Building on Relationships

Building on Relationships

construction by Dave Szymanski | Tampa Bay Editor

Hawkins Construction continues a tradition of team-oriented work among its longtime employees and succeeds, especially in the retail niche.

When you set a good record, you want to keep it.

For Hawkins Construction Co. of Tarpon Springs that record, standing for more than 30 years, is never being late. It has always finished projects on time.

If that isn't impressive, consider this: Hawkins is a general contractor that succeeds in retail construction - a part of the industry known for exacting standards, narrow timeframes, tough competition, lots of change orders and one that's tightened recently because the residential market.

How does it do it? Teamwork among employees, longtime relationships with retailers, good internal controls and consistency.

That started with the Hawkins family, who founded the firm in 1975, continued with other managers and continues now with CEO John McCaugherty, an employee since 1979 who took over the chief executive duties in the past year.

McCaugherty does not plan to make major changes to the organization which changed ownership and is now owned by five partners, including McCaugherty.

"It is very important that we stress stability," he says. "Teamwork made us stable. Our clients realize that. We want no change in the quality service we give our clients."

Hawkins does more than 100 projects a year, which range in price from about $800,000 to $30 million each throughout the Southeast.

Although it specializes in retail, it has also done a variety of other projects, including office complexes, industrial buildings, banks, churches, schools, medical buildings and nursing homes.

It has done more than 2,000 projects in its history, with retail making up about 60% of the work.

Among its projects was the redevelopment of the Clearwater Mall, which went from an enclosed plaza to an open-air power center with big box retail customers could drive up to.

Hawkins did more than 265,000 square feet of retail construction at Clearwater Mall, averaging 180 days from building pad to tenant delivery. The major retailers included Border's, Michaels, Linen 'n Things, PetsMart, David's Bridal, Pier I, Jared's Jewelry, Famous Footwear and Ross.

After consistent 10% to 20% annual revenue increases, 2007 was a banner year as revenues rose 37% to $193 million, to make the company No. 6 on the Review's list of the top 50 construction companies on the Gulf Coast.

"This year, it may be tough to get 10% percent growth, but the year is young yet," McCaugherty says.

Teamwork and execution

Hawkins began more than 30 years ago as a local general construction contractor. But as the industry changed, and projects piled up, it began hiring subcontractors to do various construction tasks, such as painting, plumbing and electrical work.

Hawkins spends a lot of time interviewing new hires, making sure they are team oriented, willing to pitch in and work different tasks and sometimes not get immediate individual credit for a job well done.

The average tenure for a Hawkins employee is eight to 10 years. That's important for the firm because long-term employees build relationships with clients, helping retain that business. About 80% of the firm's work is repeat business.

The firm's performance then has to meet the expectations of clients. That's where the Hawkins internal controls system, which keeps the team on schedule and controls costs, kicks in.

One of its longtime clients, Mel Sembler, founder of The Sembler Co. in St. Peterburg, went without a contract and did a project on a handshake with Hawkins.

"Our No. 1 goal is to keep the clients happy," says Earl Cooper, executive vice president with Hawkins. "That means quality work. On time. If there are changes needed, we need to get on it. We're in the service business, whether people want to admit it or not."

That means the managers sometimes have to do non-management work. For example, in 2004, when four hurricanes hammered Florida, one project in Orlando had to be rebuilt twice. This came during a cement and labor shortage.

Hawkins met the original timeframe.

"We rolled up our sleeves," Cooper says. "We stepped in the mud."

Besides teamwork, having relationships with subcontractors that were large users of concrete mix helped that year. They were able to do volume buying and control costs.

Demand and services

Retail work, such as building Walgreens drug stores and Publix supermarkets, can be plentiful, but the margins are often narrower than other commercial construction work. So efficiency is important.

With a database of more than 7,000 subcontractors the company has worked with in the Southeast, Hawkins is able to insure competitive and timely completion of its projects.

But getting that database has meant a pledge: Treating subcontractors right.

"Subcontractors love us," McCaugherty says. "We pay them even if we are not paid by our clients. That philosophy won't change. They are part of our success story."

Hawkins' turnkey services include:

• Preconstruction planning and consulting such as estimating, budget development, scheduling, site investigations, management planning, permitting, document review and infrastructure;

• Construction management such as design, scheduling, quality assurance, project management, project cost control, safety program, supervision and closeout;

• Design/build services such as developing site plans, due diligence, permitting, investigations, surveying and testing, drawings and public meetings and hearings;

• Post-construction services, such as writing an owner's maintenance manual, warranties, expansion and renovation services and inspections.

"We understand retail," Cooper says. "The clients want to continue to see the same quality products."

The average job takes about six months. Hawkins can have 50 jobs under construction at once.

"They've been a good niche player," says Randy Simmons, chairman of Simmons Construction Co. in Tampa. "Retail has always been very, very competitive. To be successful, you need to be operationally successful."

Hawkins began in the Tampa Bay area, but increasingly is getting invited to do work outside the state in South Carolina, North Carolina and Georgia.

Hawkins'

portfolio

Here are some examples of the work Hawkins Construction Co. has done:

Religious/Educational

Tampa Catholic High School

St. Timothy Catholic Church

St. Raphael Catholic Church

First Baptist Church of Indian Rocks

Temple Terrace Church of Christ

House of Prayer

Palm Harbor United Methodist Church

Commercial/Financial

Florida Design Consultants

Sembler Headquarters

Operation PAR

St. Petersburg Times, Hernando Times

Crum Services (formerly IMR Global)

AmSouth Bank, Buck Lake

Kings Point Recreation Center

AmSouth Bank, Winthrop Village

Retail

Coastal Landings Shopping Center

Countryside Shoppes

Clearwater Mall

Haines City Mall

Colony Plaza Shopping Center

Mirasol at PGA

Winthrop Village

Tarpon Mall

TJ Maxx

Rolling Acres

Hampton Lakes Villages

Walters Crossing

Brooksville Square

Harbour Village

REVIEW SUMMARY

Company: Hawkins Construction Co.

Industry: Commercial construction

Key: Teamwork and long-term relationships to finish work on time.