Centcom Construction

Old school┬ávalues, new opportunities┬áCentcom Construction has a history of resisting the temptation to grow larger during boom times to focus instead on building long-term relationships. Keith Regan finds out how that formula is part of a culture that has led to success for some 27 years.  Centcom Construction has seen its shares of boom times and hard times since being founded in 1981. Through it all, the firm has continued to grow and thrive thanks to its ÔÇ£old school values,ÔÇØ says managing director Chris Craig.┬á Based in Calgary, Centcom has carved out a niche as a general contractor providing downstream services to gas and oil companies, helping clients such as Shell Canada, Imperial Oil Ltd., Petro-Canada, Husky Oil, Federated Co-operatives and United Farmers of Alberta build projects such as convenience stores, car washes, retail gas bars, cardlocks, bulk storage and distribution plants, and aviation facilities.Craig attributes the companyÔÇÖs longevity and its success in both boom and bust times to its old school values and a decision to avoid rapid growth when the good times do come along. ÔÇ£There were times when we could have gotten much bigger,ÔÇØ he says. ÔÇ£WeÔÇÖve resisted when times are booming, and that has enabled us to keep the core of people we trust and who we know can do the jobÔÇöand that makes it easier to adapt to rough times.ÔÇØThe old school approach means that even at the field supervisor level, many Centcom employees have more than 15 years of tenure with the firm, and in some cases sons work in jobs once held by their fathers. Two of the companyÔÇÖs founders, Ed Jonasson and Bill Cumming, now in their 70s, are still active with the firm as well. It also means growing slowly. The central office had six people working in it when the company was founded, and today it has just nine, while the companyÔÇÖs revenues have grown several times as much. Today, Centcom employs about 50 field workers, who are deployed across Alberta, British Columbia and the northern territories of Canada. The companyÔÇÖs growth has all been self-funded, Craig notes. ÔÇ£We pride ourselves on our long-term relationships with sub-trades and suppliers,ÔÇØ he adds. ÔÇ£WeÔÇÖve got second- and third-generation employees, and some of our subcontractors are second and third generation too. People know what theyÔÇÖre going to get with us, and we know who to turn to to help get projects done on time and on budget for our clients.ÔÇØCraig compares the philosophy to a sports team that builds through the draft, with Centcom hiring apprentices who become carpenters and work their way up through the ranks. Keeping core employees both in the office and in the field means that customers know what theyÔÇÖre getting, even if they turn to Centcom only occasionally for project help. ÔÇ£When times get booming like they have in the western provinces, we see companies move in and try to take our employees. But very few leave, and that means we can stay consistent over time. We have confidence in all our project managers that they can get the project right from estimating to costing to execution. The jobs are all executed the same way, and the guys in the field also know what the expectations are from safety to quality. In the end, the proof is in the pudding for our projects and satisfied customers.ÔÇØ The same long-term approach is used in dealing with suppliers and subcontractors. ÔÇ£When youÔÇÖve been working with someone a long time, you know what youÔÇÖre getting,ÔÇØ Craig says. Those relationships also mean that the general contractor can work with the trades on specific improvement projects. For instance, Centcom noticed that its trash-hauling fees were skyrocketing, so it brought together its subs to discuss the topic. Delivering a clear message that improvement would help all involved, Centcom was able to reduce the amount of solid waste it was paying to haul and dispose of by 75 percent and to reduce dumpster pickups from weekly to monthly. Those contractors also help Centcom find new opportunities, with a partner recently leading the company to try doing projects as far away as the province of Ontario, an experiment Centcom backed down from after realizing that it was not as profitable as working in areas where it knew the best trades people to hire and suppliers to work with. ÔÇ£They become part of your extended family almost,ÔÇØ Craig says. ÔÇ£You live their triumphs and grieve their defeats. ItÔÇÖs a lot nicer to go into battle with the forces that you know.ÔÇØ Centcom is set up to handle traditionally carried out construction projects as well as design-build structures, often working closely with partner CTM Design Services, an Alberta firm that specializes in petroleum installations. Through its Web site, it enables clients to get real-time costing updates on their projects, and it has even installed Web cameras on some job sites to enable clients to monitor progress from afar. ÔÇ£We stay current with technology and see it as a tool to serve our clients better,ÔÇØ says Craig. The company also prides itself on its safety record, with ongoing training and job site compliance led by a full-time safety officer. Recently, the firm has begun to seen the signs that tougher economic times are in the offing, even though the economy of Western Canada overall remains healthier and more robust compared to other parts of North America, thanks to investment chasing oil, natural gas, and base and precious metals mining opportunities. ÔÇ£There are always opportunities,ÔÇØ Craig says. ÔÇ£With an economy in a downturn, you have to look harder and be more creative and go out and sell your wares to developers or someone else other than our main customers, or build a different facility in a different part of the country. WeÔÇÖve always had success in tracking down work in the past, and we expect that will continue to be the case.ÔÇØ┬á