Organizational structure Skanska's recipe for success
The saying "the sum of the parts is greater than the whole" accurately applies to the Skanska companies. The U.S. affiliate of Sweden-based Skanska AB has parlayed its flat organizational structure into a winning managerial style that leaves decision making to the local experts.
"What has made us successful is that we are really a group of business units that operate independently," says Michael J. Healy, of the seven contracting companies that come under the umbrella of Skanska USA Building. The affiliated companies, which at one time were entities unto themselves, are Beacon Skanska, serving Boston and New England; Barclay White Skanska located in Pennsylvania, Delaware, Washington, D.C., and Puerto Rico; Baugh Skanska, Seattle; Barney Skanska, New York City; Etkin Skanska, Colorado; Etkin Skanska, Michigan; and Sordoni Skanska, New Jersey and Connecticut.
The inclusion of the volume of Atlanta-based Beers Skanska, which previously was listed separately, vaulted the firm to second place in the Contractors category of the 2001 Design/Construct 300.
The Skanska managerial approach is different from most large contracting companies, Healy says. "Most organizational structures are top down with big corporate headquarters. Our structure enables the front-line people to do their jobs and develop relationships with their clients. No one shouts directions from an ivory tower. On the contrary, we are the epitome of a flat-line organization; that's our greatest strength."
Internal growth has been supplemented in the last year by the acquisition of companies such as Baugh and Barclay White. In acquiring Baugh, Skanska gained a presence in the Northwest with one of the region's top contractors, says Healy. "Construction is definitely a local business," he says. "Unless you're from the area, you're an out-of-towner."
Baugh also benefited in that it is able to draw on the resources and technical expertise of other companies within Skanska. An example of this synergy is Beacon Skanska's $386 million Delta terminal project at Boston's Logan International Airport. While Beacon was established in the area, Beers Skanska's previous work with Delta in Atlanta helped in Beacon to obtain the contract.
|1 (1) $5,627.54||The Turner Corp.
901 Main St., Suite 4900
Dallas, TX 75202
|Tops in the Contractors category again this year, the construction giant recorded an 18 percent increase in billings from the previous year, breaking the $5 billion mark. Ninety percent of work was delivered via construction management at risk. The company's strength is in the commercial arena, which comprised 57 percent of its business. Projects completed include Paul Brown Stadium in Cincinnati, Ohio. Thomas C. Leppert, Chmn., CEO; Robert E. Fee, Pres., COO.|
|2 (—) $3,281.90||Skanska
16-16 Whitestone Expressway
Whitestone, NY 11357
|The company's network of construction entities is for the first time represented under one umbrella, catapulting it to No. 2 among Contractors (see profile above). Companies previously represented individually include Baugh Skanska, Seattle, formerly Baugh Inc.; Beers Skanska, Atlanta; and Sordoni Skanska, Parsippany, N.J. Acquisitions last year included Baugh and Barclay White, Blue Bell, Pa. Stuart E. Graham, Pres., CEO; Hans Anderson, VP, CFO.|
|3 (2) $2,892.80||Bovis Lend Lease
200 Park Ave.
New York, NY 10166
|Though design/build comprised only 5 percent of its work in the past year, the company focused attention on this delivery method by launching its design/build service sector. It also formed a separate business unit, Lend Lease Actus, to pursue turnkey military housing. Projects include the AOL Time Warner Center headquarters, New York City. Charles A. Bacon III was named CEO. Luther P. Cochrane, Chmn.; Charles A. Bacon III, CEO.|
|4 (3) $2,830.50||BE&K Inc.
2000 International Park Drive
Birmingham, AL 35243
|Seventy percent of BE&K's building work was concentrated in the industrial sector, with design/build comprising 35 percent of its project deliveries. Five percent of revenues reported were derived from international projects. The company opened its newest office in Houston. Projects include a Honda automotive manufacturing facility in Alabama and gypsum-board manufacturing plants in Oregon and California. T.C. Kennedy, Chmn.; T.M. Goodrich, Pres., CEO.|
|5 (7) $1,976.27||Clark Construction Group Inc.
