Turner Construction

Specialty: Construction management, general contracting, special projects

Management: Thomas B. Gerlach Jr., senior vice president; Jack Beaudoin, vice president and general manager; Scott Holbrook, vice president and operations manager; Jackie Costigan, special projects division general manager; Dan Kahn, pre-construction services manager

Year founded: 1902 nationally, 1976 in Seattle

2008 revenues: $448 million

Projected 2009 revenues: $420 million

Current projects: Union Gospel Mission's Hope Place women and family center in South Seattle; Russell Hall mixed-use building in the University District

Photo by Benjamin Benschneider, courtesy of Turner Construction Turner Construction completed Harborview Medical Center's $257 million Maleng Building in June last year. The work included the six-story "skybridge" -- or, more accurately, a suspended 25,000-square-foot building, according to the contractor.

If contractors during the last building boom felt like they were sitting in the catbird seat, then the chair has now fallen out from under them.

"I'm feeling like I'm going to be eaten by a wolf," said Turner Construction's Dan Kahn, stretching for a different metaphor.

Kahn, manager of pre-construction services, said the firm is trying to finish up the work on its plate, but is scrambling to fill its schedule after that.

Making matters worse, a number of its projects have been put on hold, including a Sea-Tac Airport rental car facility, a pair of office buildings on Microsoft's Redmond campus, and a 43-story office tower by Daniels Development Co. in downtown Seattle.

"The silver lining," Kahn said, "is that we're focusing back on relationships, making sure we're training our people and focusing on things that make the (construction) process better."

One of its process improvements includes using building information modeling for all of its jobs, "so we can nail down our scope and models sooner rather than later," Kahn said.

Stretched subcontractors

Turner is having an easier time reaching out to subcontractors, too, these days, and is seeing a lot more bidding for its contracts. Kahn said he's concerned, though, that subs will be stretched by declining construction activity, and will see their credit limits shrink.

"I don't want people where they don't at least cover their costs" and could face default, Kahn said.

Financing is a challenge for owners, too, Kahn said, and he's seeing more projects with multiple lenders.

"I hope something happens with the bond markets," he said, "and we can at least get some momentum moving forward" to get money flowing again.

Signs of life

Several market sectors are still showing signs of life, Kahn said, including data centers, public projects and health-care facilities.

While there's still no end in sight for the downturn, he expressed hope that the recovery will be "longer but flatter," with the next growth cycle stretching eight to 12 years. "We're at the bottom for most of '09," he said, "but I hope I'm wrong."