In this Issue:

• Lead Story: The 6.92 Million Dollar Man
• The First Look Hotsheet: Extraordinary Candidates
• Ear to the Ground: Trends in Construction
• The Kimmel Scholarship for Students in Construction: 100 and Counting
• The Poll: What would your ideal new building project be to serve on?
• Hard Hat Humor
• Riveting News: Construction Industry News
• Made in the USA: Epcot Center

LEAD STORY:
The 6.92 Million Dollar Man

In A Christmas Story, little Ralphie Parker spends most of his time dreaming about the Red Ryder BB gun he wants for Christmas. Without it, the holidays will be ruined. Of course, he gets his Red Ryder BB gun, because sometimes, dreams come true.

Joe Kimmel, reflecting on the gift to Western, said, “Giving and serving is what has made us so blessed. We give to and serve our clients, and now we want to give to and serve these students who will, in turn, give back to the construction industry. Giving and serving is the nucleus of the world, when the world is right.”
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John Bardo likewise understands that sometimes, December is the time when dreams come true. In December of 2005, Joe W. Kimmel and his employees at Kimmel & Associates announced a gift of $6.92 million to the construction management program at Western Carolina University, of which Dr. Bardo is Chancellor. With the additional $3.495 million in matching state money and other support that will come as a direct result of Mr. Kimmel’s gift, Western will receive $10.4m and will be on its way toward building what some industry officials believe will become one of the top CM schools in the United States. In recognition of the contributions, the university announced the naming of the Kimmel School of Construction Management, Engineering, and Technology. »more

The "First Look" Hotsheet: Extraordinary Candidates

Listed below is just a small sampling of candidates with whom we are associated. Your needs may be different; please do not hesitate to contact us so that we can assist you with finding the right professional for your organization. The Kimmel & Associates network has the relevance, reach, and response to find the candidates who fit your specific needs. Please call 828.251.9900 or contact us by e-mail.

#305606 Project Superintendent - This versatile Superintendent has worked on a wide array of projects including hospital work, schools, and medical offices ranging in cost from $5m to $20m. Current projects are nearing completion and company wants to relocate this candidate. He would like to stay in the Denver area.

#135208 VP of Operations - This dedicated Vice President of Operations has been involved with projects ranging from $4m to $200m and has worked in the GC and Sub arena successfully; he turned around a $50m subcontracting company and helped grow it to $128m in a little over 2 years. He possesses great people skills, a strong construction background, an ability to adapt to any situation, and the know-how to make a company profitable. His current company was bought by an international organization, and he’d prefer to work for a local owner. Lives in the Mid-Atlantic region.

#277512 Senior Project Manager - This Senior PM has built schools, universities, prisons, and WTP over a career marked by loyalty to his company. He would like a new position that will challenge him and allow for greater decision-making. Is in Upstate New York and wants to stay there.

#97484 Project Manager/Construction Manager - This accomplished Construction Manager, a specialist in mechanical design and installation, saves money and delivers projects on time, from site development to turn over. Has completed the construction of three shopping centers with major anchors, supermarkets, and a 12-screen movie theater. Has a history of streamlining procedures and cutting costs, bidding well and negotiating wisely, and leading productive teams on profitable work in HVAC and mechanical systems. An excellent communicator who builds strong, long-lasting relationships with clients, he has served his current company for more than 15 years and is looking for a new challenge. Lives in the New York/New Jersey area.

#309505 Director of Construction - As the Director of Construction for the past 6 years for a major Developer, this established and experienced professional has managed bidding, overseen construction, and coordinated lease proposals on significant projects. Was responsible for budgeting, bidding, and pre-development on a $100m mixed-use development in Florida. Versatile enough to tackle a current workload of 2 million square feet of big box, ½ million square feet of high-rise, 2.3 million square feet of suburban office and campus office space, among other projects. Has faithfully served several of the largest builders in the country and is eager to bring his abilities to a New York/New Jersey area company that, like him, wants to grow.

