2007 Surveys

John Korsmo Construction

Specialty: Commercial and light industrial
Management: John Korsmo Jr., president; Jeff Tiegs, vice president of operations
Year founded: Late 1940s
Headquarters: Lakewood (moving April 16 to downtown Tacoma)
2006 revenues: $70 million
Projected 2007 revenues: $89 million
Current projects: Paradise Inn historical restoration and new Henry M. Jackson Visitors Center, Mount Rainier; Steilacoom High School modernization and addition; Little Creek Casino hotel tower two, Shelton; pier and laboratory, SubBase Bangor; Associated Petroleum Products office remodel and addition, Tacoma

 

Photo courtesy of John Korsmo Construction [enlarge]
John Korsmo Construction recently completed Grand Ridge Elementary School in Issaquah.

John Korsmo Construction has gained a wider profile this year so it can be more selective about choosing projects, said President John Korsmo Jr. For 2007, that means it will move further away from public sector work to focus on the private sector.

Korsmo said the private sector is more appealing because it’s less confrontational, although the company will continue work in both.

But Korsmo said the general contractor/construction manager delivery method marries the best aspects of both systems. Korsmo Construction recently won the Steilacoom High School modernization and addition bid via that method.

Managing costs

According to Korsmo, material costs should level out this year, but the dramatic fluctuations of the past few years has changed the way owners think about projects.

“Everyone has really learned a lot of different ways to manage cost,” he said, adding that business owners are looking at new ways to increase productivity, choose materials and keep things affordable.

That plays out in preconstruction, which Korsmo said has grown tremendously. According to Korsmo, his company has increased preconstruction work by about 100 percent in the last few years.

“It’s too costly to stop (construction) so the preplanning is a huge trend and it’s a very important thing,” he said. “Owners are having to be more responsible and account to the bottom line.”

It also has affected how companies think about their supply line.

“There’s a little bit more of an in-depth conversation over how we are going to talk about ordering and processing our material acquisitions,” he said.

Korsmo Construction is moving from Lakewood to Tacoma in April, which Korsmo said would better position the company to work in the Tacoma area.

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