Kimmel & Associates Construction Industry Newsletter

Articles, polls and a touch of humor for Construction Industry Professionals --- April 2009

In this Issue:

Construction Companies Can Become World-Class

by Alan MacNair / Vice President - Kimmel & Associates

It’s not remarkable for me to say that during the eleven years I have served as an executive recruiter in construction in the Southeast, this economy is the weakest and most troubling my clients have faced. In fact, consultants who have been here at Kimmel & Associates for 25 years readily say the same.

To adapt to this struggling business climate and serve our clients in whatever way they need, our leadership here introduced the “New Deal,” a series of 10 Programs aimed at approaching our clients with greater insight and renewed effort and at keeping morale and hope at a high level within our four walls.

But this economy has also necessitated some hard decisions: we also discuss protecting the core of our company -- and surviving.

My aim in this article is to encourage construction executives to consider a “New Deal” of your own to survive and succeed in these times and to position yourself to thrive once the economy rebounds, as it will. » Read full Article

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The "First Look" Hotsheet: Extraordinary Candidates

The candidates listed below can generate business for your company, make you money, and save you money in a tough time and a tight market. The needs you face may differ from the talents these candidates represent, so please contact a consultant who knows your industry and territory by calling Kimmel & Associates at 828-251-9900 or contact us by email. We’d be honored to serve you.

#178524 Business Development - Preconstruction/Estimator - This candidate holds a BA in Architecture/Design and an MBA. Majority of career has been with a couple of ENR Top 50 companies. Has worked the day-to-day on-site as a Project Manager and likewise worked as a Business Development/Preconstruction Manager, estimating and preparing both conceptual and hard bid projects in excess of $20 million each. Renting in Central Florida so a relocation would be easy. Preference would be Florida, Southeast, or Mid-Atlantic, but would consider other locations.

#479312 Senior Mechanical Engineer/Business Development - Dynamic Mechanical Engineer with the full package: design, project management, administration, and business development. This veteran with a strong background in Science / Technology, Institutional, Labs, and University/College work is now available. Would prefer an MEP or A/E firm or a large design/build contractor in the Southern California area but would relocate for the right opportunity. This individual is LEED accredited and is looking for a growth opportunity that can utilize mechanical skills. Project list includes high profile work up to $200 million.

#534901 Senior Mechanical Estimator - Twenty year veteran Mechanical Estimator seeks a senior position with a solid backlog and room to grow. With Quick-Pen and On-Screen software experience, this individual has estimated hard bid jobs to $46 million and conceptual work to $15 million. This candidate has process piping, plumbing, hydronic pipe, fire protection, and site utility experience for airports, hospitals, high-rise, university/college, and high-tech manufacturing plants. Prefers a Northern California location, preferably the Bay Area.

#38743 Senior Vice President - Senior Vice President of Preconstruction and Administration of one of the nation’s top Builders. Has 25 years of management career leading start-up and high growth corporations on the west coast. This executive oversees the preconstruction department (including estimating services, preparation of budget estimates, schedules, logistics, engineering and planning during the conceptual design, design development, and schematic design phases of the preconstruction process). Current company has one of the largest and most comprehensive preconstruction departments in the industry and is one of the largest builders of hospitality and gaming projects in the nation and are one of the leading builders of Native American hospitality projects. Also responsible for supervising the company’s human resources department, information technology, document control, and subcontractor qualifications. Would prefer opportunities in AZ, CA, UT and NV.

#142721 Chief Estimator - This candidate is located in San Francisco. Has provided estimates for both hard bid and preconstruction services for a variety of retail, mixed-use, residential, specialty data centers, specialty buildings, high-end tenant improvement, large retail centers, and site work developments for a variety of both regional and national clients. Has 30+ years construction experience in the public and private sector. Career emphasis has been on preconstruction (cost planning), estimating, change order preparation, review and cost analysis of large, technically complex projects (including microelectronics). Also has demonstrated skills in operations/estimating and cross disciplined in foundation, structural and MEP systems.

#536782 Vice President of Claims - This Candidate has more than 35 years of experience in construction contracting, and now specializes in dispute avoidance and resolution, claim development and defense, and construction/project management. Has worked with owners, contractors, subcontractors, and legal counsel throughout the United States providing assistance to individuals and companies in every facet and aspect of the construction industry, including contract formation and administration; loss and project control; project/program and change order management; default termination analysis, justification, and costs/damages quantification; convenience termination costs analysis and quantification; and dispute avoidance/resolution and litigation support. Located in Phoenix.