7500 Old Georgetown Road
Bethesda, MD 20814
|With more than 60 percent of its billings in the commercial sector, the company increased its value of projects placed last year over the previous year by more than $700 million. Its portfolio includes corporate headquarters, office buildings, institutional facilities, health-care facilities and sports and convention centers. Projects include an EPA research complex in Research Triangle Park, N.C. Peter C. Forster, Chmn., CEO; Dan T. Montgomery, Pres., COO.|
|6 (8) $1,915.00||DPR Construction Inc.
1450 Veterans Blvd.
Redwood City, CA 94063
|New offices in San Jose, Calif.; Pleasanton, Calif.; Houston and Singapore helped boost DPR's billings in 2000. The company specializes in technical projects in such growth industries as mission-critical, semiconductor, biotech/pharmaceutical, health-care, entertainment, high-end corporate and warehouse/distribution facilities. Projects include conversion of a San Francisco library to the Asian Art Museum. Douglas E. Woods, Pres.; Peter C. Nosler, CEO.|
|7 (10) $1,550.00||Swinerton Inc.
580 California St., 12th Floor
San Francisco, CA 94104
|Building specialties for this contractor include hospitality, health care, senior living, privatization, design/build, multifamily, retail and academic campuses, with 60 percent of its business in the commercial sector. The company's primary building division, Swinerton & Walberg, became Swinerton Builders in January. The San Francisco headquarters for Gap is to be completed this year. David H. Grubb, Chmn., CEO; James R. Gillette, Pres.|
|8 (4) $1,510.61||J.A. Jones Inc.
J.A. Jones Drive
Charlotte, NC 28287
|As part of an internal reorganization, Alfred V. Neffgen succeeded Charles T. Davidson as president and CEO. The company realized 9 percent of its total revenues from international projects. U.S. projects include a luxury condominium project in Las Vegas that features two 20-story towers and the adaptive reuse of a New York City bank building into a 36-story luxury residential tower. Alfred V. Neffgen, Pres., CEO; Charles T. Davidson, Chmn.|
|9 (5) $1,500.48||The Whiting-Turner Contracting Co.
300 E. Joppa Road
Baltimore, MD 21286
|With 14 offices throughout the United States, the company performed 47 percent of its work in the commercial sector. Eighteen percent of its building work involved reconstruction and 21 percent involved public construction. Projects include semiconductor installations in Hopewell Junction, N.Y., and Manassas, Va., and a $160 million project at Las Vegas' Fashion Show Mall. Willard Hackerman, Pres., CEO; Charles A. Irish, Sr. Exec. VP.|
|10 (16) $1,412.39||Centex Construction Group
10150 Monroe Drive
Dallas, TX 75229
|Although 74 percent of its work was in single-family residential, Centex makes the top 10 in this year's Contractors category with 13 percent of its work in institutional buildings and 9 percent in commercial. Projects include two hockey/skating rink facilities in Duncanville and Euless, Texas, and design/build services for the National Academy of Sciences' new office building in Washington, D.C. Bob L. Moss, Chmn., CEO, Pres.; Gary P. Esporrin and Mark W. Layman, Co-CFOs.|
|11 (6) $1,398.18||Hensel Phelps Construction Co.
P.O. Box O, 420 Sixth Ave.
Greeley, CO 80632
|Thirty-three percent of the company's work was performed using design/build project delivery, accounting for more than $450 million in billings. Public construction constituted 42 percent of its buildings work. Projects include an aerospace facility in Cape Canaveral, Fla.; a $400 million airport project at DFW in Dallas; and a major renovation project at the Pentagon in Arlington, Va. Jerry L. Morgensen, Pres., CEO; Robert J. Pesavento, Exec. VP.|
|12 (11) $1,387.68||Structure Tone Inc.
15 East 26 St.
New York, NY 10010-1589
|With offices throughout Western Europe and in China and South America, 20 percent of the company's total revenues reported were from international projects. Ninety percent of its work involved reconstruction. Commercial buildings comprised 80 percent of work put in place. Projects include the renovation of a data center in Brooklyn, N.Y., and the adaptive reuse of a New York City office building into a hotel. Anthony M. Carvette, Pres.; James Donaghy, Chmn.|
|13 (12) $1,218.99||J.E. Dunn Group
Kansas City, MO 64106
|Formerly known as Dunn Construction Group, the privately held company completed the acquisition of R.J. Griffin & Co. general contractors in the past year. Forty-eight percent of work put in place was in commercial buildings and 40 percent in institutional. Reconstruction work constituted 20 percent of buildings work. Projects include the $40 million historic renovation of the Liberty Memorial in Kansas City, Mo. Terence P. Dunn, Pres., CEO; Bob Long, Chmn.|
|14 (17) $1,147.74||McCarthy Building Companies Inc.