#98952 Project Manager/Construction Manager - Working for several of the strongest developers and builders in the United States over his career, this talented Construction Manager has developed and overseen the completion of major projects in New York City. Included among his accomplishments are effecting the buyout of General Conditions and Architectural trades on a $2 Billion project in Manhattan and, most recently, managing all trades for two 12-story residential buildings with underground parking, projects with a combined value of $42M covering 220,000 square feet. Will consider an opportunity in the New York City area that challenges him and allows him to contribute to a team doing top quality work.

#184970 Project Executive/Senior Project Manager - Strong senior project manager with the ability to oversee and mentor others. He has managed a diverse portfolio of projects to include healthcare and university. He is familiar with multiple delivery methods and is very knowledgeable in the design build approach. He has consistently added value to each organization he has been a part of.

#172354 Senior Project Manager - Highly intelligent construction professional with strong leadership qualities. Currently handling operational duties, he has the ability to manage his staff effectively and is highly regarded by clients. He has a significant amount of exposure to the design build approach and is very hands on when it comes to preconstruction.

#108612 Project Manager - This stable and loyal PM has worked for 2 companies in 16 years and has built schools, offices, county and state government facilities, and retail in the $1m - $10m range. Based in the Chicago area and ready to assume a Senior PM title and tackle larger commercial projects.

#267679 Project Manager - Sharp motivated Project Manager with an MBA who is career driven, has a proven track record, and experience leading projects within a primary residential builder. Has a B.S. and an M.B.A. Seeking to join on with a firm near either coast that will utilize his current multi-family and single family experience and offer upward mobility into upper management positions.

#317623 Project Executive/VP of Operations - This energetic, bright Project Executive has extensive design-build experience on commercial projects up to $35m. In capacity as Vice President of Operations, this candidate has provided planning and oversight of all construction activity and personnel for a general contractor licensed in 29 states. Would like to spend the balance of his career in warmer climes, such as the Southwest or Southeast, with a preference for coastal areas.

#297016 Project Manager- This talented PM has built commercial projects up to $75m, including offices, schools, big box, and multi-family. Great job history and a diverse project list. An articulate and aggressive leader looking for a new challenge because his current company is pursuing too much big box work and he prefers a diverse menu of projects. Wants to stay in the Chicago area.

#51661 President- This high-level professional has 35 years building resorts, hotels and casinos, hospital, government, and schools. Will bring experience and knowledge to a VP or President role. Has recently passed background checks for the Department of Homeland Security, the FBI, and FEMA. Wants to stay in Central Florida.

#322057 Business and Procurement Manager - This candidate wears a lot of hats in his present position. He sees what needs to be done and finds a way to make it happen. Responsibilities include: managing P&L statements, monitoring subcontractors, interviewing and hiring new employees, monitoring site and production budgets, overhead, payroll and material costs. He is involved in procurement of subcontractors, negotiating vendor agreements, handling warranty issues and developing and maintaining relationships with customers and business associates. A problem solver with a demonstrated ability to maintain and improve business unit financial stability. A track record of fostering an office environment which emphasizes customer service along with financial success. Extremely proficient on computer- an MS Office power user. Put this energy to work in your entrepreneurial company. Wants to live in the Southeast.

#233808 Controller - Controller, certified in construction finance, and degreed, is ready to make his next move. Only (2) employers in 11 years. Certified in Construction Finance (CCFP). Experience spans a variety of commercial construction including all accounting functions and staff supervision with top ENR company on projects of all sizes. Open to relocation in the South, Southeast, or Midwest.

#318317 Estimator / Preconstruction - Preconstruction Excellence! Wife’s employment necessitates relocation to Dallas. Stable 5 years in commercial estimating/preconstruction. Experience includes buyout, contract negotiations, value engineering, design/build, client interface. Projects: hi-rise, hotel, condominiums, retail, office. Masters in Construction. Computer proficient in Timberline and Primavera.