#55557 Business Developer - This candidate has 20 plus years of experience in corporate marketing, strategic planning, development, preconstruction, and business development. Projects include commercial, retail, industrial, federal, etc. Florida-based but would consider opportunities in or out of state. History of drastically improving sales and securing new work for the company.

#283392 Civil Earthwork and Utility Estimator - Long tenures and solid HCSS capabilities, four year construction degree and numerous continuing education certificates. Located in Illinois.

#135505 Mechanical Operations Manager / Branch Manager / Senior Project Manager - This professional is responsible for all aspects of company operations. This includes estimating, planning, scheduling (which includes material, equipment and subcontract buyout), maintaining liaisons with customers and company senior management and supervision of first line supervisors. Also responsible for contract change management and contract issue resolution. Worked projects in the government construction industry on contracts that range to $30 million (mechanical value). Also experienced in building hospitals, semiconductor plants, Corps of Engineers projects, refineries and NASA projects. In addition to mechanical experience, also holds a General Contractor’s license. Open to locations within the Southeastern U.S.

#428742 Federal Business Development - This candidate has experience in Business Development with multiple federal agencies. Experienced in proposal writing, managing proposal writers, and landing large contracts for multiple civil and environmental contractors.

#120246 Senior Estimator - This candidate is in Florida, but is very open to relocation for the right opportunity. Experienced Chief Estimator who has built estimating teams that bid public and private work: excavation, utility, concrete, highways, roads.

#538213 Director of Capital Projects - Construction professional with over 25 years of experience including the past nine years with one employer as Director of Capital Projects. Project list includes over $350 million worth of projects in the past five years including airports, clean coal facilities, harbor dredging, ethanol plants, demolition, decommissioning, oil exploration, and international work. Candidate is located in the Western U.S. and is open to relocation anywhere in the country.

#294469 COO / Operations Manager / Senior Project Manager - Former Vice President of Operations for a Top 20 ENR Contractor focused on diverse large heavy civil infrastructure projects up to $150 million primarily in the NY and NJ markets for multiple owners. This executive is looking to move forward with career after 15 years with the same company. Great relationships with public agencies as well as local trade unions and subcontractors. Open to relocation.

#63522 CEO / President / Director of Operations - This candidate has a long history with a publicly traded Top Global Design Firm as a Vice President of Business Development and Senior Vice President. Further, worked for a ENR Top 500 Design Firm on the east coast as a CEO who turned around the reputation of the company with existing clients and then developed the business to help the firm grow over 50% during the tenure there (all of which is documented in references). Excels at business development, overseeing operations, and developing and implementing business plans.

#190627 Chief Estimator - LEED accredited Chief Estimator located in the Midwest. Projects range across healthcare, institutional, commercial and government. Strong Timberline experience and projects up to $50 million. Excellent candidate with outstanding references.

#81162 Project Executive - This Green Regional Project Executive is an exceptional problem solver. Helped design the Texas Residential Green Build Program. This multifamily executive has the unique skill set to build an entire project from economic impact to sustainable site work to energy savings with minimal additional costs and within green standards. Is a hands-on manager on high density wrap, podium, mixed-use and garden style projects. Based in Dallas and is open to relocation.

#241913 Growth Strategist - This LEED accredited Executive Manager has a highly successful history of developing and managing successful construction companies. Business development talent, development knowledge and operations leadership has led to exponential growth and profitability for his companies. Degreed and with a stable work history: projects have included design/build healthcare/labs, office, retail and manufacturing. Open to relocation to join a quality, growth-focused company.

#383096 Project Executive - This leader has 22 years of industrial construction experience with semiconductor, chemical, food/beverage and polymer industries. Design/build projects to $76 million plus all phases of site development. This energetic, talented professional holds a BS in Mechanical Engineering and a talent for Business Development along with Operations skills. Very stable work history including eight years with current company. Open to relocation and travel and seeking an opportunity for continued growth with a dynamic company.

#18255 Senior Estimator - This Southern California-based Senior Estimator with 20+ years of experience has vast core knowledge of various construction sectors. Most recently has been specializing in federal government work. If you are looking for an individual to guide you through the federal construction maze and successfully bid on MACC, IDIQ, MATOC, and NAVFAC projects - to name a few - look no further. Open to looking at any location but has residences in California and Florida.

