special supplement
A
fter years of planning and restructur-
ing, Clark Pacific, the West Sacramento-
based provider of prefabricated sys-
tems, has completed a phase of trans-
formation as a one-stop shop for general
design, engineering, architecture, field op-
erations and manufacturing.
The shift reached a milestone in June
when the company launched a new digi-
tal feature for its pre-engineered parking
structures. Called PARC Configurator, this
tool allows designers and owners to test
and compare designs, adjust parameters
(floor height, building length and width,
etc.), receive feedback and get estimates in
real time.
“The Configurator, because it’s loaded
with our standards and defined by the mar-
ket, all of the engineering and estimating
and things that take weeks to compile, we
can do in days,” says Aaron Alhady, gener-
al manager of the company’s Design-Build,
Parking Division.
In general, more construction compa-
nies are taking this approach: shifting away
from independent contractors to create
internal divisions that handle every step of
the process. This is called vertical integra-
tion. Companies choosing to vertically inte-
grate see this all-in-one business approach
as a solid strategy against the unstable na-
ture of the construction industry. They say
it keeps costs and scheduling competitive
while standardizing the quality of service.
“In today’s construction markets, costs
are going up, labor is hard to find, so many
projects are going on and quality’s continu-
ing to wane,” says Alhady, a construction
veteran who joined Clark Pacific in June.
“We’re headed in the exact opposite direc-
tion.”
MARKET CORRECTION
You can’t just push a button and magically
be vertically integrated.
It takes time to gather the right people
with a high caliber of experience, knowl-
edge and ability to work interdependently.
It was the industry’s demand for manufac-
tured products and specialized services
that influenced Clark Pacific’s transfor-
mation, Alhady says. The company also
partners with other consultants and key
trades in the areas of civil engineering,
mechanical, electrical and others to deliv-
er on its one-stop-shop value. Creating its
parking vertical was a three-year process
that required assembling experts to focus
on parking and leverage best practices,
resulting in what Alhady calls a “pride of
ownership.”
“IF YOU’RE A BIG-TIME GENERAL
CONTRACTOR AND YOU LOSE THE BID,
YOU’RE DONE. WHEREAS FOR US, WE’VE
GOT MULTIPLE BITES AT THE APPLE.”
~ Ken Harms, vice president of business development, Kitchell Capital Expenditure Managers
Market demand was also the driving
force for the evolution of Kitchell, the con-
tractor for the renovation of Sacramento’s
Memorial Auditorium and the Communi-
ty Center Theater. Based in Phoenix, the
69-year-old company began in 1950 as a
general contracting company. Clients kept
requesting additional services, so the com-
pany expanded. Over time, by listening to
its customers, Kitchell began offering en-
gineering and architectural services, then
construction services such as construction
manager at risk and design-build project
delivery methods, then facilities mainte-
nance and management services.
“The benefit of our vertical integration
is that we can be of service to our custom-
ers from start to finish on most any project,”
says Ken Harms, vice president of business
development for Sacramento-based Kitch-
ell Capital Expenditure Managers, founded
in 1978 to provide program and construc-
tion management services.
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