1341 N. Rock Hill Rd.
St. Louis, MO 63124
|A specialist in the construction of health-care, laboratory and research facilities, as well as education, mixed-use, industrial and clean-room manufacturing facilities, more than 40 percent of McCarthy's work involved public buildings. Forty percent of work put in place was in the commercial sector. Projects include an entertainment-rental complex in Hollywood, Calif., and a health-care facility in St. Louis. Michael M. McCarthy, Chmn.; Michael D. Bolen, CEO.|
|15 (14) $973.50||Opus Group
10350 Bren Road W.
Minnetonka, MN 55343
|With the retirement of founder Gerald Rauenhorst, Keith Bednarski became chairman and Mark Rauenhorst president and CEO. All of the company's construction was in design/build. Ninety-three percent of the work was in the commercial sector. Projects include a 42-acre office campus in Downers Grove, Ill.; the Capitol Mall in Phoenix; and other multimillion-dollar commercial projects in Madison, Wis., and Fairfax, Va. Keith Bednarowski, Chmn.; Mark Rauenhorst, Pres., CEO.|
|16 (56) $896.76||Hoffman Corp.
805 S.W. Broadway, Suite 2100
Portland, OR 97205
|Hoffman jumps into the Contractors category's top 20 this year by putting in place nearly twice the value of construction last year as in the previous year. Boosting billings were projects in Seattle, including the Experience Music Project, Millennium Tower, Central Library, City Hall and Plaza and Justice Center. Additional projects include airport and zoo expansions and a five-block mixed-use development in Portland, Ore. Wayne Drinkward, Pres.|
|17 (27) $895.03||PCL Construction Enterprises Inc.
2000 S. Colorado Blvd., Suite 2-500, Tower Two
Denver, CO 80222
|Sixty-three percent of the company's revenues were derived from projects outside the United States. Known for fast-tracking and "flash-tracking" projects, PCL is striving to increase its market share in design/build. While 40 percent of its work is in commercial buildings, 26 percent involves public buildings. Projects include the U.S. District Courthouse Annex in Denver. R.A. Grieve, Pres., CEO (Canada); Peter Beaupre, Pres. (United States).|
|18 (32) $850.00||JPI Partners Inc.
600 E. Las Colinas Blvd, Suite 1800
Irving, TX 75039
|The multifamily residential contractor increased the value of construction put in place last year by more than $300 million. Headquartered in Irving, Texas, the company has nine offices in Colorado, Massachusetts, Georgia, Florida, Virginia, Washington and Canada. Projects include a 400-unit tower in West Palm Beach, Fla., and a revitalization project in Atlanta. J. Frank Miller III, Chmn., CEO; Robert D. Page, COO; Frank B. Schubert, CFO; Ronald D. Ingram, CAO.|
|19 (70) $839.46||Austin Industries
P.O. Box 1590
Dallas, TX 75221-1590
|The company became 100 percent employee-owned in the past year. Thirty-five percent of construction put in place was commercial buildings, 23 percent was industrial and 11 percent was institutional. Focused in the south and southeastern United States, the company maintains four offices in Texas, as well as offices in Augusta, Ga., and Phoenix. Projects include airport terminals in Dallas and Miami. William T. Solomon, Chmn.; Ronald J. Gafford, Pres., CEO.|
|20 (13) $760.00||AMEC Construction Management Inc.
1633 Broadway, 24th Floor
New York, NY 10019
|A wholly-owned subsidiary of London-based AMEC plc since 1995, Morse Diesel International was renamed AMEC Construction Management Inc. Figure at left represents billings of the U.S.-based building contracting unit alone. Known for agency-style construction management, the company reports that 62 percent of its building projects are being delivered using construction management at risk. Peter Janson, Chmn.; Mitch Becker, COO.|
|21 (22) $756.01||Perini Corp.