#29280 Sales, Estimating, Design, and Project Management - This candidate is degreed in Mechanical Engineering, has experience in HVAC, plumbing and piping with sales, estimating, design and project management for commercial, healthcare and industrial projects. Located in Indiana / Chicago market.

#53838 Sales / Business Development - An award-winning sales professional specializing in new market development who consistently exceeded sales goals. Leveraging relationships, this candidate led a team which seized market opportunities, driving lead generation and inside sales efforts. Direct sales skills led to multi-million dollar growth, improving customer satisfaction and generating greater loyalty with existing accounts. Skilled at developing emerging markets, and known for: spearheading new marketing initiatives, driving sales and increasing market share, developing and successfully restructuring territories, improving market reach, building successful sales teams, generating long-term account sales, opening new and emerging markets in competitive environments, turning around underperforming sales and service organizations.

#506556 President / CEO - This candidate currently lives in the greater NYC metropolitan area but is open to relocation anywhere in the U.S. for the right opportunity. BS in Civil Engineering as well as an MBA, transformed what was a $12 million utility service contract business in 1998 into a $120+ million full service HVAC and plumbing business by 2007. Oversees 530 employees at current company and has been with current company for 25+ years. The operating profit in the past two years has exceeded $7.5 million.

#506571 Vice President / Principal - This candidate has a BS in Engineering as well as an MBA, and is a licensed, LEED accredited PE. This candidate has managed over 150 projects (multi-discipline, ranging between $100K and $70 million in construction costs) at the company since starting there in 1995, and has achieved revenue results of $25 million and profits of $15 million. Responsible for continuous sales and profitability of all A/E projects, as well as overseeing the entire mechanical engineering department. With both significant design engineering and marketing/client development experience, could be a tremendous asset to a mechanical GC, Owners group, or A/E firm located in the NYC metropolitan region.

#166805 Senior Project Manager / Preconstruction - This Senior Project Manager has extensive experience with both public and private work and has done just about every kind or project (schools, distribution centers, museums, stadiums, commercial hi-rises, hi-end retail, and federal offices). Currently spearheading all preconstruction efforts and business development for federally funded projects at present company, which had previously held no public projects. Recently won two federal projects and is actively pursuing any and all government-funded projects in NYC and surrounding markets.

#536991 BIM Manager - This certified Revit professional has over 15 years of experience in consulting, designing and selling. Strong expertise in BIM with direct experience implementing, training and integrating into AEC organizations. Experienced in institutional, civic, and healthcare projects. An adept communicator and an asset to any AEC Firm. Open to relocation.

#299427 Senior Electrical Estimator - This energetic, motivated Estimator has worked in Los Angeles for entire career (20 years), and is looking for a senior estimating position in Los Angeles, Orange County or the Inland Empire. In the past, successfully bid work in the $1-4 million range (electrical): schools, healthcare, TI work, manufacturing, water/wastewater, food processing, data centers, etc. Involved in preconstruction engineering, and has run many of these jobs as a Project Manager but prefers full-time estimating. Seeking a long-term position with an electrical contractor with the capacity to go after larger, more challenging types of work. This candidate has a proven track record of effective cost analysis and profitable execution to go along with a positive attitude and a great work ethic.

#487611 CEO / CFO - Currently a partner with a prominent Mid-Atlantic architectural firm, this candidate is thoroughly grounded in finance, accounting, and writing proposals/contracts. Licensed professional with 30 years of experience, extensive general management skills, and proven success in all aspects of business development.

#88778 Electrical Estimator / Project Manager - Bilingual, degreed Electrical Estimator / Project Manager interested in Southeast and East Coast opportunities. Experienced working on large ($10+ million electrical) airport and federal projects in a career marked by solid achievement and excellent job stability. Comfortable in either full-time estimating, full-time project management, or a dual role.

#98817 Electrical Estimator / Project Manager - This candidate has over 24 years of experience in the electrical industry: 11 years with his current company and 13 with his previous employer. With over a decade of estimating and management experience on primarily industrial and institutional projects up to $20 million, this candidate brings a level of professionalism and knowledge to the table that is rarely found. Open to positions with companies in the Southern U.S.

