dedicated and cohesive team with a strong sense of integrity ensures that they can provide excellent service. Master Builders & Specialists, Inc. commits to its clients and subcontractors to finish jobs economically and promptly. Master Builders & Specialists, Inc. self performs approxi-
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mately 30% of all of their projects. They employ carpenters, cement finishers and experienced construction laborers, while subcontracting trades such as, electrical, plumbing, HVAC, ceiling work and flooring. The company counts on reliable subcontractors and vendors with a history of success, and also takes into account the most favorable bids as well as the ability of subcontracts to meet the schedule and deadlines required by a client. At the head of the team, Founder and President, Kenneth Fuselier manages twenty employees, along with his recently retired partner, who came to the business with extensive field experience. Reaching over 12 million dollars in annual revenue, Fuselier and Master Builders & Specialists, Inc. take on new construction projects as well as restoration projects, dealing with commercial properties ranging from 4,000 up to 300,000 square feet. Recent projects include a new Toyota dealership in Opelousas, Louisiana, and a bank restoration for St. Mary Bank and Trust in Franklin. This project posed special challenges since the historic bank was constructed in early 1900’s. Due to the requirements of Historic Restoration, much of the wood had
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to be specially milled and parts custom fabricated in order to match the original. Fuselier enjoyed this unique opportunity, and is now looking forward to upcoming projects including a new courthouse annex and a large commercial strip center. Though the rising cost of goods is a cause for some concern, Fuselier is confident that the company will continue to grow over the next five years. Keeping close watch on changes and additional expenses that come up as a project unfolds, is a part of the job that Fuselier takes seriously. He also cites the need to, “keep our workers satisfied and challenged in the field,” as an important goal. Fuselier realizes that maintaining good communication with his team and with his clients is one of the main keys to continued success. As the company website www.masterbuilderandspec.com makes clear, “communication, teamwork, and on-site supervision of projects from beginning to end” are the keys to Master Builders & Specialists, Inc.’s success for client satisfaction.
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Departments
Tips For Selecting Editing Software For Construction
Prefab Offices Setting Trends
Profiting From the Dubai Construction Boom Trends in Green Building and Sustainable Construction
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Profiting From the Dubai Construction Boom By Thomas J. McCarthy Companies that offer the sexiest kind of investments are usually the ones that get investors drooling. Tech stocks remain the most attractive family of investment despite their tendency to fluctuate, but it’s not necessarily due to their superior quality. It’s easy to overlook stocks that don’t sound as cutting edge as those in the technology sector. (OTC:WWAG) is one stock not to be overlooked. World Wide Auctioneers Group, Inc. sells construction equipment in underserved regions outside of North America. Although they have franchise partners in countries like Australia, The Netherlands, Indonesia, and China, their primary auctions are based out of Dubai.
In a June 2006 article, The Economist reported that the emirate expects to spend 100 billion on itself in the next 5 years... about a third of that in construction.
You’ve probably never heard of them. What’s more, construction equipment auctions in the Middle East sounds boring, doesn’t it? Think again. This investment has already enjoyed remarkable success and is perfectly positioned for more of the same.
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The secret to scouring the earth for a great investment is not ONLY about looking at the company’s numbers. There is another, much more fundamental question: Will someone buy the company’s product? This was a lesson that investment guru Peter Lynch practiced in his investing. Without buyers, products linger on shelves, operational expenses eat into capital, income drops, and companies close their doors. (During the tech boom of 2000, companies found mobs of investors even though they had no plans to produce sellable products... one of the factors that caused the tech bubble to burst). So you’re looking for a company that sells products to motivated buyers? For sellers of construction equipment, there are few places ON EARTH that are as good as Dubai. In 2005, Dubai’s Department of Economic Development reported a 29% growth in construction. In December 2005, BBC reported that Dubai’s economy - which has prospered for 30 years - grew four times faster than the US and has never experienced an economic crash in its 3 decades of growth. And in spite of our ideas about the Middle East, Dubai is politically stable and very entrepreneurial.
The world’s tallest building and the Middle East’s first indoor ski resort make up 2 of the thousands of buildings springing up. After all, this small region - with a population of about 960,000 people, sits on 10% of the world’s oil. The result? Massive oil exporting that brings in plenty of money. That money fuels massive construction. How much construction? In a June 2006 article, The Economist reported that the emirate expects to spend 100 billion on itself in the next 5 years... about a third of that in construction. Massive construction needs equipment. Enter WWAG. This profitable company, one of the largest auctioneers of heavy equipment in the world, has a P/E of about 8. Since 2001 they have auctioned over $300 million dollars worth of construction equipment from its facility in Dubai. As Dubai prospers, WWAG is likely to prosper, too, since it holds a 65% share of industrial auction sales in Dubai. You want to invest in a company that is poised for growth in a country that is flush with wealthy customers. Source: articlecircle.com
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Tips For Selecting Editing Software For Construction Information on selecting construction Estimating software packages is hard to come by. We hope that tips below will help you with your quest to locate the right construction estimating software package for you. There are many different program packages out there designed to suit various estimating purposes, and you should focus your selection on those packages that will address what you want done. You can see major ones described below: Information on project trackers You can multi-task efficiently using project trackers. Not so much an estimating tool as it is a records and schedule keeper, this type of program is essential for those who want to juggle several jobs at a time. Try to find a package with a good accounting system for your cost tallies per project, as well as an easy to understand and easy to
update schedule tracker for the purposes of maximizing your time management. Some project trackers even have a personnel file option, made for the purposes of monitoring your employees out in the field, making dispatching less of a chore. Anything that makes organizing your business easier, saves you time which ends up saving you money in the end. The more organized your projects are, the more you can get done. Cost control packages These packages do a comparative analysis of the accounting involved in a construction job, based on parameters that you can program in to the computer. This allows you to be able to properly manage your budget for the project, maximizing your profit by minimizing the operation costs involved, while still maintaining quality workmanship. While this is something that can be done with any Construction Estimating software, Cost Control packages are designed especially for helping you keep the costs as low as possible to make the most profit on a contract. Specialized By ProjectType Packages When you have something specific that you want to do these Construction Estimating software packages can be very useful. For those whose line of work specializes in a certain construction job type, these are the preferred software packages to purchase. Some examples include, but are not limited to, Roof Construction Costing packages, Paint Cost estimating packages, Home and Interior Design Remodeling packages, Floor Tiling Construction packages, and Home Repair Costing packages. If you specialize, its best to get a package that is tailored to your particular needs, as the options available to those programs revolve around your line of work. The program design will be more of a clean, organized space than it would be otherwise. Source: articlecircle.com
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Prefab Offices Setting Trends Among the major decisions made by business entities is the physical layout of the offices where they conduct their day-to-day operations. Prefabrication is the most efficient solution for office requirements. Prefabricated systems are ideal for project offices, home offices, factory premises, and even office interior furnishings. Prefab offices offer all the essential structural elements and all the components required for a completely
All prefab offices require a site to build on, building foundation, and certain degrees of preparation like water and electrical access.
functional workplace. Modular offices commonly make use of panelized systems that are comprised of a series of prefabricated panels or parts assembled together on-site. This approach greatly simplifies the entire office construction process. Essential components like the roofs, floors, and walls are fabricated in a factory according to size requirements. Then the different modules or parts of the office are brought on the site as finished units where they
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are connected and assembled. Modular offices can be assembled on-site by the manufacturer or they may necessitate the labor of subcontractors to put them in place. All prefab offices require a site to build on, building foundation, and certain degrees of preparation like water and electrical access. But more often than not, assembling modular offices takes only a short time to finish. And while some contractors desist from using prefab offices in their projects, it is noteworthy that prefab offices are becoming the trend in office construction industries worldwide. Here are the primary advantages of using prefab offices. Durable Quality - The structure of prefab offices tends to be far more durable and sturdier than other office construction methods. Modular offices are often the result of the combination of scientific research and architectural expertise. Components of prefab offices are built to take on the destructive contingencies that can happen from transporting to installation stages.
ous after-sales services in case of pre-mature or unexpected deformities. Set-up Wastage Elimination - By using prefab offices, construction wastage is not only reduced but also eliminated. Building modular ensure that the various raw materials to be used are not exposed to the sun and the rain; hence, it eliminates decays especially for wooden office modules. Theft is also discouraged, as different office components are tailor-made to fit other components; therefore there will be no point in stealing the parts without taking all the compartments as a whole. Besides, delivery of prefab office parts is made just in time for actual set up. Indeed, prefab offices are constructed using standardized production methods that are highly efficient and therefore cost saving. Although the cost of building prefab offices is much dependent on the type of materials and designs used, it is still considerably cheaper than traditional office construction. Source: articlecircle.com
Besides, manufacturers of prefab offices give gener-
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Trends in Green Building and Sustainable Construction By Matthew Hancock
“Green Building” is a term used to describe the design and construction of sustainable and environmentally conscious buildings. The driving force behind this is to lower our negative impact on the environment and, at the same time, make the buildings we live and work in safer and healthier. According to the United States Green Building Council (USGBC), buildings are responsible for all of the following: 39 percent of US carbon dioxide (CO2) emissions 70 percent of US electricity consumption 15 trillion gallons of water consumption Even though there is still some controversy over the effect of greenhouse gases on the environment, the three statistics above are very important for those of us living in urban areas experiencing continuous growth, especially the American Southwest. With our population expansion, aging water, electrical infrastructure, and shrinking landfills, designing and constructing green and sustainable buildings makes practical sense from a utilitarian perspective. In fact, USGBC data shows that green buildings use 36 percent less energy, require fewer raw materials, and divert
less waste to our landfills. Furthermore, the “increased” cost of green building is only one or two percent more expensive than a conventional building. This minute difference exemplifies the tangible and long-term benefits of sustainable design, primarily due to the fact that green buildings conserve water and electricity. Thus, while they are more expensive to build, green structures will save money by conserving more energy over time. Another push towards the green build movement is by local governments. More and more municipalities are adopting the USGBC LEED® (Leadership in Energy and Environmental Design) guidelines for new and renovated buildings. In 2006, at the USGBC Greenbuild expo, the Mayor of Denver challenged other major cities to see who can have the most LEED® certified green buildings. They are accomplishing this by offering tax breaks to private corporations and mandating sustainable construction for city-financed projects. This has led to a dramatic increase in the number of sustainable projects built by LEED® Certified general contractors. However, this growth has not come without challenges. Currently, the following issues are restricting the number of green projects being built:
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Building officials are struggling with a steep learning curve on how to evaluate these new products and sustainable building techniques
building techniques. So what does green building mean at the end of the day? It’s simple yet profound: Do the right thing for you, the environment, and the next generation. While most companies are concerned with their bottom line, they ought to embrace the idea that energy and water conservation, green building, and the use of “green materials” in construction stands to increase their savings over time while positioning them as a leader in environmental stewardship.