73 Mt. Wayte Ave.
Framingham, MA 01701-9160
|Fifty-seven percent of the company's building construction involved the commercial sector with emphasis in hospitality, gaming, education, health care and technology. Seventeen percent of Perini's work involved reconstruction. The company maintains six offices in the United States. Projects include a $42 million hospital in Weymouth, Mass; a $300 million hotel in Orlando, Fla.; and a hotel and casino in Las Vegas. Ron Tutor, Chmn., CEO; Bob Band, Pres., COO.|
|22 (44) $756.00||Kajima Construction Services Inc.
395 W. Passaic St.
Rochelle Park, NJ 07662
|Company more than doubled the value of construction put in place from last year and has stepped up efforts to recruit employees to keep up with its workload. Seventy-two percent of its work is in design/build with 85 percent in the commercial sector. Projects include Pac Bell Park in San Francisco and a 65,000-sq.-ft. high-tech facility in New York City. Masato Kashiwakura, Pres., CEO; Richard Nigro, COO.|
|23 (26) $727.90||Brasfield & Gorrie LLC
729 S. 30th St.
Birmingham, AL 35233
|Providing general contracting and CM services throughout the Southeast, the company focuses on commercial (49 percent), institutional (24 percent) and industrial building (13 percent). Offices are located in Alabama, Georgia, Tennessee, Florida and North Carolina. Projects include commercial, retail and office building projects in Birmingham, Ala., and office building projects in Atlanta and Orlando, Fla. M.M. Gorrie, Chmn., CEO; Jim Gorrie, Pres.|
|24 (19) $721.55||Pepper Construction Group
643 N. Orleans St.
Chicago, IL 60610
|Formerly Pepper Construction Companies Inc., the company restructured its subsidiaries in Chicago; Indianapolis; Irvine, Calif.; and Houston, to form Pepper Construction Group. Twenty-five percent of its work involved reconstruction. Projects include a corporate headquarters in Naperville, Ill.; a retail facility in Eden Prairie, Minn.; a university building in Chicago; and health-care projects in Indianapolis and Glenview, Ill. Richard S. Pepper, Chmn.; J. Stahley Pepper, Pres.|
|25 (20) $718.37||The Weitz Co. Inc.
400 Locust St., Suite 300
Des Moines, IA 50309-2331
|Structural changes allowed for additional employee ownership for the contractor, which acquired an industrial construction company in Iowa. Weitz is becoming involved earlier on in the construction process in preconstruction and through design/build, which comprised 12 percent of its total dollar volume. Projects include an assisted-living project in Olathe, Kan. Richard Oggero, Chmn.; Glenn DeStigter, CEO; Craig Damos, CFO.|
|26 (28) $712.30||The Walsh Group
929 W. Adams St.
Chicago, IL 60607
|Forty-percent of Walsh's building work was for state and local governments. Fifteen percent of its work used design/build as the project delivery system. Commercial work comprised 25 percent of the company's construction put in place. Projects include a 1.2 million-sq.-ft. hospital project in Chicago, a 10-story airport parking structure in Detroit, a 39-story condo tower in Chicago and a retail commercial facility in Boston. Matthew Walsh, CEO; Daniel Walsh, Pres.|
|27 (15) $698.42||M.A. Mortenson Co.
P.O. Box 710, 700 Meadow Lane N.
Minneapolis, MN 55422
|Thomas F. Gunkel was appointed president and COO for the company, which specializes in commercial and institutional buildings, including hospitality, sports, educational, health-care, government and semiconductor segments. Projects include a convention center in Tacoma, Wash.; a medical facility in Green Bay, Wis.; an office tower in Minneapolis; and an airport cargo facility in Los Angeles. M.A. Mortenson, Chmn., CEO; Thomas F. Gunkel, Pres., COO.|
|28 (31) $694.63||J.S. Alberici Construction Co. Inc.
2150 Kienlen Ave.
St. Louis, MO 63l2l
|Foreign work comprised 20 percent of the company's total revenues last year. Of the commercial, institutional and industrial billings shown at left, 20 percent was put in place using design/build. Offices are maintained in St. Louis, Detroit, Atlanta and Hamilton, Ontario. Industrial buildings comprise 64 percent of work, institutional, 15 percent. Projects include an ambulatory care/cancer center in St. Louis. Robert McCoole, Pres.; John S. Alberici, Sr. VP.|
|29 (18) $682.00||Kraus-Anderson Construction Co.
