The Chicago-based construction company W.E. O’Neil bought Austin, TX-based DCA Construction in 2022 and opened the door for DCA Director Kevin Foltermann.
Now, as vice president for Texas of W.E. O’Neil and the director of the company’s brand, brand new Austin headquarters, Foltermann believes that the company can take advantage of more resources and opportunities than it had before the acquisition.
Foltermann was able to sit down to talk with Construction Dive and discuss the acquisition of DCA Construction, the resources the team has access to, and his expectations for the future of Austin’s construction market. Austin building market.
Construction Dive: What happens when a smaller construction company is merged with a giant contractor?
KEVIN FLORTERMANN This brings many opportunities.
As a small business down here, we’ve had to compete for mid-sized projects to gain entry into the larger project areas. We’ve made it to the final interview stages on a few larger projects, but a lot of the time, what’s discussed is the bench’s depth.
Kevin Foltermann Permission granted by W.E. O’Neil.
There’s a great team in DCA. If a catastrophe affected the team — your head superintendent was struck by a car, or your project manager was thrown off a cliff who will be the one to complete the work?
With W.E. O’Neil, we have increased bench depth across the country of experts from all construction areas. From office multifamily, medical, and aviation. An extensive knowledge base as well as a bigger bench for employees and hiring projects.
We’re now making use of these resources here.
Do you notice increases in the scope of your projects?
There are a few factors that are included.
Despite the many tower cranes in Austin and the work-from-home aspect, office space has slowed, and we are now in a much more sluggish marketplace. There are still offices, but most of them will include residential elements. These opportunities can take a few years to build.
We’re currently working on several more significant projects, which are expected to cost anywhere from 60 million-100 million dollars. However, they’re expected to be launched after some time. It’s not the immediate leap to say, “Oh hey, we’re W.E. O’Neil, and we’re doing a 100 million-dollar job.”
However, we do have some opportunities. We’re working with our clients to help them cross the threshold, and by 2025, we’ll see more growth in the contract value we’ve got.
You talked about your latest technology access. What is it like for an organization of mid-sized size to have access to these technology and tools?
A number of projects fell around $30 million as DCA, and a few of them were equipped with BIM coordination services needed on the project.
I’d need to find someone to perform the BIM. The person hired wasn’t an employee of our company but was an independent contractor. We managed to accomplish it effectively. However, there’s something about working in-house and being an integral part of our team.
Everyone has an interest if you have someone on your team who’s committed to the project. This is why I now have my VDC manager and BIM coordinator. The performance of the task will affect their financial health, so you have more trust in this.
What are midsize contractors supposed to look at to decide if a merger is the right choice for them?
It’s sustainable for the business.
You’re bringing on the entire staff as a contractor or private proprietor. It’s not enough to think of your retirement or yourself. It is essential to consider the sustainability of everyone you hire.
It was among the significant issues Randy Don Carlos, another DCA executive, and I discussed. What can we do to prolong the company’s lifespan and ensure the employees are employed if we choose to retire our construction caps?
How should the public know what is happening in the Austin Construction market?
Construction remains hot even as interest rates increase and construction costs escalate. Our clients are in the market, trying to close deals. It’s a little more effort. It is necessary to be more focused.
The market fluctuates — it rises, and it falls. Just keep an eye on the ground, and continue to push forward. Also, it would help if you build your relations.