Business Overview
About the Company
Projects under Contract (next 5 years): 1.2 Billion
GP of Projects Under Contract: 40MM
Established in 1998, this is a well-established Company that specializes in all aspects of Construction Project Management working primarily with large commercial development projects. The Company has a fundamental philosophy of a hands-on client-focused approach to both General Contracting and Construction Management, integrally involved in every phase of the projects. Its strength lies in its established ability to proficiently organize, lead, and manage complicated projects successfully through all phases of the design-construction process, utilizing consistent leadership and time-tested proprietary processes and procedures.
The Company's revenue is well diversified across multiple large projects; 80% of the projects are obtained via referrals or repeat business, having built a solid reputation on trust and integrity by upholding the highest standards of professional conduct. The Company has a backlog of projects in NV, CA, and Utah for the next 5 years with a total contract value of 1.2 billion, and an estimated projected Gross Profit of $40MM.
The Company is a General Contractor and Construction Manager specializing in design-build, design-assist, negotiated, or bid commercial construction projects in the following sectors: Resort, Gaming & Hospitality, Sports & Recreation, Hotel & Timeshare. Restaurant & Retail, Office-Government, Multi-family, Education, Infrastructure.
The Company provides a comprehensive project management portfolio of services tailored to the specific needs of each client. Services include Planning, Budgeting, Estimating, Bidding-Buyout-Contracting, Logistics, Scheduling, Procurement Coordination, and Cost Management. The Company is licensed in Nevada, California, and Utah, with extensive experience in mountain / snow country construction, including the regulatory requirements of the Tahoe Regional Planning Agency (TRPA).
The services provided by the Company are in high demand by many of the largest owners. designers, builders, and multi-family developers active in the greater Reno-Sparks-Fernley MSA, which is one of the fastest growing economic regions in the Western U.S. According to the State of Nevada's most recent publication, the region is home to a population of more than 550,00 and continuing to expand with many large companies opening large manufacturing facilities in the region.
The Business operates out of an 4,600 SF office/warehouse, with 21 employees, of which more than 18 are in the field. The Company has a well experienced and established management team. The team consists of project managers, superintendents, and engineers.
The Company is highly differentiated as follows:
- Consistent growth and profitability year after year since inception in 1998.
- The current Owners do have management role in the day-to-day operation of the business resulting in an efficient and nimble decision-making approach.
- Hundred of year in construction experience
- A++ list of corporate clients: 1) hospitality industry (Condos/hotels) with over 5,000 units built, 2) High-end Multifamily Developers ((condos, timeshare).
- Ranks extremely high among its peers in performance and competence.
- It operates in the Reno, Tahoe, N. CA, and Park City, UT. Previously has done project in CO, Iowa, S. CA and AZ.
Revenue for the industry has fallen over recent years as the COVID-19 pandemic put the brakes on growth, with industry revenue falling consistently since 2020. Decline continues with a 0.4% drop in 2023 alone, which is largely a result of rising interest rates limiting customers' access to capital. Prior to the pandemic, the Construction sector (IBISWorld report 23) trended upward, propelling industry revenue growth. Rising per capita disposable income facilitated consumers to spend more while falling unemployment, improving business sentiment and accommodative interest rates led many businesses to expand. The downturn in construction markets caused by the pandemic then negated previous revenue growth. Overall, industry revenue has fallen at a CAGR of 3.3% over the past five years to reach $230.7 billion in 2023. Commercial construction saw its largest decline in 2021 as the pandemic caused work stoppages. The supply chain issues in the wake of the COVID-19 pandemic have increased purchase costs, softening industry profitability. Also, office rental vacancy rates have been elevated since 2020, hurting industry demand.
Industry revenue growth is set to return moving forward as the value of private nonresidential construction increases throughout the period. Also, office rental vacancy rates will fall after spiking amid the shift to a work-from-home model during the pandemic, with falling vacancies driving office construction. Overall, industry revenue is set to grow over the next five years at a CAGR of 1.7% to $250.5 billion in 2028.