525 S. 8th St.
Minneapolis, MN 55404
|Thirty percent of the company's work involved reconstruction. Fifty-four percent of work put in place was in the commercial sector. Institutional buildings comprised 32 percent and industrial accounted for 14 percent. Projects include a hospital in Woodbury, Minn., offices in Bloomington and Eden Prairie, Minn., multifamily housing in St. Paul and Golden Valley, Minn.; and a distribution facility in Maple Grove, Minn. Bruce W. Engelsma, CEO; Jerold F. Dreis, CFO.|
|30 (58) $680.00||Washington Group International Inc.
P.O. Box 73
Boise, Idaho 83729
|The engineering and construction firm Washington Group International was formed in July 2000 with the acquisition by Morrison Knudsen Corp. of Raytheon Engineers & Constructors Inc. Revenues shown at left are estimated. Liquidity problems have led company to restructure under Chapter 11. Projects include an automotive assembly plant in Lansing, Mich., and a county courthouse in Boise, Idaho. Dennis R. Washington, Chmn., CEO; Stephen G. Hanks, Pres.|
|31 (24) $650.00||Manhattan Construction Co.
6300 North Central Expressway
Dallas, TX 75206
|The company's emphasis is in the commercial-corporate and light-industrial sectors. Commercial and institutional buildings comprised 40 percent of construction put in place, respectively, while industrial buildings accounted for 20 percent. Projects include a medical center campus expansion and a corporate/commercial technology center in Tulsa, Okla., and a corporate center project in Dallas. L.F. Rooney, Chmn.; Timothy P. Rooney, Pres.|
|32 (25) $589.20||The Beck Group
1700 Pacific Ave., Suite 3800
Dallas, TX 75201-4619
|The company operates a network offices in Atlanta; Austin, Texas; Denver; Houston; Los Angeles; Orlando, Fla.; Phoenix; San Antonio, Texas; Tampa, Fla.; and Mexico City. Beck specializes in the commercial and institutional building sectors, including retail, entertainment/hospitality, health-care and religious markets. Projects include Web hosting and data center facilities in Allen, Texas. Lawrence A. Wilson, Mng. Dir.; Henry C. Beck III, Mng. Dir.|
|33 (9) $572.83||Fluor Corp.
One Enterprise Drive
Aliso Viejo, CA 92656-2606
|The company's work shifted significantly away from commercial, institutional and industrial buildings in 2000 and toward utility plants and mining endeavors, which resulted in a lower placement on this list. Forty-one percent of total revenues came from foreign projects. Projects include industrial buildings in Malaysia, New London, Conn., and Research Triangle Park, N.C. Phillip J. Carroll Jr., CEO; Alan L. Boeckmann, COO.|
|34 (30) $559.30||Hardin Construction Co.
1380 West Paces Ferry Road N.W.
Atlanta, GA 30327
|Ninety-five percent of the company's billings were for new commercial buildings, including office, retail, multifamily residential and hospitality. Institutional buildings accounted for 5 percent of work. The company maintains offices in Tampa and Orlando, Fla. Projects include offices in Atlanta; a Ritz Carlton hotel in Sarasota, Fla.; and a retail mall in Orlando, Fla. Earl Shell Jr., Chmn., CEO; M. Brantley Barrow, Exec. VP, CEO.|
|35 (29) $550.40||Walbridge Aldinger
613 Abbott St.
Detroit, MI 48226-2521
|Company also is listed in the Specialty Contractors category. Of construction put in place last year, 65 percent was in the industrial sector, 12 percent was institutional and 9 percent was commercial. Sixteen percent of the company's work involved state and local government buildings. Projects include an automotive transmission plant in Kokomo, Ind., and the Ford Rouge Heritage plant in Dearborn, Mich. John Rakolta Jr., Chmn., CEO; Richard J. Haller, Pres., COO.|
|36 (33) $550.00||Hunt Construction Group
2450 S. Tibbs Ave.
Indianapolis, IN 46241
|Formerly Huber, Hunt & Nichols Inc., the company maintains offices in Tampa, Fla.; Branchburg, N.J.; Orlando, Fla.; Phoenix; Dallas; and San Francisco. Institutional buildings comprised 60 percent of the company's construction put in place in 2000. Twenty-five percent of its projects involve government buildings. Projects include an airport terminal expansion in Detroit and a convention center project in Boston. R.G. Hunt, Vice Chmn., CEO; Michael D. Kerr, Pres., COO.|
|37 (—) 498.42||Jacobs Engineering Group Inc.