#56135 Chief Estimator / Preconstruction - Chief Estimator with PreConstruction and Business Development skills. Strong experience in military and government projects, including design/build, tenant and new base building, and JOC/SABRE. Needs to locate in central Florida to be closer to family.

#114641 Project Manager - Project Manager interested in a career in Preconstruction. Forty-years old, degreed ME, employed as Project Manager for large Program Management firm specializing in airport construction. Manage all Client relationship issues, including Preconstruction Process, budget, estimate preparation, contract negotiations, engineering and construction supervision, project commissioning. Has managed 4 airport projects, ranging from $15 million to $150+ million. Previous experience with general building construction, including retail, university, hospital. Interested in relocation from Florida to any moderate climate with a 4-season environment.

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EAR TO THE GROUND: Trends in Construction

This Issue: Mixed-Use Construction

The Construction Industry Newsletter spoke with several consultants at Kimmel & Associates about the reasons behind the current popularity of mixed-use construction and the prospects for that trend to continue. This is what the consultants had to say.

Jerry Wilkins serves the Southeast for real estate and development as well as general construction.

CIN: Why is Mixed-Use construction experiencing a boom right now? Do you see it continuing?

JW: There’s an old adage in development that it’s cheaper to go up than out, and there are places where that statement is doubly true because there simply are no parcels of land to be had. For instance, in Florida, there is not much land to purchase, so that dictates that there will be an influx of high-rise and mid-rise buildings. Mixed-use development has been popular, but the crunch for land in densely-developed areas, like Miami, has created more demand for mixed-use. Mixed-use is popular, beyond merely building condos, because it maximizes the income a developer can generate with a new property and creates a buzz; fashionable stores on the bottom floor or two lend greater prestige to the condominiums on the upper levels. Investors from across the United States and from other countries pour money into these mixed-use buildings, and the developers can pre-sell condos; there’s a profit guaranteed in this type of building right now. You see mixed-use springing up in resort areas, along lakes and the ocean, in the mountains, and in tight urban areas like New York. Of course, popularity will decline over time – everything is cyclical.

CIN: What particular talent does a construction company need to have to succeed in this market?

JW: There is some expertise required to build a high-rise; companies with experience and a great track record are always preferred. Codes and requirements change according to the number of floors, as well. But success comes down to what it always comes down to: who has the experience to build it best, on time, and make money!

Tim LaBruyere serves the South and Southwest General Construction market.

CIN: Why is Mixed-Use construction experiencing a boom right now?

TL: I think urban revitalization is what’s driving the boom in mixed-use construction, and that’s pretty exciting. Many cities are looking to reclaim urban areas that were lost or decayed, and that’s happening because investors are putting money into mixed-use and other projects that invite families and young people to live downtown again. The reasons are many, but in big cities with a population of a million or more, there are lots of people who want to walk to work, or take a subway, or ride a bike, rather than commute in from an hour or more away. Every major city has old warehouses, for example, that developers are bringing back to life by putting in stores on the bottom and lofts above.

CIN: Why wouldn’t this continue until every dilapidated old warehouse is replaced with an exciting new mixed-use building?

TL: I think the trend will continue to be a draw in metropolitan areas. I think mountain destinations and resorts will keep going strong as well; Tahoe and Aspen, Park City and some of the East Coast equivalents like Asheville and some places in New England.

CIN: What about along the coasts?

TL: I believe that there are several reasons why the trend will ease up along the shorelines. Hurricane Katrina was very sobering for those who want to live or have a second home along the coast. Many people feel, rightly or wrongly, that global warming is going to cause further damage along the coast and increase the numbers of hurricanes, so that may cause investors to look for surer bets.

Meredith Love serves the West for real estate and development as well as general construction.

CIN: Why is Mixed-Use construction experiencing a boom right now?