Despite these difficulties, the USGBC, sustainability advocates, and green building construction management firms are meeting to overcome these challenges. The LEED® process is constantly under review and continues to adopt the latest codes and products. This includes Standard 189, a new minimum standard for green building. The USGBC is currently developing LEED® 3.0 and working with national code writers to include new products and techniques.
According to the USGBC, we spend 90 percent of our time indoors. Due to this fact, scientists have identified an increase in allergies, asthma, absenteeism from school, and even work. There have been numerous studies done on post occupancy productivity levels, which have increased within “green” built facilities. Not only does green adaptation result in less sick days taken, but also shows an increase in productivity, job satisfaction, and, in the case of schools, better grades.
The American Institute of Architects (AIA) has even rolled out a new initiative called “Sustainability 2030,” which, at its roots, is looking to design all buildings by the year 2030 as carbon neutral. The USGBC has even initiated the Green Advantage Builders Certification for contractors to certify their knowledge in green
So, as we positively affect the environment around us with sustainable green construction, we eventually create better health for ourselves.
Increased demand for green products has lead to long lead times New and unspecified materials are labeled “green” but are not necessarily certified
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Source: articlesbase.com
Cincinnati United Construction By Brandon Roberts & Larisa Redins
Founded three decades ago, Cincinnati United Contractors, Inc. continues to be a leader in the construction industry. The company originally opened its doors as Cincinnati United Contractors, Inc. in 1978. Over time, the company has grown substantially – and as a result, new business entities formed to reflect this positive growth. In fact, one of the latest business entities was formed only two short years ago - namely United Church Builders, Ltd. Today, the company boasts of 55 employees, and it generates a very healthy revenue of approximately $35 million dollars per year. Giving Back to the Community Simply stated, Cincinnati United Contractors, Inc. believes in giving back to the Cincinnati and area community. The firm’s owner, Charles J. Kubicki, founded the Charles J. Kubicki Foundation to demonstrate their commitment to this philosophy.This important foundation provides charita-
ble donations and construction assistance to organizations in the greater Cincinnati area. Specialized Firm Cincinnati United Contractors, Inc. is a highly specialized business, offering primarily design/build contractor and developer services. More specifically, the company is involved in site selection, budgeting, financing, property management, architecture and design, space planning and interior design, and of course, construction. Cincinnati United Contractors, Inc. prides itself not only on creating spaces that are cost effective and functional, but in creating buildings that are also aesthetically pleasing. Above all else, Kubicki believes in the importance of good relationships and ensuring that all clients have a “worry free” construction experience by “doing what you say you will do when you say you will do it.” Kubicki states, “When you build a building, start at the top and work your way
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three-story corporate headquarters is without a doubt another large scale project. In fact, the building’s grounds even boasted of a traditional baseball field – complete with stadium seats. Still other recent projects of note include the Building of the Senco (Senco Staple Gun) Company Office building, and a Forest Park, Ohio based Inspirational Baptist Church. Future of Cincinnati United Contractors, Inc. Since the business has grown quite substantially since it was first founded in 1978, one can only imagine that this company will continue to flourish. Further, since Cincinnati United Contractors, Inc. specifically plans to expand its construction of churches, this growth will undoubtedly continue in the near future and beyond. down- the cost of putting a job together is more than just bricks and mortar, and you have to surround yourself with good people.” Past Projects In the past, the company constructed a wide of array of projects that included offices, warehouses, churches, retail centers, industrial spaces, manufacturing facilities, and related buildings. One interesting project completed in the past is a place of worship called the Vineyard Community Church. The building, itself, consists of 103,000 square feet of space – including multi-level seating arrangements, classrooms, stage areas, and even a cafeteria. Situated on forty-three acres of land, the company ensured that there was a functional balance of traffic flow, storm water management systems, outdoor recreational activities, and more on this development. Recent Projects A more recent project the company undertook was the building of the new world headquarters for Prasco, a pharmaceutical distribution firm. This 90,000 square foot,
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Colorado Hardscapes, Inc. By Kelly Rice & Suzanne Mason Historians say that the art of concrete fell apart after the fall of the Roman Empire. Today, it is alive and well in the construction world in sectors that focus in on concrete design for buildings. Although the average eye may not think of it as art., Colorado Hardscapes says differently. Colorado Hardscapes (CHI) began in 1947 when Wendell Van Heukelem
“This business is in it for the long run,” says Vince. began the company as a one man operation known as Van Heukelem Concrete. Wendell focused in on the sidewalks, curbs, and gutters of the Denver Metropolitan area. Thirty years later, Wendell’s son Calvin took over the business. Under Calvin’s leadership the company continued to flourish. He expanded the company into one that specialized in decorative concrete and rock work. In 1994, Van Heukelem Concrete Inc became known as by its present name. Today, the company is run by the 3rd generation of the Van Heukelem family—Vince. The company specializes in both commercial and residential concrete construction, which includes: waterfall features, artificial rock walls, and concrete flat work.
“This business is in it for the long run,” says Vince. The company has invested in a 6000 foot design center to brainstorm ideas for companies. The design center is the birthplace for projects like the Budweiser Brew Pub. The pub was in need of new countertops for their concession at the Larimer County Fairgrounds. Colorado Hardscapes came in, and made new countertops with a color hardener that updated the pub’s look and feel. Concrete is only one of the focuses of the company. This past April, the company completed work on the Landmark Tower. The addition of cut wave-pattern granite blocks and a circular fountain gives the tower a
tranquil and luxurious atmosphere. Behind these beautiful finished projects is a finely-tuned company. Vince stresses the fact that they like to hire entry-level personnel because they can train the individuals to perform at the level the company is known for. Many of the employees have been working there for past 20 years. Another factor that contributes to the boom at CHI, was the purchasing of the Californian company di Giacomo. The Di Giacomo branch of the company continues to be run by former owner, rockscape creator Philip di Giacomo. Vince values di Giacomo because of his experience and has looked to him for advice, making him an invaluable part of the CHI team.
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For the future, CHI looks forward to expanding on project management.
“No one person can claim they are making the company work,” says Vince. He adds that communication is crucial to keeping a business running smoothly. He goes on to say, “Everyone needs accountability, you have to make sure you have good people and the right people. You also have to make improvements to keep your employees, you have to make sure employees feel like they are growing in their career and feeling challenged.”
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While a strong employee relationship is stressed, the other component of the business is actually getting the projects. Colorado Hardscapes sets rules that they apply to in order for them to bid. They want to know how long from the bid an acceptance will be made, and how long from acceptance they will start. These things help the company bid accurately and stay in the budget so there are no surprises for the customer. From there they meet with a company representative who focuses on maintaining the relationship.
age suppliers to use quality materials and diverse products. However, CHI will use different companies if they are located in a more convenient area for a project. For the future, CHI looks forward to expanding on project management. They work to keep the experts in the company at the top of their game so that CHI can continue to offer the same level of service and quality that they have provided since 1947.
For the most part CHI use the same subcontractors, and material suppliers. The company likes to encour-
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Newmech Companies, Inc. (CorVal Group) The Complete Package By Mike Richards , Olga Tsyganova and Shelley Seyler
Perhaps their mission statement says it best: NewMech Companies, Inc. leads the construction and engineering industries by “providing [their] customers solution driven project execution while enhancing the lives of [their] employees.” Not only do they have this unique approach to their business, but they also have nearly a century of experience in the industry. Founded in 1921 by Axel and Lucile Newman, Axel Newman Plumbing and Heating began in the residential and commercial sectors and soon expanded into the commercial mechanical industry. Their son, Richard Newman, joined the family business as a plumber and soon helped to bring the company to new heights. Over the first half of the 20th century, the business transformed into a full service mechanical contractor by providing plumbing, heating, air conditioning, ventilation, fire protection, underground facilities, insulation, and fabrication services. In 1979, the Newman family consolidated their six separate companies into the NewMech Companies, Inc. They continued to grow from an annual revenue of $15 million to the $170 million it is today. The year 2007 brought more growth for NewMech when the CorVal Group, Inc. was formed as a holding company for the six sister companies: Lawdan Industries, NewMech Companies, Inc, NewMech Constructors Southwest, NewMech Facility Solutions, Inc., National Commissioning Services, Inc., WiseEnergy Equipment Solutions, and Verdi Construction. These companies working together offer their customers the highest quality in service, products, and experience for on-time projects guaranteed to stay in budget.
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These member companies working together also allow them to hold the majority of all necessary trades for the entire organization in-house, relying on subcontractors only for electrical work. This will be changing, however: “Having an electrical company within CorVal would mean more stability for the organization as a unit and further diversification and development,” explained Paul Jordan, current CEO of NewMech and CorVal. Spotlight on Today Headquartered in the Twin Cities, Minneapolis-St. Paul, Minnesota, NewMech also has offices in Louisiana and Montana. Jordan is today leading the company by providing integrated solutions through collaboration. CorVal has reinvented the traditional “quasifirm” configuration which consists of general contractors who retain the services of trade subcontractors to complete various construction projects. CorVal operates a self-sustaining unit with a team of experts pooling resources from every angle of the business. Their expertise and commitment to the umbrella organization allows an un-paralleled level of service. Projects CorVal Group has expanded to engage in various projects throughout the Midwest: “70 percent of our business is still industrial, and 30 percent is now commercial,” says Jordan. One recent project was their work for Lockheed Martin where they removed two existing pumps and piping systems, constructed a new 20-inch common pipe header, and installed a single 14-inch pipe to serve two new pumps. The two new pumps purpose is to take the condenser water from Lockheed Martin’s cooling tower to three water cooled chillers.
