Construction Companies Steady, Braced for Challenges

Taken from the Orange County Business Journal
http://www.ocbj.com/news/2011/jun/19/construction-companies-steady-braced-challenges/

Construction Companies Steady, Braced for Challenges
Small rise in revenue beats last two years; few big tickets ahead
By Mark Mueller
Sunday, June 19, 2011

 Orange County’s largest construction companies managed to stop the bleeding last year, though no one’s predicting a return to a boom any time soon.

The largest 25 construction companies on this year’s Business Journal list saw local revenue rise slightly—a gain of less than 1%—in the past year to a combined $6.2 billion.

That reversed a two-year trend of declines, when companies that made the annual list posted drops of about 13% and 7%.

Government, healthcare and educational projects that have been in the works for a few years made the difference.

The private sector remains near-dormant, industry officials said.

Not many big-ticket projects are going out to bid, which could make for a tricky year or two ahead.

“There’s not a lot of large projects in backlog right now,” said Mark Mardock, executive vice president at the Newport Beach office of St. Louis-based McCarthy Building. “2011 is really becoming a challenge.”
Still No. 1

McCarthy retained the No. 1 spot on this year’s list with $970 million in revenue reported in the past year.

The Business Journal ranks companies by annual revenue generated from local offices whether the projects are here or elsewhere.

The bulk of the companies on this year’s list didn’t see a turnaround in 2010.

Eleven reported a decline in revenue, including eight that reported more than double-digit drops.

Six saw upticks in business, including two of the top ten.

Revenue for eight companies are Business Journal estimates.

Among the larger firms that did show an increase was McCarthy, which had an 8% increase in revenue from a year ago.

The company’s local office has started work on a $450 million hospital project just south of San Clemente at Camp Pendleton, where it’s working with the Costa Mesa office of Maryland’s Clark Construc-tion Group LLC.

Clark retained the No. 3 spot on this year’s list, reporting $780 million in revenue, a drop of about 5% from a year ago.

The company is said to be one of the companies working on Walt Disney Co.’s $1.1 billion expansion of its Disney’s California Adventure theme park in Anaheim, likely the largest ongoing construction project in OC.

Clark was one spot behind Irving, Texas-based Fluor Corp., which kept the No. 2 ranking on this year’s list. Fluor’s operations in Aliso Viejo had an estimated $850 million in revenue for the 12 months through March, down an estimated 3% from the prior 12-month period.

Fluor’s local operations largely handle work for the chemical, mining and transportation industries.
In addition to the Camp Pendleton project, McCarthy also is wrapping up work on the expansion of John Wayne Airport.

The company was the general contractor on a new passenger terminal at the airport and other expansion plans, including a parking structure, central utility plant and improvements to existing terminals.

A big presence in the area’s healthcare and education industries also helped drive McCarthy’s gains last year.

McCarthy worked on a Kaiser Permanente medical center in Fontana, valued at more than $300 million, a $560 million expansion of Orange’s Children’s Hospital of Orange County and a new performing arts center for Soka University in Aliso Viejo.

The largest hospital development under way here is Kaiser Permanente’s $560 million project in Anaheim. The hospital will have 262 beds and 10-operating rooms, and is set to replace Kaiser’s aging facility on Lakeview Avenue, which was built in the mid-1970s.

The project’s general contractor is the Irvine office of Colorado-based Hensel Phelps Construction Co., No. 4 on this year’s list.

McCarthy’s Mardock said that opportunities in the healthcare and education fields appear to be slowing down.

Cuts to education budgets at the state and federal levels likely mean a slow-down in public works for the next few years.

Another hurdle for public works: local governments can’t issue bonds as quickly as they once did because of property tax declines, which also will slow down public sector work going forward, Mardock said.

Construction companies aren’t expecting a big boost in business from private developers any time soon. Developers here reported finishing about 700,000 square feet of private-sector projects last year (see story, page 26).

“The private sector is dead,” Mardock said.

DPR’s Jump

The largest revenue jump seen on this year’s list came from the Newport Beach office of Redwood City-based DPR Construction, which saw revenue increase 39% last year to $306 million.

The increase helped DPR move up three spots to No. 6.