ML: In addition to agreeing with Tim and Jerry, I’d emphasize the demographic angle even more. Twenty- and thirty-somethings are definitely attracted to revitalized downtown urban environments. They like the convenience and quality of life. There is less traffic and they can walk to clubs, restaurants, sporting events, music. There are lots of snowbirds out there, too, who want to retire to or escape to second homes in resorts or places with lots of sun. The low maintenance condo option in a hip area is enticing - less driving, more relaxing and with a better return on investment.

CIN: Any trends within the trend?

ML: An interesting thing I’ve seen happening are the relationships that have sprung up between residential & commercial developers. I’ve seen joint ventures on one project turn into recurring relationships between two disparate organizations. The condo developer who builds a 20-story building in Denver adds a retail anchor to the ground floor of the condo. This retail developer then joins forces in the residential developer’s next mixed-use developments in Houston, Las Vegas or Southern California. So these previously un-connected companies end up working together on multiple projects and help each other grow synergistically.

Frank Bruckner serves the general construction market nationwide.

CIN: Why is Mixed-Use construction experiencing a boom right now?

FB: This type of construction has been popular for a long time, but only recently has the United States been crunched for space or, in certain areas, by high enough real estate prices, for this trend to gather pace here. Mixed-use is always going to succeed in places where acreage is very expensive, like many cities along the East Coast that cannot expand their land base and where everything happens within a few square miles, anyway, which is where everyone wants to be. Resorts and other metropolitan areas where land is either scarce or prestigious will likewise have a lot of mixed-use development.

CIN: You said that only recently has the United States seen this type of development gather steam?

FB: It’s been popular for a long time in cities across Asia, like Tokyo and Hong Kong, places where available land has been at a premium for decades if not centuries.

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The Kimmel Scholarship for Students in Construction:
100 and Counting

In 2004, the leadership at Kimmel & Associates began the Scholarship for Students in Construction as a means to encourage college students to consider construction as a career. Since the Fall 2004 semester, Kimmel & Associates, the leading executive search firm in the construction industry, has given 100 scholarships to students at 53 different colleges and universities located in 27 states, from Washington to Florida and from Massachusetts to California.

Says Charlie Kimmel, the Chief Operating Officer at Kimmel & Associates, “we want to serve our clients every way we can, and helping attract young people to construction, and supporting their efforts once they’re preparing for construction while in college, seemed like a great way to commit to a healthy future for the industry.”

Kimmel & Associates is currently accepting applications for the Fall 2006 semester award and will take them until May 15, 2006. The application is accessible via the construction scholarship homepage of kimmel.com and can be completed online or printed and mailed back in.

As the number of applicants has increased each semester, the requirements have become slightly more stringent. An applicant now must have a construction professional call in a reference for the applicant, providing a very brief testimonial to the applicant’s talent and commitment to the construction industry.

Those who receive this round of the $1000 award will have the money put directly into their college account in time to defray costs for the Fall 2006 semester.

Just as you can’t yell “Fire!” in a crowded theater (unless there is one), so you can’t say ‘free money’ unless you actually have some to give away. Kimmel & Associates has some to offer the top construction students in the country. Please visit the construction pages on kimmel.com and read about the Scholarship for Students in Construction.

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HARD HAT HUMOR

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What would your ideal new building project be to serve on?

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Epcot Center

The giant geodesic sphere called Spaceship Earth is the icon that most people associate with Epcot, the $1.4 Billion campus that forms part of Disneyworld in Florida. But EPCOT, which Walt Disney envisioned as the Experimental Prototype Community of Tomorrow, is 300 acres of carefully-planned and meticulously executed construction and innovation. When Epcot was being built during the late 1970s and until its opening in October 1982, it was the largest building project on Earth. Parking exists for over 11,000 vehicles who want to visit FutureWorld (featuring several thrill rides) or the World Showcase (with its Pavilion of Nations). A maze of tunnels runs underneath the park and are used primarily for the support facilities necessary for the merchandise shops and restaurants.
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