PIPE FABRICATORS AD PROOF
NewMech has also done work in the education sector for the North and West Jr. Highs, Alice Smith and Glen Lake Elementary. The company replaced 50-year-old 1,000 to 1,500 gallon storage tanks with steam heating bundles. They used two to three Vitocell H-300 indirect fired hot water storage tanks, one of which will be piped to two Vitoden WB2-15-60 wall mounted condensing boilers. The other will be connected to the main steam boiler. Thanks to this project, the schools can now control the heating systems for comfort; the old boilers would run year round heating the schools despite outside conditions. Success in Today’s Market According to Paul Jordan, much of the organization’s unrivaled success is the result of an alternative outlook on the business market. “There is not a market today that hasn’t been impacted by the downturn… Even Las Vegas!” acknowledges Jordan. “But that’s not a reason to panic. In my opinion, the downturn is only exacerbated by so much obsessive conversation about it. Perception has a tendency to turn into reality,” he continued. For the CorVal Group, there are two sides to every coin, and a downturn can also bring hidden opportunities. “If you take an attitude that your company ‘just needs to survive,’
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then it’s probably dead already,” Jordan explains. “In a time of downturn, you need to thrive. We have engaged in developing renewable fuels for that reason. A downturn is the time to advance. It’s in the downturn that you can blow your competitors away. Focus on thriving and not surviving!” NewMech and CorVal Group are ahead of the curve in their interest in the international market. In today’s global economy, growth in countries on the other side of the world necessarily affects the economy in the United States and directly impacts the housing market. It is long accepted, for example, that growth in India and China places higher demand on commodities and keeps prices high. NewMech hopes to capitalize on this growth by becoming involved in this new international marketplace. In the next ten years, CorVal also plans to acquire an electrical company while entering the global economy in a new way. With this growth, NewMech will remain dedicated to its core ideals of accountability, integrity, communication, and innovation. It is perhaps their experience and optimism that will allow them to flourish, welcoming the challenges and thriving in spite of them, or even because of them.
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Deltona Corporation By Richard Callahan & David Chodack In a market like this, you might think that a real estate developer in the hard hit Florida market would be frantically treading water, laying off people and trying to sell excess assets. That may indeed be true for many developers, but not for the Deltona Corporation. “We are probably in a growth mode right now” says Bob Arunski, Partner / R.E. Broker / VP Marketing. “We’re out buying real estate at the rock bottom prices prevalent today. We are the oldest surviving real estate developer in Florida and we have been at this since 1962, providing affordable Florida homes for “Dream Home” living. We created Marco Island -Spring Hill, Deltona Lakes, Seminole Woods, Sunny Hills, and Marion Oaks. We invented the Fly-and-Buy program.” Arunski has been a real estate broker for 25 years and has been with the Deltona Corporation for 21 years. He says the one thing he has learned is to take good notes and always be prepared to expand, because when Deltona
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develops a tract, it takes years. “We buy large tracts of agricultural land, and then do the regional impact study and go through the other legal hurdles. We do the survey, site engineering, all phases of land development and underground utility work, then we sub contract out most of our general construction trades.” “Marion Oaks is 25 square miles.” Arunksi says, “We started back in 1973. Ninety eight percent of the infrastructure is now completed and there are about 15,000 residents. Sunny Hills, 17,700 ‘pristine’ scenic acres in the Panhandle north of Panama City, was opened in 1971 and then Sunny Hills had its grand re-opening in March 2002 with a new line of houses.” “We use the same general contractor, who uses the same subcontractors, so we get consistent quality and on-time, professional workmanship” he adds. But, it is an eye on location that has really made Deltona successful. Each
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“We were one of the first developers in America to apply the greenbelt concept.” location must be high and dry, near major road transportation, and a neighbor to existing cities that offer great future poten-
tial. Deltona doesn’t just gamble on inflation. Their communities have a reason to “grown and appreciate”.
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Seminole Woods and Tierra Verde were all acquired, master planned and sold. Deltona has created 10 of Florida’s most successful communities, and has helped over 200,000 people realize their dream of Florida home ownership.
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Arunski rest’s easy, there’s nothing that worries him about Deltona’s competitors, or the development industry. After all, they are the oldest surviving real estate developer in Florida, so they’re well equipped to compete.
hurricanes or tornadoes, that would drive the cost of materials up, because of supply and demand. Another issue occassionally beyond his control is appraisals that come in lower than the cost of building the houses.
want to survive and grow in this market, then you must have deep pockets. If there is one simple rule for success, if you want to make a modest profit in the Florida market, then you have to start with a big bankroll!”
What does keep Arunski up at night, are the things he can’t control, like the rising cost of raw materials. Diesel fuel has gone up 35 percent and if Florida or the Atlantic Sea Board has any really big storms, like
“Those are the things we have to stay on top of.” Arunski says. “The current mortgage crisis has also affected our business. Anyone who tries to deny that is living on another planet. If you
Deltona has been a success and continues to thrive in spite of the current mortgage crisis and other woes. Since 1962 Deltona Lakes, Spring Hill, Citrus Springs, St. Augustine Shores, Marco Island, Pine Ridge,
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“We were one of the first developers in America to apply the greenbelt concept” says Arunski, so the personal home sites, commercial areas, schools, churches, parks and civic facilities are carefully sculpted to preserve much of the surrounding environment.” The company is dedicated to building lasting and rewarding relationships, so customers can expect courtesy, quality, fairness, and a sense of urgency as Deltona people respond to their needs. “Deltona has been so successful and will continue to be successful in the future, because the company fosters creativity, adapts technology, encourages intelligent risk and acts aggressively on opportunities. Five years from now, ten years from now, twenty years from now, we will still be building houses and negotiating with banks” Bob Arunski added “and that won’t change.”
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Builderguru Contracting Inc. By Jacob Skeeters & Suzanne Mason Kilwin’s Chocolates, located in Annapolis, Md is in the business of crafting fine chocolates and ice cream. The company has been in business since 1947, but the building where Kilwin’s is housed can be dated back to the 1860’s. On Nov. 27, 2005 a fire heavily damaged the property. In March 2008, Kilwin reopened its doors at it historic site to the delight of its customers. The community was given back a much loved business and a piece of history thanks to the hard work of Builderguru Contracting. Builderguru (BGC) has been in business since 2003. The company was founded by Benjamin Harries and Todd Haynie. Located in Millersville, Md., BGC services not only the DC Metropolitan area, but also anywhere nationwide a
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client requires them to be. Overall, you can say that BGC is tversatile in the constructing industry. Although Harries and Haynie both have more than 25 years of experience in both residential and commercial construction, their current niche is restaurant construction. They also do construction in retail and medical offices. Harries serves as President of the company and is responsible for the marketing, business development, and business management. Haynie, the co-founder of BGC supervises the field operations, manages and adapts to the field changes, navigates
The company has been in business, since 1947, but the building where Kilwin’s is located can be dated back to the 1860’s. the final inspection process, creates, manages and adapts a project schedule, and oversees field personnel. The commercial market will do better than the residential will. “We’ve been able to get opportunities like $2 million to $4 million jobs, which are big potatoes; one or two is still a big deal. We’ve taken advantage of the market, providing us more opportunities on the larger side,” says Harries. This idea has lead BGC to do major work for such places as Potbelly Sandwich Works, Auntie Anne’s, and one of their biggest clients P.F. Chang’s China Bistro. In January, BGC completed work on expanding and renovating the restaurants in Maryland, Pennsylvania, Washington DC, Virginia, New Jersey, North Carolina, and Georgia.
“The big piece is keeping your customers happy,” says Harries when it comes to remaining competitive in the growing market. He adds that it’s also crucial to manage your supply chain when it comes to construction. Even though BGC is a successful business, there have been a few shortcomings. One important factor has been the increase of the cost of goods-especially the cost of fuel and materials. “It’s a hostile and difficult environment for everything,” says Harries. Despite the rise of the cost of goods, Harries looks ahead to the future of the company. BGC’s goal in the next five years is to be a 25-35 million a year contractor. Harries says that the company can perform with the big boys and still maintain a personal relationship with both employees and clients.
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KanBuild Inc.
By Jacob Skeeters and Suzanne Mason Kan Build: They Kan Do It! Rosie the Riveter was an icon of women during World War II. Rosie’s slogan “We Can Do It,” has been a motto repeatedly in the sixty years since World War II. This can-do attitude is found not only in individuals, but also in companies such as Kan Build Inc. It is precisely this positivity that has kept the business thriving for the past two decades. Kan Build’s first name was J.C. Nichols and the Marley Co., located in Osage City, Kansas. Current CEO, John Samples, was hired as production manager by the company in 1984. A couple of years later the company decided to close their operations, but Samples stepped in and began the process of purchasing the company. This endeavor saved not only the business, but the jobs as well.
Rosie’s slogan “We Can Do It,” has been a motto used over and over again in the sixty years since World War II. This new start of Kan Build, under the direction of Samples, created a more prosperous business than that of its original derivative. It was able to open three new plants to help service the Midwest section of the country. In 2001, the company was sold to All American Homes, which was a national system builder. This change of hands undid the prosperity that Samples had created after his purchase of the company. In fact, the original plant located in Osage City was going to be closed. Once again Samples came in and repurchased the company from All American. Today, the company continues to have a ‘we can do it’ attitude by being a builder of high quality, custom-design homes that are both commercial and multi-family buildings. Their scope now reaches throughout not only the state of Kansas, but also Colorado, Nebraska, Oklahoma, Texas, Arkansas, Missouri, South Dakota, Wyoming, and Iowa. What keeps Kan Builder going is that they understand what they have to do in order to stay alive in the busi-
ness. The other factor is controlling the cost of the best product to the retail customer. Currently, the company is working on Walton Creek Village in South Dakota. The village will have single family, duplex, and triplex homes. Kan Build is not only dedicated to serving their customers but also the community that never gave up on them: Osage City. They cater to this community, hoping to give something back for the faith they had in Kan Build. They have helped by leading the reconstruction of the historic Gilday gas station in Osage City, purchasing bullet proof vests for Osage County Sheriff’s Department in 2000, and sponsoring over $100,000 for 4-H organizations in Osage, Lyon, and Coffey counties. Kan Build still continues to plan for the future by bidding for different projects and waiting for the economy to improve. With the upcoming presidential election, there is no telling how the market may change. Kan Build will certainly prevail, regardless of this outcome.