Ear to the Ground: Trends in Construction

Heavy-Civil Group

The Kimmel Construction Industry Newsletter spoke recently with members of the Heavy Civil Division at Kimmel & Associates. The consultants provided insights into their marketplaces and even made some educated guesses as to which trends will strengthen and which types of work may diminish in the coming months or next few years. Hear what these experts have to say about your part of the country.

Calvin Allen serves as a consultant to clients and a career advisor for professionals in the Southeastern United States.

CIN: How has the economic downturn affected your business?

CA: We’re seeing a strong need for Estimators and Business Development Managers, especially those with expertise in Federal projects.

CIN: Is it harder to persuade a candidate to change positions in times of uncertainty?

CA: The best managers understand that very few, if any, positions are safe forever. So many factors can cause a company or division to close, to name just one of many possibilities. On the other hand, a great position is still great in lean times.

CIN: How is the heavy civil market in the Southeast?

CA: Slow, but the stimulus money appears to be on the way.

Bill Wolfe serves as a consultant to clients and a career advisor for professionals in the Western United States.

CIN: Has the economy affected your market?

BW: Absolutely, but contrary to most opinion, there have been positive developments that have come from this situation.

CIN: For example?

BW: The best companies I work with are capitalizing on these circumstances by upgrading at key positions, so they’re poised to act in the market from a position of strength.

CIN: What role do you play in that transformation?

BW: In the case of one client with whom I work, we sat down and looked at the strategic business plan to envision ways to strengthen the team. This company understands the need to think long-term and rely on a planning process that isn’t overly influenced by current matters.

CIN: Are you seeing any concrete results from the influx of Federal Stimulus money?

BW: Not precisely, not yet, but the knowledge that it’s coming has some weight. Companies that were already building Federal or Military projects are on solid footing right now – they have work and many prospects. That security in turn allows them to look for sharp people who can save them money.

CIN: Are any markets you work in particularly strong?

BW: That’s not how I’d put it. I’d say that there are strong niche opportunities in every market where I work. There are still companies and outstanding professionals who are going to thrive right now.

David Goodrum serves as a consultant to clients and a career advisor for professionals in the Western United States.

CIN: In what markets are you seeing demand for candidates?

DG: Very smart Estimators with experience in public work are in demand – now more than ever. And by that, I mean those Estimators who know federally-funded, state-funded, and municipal work and who are skilled in bidding design/build projects. If those Estimators know large-scale highway and bridge projects, all the better.

CIN: Why the emphasis on Estimators?

DG: Because work is hard to come by. So a company’s edge increases with a strong roster of Estimators; an Estimator can create a margin and make the company profit that was not there before. I have clients who are building projects without breaking even just to keep their people employed.

CIN: Are any markets in your territory more healthy than the norm?

DG: Orange County and the L.A. basin are seeing a fair amount of highway and bridge projects. There are currently four large jobs going out in Orange County that will employ large numbers of professionals.

CIN: Do you foresee the Federal Stimulus money helping this situation?

DG: I think it could have an impact and provide much-needed incentive to hire and re-hire.

CIN: Are any types of companies faring better than others?

DG: Again, those with the capability of winning publicly-funded work. Private companies are struggling, and those companies which concentrate on site development are really scrambling. I know a lot of good people in the market, and I hope this turns around quickly, for their sakes.

Michael Murphy serves as a consultant to clients and a career advisor for professionals in Texas, Colorado, and the South-Central United States.

CIN: Who are you looking for today?

MM: At the moment, my clients are particularly focused on well qualified heavy-bid Estimators; no surprise there. I’m also looking for Estimators who have strong experience in putting together Federal bid packages. In the current climate, the ability to secure or participate in major Federal projects is high on nearly everyone’s list. Financial Manager searches have been getting a lot of my attention too. Can’t generate more revenue today? Well, here’s a way to impact your bottom line by smart business decisions, better asset management and cost control. And in a more general sense, client firms are taking this opportunity to cull their ranks and strengthen their upper end.

CIN: Where is the demand the greatest?

MM: We see a lot of activity throughout North and Central TX, Houston, of course, and the Gulf area. Texas anticipates more than $2.2 billion in bridge and highway spending just from stimulus spending. Colorado had a difficult 2008, although we are cautiously optimistic about 2009; I think we are looking at over $400 million in stimulus highway spending there.

CIN: What have been the most difficult issues for your clients recently, and what do you expect to see in 2009?