Local projects for DPR of late include a new water system for the Irvine production plant of B. Braun Medical Inc., a new 204,000-square-foot parking structure for Irvine’s Edwards Lifesciences Corp., and a 150-unit senior housing project in Anaheim.

Among the larger companies on this year’s list, DPR also reported seeing the biggest jump in contracts awarded—deals that likely will be reflected in revenue totals over a multi-year period. DPR saw a 147% increase in new business last year, to $450 million.

All told, the dollar value of contracts issued to the local operations of companies on the list increased 12% last year, to $5.1 billion.

That followed declines of 33% and 23% the two prior years.

The company with the largest jump in new contracts awarded last year by percentage was No. 23 R.D. Olson Construction in Irvine, the construction arm of hotel developer R.D. Olson Development.

Olson Construction reported $80 million worth of contracts in the past year, a 300% increase in new business.

Projects the company’s working on include new hotels in San Juan Capistrano, Oceanside and Maui.
View list here: http://www.cbjonline.com/a1ocbj/lists/List-2011-OC_Comm-Construction.pdf

 Marriott Residence Inn Oceanside on schedule!


RDO ladies onsite! From left: Julie Lee, Edna Tran, Miriam Hernandez.



VIDEO: Marriott Breaks Ground on Maui Airport Hotel | Maui Now

VIDEO: Marriott Breaks Ground on Maui Airport Hotel Maui Now

Kahu Kalani Wong applauds during the groundbreaking ceremony of the new hotel Tuesday morning. A joint venture consisting of A&B Properties, R.D. Olson Development and Marriott is developing the project. The hotel is expected to open in about a year and is aimed at business and government travelers and Hawaii residents needing a location for family reunions, baby luau or other occasions.
The Maui News / AMANDA COWAN photo

‘Timing is right’ for Courtyard by Marriott - Mauinews.com - The Maui News

KAHULUI - Two decades after A&B Properties first announced plans for a hotel near Kahului Airport, ground was broken Tuesday for a 138-room Courtyard by Marriott in the triangle formed by the intersection of Haleakala Highway and Keolani Place.
"We do believe the timing is right. The economy is coming back, and Marriott is going to be a great operator for this property," said A&B Vice President Grant Chun.
Bob Olson of R.D. Olson Development, the joint venture partner, who first did business on Maui 24 years ago in Lahaina, said: "We have learned a lot about Hawaii, the culture, the image and the beauty of the island. Our presence here indicates we have fallen in love with it."

read more of this article here:
‘Timing is right’ for Courtyard by Marriott - Mauinews.com News, Sports, Jobs, Visitor's Information - The Maui News

Construction for the Residence Inn by Marriott in San Juan Capistrano has begun!



Pictured from left are R.D. Olson project team members Ian Gardiner, Lisa Casnova, Tommy Marcum, and Todd Rogers.

R.D. Olson Construction broke ground last week on the Residence Inn by Marriott in San Juan Capistrano. The $12 million project is scheduled to be completed in the first quarter of 2012.

R.D. Olson Breaks Ground on Courtyard by Marriott Prototype —The First to Open in San Diego County



Oceanside City Councilmember Jack Feller, Oceanside Mayor Jim Wood, RD Olson President, Bob Olson and Joseph Martelli of JMREI.



      City dignitaries, community leaders and corporate executives joined R.D. Olson in celebration of the $12 million Courtyard by Marriott hotel groundbreaking this week. This is the newest prototype design by the company’s largest Marriot brand by room count and it’s the first of its kind to open in San Diego County. Construction plans boast a variety of new amenity upgrades that will cater to the business travelers’ needs while maintaining all the comforts of home. Planned for completion in the fourth quarter of 2011, the world’s leading hotelier, Marriott International will manage the location while R.D. Olson Development continues ownership.




     The hotel is strategically located within the Ocean Ranch development in the City of Oceanside. This area is home to many fortune 500 companies and is wisely placed in route to such tourist attractions as the San Luis Rey Mission, Legoland, SeaWorld, San Diego Wild Animal Park, and Oceanside’s pristine beaches.  