1111 S. Arroyo Parkway, P.O. Box 7084
Pasadena, CA 91109-7084
|38 (35) 495.90||The Haskell Co.
111 Riverside Ave.
Jacksonville, FL 32202
|39 (42) 491.64||Day & Zimmermann International Inc.
1818 Market St.
Philadelphia, PA 19103
|40 (39) 471.30||Carlson Implementation Associates Inc.
959 Concord St., Second Floor
Framingham, MA 01701
|41 (—) 464.50||McGough Construction
2737 N. Fairview Ave.
St. Paul, MN 55113-1372
|42 (21) 462.90||Kiewit Construction Co. Inc.
1000 Kiewit Plaza
Omaha, NE 68131
|43 (54) 430.00||Clayco Construction Co.
2199 Innerbelt Business Center Drive
St. Louis, MO 63114
|44 (23) 418.82||Holder Construction Co.
3333 Riverwood Parkway, Suite 400
Atlanta, GA 30339
|45 (38) 412.50||Ryan Companies US Inc.
700 International Centre, 900 Second Ave. S.
Minneapolis, MN 55402
|46 (61) 409.77||The Austin Co.
6095 Parkland Blvd.
Cleveland, OH 44124
|47 (—) 405.00||Batson-Cook Co.
P.O. 151, 817 Fourth Ave.
West Point, GA 31833
|48 (43) 396.24||Dick Corp.
P.O. Box 10896
Pittsburgh, PA 15236
|49 (40) 378.00||Torcon Inc.
214 E. Grove St., P.O. Box 609
Westfield, NJ 07091
|50 (52) 376.20||Nielsen Dillingham Builders
3127 Jefferson St., P.O. 80367
San Diego, CA 92110
|51 (48) 364.54||Stellar Group
2900 Hartley Rd.
Jacksonville, FL 32257
|52 (45) 346.72||Graycor
One Graycor Drive
Homewood, IL 60430
|53 (49) 328.58||James N. Gray Co.
10 Quality St.
Lexington, KY 40507-1450
|54 (50) 328.00||McClier
401 E. Illinois, Suite 625
Chicago, IL 60611
|55 (51) 327.00||HBE Corp.
11330 Olive Street Rd.
St. Louis, MO 63141
|56 (41) 326.09||Fru-Con Construction Corp.
15933 Clayton Road, P.O. Box 100
Ballwin, MO 63022-0100
|57 (—) 308.46||H and M Co.
50 Security Drive
Jackson, TN 38305
|58 (37) 298.30||Sundt Construction Inc.
P.O. Box 26685
Tucson, AZ 85726
|59 (—) 287.00||L.F. Driscoll Co.
9 Presidential Blvd.
Bala Cynwyd, PA 19004-0468
|60 (—) 282.60||Lockwood Greene
P.O. Box 491, 1500 International Drive
Spartanburg, SC 29304
|61 (—) $280.00||Shawmut Design and Construction
560 Harrison Ave.
Boston, MA 02118
|62 (—) 278.50||Weis Builders Inc.
7645 Lyndale Avenue South
Minneapolis, MN 55423
|63 (55) 275.39||Clancy & Theys Construction Co.
516 W. Cabarrus St.
Raleigh, NC 27603
|64 (46) 275.00||Brice Building Company Inc.
2311 Highland Avenue South, Suite 200
Birmingham, AL 35205
|65 (59) 268.09||Marnell Corrao Associates
4495 S. Polaris
Las Vegas, NV 89103
|66 (57) 256.54||Oltmans Construction Co.
10005 Mission Mill Road
Whittier, CA 90608-0985
|67 (60) 254.79||Miller Building Corp.
P.O. Box 2046, 1404 Commonwealth Drive
Wilmington, NC 28403
|68 (—) 243.00||James McHugh Construction Co.
2222 S. Indiana Ave.
Chicago, IL 60616
|69 (62) 226.05||Barton Malow Co.
27777 Franklin Road., Suite 800
Southfield, MI 48034
|70 (64) 220.00||Marshall Erdman & Associates Inc.
5117 University Ave.
Madison, WI 53705