MM: Most of my clients, generally speaking, seemed to have had strong Q1-3 in 2008; it was during Q4 that we saw significant declines. Some feel that the lending crisis played a major role; most likely though, it was a combination of that, the upcoming election, the mortgage emergency and some other factors. For example, we saw a lot of site contractors who were closely aligned with the residential and commercial markets become displaced from that type of work; they entered the public sector in order to keep business intact. At the same time, we also saw a dip in the TXDOT letting dollars. So you have a situation where there were more people bidding less work, yielding thinner margins. Add to that the risk of assuming short term debt associated with these types of projects and you get an anxious market. Everyone is looking closely at cost versus return.

CIN: What else is on your mind today?

MM: I like the idea of infrastructure investment, and here’s why. First off, construction firms, particularly civil GCs, are generally going to be good stewards of Federal dollars. The banking, insurance and automotive industries received Federal money in order to stabilize their industry, yet they continued engaging in the same behaviors that got them in trouble in the first place. I don’t see this type of problem associated with our water, wastewater, lock and dam, road and bridge and earthworks professionals. The big benefit of this is better communities, higher employment rates, and more robust local economies, which makes a lot of sense for all of us.

Taylor Maurer serves as a consultant to clients and a career advisor for professionals in the Mid-Atlantic and Northeastern United States.

CIN: What’s the biggest problem you see facing construction today?

TM: It’s the lack of funding on both the private and public side. And, specifically, on the public side, the lack of money for municipal projects hurts. Contractors aren’t being asked to re-pave roads and tackle the other meat-and-potatoes work they’re used to doing.

CIN: Is the promised money from the Federal Stimulus aiding to relieve the strain?

TM: There is a definitely a welcome sense of anticipation. There is expectation for movement in milling and paving projects, especially in New England. Further, mass transit in large metro areas needs to be addressed, and we’re seeing that already. And aging structures like bridges demand attention – they have to be upgraded.

CIN: What kind of candidates are your clients inquiring about?

TM: The most desired professional in my territory right now is a hard-line negotiator. I don’t mean a number-cruncher. I mean someone who can negotiate a bottom line and create a margin that is fair but which serves his builder.

CIN: Does that mean an Estimator?

TM: It can, of course. But multiple players can play an important role in making a company run lean, from a VP of Estimating to a Project Manager to a Superintendent. In other words, someone who can utilize Value Engineering is of great worth right now. If a candidate can look at a plan and take sound, legitimate money-saving ideas to an owner or an engineer and create profit, that is a person in demand right now.

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CARTOON

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Made in the USA

George Vanderbilt, son of Cornelius “The Commodore” Vanderbilt, was a member of one of America’s oldest and wealthiest families, a learned world traveler whose dream of building a grand family estate became realized when he spearheaded the building of the Biltmore House, a grand country home in the mountains of North Carolina fashioned after three châteaux built in 16th-century France.

At the time of its construction, the Biltmore Estate was one of the largest undertakings in the history of American residential architecture -- and the results were astounding. Over a six-year period, an entire community of craftsmen worked to build the country's premier home. The estate boasted its own brick factory, woodworking shop, and a three-mile railway spur for transporting materials to the site.

The completed home, designed by celebrated architect Richard Morris Hunt, features 4 acres of floor space, 250 rooms, 34 bedrooms, 43 bathrooms, and 65 fireplaces. The basement alone would house a swimming pool, gymnasium and changing rooms, bowling alley, servants' quarters, kitchens, and more.

Construction of the Biltmore House was under way in 1889; it was a massive undertaking that included a mansion, gardens, farms, and woodlands. The centerpiece was a four-story stone house with a 780-foot façade—a monument that would rival the surrounding mountains in grandeur.

Biltmore House was still not complete when George Vanderbilt opened it to family and friends on Christmas Eve in 1895; work would continue for years. Its scale continues to be astounding: the house contains more than 11 million bricks; the massive stone spiral staircase rises four floors and has 102 steps. Through its center hangs an iron chandelier suspended from a single point, containing 72 electric light bulbs.

The grounds of the 125,000-acre estate were designed by Frederick Law Olmsted, the creator of New York's Central Park and the father of American landscape architecture. He not only developed acres of gardens and parkland, but in his efforts to protect the environment and reclaim over-farmed land, Olmsted established America's first managed forest.

Much of this content comes from the website for the Biltmore Estate at www.biltmore.com.

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