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Alta Construction By Brandon Roberts & Suzanne Mason Imagine moving into an apartment in a fairly new multifamily unit. You enter your apartment- to the right is your kitchen complete with an oven, sink, and refrigerator. As you walk straight ahead, you run into the bathroom; make another right you come into your spacious bedroom. Coming back out of your room on the left side of the apartment now you have your very own living room, where you think about all the possibilities for dÊcor. Finally, you walk onto your own balcony and get a chance to look at all that is around you. This is what you could have at the Cumberland at Grandberry, located just outside Fort Worth, Texas. This newly built dream come true apartment was just built by Alta Construction Services Inc. Alta Construction Services has been in business since 2006 and has already done seven projects totaling about $75 million, and still continues to grow. This is partly due to the years of experience from Alta’s President, Jeff Harlieb, and Vice President Eric McMillen. Harlieb has been in the construction and development business for over 30 years. He started off in 1971 as an employee in management and supervisory position with the Hemstreet Company. From there his career took off. At one point, he was owner of DerHart Associations, which built custom homes of considerable quality. From 1996 to 2005, Harlieb was with Northwest Construction, and was later made vice president of the company. McMillen has over 10 years of experience in the construction business. Receiving a degree in Construction Management at Colorado State University, he began his career as a laborer and punch carpenter during the summers while he was in school. After college, he went to work for Raytheon Engineers and Constructors as an estimator, cost engineer, and program administrator. Alta Construction Services Inc. focuses in the multi-family spectrum, such as apartments and student housing. What
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keeps Alta successful, however, is the fact that they work with select customers and negotiate for good projects. Like all other companies, the cost of goods has affected their business to the point that they have to increase the price of their bids. This is thanks to the increased cost of steel. On the personal side of business, Harlieb says he worries most about the bidding jobs, construction problems that might arise onsite, and trying to feed the company. Despite these challenges, Alta remains strong. Recently, the company finished work on the Veranda Place at the University of Texas-Pan American. The Veranda place is an individually leased student housing apartment that offers four bedroom and four bathroom apartments that are equipped with kitchens and are fully furnished. Currently, Alta is breaking ground on another student housing project called Maverick Place, in Arlington, Texas. In the future, Alta aims to become a $75 million company, completing at least five projects a year.
Emerald Construction By Matthew Tropea & Shannon O'Neill Talk with Franci Lucas, Vice President of Business Development for Emerald Construction Company, and very soon you will see how important people are to this successful organization. In a fast-paced, crowded, and competitive construction industry, 90 percent of the clients who work with Emerald are repeat customers - customers who have returned to do business with the company again and again. It is not just the relationships with clients and subcontractors that Emerald Construction takes care to cultivate; the company places a priority on employee development, satisfaction, and safety. Franci Lucas’ own story is a case in point. Nine years ago, Lucas was a psychologist helping design a high-end child development facility. Emerald was offering
construction management services for the project. While acting as the owner’s representative, Lucas learned the basics of the construction industry and found she had a passion for the work. She caught on quickly, and Emerald founder Edwin C. Dee took note. Dee saw her potential and offered Lucas a position within his organization. Since then, Lucas has grown to be an integral part of the Emerald team. Emerald Construction opened its doors in Richmond, Virginia in 1993, and from the earliest days in business the company has been proud of its client-focused approach. Dee passed away unexpectedly in 2005. Current co-owners Doug Hilemn and Gib DeShazo, who worked with Dee 20 years ago and kept in contact with him over the years, purchased Emerald. Hilemn and DeShazo, who owned their own construction company, also maintained the Emerald tradition of employing a skilled and cohesive team to ensure success in project delivery. They emphasize the importance of communicating with both clients and subcontractors before, during, and after a project. Hilemn and DeShazo demand a “Client-Driven” approach, and Emerald offers assistance to their clients long after the project is completed, no matter how large or small the construction request. A focus on follow through and effective planning has allowed the Company to grow to a staff of twenty eight, full-time professionals. Emerald measures project success by two key factors: that the project was safely constructed, and that the client is satisfied. Lucas also notes that subcontractors are considered clients, as these relationships have been crucial in Emerald’s continued and growing success. The Company offers a wide range of services that include preconstruction/estimating, general construction, design/build consultation and construction, construction management, and tilt-up construction. Emerald constructs projects in sectors that include retail, office, multi-family, light industrial, medical, pharmaceutical and recreation
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facilities. They also provide tenant improvements and renovations to new, out-of-the-ground construction and site work. A recent project of note is Fisher House, a short-term residential facility for veteran’s families. The $4 million facility was officially dedicated at a ceremony in July 2008 with guests including the honorable James B. Peake, secretary of the US Department of Veterans Affairs, and Mr. Kenneth Fisher, Chairman and CEO of the Fisher House Foundation. Fisher House provides cost-free accommodations for family members while a veteran undergoes medical treatment. Because of the success of this project, Emerald has been asked by the Fisher Foundation to consider building two additional facilities. Another recent project that Emerald Construction is particularly proud of is the historical renovation of the Lucky Strike Maintenance Garage. The renovation of this 20th century, once-dilapidated facility into high-end office space was nominated for an award from the Greater
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Richmond Association for Commercial Real Estate for the Best Historical Renovation Project in 2007. As these examples make clear, Emerald Construction often seeks projects with a community focus, highlighting the company’s dedication to improving local life in Richmond and its surrounding areas. The company also works well with larger-scale corporate clients. For example, Emerald has a 13-year relationship with Wyeth Pharmaceuticals, for whom the company has completed numerous projects, ranging from a locker room renovation to a for-year HVAC renovation project for Wyeth’s Richmond pharmaceutical production plant. Franci Lucas is confident that with their strong team of employees and tradition of “Client-Driven” decisionmaking, Emerald Construction’s future looks bright. The company takes pride in developing and maintaining relationships, producing safe, quality projects, and delivering an outstanding level of client satisfaction.
J&S Construction: A Company of Principles
By Todd Rodgers & Olga Tsyganova
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Since J&S Construction was founded in 1957, the company has completed over 5,000 projects and currently averages $30 million in annual revenue. 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 and engineering design and 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.
The company’s motto, “Building Relationships By Building Trust,” has led to a high feedback rating from their clients: 100 percent of projects completed over the past year (ending on March, 31st) have received a service rating of “delighted/ pleased” from the company’s clients. “We have a ‘good day report’ here at J&S,” says CEO Jeff Feinman. “My employees are required to check whether they are detracting or adding to our success on a daily basis.”
J&S Construction started out as a small residential company and from there went on to hard bid.
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This self-reflecting tool not only allows for employee feedback, but drives the measure of productivity: “We need to know how we can accomplish the same things by working smarter, and that requires everyone’s partici-
pation. We learn to do the same things in less time, using more cost-effective methods. As you can see, integrity and a strong work ethic are perquisites for working and succeeding within this work culture.” J&S Construction started out as a small residential company and from there went on to hard bid. Today, they have evolved into a design-build enterprise doing 100 percent 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, in my opinion,” says Jeff Feinman. “Master craftsmen used to be the most respected men in the country, but now things have changed because of the lack of regulation. 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 car saying ‘I are one’ and start selling. This is why we only hire workers with a high level of expertise. 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 business.” 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.
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They bid low and make it up on change orders. Some clients go for the low bid, and 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 Feinman. 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 cost-avoidance. Also, 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,” says Feinman, proudly.
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Lone Star Railroad Contractors Inc. By Richard Callahan & David Chodack As a kid when you thought about Texas, you probably imagined the duel in “The Good, The Bad, and the Ugly” where Clint Eastwood’s character, Blondie, is in a standoff with the bandit Tuco, all the while whistling the theme of the movie in your head. Lone Star Railroad co-founders and co-owners, Joe Crow and Paul Newman, are not out dueling, but their successful and growing business is a force to be reckoned with. With annual revenues of $35 million and approximately 200 employees, they are certainly making their mark. Lone Star Railroad Contractors are regional railroad contractors in the Midwest, Central, and Southwest regions of the United States. They build and maintain railroad tracks for steel mills, manufacturers, chemical plants, among others. Mr. Crow and Mr. Newman co-founded the company in 1993, each having over 20 years experience with another railroad company before starting Lone Star. They originally intended to stay in North Texas, but they gradually expanded and opened branches in Amarillo and Cuero Texas, Memphis, Tennessee, and Oklahoma City. Their specialties are railroad track maintenance, construction, and safety management. They worried that current market conditions would eventually affect their business, since they typically trail a downturn in the economy by about six months. So far, they haven’t noticed any effect since they’re dealing in the commercial and industrial sector rather than residential; if anything their business has been better than ever.
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They attribute this to two things. First, there has been a general resurgence in the railroad industry. Second, the cost of fuel has hit the trucking industry hard. Rail travel is three to four times more fuel-efficient than trucking. Therefore, Lone Star Railroad Contractors Inc. indirectly benefits from the high fuel prices. Their generic formula for maintaining their business and even growing in the current market is to open more offices to increase their volume of business. They expect the demand for rail and freight needs to double within the next five years; however, they stress that they need the right people in order to keep growing. When you are managing a company of their size, efficiently managing your supply chain of tradesmen, subcontractors, and vendors, is essential to doing business. Lone Star Railroad Contractors Inc. relies on a network of proven people and companies that have shown that they perform. This allows them to guarantee quality work to their customers and to concentrate on expanding the business instead of constantly looking for new business relationships. Two of their most recent projects were an Intermodal Freight container facility in Wilmer Texas, where they laid 19 miles of track and the Twin Oaks Mine in Kossi, Texas, where they built 11 miles of track from the mine to the plant. Like most companies involved in any type of construction, they find that the cost of materials has increased steadily, mainly because of the demand from China, for things
When you’re managing a $35 million company, with 200 employees, efficiently managing your supply chain of tradesmen, subcontractors and vendors, is essential to doing business. like raw steel. Steel rails alone are up 30 percent since 2004 and prices have doubled per foot, for tracks completely installed. Nothing keeps these two railroad veterans awake at night, because they have faced it all before. They are not worried about their competitors, because they believe that the idea is to go where their competitors aren’t. They say their business is more competitive than people may realize. In 2002-2003, business was very slow; however they doubled their volume in 2005-2006. In fact, they try to cut back on the volume, but business is still booming. For now, they have the luxury of being able to pick and choose new business. In five years, they hope to open offices in northeast Texas, Mississippi, and Alabama, “but availability of good folks is the hurdle,” says Mr. Newman. They are also planning to expand their specialization in bridge building as well as track. Both partners have come a long way since they attended Ennis High School, in Ennis, Texas together. Since then, they have each gained 35 years of experience in the railroad business and a long track record of shared success.
