Mark Hourigan says that when it comes to running a successful construction firm, it’s the little things that count.

Mark Hourigan would like to say he has “the” secret to running a successful business tucked up his sleeve, but he can’t. “It is simply doing all the little things right,” he said. For Richmond, Va.-based Hourigan Construction, that means being responsive, paying attention to detail, and never missing a completion date. And with repeat customers constituting more than 80% of overall business, sounds like this president knows what he’s talking about.

Mark Hourigan

When Hourigan took over the construction firm, it had eight employees and zero dollars in back log. “We performed $3 million in total volume during my first year owning the company, and we did everything we could to keep our people busy,” he said.

His plan? Focus on negotiated work in the commercial, healthcare, and industrial sectors; hire talented people; and do everything with safety in mind. This year, Hourigan Construction has more than 100 employees and closed the books with $250 million in volume.

Another direction
One of the keys to growing the business was focusing on negotiated work as opposed to bidding. Hourigan explained that the majority of construction companies bid for public projects, “but that can create problems since the lowest bidder isn’t always the best firm for the job. Bidding works for a lot of firms, but that is not the direction I wanted to take ours.” Instead, Hourigan Construction negotiates with building owners on general conditions and fees, but price alone does not drive the final decision.

Today, 80% to 90% of the firm’s work is negotiated, and Hourigan attributes these numbers to the company’s consultative approach in which it becomes an integral member of each client’s pre-construction planning team. Once a plan is in place, the company executes, sparing no detail.

As a result, Hourigan Construction has never missed a completion date. “Not many construction firms can say that,” said Hourigan, adding that the firm encourages open and frequent communication to ensure all parties involved know what they need to do and when.

Not trying to be all things to all people has also helped Hourigan Construction grow. By concentrating on healthcare, commercial, and industrial construction projects, it has become a reliable resource for clients. “When I get a phone call from a company that has caught wind of our work from one of our existing clients—that’s a good day,” said Hourigan, adding that word-of-mouth has taken the company as far south as Alabama, as far north as Pennsylvania, as far west as Tennessee, and every state in between.

Word of mouth has also earned Hourigan Construction the pleasure of working with some well-known companies and organizations. For instance, last year, it finished the Phillip Morris Center for Research and Technology, a 450,000-square-foot $350 million research and development facility that is revitalizing downtown Richmond. It also recently completed a $3 million addition to the Faison School for Autism, as well as a highly sophisticated facility for LifeNet, a nonprofit organ and tissue procurement organization.

“We get to see so many different businesses, and to me, that is the beauty of negotiated work. We are not just a low bidder performing a construction project—we become part of the fabric of the company we are working with,” said Hourigan.

Skills to succeed
Hiring great people and providing them with an environment in which they can succeed also helped kick Hourigan Construction into gear. The firm recruits from some of the region’s most prestigious schools including Virginia Tech, East Carolina University, and Purdue University. “Recruiting people right out of college is key to building a strong workforce,” said Hourigan.

Once on board, the firm places new hires in the field and rotates their assignments to expose them to various aspects of the business. Once they have a taste for estimating, project management, safety, engineering, layout, supervision, and carpentry, they focus their efforts in an area where they possess the skills and the passion to succeed.

Hourigan Construction’s HR department puts tremendous effort into career development opportunities for staff members, including inhouse and third-party training courses. Classes may be centered on industry knowledge and specific job skills or focus on more personal attributes, such as time management and presentation skills. Hourigan Construction has also partnered with several local universities for training, including Old Dominion University of Richmond and Virginia Commonwealth University.
“Not only is the company better off, our clients and subcontractors are better served because our employees are able to handle challenges when they arise,” said Hourigan. He added that annual performance reviews are focused on finding developmental opportunities rather than simply improving on-the-job performance, and the power of mentoring should never be underestimated.

Fingers and toes
Safety is a primary concern for Hourigan Construction, and it shows: the firm’s insurance modifier rate is a mere 0.72, and last year, the Associated Builders and Contractors Association, a national trade organization, chose Hourigan Construction out of more than 600 national construction firms to receive its National Safety Award. It was also recognized by its insurance company for five years without a lost-time injury.

And safety starts with transparency. “We invite OSHA representatives to our job sites and ask them to point out what we are doing right and wrong. If they spot issues, we address them immediately.”
Hourigan Construction’s safety expectations extend beyond its own staff to its subcontractors, who aren’t awarded a job unless they perform at or above OSHA standards. “We conduct regular job audits and have safety monitors on every site. Our subcontractors understand our expectations and the consequences of not meeting them,” Hourigan said. “There’s no secret—it’s simply taking the time to do the little things right. We want everyone on a job site to go home with all their fingers and toes, and we won’t sacrifice budget or schedule.”