Choate Builds on Its Reputation

Millard Choate Has Succeeded as a Major Regional Player

By Debra Wood

Owned and operated by its founder Millard Choate, Choate Construction Co. of Atlanta has experienced tremendous growth by focusing on every detail of the construction process to ensure clients receive a quality product, when they expect it and at the agreed-upon price.

"The whole thing is keeping your eye on the ball," said Choate, 53, president and CEO of Choate Construction. "We've grown by solid, consistent, quality delivery systems. Word gets around. We have an excellent reputation, and that is the key to our growth. Once we say we will do something, we will do it."

After his former partners began focusing on development, rather than construction, Choate decided to branch out on his own. That was in 1989.

Within three years, revenues reached $70 million, and in 2005, Choate expected the company to reach $500 million in revenue.

Choate operates five offices: Atlanta and Savannah, Ga.; Charlotte and Raleigh, N.C.; and Charleston, S.C. The company has completed projects all over the country for repeat customers.

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Despite its size, the company builds and maintains personal relationships with clients and relies almost entirely on word-of-mouth referrals and repeat business.

Jim Weadick, CEO of Newton General Hospital in Covington, Ga., has hired Choate for multiple projects, dating back to 1990. The hospital most recently hired Choate to build a fourth-floor addition to the hospital.

"The owner is involved and knows what is going on," Weadick said of Choate. "And he has a staff of competent project directors and job superintendents onsite. That combination together cannot be beat."

Small-company Atmosphere

Choate spends most of his time making sure clients are comfortable, happy and receiving quality workmanship. He maintains a small-company atmosphere by dividing the firm into autonomous groups that focus on specific market sectors. They include health care, automotive, industrial, corporate, hospitality, student housing and projects of less than $3 million.

"Each group focuses on its specific clients," said Choate, explaining that each team receives training and experience in that type of construction.

Honing skills in niche markets boosts Choate's reputation. Choate used the automotive industry as an example.

When Choate's Charlotte, N.C., office opened in 1991, the company received a contract to build an auto dealership for Hendrick Automotive Group of Charlotte. The auto group learned all it could about dealer needs and successfully completed the project. That led to additional dealerships and facilities for Hendrick Motorsports, including a headquarters and race shop.

Pleased with the work, Hendricks told other companies on the NASCAR circuit about Choate, resulting in jobs for Roush Racing of Concord, N.H., and Penske Racing South of Mooresville, N.C. Choate will begin a project for Haas CNC Racing of Harrisburg, N.C., this year.

"That is one example of a limited niche market and why reputation is so terribly important," Choate said.

Similarly, in the student housing market, word has spread among universities, developers and college real estate foundations that Choate knows how to deliver big projects ahead of schedule. It has completed at least a dozen student-housing complexes in the past three years, including the 1,220-room University of Georgia East Campus Village in Athens.

The Right Price

When selected to provide preconstruction services, Choate completes a detailed analysis of the job, identifies cost-effective systems, makes recommendations and secures subcontractors at the lowest rate available. The company prices all projects the same way - whether they're publicly bid or negotiated contracts.

"We show our owners everything, so they can verify they are getting the best numbers," Choate said.

Choate admits his approach does not produce windfall profits, but making big dollars at someone else's expense is not his way. All he wants is a reasonable fee and to maintain his reputation. Owners' good opinions keep the business growing.

When Universal Alloy decided to relocate its manufacturing plant to Canton, Ga., in the mid-1990s, President and CEO John Ball made Georgia site visits and learned about Choate's reputation for on-time deliveries. With quick turnaround critical, Ball hired Choate.

"Millard's company meets its commitment, more than any construction company I have been around," Ball said. "He puts a schedule together, and all of the deadlines were always met."

When the time came to expand the plant, Ball again called on Choate, this time not asking for a bid.

"I went to Millard and said, 'You're going to do the job. I'm not quoting it. I trust you will do what is right by me,'" Ball added. "He met all the commitments on time and for a fair price. If I have another expansion, which we will one day, Choate Construction will do our work. He has wonderful people. He gets personally involved and is committed to customer satisfaction."

Choate places a priority on current jobs and work for existing clients. While he called it painful to turn down new business, Choate does so to avoid overextending his staff and diluting resources. The company has never missed a completion deadline, and Choate said he has no intention of missing any in the future.

All About People

Looking forward, Choate denies setting volume targets.

"We're making sure we have good projects to keep all of our people busy," Choate said. "That is our key driver. Take care of your people, and they will take care of you."

Choate recognizes he cannot do it alone. Employees make things happen, so he pays well and develops their skills. The company offers weekly educational programs, teleconferenced to all five offices. Topics have included proper window installation, eliminating water intrusion, maintaining jobsite safety and using the company's computer systems.

"We're raising the bar on training and developing our people," said Choate, describing his greatest contribution to the regional construction industry. "We keep everybody up to speed with the latest methods and techniques and knowledge."

About 45 of the company's 350 employees have worked for the firm for 10 or more years. Choate said people stay because of the family atmosphere. He is counting on those people to maintain the company's legacy.

"You cannot stumble ever," Choate said. "To drive the reputation, you have to deliver."

Useful Sources:

Choate Construction
http://www.choateco.com/