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KOP Construction
By Richard Callahan & Kathleen Schmitt It is safe to say that a company whose CEO counts climbing the East Face of Mount Everest as just one of his twenty mountaineering expeditions will have lofty aspirations. Chris Kopczynski’s KOP Construction in Spokane, Washington has climbed far above the cabinet shop his father, Bernard, founded in 1946. The company first stepped up into re-modeling, and then it advanced into commercial projects during the motel-building craze of the 1950s and 60s. From the ‘base camp’ of his father’s millwork business, Chris Kopczynski has led KOP Construction to its current role as a general contractor with an annual revenue of $15 million and
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thirty employees. Chris is used to working his way to the top. Part of his father’s crew in his youth, he completed his studies of Building Theory and Practice at Washington State University in 1971. After honing his skills as an architectural draftsman, carpenter construction supervisor, project manager, and consultant, he progressed to the loftier position of president and general manager of KOP Construction in 1983. KOP Construction still specializes in high-end cabinetry and millwork produced in its 12,000 square foot manufacturing center, but has also contributed to many of the area’s notable and neces-
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sary public projects. These include community landmarks such as the Spokane 1974 World Fair Expo IMAX Theatre at Riverfront Park. Even from such heights, Mr. Kopczynski’s father’s influence is still very much at hand. “I’ve known Chris Kopczynski since he was a young man,” says Eddie Eng, President of the Cathay Inn in Spokane. “His father built the last addition to the Cathay Inn’s restaurant for me in 1970. Chris’ first construction job was a large addition to my house. “Then, Chris did the new construction of the Cathay Inn for me in 1998. Our business need was for a new building, so we had to tear down the old building his father had built. I told Chris, ‘Now, make your dad proud, you do
it better than he did.’ Chris did just that,” Eddie added. Although this was a relatively small project among the multi-million dollar projects the company now handles, Chris Kopczynski still lists that project as one of his notable professional achievements. Chris has plenty of other projects from which he could have selected noteworthy professional accomplishments. The company’s work can be seen at many area retail shops, multiple unit housing, office buildings, and parking lots. KOP Construction’s capacities are much broader, however. Their work can be seen in farm workers’ housing; elementary, high school, and university law and science lab buildings; airports, post offices, detention centers, firehouses, libraries, courthouses, and
church meeting houses; retirement communities, nursing homes, senior housing expansions; resorts, fairgrounds, pavilions, and community centers; as well as both city business centers and state park headquarters. Chris could also have also have selected from among a number of diverse acknowledgements over the years. He has been president of Inland Empire AGC, past president of the Spokane Mountaineers, board member of the American Alpine Club, Associated General Contractors of America, Conservation NW, Associated General Contractors of America, and a National Park Fund Trustee. He cites two recent projects as being particularly interesting. The Golden West Lodge in Stehekin, Washington was only accessible by boat or aircraft and could only be completed during the summer. Another historic rehabilitation, the Paradise Guide House at Mt. Rainier, appealed to his mountaineering bent. The company’s formula for success is to maintain a diversity of skills and to stay active in public projects. This
has been beneficial given market situations, since civic projects’ funds are already allocated. Chris plans to stay the course in that practice area, and would expand the commercial design/build practice, given the space to do so. True to its roots, the company keeps cabinetry, millwork, and high-end, custom-built carpentry projects in house, and subs out about 80 percent of the trades such as plumbing and MEP, overall. KOP selects its subcontractors for their financial stability and capability to do the job. Regarding supply chain management, Chris emphasizes that “we use the same people over and over again, and relationships go back years.” These strategies have proven successful so far, but every company in the building business is facing some steep challenges given today’s economy. Chris notes that “… except for lumber, cost of goods generally increased 40 percent during past seven years. Copper has gone up by 500 percent! Plus, many of our project contracts have no escalation clause, so we end up eating the extra expenses
Spokane, WA
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since the projects take time to build out.” Chris also sees the undustry as a whole as lacking in obtaining new, qualified, younger people. “Young people of today aren’t as ‘romanced’ with the construction industry as before, in spite of the fact that all of the trades provide good income,” he notes. If there is a secret to KOP’s success, it may be reflected in Art Campbell’s opinion of the company. Speaking of his Campbell’s Resort in Chelan, Washington, he recalls that “we have worked with KOP Construction on all of our major resort construction and development projects for the past 44 years. We have such trust and confidence in KOP Construction’s ability to perform that we haven’t even considered using another general contractor.” Such glowing reviews are no surprise for KOP Construction. Indeed, Chris notes that “the majority of our work is referral.” “We love this business,” Chris says. “It’s rewarding to work with a project from its conception...watching it develop from an idea into a beautiful building that fulfills a functional and aesthetic need for a client and a community. And it’s even more rewarding to have that same client call you back ten years later with a new project that reflects business or community growth.” With members like Chris Kopczynski leading businesses in the area development industry, Spokane can look forward to buildings that reflect the area’s best.
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SBI Builders
By Jacob Skeeters & Shannon O'Neill Dan Silverie III knows his business, and it’s no wonder. As the president, CEO, and founder of SBI Builders, Silverie has over 42 years of construction experience including 30 years in management. He founded SBI Builders in 1976, and under his leadership the business has expanded to an annual revenue of $30 million. That is no small feat, especially when you consider the company has a small group of full-time employees and operates in one of the most competitive areas in the country for construc-
tion: the San Francisco Bay region of California. With offices in Monterey and San Jose, SBI focuses on residential projects including multi-family and single family homes, affordable housing complexes, condominium conversions, apartment rehabilitation, and some commercial office buildings. SBI has also done work on churches and orphanages, and stresses a commitment to strengthening the community, both inside the company and outside the company. Aside from his
drive to deliver the highest quality work product to SBI clients, Silverie takes pride in the Christian values that guide his company. The mission statement of SBI builders showcases the company’s drive to “develop growth opportunities for our staff and business associates” as well as “to fulfill our duties as a corporate citizen… by honoring our fellow citizens and assisting those less fortunate.” Even as he lets these values guide him, Silverie knows very well that the market in the Monterey Peninsula,
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Sunvale Mountain, and Silicon Valley areas is competitive. SBI has achieved a high level of success through marketing, maintaining consistent customer relationships, and managing cash flow and overseeing estimations effectively. Silverie states the importance of being both “quick on your feet” in a rapidly changing market, and keeping a business flow with reliable subcontractors. SBI began as a luxury homebuilder, with special skills in wood framing. As the company grew, they expanded into condos, town homes, and walk-up apartments, and then received a California tax credit to build affordable housing. It’s quite an accomplishment that Silverie is able to provide high quality, low-income housing in an area that comprises some of the most sought after real estate markets in America.
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A recent project of note from SBI is the Kiel Court complex, a $10 million development of 32 high-density threestory town houses with upgraded interiors and private attached garages located in Sunnyvale, CA. An upcoming project that Silverie is eagerly anticipating is a Pergosa Springs affordable housing project. SBI is undertaking this construction for a non-profit client called Opportunity Builders, who not only provides safe and affordable housing but also services such as literacy classes, computer training, and financial counseling. SBI worked with Opportunity Builders on a past project, The Village at Chowchilla, an 81 unit affordable housing community in Madera that features a community building, computer center, swimming pool, and children’s playground with one, two, and three bedroom units.
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At 62 years old, Silverie keeps himself in top shape by competing in triathlons. He looks towards the future of his business with a tempered optimism; he worries about the market, but hopes that individuals and the federal government can learn from past mistakes and move towards a more healthy housing market. For SBI, the construction business is competitive but performance has been strong, and Silverie takes pride in his company and in his employees’ accomplishments. His two sons are becoming more involved in the business, and he is happy to let them take on increasing responsibilities. Looking at the company website, you learn that Silverie is not only generous in his praise of others, but also modest. Under his guidance, SBI has been showered in awards, among them
The mission statement of SBI builders showcases the company’s drive to “develop growth opportunities for our staff and business associates” as well as “to fulfill our duties as a corporate citizen…by honoring our fellow citizens and assisting those less fortunate.” are numerous Gold Nuggets, an honor bestowed by Pacific Coast Builders Conference and BUILDER, a national magazine of the housing industry, for creative achievements in architectural design and land-use planning. They have also won a Finalist Award for Best Residential facility in Oakland by San Francisco Business Times, a Best Affordable MultiFamily Housing notation by the Reilly Mortgage Group, and a Monterey County Business Council’s President Award. Even with all these accolades, Silverie is most proud of his work with international orphanages. SBI acts as the direc-
tor of a non-profit in Nairobi, Kenya that provides housing for over 100 children, and is involved with in an orphanage Romania that 300 children call home. Clearly, construction is not just a business at SBI. Silverie takes housing to heart.
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Geotechnics Incorporated By Richard Callahan & Shannon O'Neill Before new occupants can open the door to their new house or office, before building crews can set up their tools, before architects can sketch plans, and even before bulldozers can start shaping the ground to a new use, an essential part of the construction process must already be in place. Long before ground is broken, scientific evaluation of the geological character of land is the first of all steps in the complex process of development. That green light – or red light –determines what can and cannot be done at a potential building site.