     Architectural and interior design will be provided by Johnson Braund Design Group of Seattle, Wash. The 82,000-square-foot four-story Courtyard by Marriott will feature 140 guest rooms and will offer 2,000-square feet of meeting space. Each guest room will have Internet access, a large flat-screen television, microwave ovens and efficient workspace where guests may conduct business.

     Stepping into this modern hotel will reveal high-tech style fused with innovative functionality. The lobby is more than just a space to pass through; the sophisticated design cultivates a better connection with and provides better purpose to its guests. To eliminate the traditional barrier of a front desk; welcome pedestals are designed to create a natural meeting point between guests and staff. The reception area also features an inventive and interactive GoBoardTM displaying news, weather, traffic, and local restaurants. Additionally available to guests will be semi-enclosed media pods featuring individual controls to flat-panel televisions for work, meetings, or entertainment.  The new food and beverage concept–The Bistro–gives guest’s the option of grab-‘n-go meals or full-service sit-down dining. From the lobby extends is an outdoor terrace with fire pits for social gatherings and conversation. Other guest amenities include a fitness room, large outdoor pool, and spa.



R.D. Olson Construction Celebrates the Grand Opening of the Waikiki Edition

R.D. Olson is making waves in Hawaii. On October 15^th The Waikiki Edition, formerly the Ilikai Yacht Harbor Tower, had its Grand Opening. Originally built in 1967, the completely renovated Waikiki Edition is operated by Marriott International and is the first of the new Edition brand created by Marriott International and the Ian Schrager Company. The 17-story hotel overhaul cost more than $40 million and transformed the prime location.

The head-to-toe makeover included:

-353 guest rooms

-9,200-square-foot ballroom

-4,000-square-foot pre-function area

-2,500-square-foot lobby and bar

-Two swimming pools and adjacent bars totaling 23,000-square feet

-2,000 square-foot spa

-A fitness center

-Over 4,000 square-feet of meeting rooms/space

-Morimoto restaurant

-Crazy Box nightclub

All but the Morimoto restaurant was styled by the interior design firm Yabu Pushelberg of Toronto, Canada. The guest rooms impart tropical style where louvers and wood finishes made of dark teak and Mozambique woods stand in contrast with the room’s fresh white walls. Each suite has a lanai with breathtaking ocean view and is upgraded with flat screen TVs and Internet access.

The lobby and the lobby bar feature black oak floors, white oak and whitewashed walls lined with bookcases and organic free form furnishings. The ballroom is one of three in operation within the Honolulu area. R.D. Olson brought it to life with special oak wood finishing, wall coverings and carpet. Artsy arrays of Chinese lanterns hang from wood beams make a grand display.

R.D. Olson gave the lower pool a face-lift with new IPE decking, and built a new upper pool featuring pebble stone walkways, beach sand, and a walk-up bar.

The adjoining nightclub named Crazy Box, features a VIP area, bar and lounge. Walls are plaster with a foiled silver finish. The focal point is a glowing cloud-like light display holding more than sixteen thousand light bulbs. Combined with state-of-the-art club amenities, the Crazy Box is expected to rank among one of Waikiki’s finest.

The hotel is also the home of the Morimoto restaurant which features the cuisine of Iron Chef Masaharu Morimoto.  The Los Angeles interior design firm, Thomas Schoos Design mixed elements of traditional the Japanese while allowing for glamorous airy spaces to frame an open kitchen and full sushi bar.  Sheer curtains cloud the scene in a fog-like environment and lead to a series of more private dining rooms reserved for VIPs and larger groups.  An intimate indoor/outdoor lounge allows guests to dine waterfront on an open-air lanai while relaxing on deep sofas with its cluster of cocktail tables near open fire pits and wide ocean sky. 

Two San Diego County-based architectural firms are credited with the hotel’s new contemporary design. Solomon Ferguson developed plans for the guest rooms, and Delawie Wilkes Rodrigues Barker the public spaces including: a lobby, lobby bar, nightclub, ballroom, Morimoto’s restaurant and two pools.

R.D. Olson is proud to stand by this gorgeous development. The Waikiki Edition raises the bar for Hawaii hospitality. Guests are surrounded by world-class architecture, creative design and all the natural beauty the island has to offer.

photos credited to: Hotels Magazine