Careful Orchestration of Subcontractors

Business Alabama

October 2007

By Bill Gerdes

What started out as a summertime deck building business by a couple of high school students has led Geoff Golden to the presidency of one of the state's major construction companies and one that relishes the challenge of taking on tough projects.

"I have been around construction all my life," says Golden, president of Golden & Associates Construction, LLC. "My uncle was a pretty big home builder and I also became friends with Chris Giattina, whose father was a very respected architect. His father would take us around to construction projects and I got exposed to the business. One day, he asked us if we wanted to build a deck for one of his clients, and we did. That was in 1982. We built decks for three summers and got quite good at it and made good money. And I found out I had some talent in that area."

In 1988, Golden graduated from Auburn University with a degree in building science and went to work for Birmingham-based B.L. Harbert International. He left the firm about 10 years later to form his own firm.

A quick perusal of the company's portfolio suggests Golden tends to take on projects that are a bit more complicated than most construction jobs and offer certain challenges.

"We do," Golden says "although I will couch that in that we are sort of a generalist in the building business. We in general enjoy, or are better at, building things that are more complicated or have complicating factors. We don't do a lot of cookie-cutter projects. We tend to gravitate toward the more complicated things."

What Golden is talking about are projects such as the just completed renovation of 78-year-old Bibb Graves Hall on the University of Alabama campus, the renovation of St. Paul's Catholic School Building, or the renovation of the Jemison Flats building in downtown Birmingham, where the firm converted three abandoned, adjoining buildings into 59 loft apartments, office space and parking garage. The company won several awards for the Jemison Flats project, including one from the Birmingham Historical Society.

The St. Paul's project included a family life center, complete with a courtyard, two balconies and - unique to Alabama - a four-story bell tower with a set of eight change bells.

The company recently moved its headquarters into the former Birmingham Water Works mechanical and electrical building on First Avenue South in Birmingham, following a $1 million renovation.

While Golden & Associates has built its reputation on renovation projects, the portfolio includes an array of new construction as well.

"We do both," Golden says. "Certainly, we are known for renovating buildings, but we have a pretty strong resume of new projects."

Golden & Associates recently began work on an addition to the Alabama Emergency Management Agency in Clanton. The 12,000-square-foot, two-story addition will include offices, classrooms, storage rooms and an advanced security system with an uninterrupted power supply.

Golden says his approach to the construction business has been influenced by Birmingham architect Joe Giattina. "He instilled a sort of level of quality and professionalism in me that I am forever grateful for. He is hard driving and has high expectations, but he taught me to manage people in a manner that gets the most out of them."

In the beginning, Golden says, "I was very hands-on. But I have learned that you have to give people room to grow. But I try to strike balance, not to get so far away that people might fail."

Golden & Associates has about 85 people on payroll and will do about $50 million in revenue this year. How big will the firm become?

"I don't know," Golden says. "We will get as big as our folks want us to get. You have to maintain profitability, and you also have to maintain a comfortable growth strategy that allows your people to grow and be challenged.

"I have people who started out with me as carpenters and who are now superintendents and can build any building they need to build. That is very fulfilling to me.

"I still interview most every person that comes to work here. We are looking in general for a couple of key ingredients. We try to assess and understand if they will fit within the organization from a personality standpoint. We are a small firm. Hiring somebody into management who doesn't fit is very disruptive in a company this size.

"We have very low turnover because we have people that fit, and that has been very beneficial to the firm."

Golden says his company hires subcontractors to do about 80 percent of its work. "One of our core traits is that you have to treat a subcontractor as a client. They have to be profitable. They have to perform, and they have to be treated fairly and deliver what they are paid to do. Our view is that we are in business with these people, and we treat them that way."

That approach has earned the company recognition as General Contractor of Year from the Birmingham American Subcontractor Association for two years. Don "Lucky" Lewis of the subcontractor association says not only has the firm been named General Contractor of Year, but also that several Golden employees have been recognized for their work with subcontractors.

Many of the subcontractors are Hispanic-owned or use mainly Hispanic workers. According to the Pew Hispanic Center, the Hispanic population is growing faster in the South than anywhere in the United States.

"The Influx of Hispanics has brought back qualified craftsmen because they are quick studies in the construction trade," Golden says. "They are hard working and have been a blessing to the construction trade. They come to work every day and they work hard. We couldn't do it without them."

Golden says he usually spends his days office-bound, and misses the day-to-day activity surrounding a construction site. "I probably should go to the job sites more often," he says. "I go to each one once a month. I look for cleanliness and at safety. And I look at people's attitudes. Are the people upbeat and happy? That can tell you so much."

Two issues will have a significant impact on the construction industry in the future, Golden says. He says the Green Building Movement, rooted in the energy crisis of the 70's and featuring creative approaches to saving energy and emphasizing solar energy and tighter building envelopes, will continue to grow.

"We have people here who are trained and LEED (Leadership in Energy and Environmental Design) certified." Golden says. The LEED green building rating system developed and administered by the U.S. Green Building Council, a Washington D.C. based, nonprofit coalition of building industry leaders is designed to promote design and construction practices that increase profitability while reducing the negative environmental impacts of buildings and improving occupant health and well-being.

The other issue is waste on construction sites. "We are becoming more efficient and waste is getting less and less," Golden says.