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The influence of geotechnical services in the construction industry goes beyond the more familiar kinds of development projects like housing and office sites. Roads, bridges, railways, waterways and mining must also begin with a comprehensive understanding of what Mother Nature has given mankind to work with. Lee Vanderhurst makes sure his company, GeoTechnics, Inc., in San Diego, California, is well equipped with the wide range of expertise needed for this task: geology, engineer-
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ing, chemistry, cartography, hydrology, environmental science, laboratory research and even forensics combined with project and business management skills. After his undergraduate studies at San Diego State University, graduate studies in the Bay area and work as a staff geologist, Lee founded GeoTechnics, Inc. in 1992. While he acted as the company’s principal geologist, Mike Imbriglio and Tony Belfast added their engineering skills to the new geologic consulting and environmental
service venture. From an initial staff of three employees, GeoTechnics has been joined by principals, Robert Torres and Matthew Fagan, as well as fifty engineers, geologists and technicians to generate $6 million in annual revenue. Developers, architects, civil engineers, contractors, and real estate and public agencies have all availed themselves of Geotechnics wide range of services. The company can assemble earthwork construction and drilling services through subcontractors, complementing its in-house exper-
tise in environmental services, engineering consulting, site assessment and remediation, foundation design evaluation, planning studies, geological hazard, and groundwater assessments expertise. Bridge retro-fits, building parallel bridges and bridge foundation recommendations are other areas that call for GeoTechnics’ skills. The company has also seen steady growth in its field services, especially soils and materials testing, and opened additional offices in El Centro and Riverside to better serve its growing customer base throughout the Southwest U.S. GeoTechnics’ recent and ongoing projects include the large and controversial undertaking, the All American Canal Lining Project in El Centro funded by the City of San Diego to capture water which heretofore had been lost to seepage, and the Southern California Ontario Quarries stabilization project. The Big Morongo Mission Lakes project in the Riverside Flood Control and Water Conservation District in the Desert Hot Springs area has also called on Geotechnics to provide soil evaluation and geotechnical specifications for new and reconstructed sections of this mile long, five– to eleven-foot high 100-year flood protection levee. Lee is especially proud of the company’s testing capacities, with a state of the art laboratory approved by the City of
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San Diego for testing concrete, fire proofing and soils. “We have a fantastic lab for materials testing,” he says, “the best in Southern California. That’s an area we would like to expand, especially testing more steel and concretes.” Is this the right time for a construction-related company in competition with the likes of HDR, Jacobs Engineering, and URS to be looking into expansion? “Sure, the mortgage clampdown has resulted in downsizing a little,” Lee observes. “It seems like it’s a recession here, whereas the rest of the country isn’t quite as hooked to construction as Southern California is. Developers have ‘pulled up stakes’ or turned into ‘Rip Van Winkles.’ Drilling companies, which are mostly one- and two- men operations, are having tough times, too. “And it’s not just the cost of goods that are going up, but also the cost of services,” he continues. “Cost of goods impacts us primarily in fuel costs. California requires a lot of driving by technicians and consultants. If our contracts last over a period of years and the fuel costs unexpectedly rise dramatically, we have to keep our rates down while the underlying costs, such as fuel, go up. “In services, for example, health insurance costs have gone up so significantly that we’ve had to cut back and have
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the employee pick up their families’ portion of the health insurance expense. We used to provide for the employees and their whole families. “Of course, I worry about new work coming in, maintaining profitability in a down economy and tough personnel decisions in a smaller company. Fortunately, we got involved with government work and school work and institutional work, which tends to lag behind trends in the residential sector.” A more general concern he has is that his competitors provide the same level of care and quality as GeoTechnics does, so that image of the industry stays high. “Competition that cares only about profit-watching to the detriment of quality,” Lee feels, “can work a negative impact on our industry.” His basic formula for success for GeoTechnics is diversification – such as growing in new disciplines like mining - plus staying ‘lean and mean.’ So, Lee has expanded GeoTechnics into consulting for quarries, aggregate materials, and open pit mining. Where would Lee like GeoTechnics to be in five years? “Still here,” he smiles, “still providing quality services down the same path as we now travel.”
CP of Bozeman
By Kelly Rice & Suzanne Mason
Montana’s natural beauty and numerous parks are the reason for its nickname, the “Treasure State.” For Raul Luciani, founder of CP of Bozeman, he also thinks along the lines of the Treasure State when it comes to his company, by showing pride in the work that CP does. Luciani believes that he can gain what he considers the ultimate reward in the end: the customer’s respect. CP of Bozeman was founded by Luciani in 1989. The main focus of CP is to provide the highest quality customer service to their clients. CP generally focuses their service on the federal government sector of commercial construction but they also work in residential and other commercial construction. In addition to their work in Montana, they work in North Dakota, Wyoming, and Colorado. Their Maintenance Patrol, the facility maintenance and janitorial side of the company, makes sure that things are clean, well kept, and functioning properly. CP of Bozeman is particularly unique for their geographical range and diversity of service. “People believe you are only good if you are good at one thing- you need to be good at more than one thing. This is especially important in today’s economy,” said Luciani. It requires a greater ability to “think outside the box.”
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To achieve this, “just make sure that you add one thing at a time to ensure your quality control is successful. While you are perfecting your new service or product, begin to think about other areas that would complement your current services,” he said. Luciani also suggests appraising your current abilities and inventory, then determining which areas can be improved with current equipment. This can also save large sum investments, he said. CP of Bozeman has seen this philosophy pay off: the company was recently awarded a $22 million Indianite Quantity Indefinite Delivery (IDIQ) contract with the Montana Air National Guard. Despite this recent award and their history of success, CP has not escaped unscathed from the declining market place. “During the building frenzy we shopped around for best prices and we would purchase all our materials to lock in a price giving us the base for our budget. We would buy sheetrock and plywood in bulk, getting a wholesale price. We could use it in all our projects, giving us the ability to keep prices the same and make the retail mark up.” These practices allow them to bid accurately and complete projects within their projected time frame. Increased prices for materials such as steel are then prevented from affecting current projects and the business as a whole. Struggles in the marketplace do not prevent Luciani from sticking to his company’s mission: he continues to strive for affordable housing for his
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customers. There is always a need for individuals to have a place to live, he said. By keeping housing costs as low as possible, some individuals can still achieve this goal. In August 1999, the company entered the Small Business Administration’s 8(a) program. This program, as part of the Small Business Act, is a business development program created to help small, disadvantaged businesses compete in the economy by being able to have equal and competitive access to the federal procurement market. By providing opportunities, not only for their customers but also their employees, Luciani has watched his company continue to expand in the last five years. On average, CP has grown between 30 percent and 50 percent each year. He attributes this growth to acquisitions of new contracts and staying active in the market.
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Looking ahead to the future, Luciani plans on continued expansion. He hopes to establish CP in other states and add more services to the mix, despite the current downturn in the economy. “The federal government is a billion dollar customer and is available to every firm who knows what steps to take,” said Luciani. “The economy is in a down turn but the Federal government is buying services and products as fast as ever if not more…Everybody that has a desire to succeed will do it with proper planning, the most important element is not to get discouraged but persevere. Knock and the doors will be opened!” exclaimed Luciani. With this attitude steering their ship and the company’s ability to diversify and put customer satisfaction first, CP of Bozeman should indeed be able to achieve their goals of future growth.
Custom Mechanical Systems By Matthew Tropea & Angela Floyd Established in 1996 and re-incorporated in 2004, Custom Mechanical Systems, Corp has accomplished a significant amount in a relatively short period of time. In fact, CMS has doubled in both revenue and profit since the re-incorpration. Today, CMS employs 52 people and earns approximately 14 million dollars in annual revenue. Services CMS offers a wide variety of services that include General Construction such as civil contracting, project management, quality control, risk management, excavation, and demolition. The company also offers a wide net of Mechanical Services that include installations, repairs, alterations, equipment rigging and installation, steel fabrication and installation, boiler alterations and more. Lastly, CMS offers Process Services that can include pipe fabrication, pipe installation, welding, cleaning, testing, and inspection.
All that said, the company specializes in the Mechanical Service area. – with the federal government consisting of 70% of its client base. The rest of CMS’s client base consists of commercial and industrial companies. Keys to Success The company focuses on delivering quality workmanship on each and every job. Further, Mercedes Enrique, the owner of CMS, attributes much of her success to efficient management of all subcontractors and vendors. Further, CMS is extremely choosy about who they subcontract work to. In fact, CMS decides which vendors to work with based on whether a particular vendor has successfully worked with the client previously - or if the subcontractor comes highly recommended by the client. On another note, Mercedes also believes that understanding the competition is the key to the procurement process. In fact, before submitting a bid, Mercedes undertakes extensive research to ensure that her bid proposal will be the best one. In general, she spends approximately $20,000 on each proposal. Awards Over the years, the company has been recognized for various achievements. In 2005, for instance, one of CMS’s employees was awarded the Metro Indianapolis Coalition for Construction Safety (MICCS) Outstanding Craftsperson Award. The following year, CMS was declared one of the top small businesses in the state of Indiana by DiversityBusiness.com. Last but not least, CMS has also been recognized by the MICCS for the company’s remarkable safety record - and as a result, CMS was presented with the Zero Injury Award. Recent Projects One interesting recent project was the “Ozone Generator Installation and Pipe Fabrication” at the Wastewater Treatment Plants in both Southport and Belmont, Indiana. Ozone generation systems create ozone - that
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in turn diffuses into contaminated water to make wastewater potable. In all, the scope of this undertaking in both plants exceeded 1.6 million dollars. Other recent projects included the installation of steam pipes at the United States Air Force Academy in Colorado, Springs, Colorado - and the demolition of several buildings (and recycling of materials) at the Naval Station Great Lakes (NSGL) in Great Lakes, Illinois. Future of CMS In the future, CMS desires to become a sustainable company that generates $30 million dollars per year in revenue. To achieve this ambitious goal, the company plans to “beef up� its project management team, grow the GM force, and positively reinforce the CMS brand. All in all, CMS appears to be well on its way to meet these ambitious goals in the near future.
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MBR Construction, Inc. By Richard Callahan & Aryeh Katz Jack Boss arrived in Cleveland, Ohio from Holland in 1927, with plans to continue his maritime trade on Lake Erie; however, he took up cement finishing, worked his way up in the construction business, and eventually founded Jack Boss Construction. His sons, Jack and Ronald, learned and worked with him. When Ron moved to Florida, he became a General Contractor and founded Dutch Construction, Inc. and specialized in commercial construction. Dutch Construction’s reputation for quality public works is perhaps best known for their Tree Tops Park project, which entailed damning a lake
and moving 200,000 cubic yards of dirt to create a wetlands environment. MBR Construction, Inc. was incorporated in 1992 by Ron Boss in response to the overwhelming need for residential work due to Hurricane Andrew’s wreckage in the Miami and Broward County areas. Andrew was the last Category 5 hurricane of the 20th century to make U.S. landfall. It struck southern Florida and southwest Louisiana with a force not to be matched until Hurricane Katrina arrived in Louisiana seventeen years later in 2005.
The design/build team of MBR Construction, Inc. has a long standing reputation for designing and constructing facilities to meet the needs of their clients.
