| Joseph Vig comments on the current status of Michigan construction in Crain's Detroit Business |
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Construction companies think smaller, find niches as projects become fewer March 10, 2008 By Daniel Duggan Crain's Detroit Business (313) 446-0414 This e-mail address is being protected from spam bots, you need JavaScript enabled to view it When the biding process for a $1 million gun range in Novi was opened to construction firms, 12 bidders stepped forward. Five years ago, a job of that size likely would have drawn four, maybe five, bidders, said Bill Lichwalla, president and CEO of Plante Moran CRESA, which is overseeing the selection of a construction firm for the Novi project. The same went for a $1 million roofing project in the Clarenceville School District, which drew 13 firms two weeks ago. "There're a lot more firms with a desire to be involved in projects like this right now," Lichwalla said. While there are construction projects about to come up for bid — $12.7 billion worth, according to the Construction Association of Michigan — there aren't as many projects as in past years. And there are more modest projects than very large projects. Construction firms are relying on their good track records or developing expertise in specific niches to get the job. The competitive trends have been good news for the project owners paying the bills. Construction executives say there's been a steady trend of cutting labor costs. "We've seen a lot more competition and a lot less sanity when it comes to pricing," said Joe Vig, president of Taylor-based J.S. Vig Construction Co. "In competing for jobs, our fee structure has come down a little." To be successful in getting projects in Southeast Michigan, Steven Berlage, general manager of the Detroit office of New York-based Turner Construction Co., said the key is to be a company with diverse skills. Berlage said his company's national reach helps it land some of the larger local projects still in the pipeline. Turner is building the $350 million Henry Ford Health System hospital in West Bloomfield Township, for example. "That's a large project," he said. "Very few firms are in a position to be able to deliver a project like that. We have a large amount of resources backing us up." Les Snyder III, however, says the way to get business is to have strength in niches rather than be a generalist. Snyder, COO of Southfield-based Barton Malow Co., points to the $226 million University of Michigan stadium renovation and expansion his firm is building. "That's a specialty niche we have," he said. "We're one of four or five companies in the country with a sports niche." But the final award of the work isn't always from the developer. Education projects, for example, bring the challenge of sometimes needing voter approval first. "In K-12, it's like you have to win those twice," Snyder said. "We win when the school board selects us as a construction manager, but then we have to help them get the bond issue passed. If we don't get the bond issue passed, there's no project." Kirk Frownfelter, general manager of the Southfield office for Skanska USA Building Inc., said the key to getting jobs is to do good work. Sometimes the lowest bidder simply doesn't have the expertise needed. "A lot is based on your reputation," he said. "We have a portfolio of good owners who won't always take the lowest bid." Given the short supply of jobs in the region, giving the bad news to companies is harder than it used to be, said Monte Oberlee, administrator of environmental care services at Crittenton Hospital Medical Center in Rochester Hills. He recently chose a construction manager for a 30,000-square-foot cancer center in Rochester Hills. "There was an awful lot more passion and emotion involved this time," he said. "We contacted six firms, interviewed three and chose one. They all worked hard, and I really felt it when I had to notify the firms that they didn't get the job."  Click here to download PDF
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“With its tremendously skilled, hard-working team, J.S. Vig Construction helped fulfill the vision that the City of Romulus had in mind when we set out to build the Romulus Athletic Center. Thanks to J.S. Vig, the Romulus Athletic Center is now a beautiful, award-winning and popular athletic facility that has become the jewel in Romulus' crown.”
Tim Keyes
City of Romulus
Tim Keyes
City of Romulus
“It has been a pleasure working with J.S. Vig on numerous projects over the past few years. They exhibit professionalism and honesty in their work, along with a willingness to look at options and alternate approaches to make project happen and succeed.”
David Esau, AIA, LEED AP
Cornerstone Design Inc
David Esau, AIA, LEED AP
Cornerstone Design Inc
“ J.S. Vig is a company that is easy to work with because of their integrity. Our two firms have prospered from an over 30-year relationship, including many projects and personnel, which could not have happened without ongoing dedication to quality and honesty.”
David Zanely, LEED AP
Wilkie & Zanley Architects, A Sidock Company
David Zanely, LEED AP
Wilkie & Zanley Architects, A Sidock Company
“I have enjoyed over a 20-year relationship, built on honesty and professionalism, with J.S. Vig Construction Company.”
John Wilkie, AIA
Wilkie & Zanely Architects, A Sidock Company
John Wilkie, AIA
Wilkie & Zanely Architects, A Sidock Company
“J. S. Vig Construction Company has built over 500,000 sf for Avis Farms. We have found their staff and subcontractors to be honest, creative and responsive in meeting our aggressive project goals.”
Trish Kalmbach
BOSC Equities
Trish Kalmbach
BOSC Equities
“…Simply one of the most organized and talented construction teams that I have had the pleasure of working with in 25 years.”
Greg Heil
President, Heil Partnership
Greg Heil
President, Heil Partnership
“J.S. Vig Construction Company is honest, efficient, responsive, and completes each project with the client's needs in mind.”
Jerry Reinhart
President, Pomeroy Investment Company
Jerry Reinhart
President, Pomeroy Investment Company
“While this was an extremely difficult project in terms of phasing and working around our children, the employees of J.S. Vig did an outstanding job!”
Kurt M. Sebaly M. Ed.
Pentickton Center for Blind Children
Kurt M. Sebaly M. Ed.
Pentickton Center for Blind Children
“Through the entire pre-construction and warranty phases, your people have been responsive, professional, and cost-efficient. I would welcome the opportunity to recommend your firm and look forward to working together in the future.”
Larry Reed
Metavante Corporation
Larry Reed
Metavante Corporation