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image MBR was among the first to set the devastated Florida homeowners back on their feet. As that work wrapped up, MBR also took over Dutch Construction’s commercial projects, with Mike, Ron’s son, acting as the company’s president, and Ron as secretary / treasurer. It has grown steadily to its current revenues of $20 million as a general contractor with forty employees. The company covers all aspects of its projects from bid work for cities, local governments, and schools to working with owners and architects on design/build projects. While it keeps the masonry, concrete / re-bar and rough carpentry trades in house, MBR sub-contracts everything else. The design/build team of MBR Construction, Inc. has a long standing reputation for designing and constructing facilities that meet their clients’ needs. Projects that fit within the constraints of the existing environment demonstrate that the company’s extensive experience in all areas of construction planning/programming, site evaluation, design, project cost accounting, and permitting. To properly cover so many aspects of the building industry, MBR relies on its staff and sub-contractors’
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bridle paths, bridges over wetlands, and an Environmental Education Building that houses an exhibit hall, a large classroom, an ECO room, an assembly hall with a food warming area, a covered outdoor amphitheater, and a maintenance building. Ron does not feel the mortgage clampdown has affected MBR because it operates primarily within the ‘protected’ areas of government / municipal / institutional building. More worrisome to him, he says, are “some contractors who muddy the market. Where bids should properly be $2 million, some go in with a $1.4 million bid,” he said. The contractors with the extremely low bids are then forced to use lowend products as this is the only way to get the bit that low. reputation for quality and maintaining superior relationships with its clients. The company can easily point to a wide selection of clients who will provide excellent references. The roster of challenging projects MBR has completed is impressive: Fort Lauderdale’s 2nd Street Corridor Enhancement in the Himmershee District, as well as the basketball courts, playground, and three gazebos in the award-winning Lincoln Park are only two. In Broward County, the Sunrise City’s Civic Center included a state of the art family swimming pool with a zero-depth entry and a waterslide. Not the least of that project’s challenges was the site’s entryway water fountain with a 24-foot water wall, and outside decking built in coquina stone. For the Sunrise
Multi-Purpose Center, they also built 60-foot trusses. Cooper City and Piper High Schools’ athletic facilities both included an eightlane synthetic-surface running track surrounding football fields, triple and long jump runways, high jump, pole vault, discus and hammerthrow, press box, score boards, and new bleachers. MBR operates equally comfortably in design / build and hard bid projects. One example is the Long Key Nature Center, which was built on an 18,000 square-foot lot that was, years earlier, the site of the Kapok Tree Restaurant. Indeed, this project is one of their greatest successes. They designed, permitted, and built the entry roadway with an entrance sign, parking lot, natural preserve, and educational pathway development. They also created
That doesn’t change his company’s tradition of operating with the highest integrity and recognized competence. He plans on being in business well into the future. In five years, he predicts, “things still will be the same – we’ll still have our good reputation, and probably more business. We have no ambition to get real big, and also no plans to retire. We’ll stay active as long we’re alive and kicking.” MBR’s Old World values and skills promise to endure and even thrive in the New World’s sometimes tumultuous conditions of both hurricanes and variable economic weathers.
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Benton Construction Company By Brandon Roberts & Shannon O'Neill James Benton is President and Founder of Benton Construction LLC, a leading builder located on the island of St. Croix in the U.S. Virgin Islands. James moved to the island over 20 years ago when his father founded Benton Construction Company, Inc. Benton Construction’s average annual revenue is approximately $12 million and currently employs a staff of fifteen.
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From the earliest days, Benton Construction set lofty goals, aiming for large-scale commercial construction projects. Indeed, with a specialized experience developed over two decades, the company now operates in a coveted niche market of technically complicated and high-end projects for demanding clients. Benton Construction initially started out
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strictly as a general contractor, self performing many trades in house. Over the years, as company has matured and its client base expanded, Benton now concentrates on negotiated design/build and construction management contracts. The focus is now on project management. They subcontract more trades, provided that they can find a subcontractor
who is qualified, experienced locally, and will perform up to the high standards that the company demands. If a satisfactory subcontractor cannot be found for a specific trade, most often Benton has the capacity to complete that aspect of the work themselves. Benton Construction is a versatile company and its projects have included casinos and hotels, a fiber optic cable landing and terminal stations, a clinic, dormitories for the University of the Virgin Islands, multi-unit housing, and custom homes to an air traffic control tower. As the luxury market becomes increasingly competitive, Benton has responded by providing services well beyond client expectations. How do they consistently perform at such a high level? James Benton stresses,
Benton has the capacity to complete that aspect of the work themselves. But creating a realistic budget that allows for cost predictions and control is essential in every case.
above all, the necessity of comprehensive planning first and detailed execution second in order to deliver a high quality product. Benton assesses each potential project carefully, weighing such factors as scope of work, job size, project location, and overall risk and contract requirements for job completion. Also essential to success is establishing a realistic budget and CPM schedule that allows for control of cost and time predictions. James Benton was born in Great Falls, Montana and grew up watching his father build in Vermont and Florida. He attended college at Wentworth Institute of Technology and worked for a developer in Boston, before returning full time back to the islands in 1999. However, having moved to Saint Croix in 1987 at the age of
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ten, James has grown familiar with local life and community, and looks forward to doing more work throughout the Virgin Islands and other islands of the Caribbean. Recent notable projects include the rebuilding of the Treasure Bay Casino and Resort in Biloxi, Mississippi, and the Divi Carina Bay Casino and Hotel Expansion. The Divi Carina is the first and currently the only casino on the island of St. Croix. Incidentally, both of these projects were affected by hurricanes, Treasure Bay by Hurricane Katrina in 2005 and Divi Carina by Hurricane Lenny in 1999. The most interesting project for Benton Construction has been a fast-track Design/Build contract for a fiber optic terminal building in St. Croix for Global Crossing. This undertaking links South America’s voice, data, and telecommunications to the rest of the world through underwater fiber-optic cables. The $15 million project was designed in a mere three months and construction was substantially complete in six months. This impressive feat is truly remarkable, given the speed of execution
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despite the amount of bureaucracy, regulation, and logistical issues involved. Looking towards the future, James Benton sees his business growing rapidly. Being based in the Caribbean means that Benton Construction is not feeling the same strains the US mainland companies are experiencing, though an increase in the cost of goods and soaring fuel prices have provided challenges. Even so, James Benton expects a period of considerable growth over the next few years, with aspirations that his company will double in size.
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Spathies Construction By Jacob Skeeters & Shannon O'Neill William Spathies has been working in construction in the Chicago area since 1970. He had a head for the industry from the start: one of his first projects, a 58-unit condo development in Chicago, won an award in the early years of his business. From there, Spathies built a lucrative company focusing on residential buildings, and gained a reputation as a leader in small project construction in Chicago. Bill took the helm as President of the South Side Builders Association and was named the Association’s Man of the Year. Spathies was also fivetime president of the Associated Builders Association of Illinois and served on Mayor Daley’s and Cook County’s Builder’s task force. He also held a post on the board of the Residential Contractors Employees Association (RCEC), a group that helps resolve contractor and employee labor conflicts. Despite his high profile, for a period of twelve years from 1991-2003, Bill Spathies did not take home a paycheck. His business was not in trouble—in fact, quite the opposite. The annual revenue of Spathies Construction was inching towards 15 million dollars. But instead of making himself wealthy, Bill was investing in his community and in improving the lives of underprivileged families across the Chicago area. Guided by his strong Christian values, he started New Beginnings in 1991, a program designed to
Bill Spathies went about transforming Chicago’s 80,000 vacant lots into homes by creating links with several church and city initiatives. create truly affordable housing for the residents of Chicago. The initiative has a policy of offering construction jobs to locals who have the required labor skills. Spathies Construction has now spent the past 17 years focusing on creating truly affordable housing, driven by a sense of Christian duty. Bill Spathies went about transforming Chicago’s 80,000 vacant lots into homes by creating links with several church and city initiatives. The current New Beginnings home model is a two-story, threebedroom, single-family home, of approximately 1,580 square feet. The design was created to be attractive and affordable: Bill Spathies notes that it requires less material than your average home of equal size, creates very little waste, and features dimensions that maximize its small size. 8-foot ceilings create the feeling of a roomy interior. 2X4’s and 2X6’s on exterior walls make the building more efficient.
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Exterior finishes are 98% maintenance free, incorporating features like vinyl thermal break windows. With an emphasis on quality craftsmanship and low overhead costs, Bill Spathies is responsible for bringing attractive, affordable housing options to some of Chicago’s toughest neighborhoods. The New Beginnings program works with local churches under the City Lot for City Living program to select responsible tenants in need of low cost housing, and helps place them in their new home. Only in 2004, after it became clear that New Beginnings would succeed and thrive did Bill start to pay himself a salary again! Spathies Construction has been involved in condo and in church construction projects in the past, but Bill Spathies’ goals for the future focus on New Beginnings, which he hopes to expand nationwide. He notes his special commitment to his home city of Chicago, but also sees how tough things are for residents of nearby St. Louis, Milwaukee, and Detroit, and he wants to create opportunities and homes for people
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beyond his immediate area. The mortgage crisis has affected Spathies Construction, especially since the credit rating required for homebuyers has crept up, putting increasing constraints on low-income families trying to find homes. The rising cost of goods also presents challenges. On the bright side, Spathies Construction has a remarkably low foreclosure rate of less than 1% with its residents. In addition, Mayor Daley has a commitment to affordable housing,
so the partnerships that Spathies Construction has created will stand them in excellent stead. By fostering reliable partnerships, focusing on careful planning and maintaining precise budgets, and above all, remaining committed to improving the lives of others, Bill Spathies is confident that Spathies Construction will continue to thrive. To learn more about the company and New Beginnings, visit Spathies Construction online at www.spathiesconstruction.com
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MK Plumbing
By Kelly Rice & Suzanne Mason Taking over the family business is a tradition in many families. To some it is an honor, to others it is a chance to start anew. For Ken Murphy of MK Plumbing it is both. MK Plumbing was founded in Colorado by Ken and Lorraine Murphy in 1994. Ken actually bought the company from his father when it was known as Murphy’s Plumbing in 1988 when the business was shut down. Ken then ran another company for six years until he started his own business in ’94. During the first eight years the company went from having no employees to 85. At time the MK employed as many as 110. Today the company is a stream-lined operation with 40 employees and provides residential plumbing services as well as light commercial plumbing for buildings four stories or less. MK primarily deals with issues relating to heating, hot water, and in floor heating. Since an important element of the company is the residential element, they have not been immune to the struggling market. Many people, Ken says are losing their homes instead of buying them. Foreclosures are hurting Colorado
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Currently MK Plumbing is working on bidding on a project that could be the biggest the company has ever worked on.
and business for builders who are competing for new home construction is down 30 to 40 percent. In addition, MK also has to make sure they keep an edge over the competition because of the large number of plumbers in the state.
To stay ahead of the game, Ken and Lorraine try to balance their business. It is why they have chosen to service both the residential and commercial plumbing sectors. If the residential sector is down then the commercial remains intact and vice versa.
Another challenge that MK Plumbing shares with their counterparts is the impact the rising cost of goods has had on the business.
MK is also trying to stay ahead of the game by trying to get into the service aspect of the construction field. Having the right people in the right positions will also become beneficial for the company.
“Builders don’t want to hear about the increase in prices,” says Ken. He adds, “It’s hard for them to get the ok on these increases.” Purchasing oil based commodities also has put a damper in the business.
Ken also believes the election year is part of the reason the business has been slipping. He says typically in the history of construction business is down when it’s an election year.
“In the 80’s when the economy almost went under- it had to do with oil and gas. After the election things will even themselves out,” says Ken. Currently MK Plumbing is working on bidding on a project that could be the biggest the company has ever worked on. “I have lots of faith in the US, we need to take care of ourselves,” says Ken when looking not only at his company but the country’s economy as well. Ken and Lorraine Murphy will have no trouble taking care of themselves. After almost 15 years in business, it’s going to take a lot more than an election year to end this legacy.
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Bruns Building and Development, Inc. By Sarah Thomas, Kelly Rice & Shannon O'Neill Bruns Building and Development Corporation gives new meaning to the term “family business.” Founded in St. Henry, Ohio in 1951 by Robert Burns, the company employs all eight of his children, many of their spouses, and now a host of Robert’s grandchildren. The business has grown and flourished to a current team of 216 employees in several divisions under the Bruns Construction Enterprises name. These sub-groups include the parent company of Bruns Building and Development with 53 employees, RCS Construction with a team of 28, Bruns General Contracting with 63, and the additional divisions of Ohio & Indiana Roofing Company, Performance Concrete, Sycamore Group, Health Care Products, and Cason Roofing. As this impressive list shows, Bruns is involved in a host of commercial and industrial construction endeavors. But there is always a consistent goal: win-win relationships with the client, on every single project. Over 50 years and in a diverse array of construction ventures Bob’s message has never wavered: work hard, and be fair. This motto has proved to serve him well. Over 50 percent of
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Bruns’ clients are repeat customers. They return because of the superior level of work that Bruns offers and the experience of a quality job delivered on time and within budget. As Bruns Building has grown in size, the types of services offered have also grown. From the original focus on construction and excavation, the company now offers services related to development and leasing, tackling design-build and buildlease projects as well as renovation projects. One project that Bob notes as particularly rewarding was the total overhaul of the Saint Charles Senior Living Community. The original plot of land, purchased in 1861 by the Missionaries of the Precious Blood, provided the grounds for a seminary that was completed in 1922. A
beautiful chapel of Romanesque style was constructed on the site in 1906, and by 1961 the chapel had been renovated and dining rooms, a kitchen, an auditorium, a convent building, and an infirmary had been added. During this era the campus provided a home to 120 seminarians. But by 1969, the main seminary was shuttered and the site was now known as the St. Charles Center, a retreat for active and retired
Over 50 years and in a diverse array of construction ventures Bob’s message has never wavered: work hard, and be fair. priests and brothers. In 2006, Bruns Building and Development renovated the main building, transforming it into
individual apartments for people aged 65 and above; it is now known as the Saint Charles Senior Living Community. With Phase I completed, Phase 2 will begin spring and summer of 2008. Along with restoring the old, Bruns Building and Development Corporation also makes sure to keep up with the new. Bruns undertakes many projects using Autoclaved Aerated Concrete (AAC), a cost-effective material that is a durable, fire-resistant, energy-efficient, and low-cost alternative to traditional building materials. AAC is also pest-resistant, low-maintenance, and weighs less than traditional materials, which means that shipping and handling costs are lowered. Environmental trends are beginning to shape the new face of the industry, but Bruns has been installing white membrane roofing on its buildings for over 25 years. This unique material protects both the building user and the environment: it is reflective and energy efficient, the product manufacturer recycles all leftover materials, and it is flame-resistant and can withstand the force of F5 tornados and hurricane-strength winds. With a strong family-based team and enduring values, Bruns Building and Development Corporation also seems ready to withstand whatever the future might have in store.
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Brittan Industries By Matthew Tropea & Shannon O'Neill Connie Smithson is the President and founder of Brittan Industries, a specialized construction company located in Bakersville, California. She is a trailblazer in the world of construction: a woman who built her company from scratch. Smithson got her start in the trucking industry, working in the oil fields. She then entered a partnership with
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a paving company and, as part of a buyout agreement after several years, acquired some basic dredging equipment when the deal went through. From there, Smithson founded Brittan Industries in 1995—with one crane, one dredge, and two dump trucks. Brittan Industries has since grown to a company of 20 employees with annual revenue of 5
The company specializes in marine dredging projects, and is also involved in marine construction. million dollars. The company holds dredging and general contracting trades in house, and subcontracts out other trades on a case-by-case basis. Brittan Industries started out in oil field dredging, and earned certification as an 8A organization. This designa-
tion, offered by the federal government, creates opportunities for qualifying small businesses to gain access to the government contracts marketplace. Smithson notes that managing a consistent supply chain and finding reliable business associates is absolutely essential for a small business
to thrive. She has found this to be especially true when dealing with the Federal Government, where trustworthy subcontractors who will complete a project on time and within budget are key ingredients in overall success. Smithson stresses that she selects subcontractors based on best value and quality of work, not by the lowest bid. Given the specialized nature of their work, Brittan Industries makes sure to use subcontractors that have a proven record of high quality work on specific jobs.
Brittan Industries now works in all types of marine environments including harbors, marinas, rivers, and oceans. The company specializes in marine dredging projects, and is also involved in marine construction. Brittan Industries has also found a niche in beach restoration. Most of their projects have been completed in the western United States and in Mexico. One of the top jobs that Smithson took on with Brittan Industries was the cleanup of an oil spill on Lake Pyramid, a well-known fishing lake located 60 miles outside of Los Angeles
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goods more manageable. Competition is tough, but Smithson feels confident that Brittan Industries will continue to grow over the next five years by continuing to do what they do well, “moving earth and dirt from one place to another.” Smithson elaborates only slightly, maintaining to her mantra of keeping it simple, “Work for the business, and work hard. You have to have a high quality of work, be safe, and care about the environment while maintaining your positive public image.” County. Brittan Industries handled the dredge work and specific clean-up tasks, and completed the job within six months. Brittan Industries was also a part of the Moss Landing marina project and harbor development north of Monterey, California. For the federal government, Brittan Industries has worked with the United States Coast Guard on a dock replacement project in San Francisco Bay. Smithson looks forward to working with the US Coast Guard in the near future on several upcoming bids.
mean that the current state of the economy hasn’t had an effect on Smithson’s business. She notes that the cost of goods has affected the total overhead of the business, and that a 20%
The specialized nature of Brittan Industries means that business is reliable and more consistent than in other areas of the construction industry. This doesn’t
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increase these costs, especially regarding fuel and consumables, has been difficult for everyone. Luckily, Brittan Industries owns most of their own equipment and this helps to keep the cost of
To learn more about Brittan Industries, visit their website (currently under construction) at www.brittanindustries.com
PARTNERS Vendor
Page
Vendor
Page
Affiliated Metal Industries Inc.
36
Dusable Construction
AM Electric
21
EDI Inc
56
Arthur Weiler
12
Eide Industries Inc.
34
AWA Architects
72
F. Brady Construction
23
Balsamo Olson & Lewis
14
Ferguson Enterprises, Inc
BLR Architects
13
Ferrari Textiles
35
California Drywall
31
Front Range Decorative Concrete
63
CCI Surety
89
GE
Charles H. Hodges & Sons, Inc.
42
Hodsco
City Wide Decorators
73
IBE Consulting Engineers
Clark & Sons Inc.
33
Intermountain Concrete Polishing
Cozzens Construction
69
International Park Design
8
Critchfield Mechanical
29
John Batchelor Company
37
Curington Contracting
66
KPFF
9
D & K Cleaning
12
Levine Seegal
8
Daedalus Construction
17
Mack Fire Protection
27
Dave Hunter Painting
18
Majestic Floors
31
Denk & Roche Builders
14
Manson Construction
Door Solutions
11
Marble Emporium
15
Douglas Electric
47
Mc Donald Machine Fabrication
37
Doyle Electric
44
McGinty Bros. Inc
15
Duke & Company
18
Metro Glass
15
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PARTNERS Vendor
Page
Mia Lehrer & Associates
9
Vendor
Page
Rose Contracting LLC
24
Midwest Technical Consultants
13
Sani Plant
20
Mocoroa & Castellanos, Inc.
19
Savannah Stucco
33
Moen
10
Schlage/IRCO
70
104
Scotts Drilling
87
Mueller Roofing Northeastern Refrigeration
92
Servpro
77
Nucor Building Systems
41
Smith Seckman & Reid
44
OK Electric
16
Southern Stucco
49
Overhead Door Company of Torrington
26
Structual Services
23
Paradise Electrical Services
84
Sun Country Flooring
24
Sussman/Prejza
9
Parking Design Group
7
Pella Windows & Doors
81
Thompson Brothers Drywall
60
Phase One Landscapes
62
Twin Forks Enterprises LLC
26
Pinnick Inc.
87
Unitrac Railroad Materials Inc.
79
Pipe Fabricators
65
Weidenfeller Construction
17
Poley Paving
38
WESCAL Stucco & FIFS Specialists of LA
48
Porter Roofing Contractors
77
Whipline Steel Erectors
82
ProBuild
82
Wholesale Building Products
98
Quality Drywall
50
WSD
94
Quality Glass Works
25
Reliant Drywall
42
Robertson-Morrison
46
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