GlenCastle Constructors - Building for Good

Construction Firm Made Up of Some of Atlanta's Top Contractors

By Scott Judy

GlenCastle Constructors of Atlanta is a firm made up of some of the best and brightest contractors in the Atlanta market. Perhaps it's even a model firm - a company that others in the Southeast's construction industry could and should try to emulate.

However, the nearly 20-year-old firm will likely never be ranked among the Southeast's Top Contractors, and if all goes as planned, it will never earn a dime of profit.

That's because GlenCastle Constructors is a completely different type of construction firm. Formed in 1987 at the behest of some of Atlanta's biggest developers, GlenCastle is an incorporated company made up of representatives of some of the biggest construction firms in the Atlanta area and the Southeast.

The list of construction firms represented on the company's board of directors reads as a who's-who of the area's heavy-hitters: Brasfield & Gorrie, Hardin Construction Co., H.J. Russell & Co., Batson-Cook Co., Holder Construction Co., Humphries and Co., Malone Construction Co., Pinkerton & Laws, Skanska USA Building and The Winter Construction Co.

What's different about GlenCastle is that its mission is to build projects for the Atlanta-area not-for-profit and charity community, and to do so either at or below market cost. The group takes on roughly one project every year, a rate it has maintained since its start when it renovated the old debtors' prison, the Atlanta Stockade - also known as GlenCastle - into a homeless shelter for FCS Urban Ministries.

But it wasn't easy. Jimmy Humphries of Humphries and Co., Atlanta, and present chairman of the GlenCastle board, said the group had to be "strong-armed" into action by the developers.

"We didn't want to do it," Humphries added. "We didn't want to get together with our competitors and do anything. But here we are 19 years later."

And the list of completed projects - though nothing like those of the member firms - is impressive.

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Goals

GlenCastle's requirements for the groups seeking its assistance are fairly strict. Organizations and their new facilities have to be self-sustaining without taxpayer support, and they cannot be funded by direct government grants. The GlenCastle board - which also includes representatives of major developers such as Cousins Properties, The Flagler Co. and Carter & Associates - must approve all projects. (All efforts thus far have been done on a unanimous basis).

"We've been very consistent in working for private-sector initiatives that have a proven track record of making a difference in the community," said Jeff Jernigan, executive vice president of Pinkerton & Laws. "Every project we have done is still continuing today, and still helping people."

Potential projects are often championed by a board member, but a strict review process ensures that each project meets the company's standards.

"If we feel that it's a good use of our resources, then we vote in favor of it," said Bill Pinto, COO with Hardin Construction Co. of Atlanta.

But the group is careful about the projects it supports. After all, the member firms will be spending a great deal of their own time and energy on each project, as well as the time and energy of subs and suppliers.

Firms that champion particular projects are often given the main responsibility for project oversight and management, while other member firms support them by splitting up the remaining tasks related to securing the various subcontractor trades and materials.

All work is performed at cost or lower, with some measure of donated materials and services present on most projects. GlenCastle charges no fees for its management services, and the services of individual company staffs are often donated as well.

GlenCastle officials estimate individual project savings at a range of 10 to 40 percent. Projects have ranged from as little as $500,000 to the $5 million to $6 million range for each of the last two efforts, for Atlanta Community Food Bank and the Gateway Center.

Green Challenge

One of GlenCastle's most recent projects, a new main facility for the Atlanta Community Food Bank, tested the desire and commitment of GlenCastle, said Bill Bolling, executive director for ACFB.

In addition to saving money while getting a quality structure, ACFB asked the contractor outfit to do something it had never done before - build a LEED-certified building. The request met with some hesitation, Bolling said.

"At first blush, they were saying, 'Here we're trying to save you money, and you want to build a specialized building,'" he said. "But they stepped up and did it."

The building measures more than 129,000 sq. ft., and includes 98,000 sq. ft. of warehouse and dock space designed to accommodate up to 2 million pounds of product. It also includes more than 110,000 cu. ft. of refrigerated space. Also, the new facility's distribution capacity is an estimated three times that of its former location.

Though the LEED certification definitely required extra effort on the part of GlenCastle, Bolling said it was important to his organization that its new building function as efficiently, and with as little energy cost, as possible.

"It's a cleaner, safer building that will save us money every year," he said. "It certainly required interfacing with more people than they usually interface with. But they stepped up, and now we're one of the first food banks in the country to have done this."

Importantly, the estimated $500,000 in overall construction cost savings made a real impact, Bolling emphasized. For example, he stated that because food is donated to ACFB, every $1 donated translates into about $7 of food distributed to the community.

"So every dollar we saved on that building put money back into the community," he said. "That wasn't theoretical."

Overall, Bolling said, "I had a very good experience. By involving a lot of different tradespeople, it really was a communal experience. Without fail, people stepped up and said, 'I will help.' I think what GlenCastle does is tap into the good in companies and the good in people."

Benefits

Aside from the benefits associated with the actual facilities it builds, GlenCastle Constructors wins in two other ways. The first is that it has assisted with the fundraising efforts of the associated charities.

"We hear overwhelmingly from our customers and aspiring customers that their fundraising efforts and their organizations gain instant credibility when their targeted contributors hear that Glencastle Constructors will build their project," Pinto said. "The reputation of the individual Glencastle members and, by extension, Glencastle Constructors as a whole, gives a tremendous amount of comfort to individuals or charitable trusts who are preparing to commit their dollars to a project."

The other comes as a bit of surprise to the group. The board members interviewed for this story indicated the best thing they've taken away from their experiences with GlenCastle wasn't necessarily the projects they've constructed - but the relationships these avid competitors have forged among themselves.

Before GlenCastle, "I would've tried to run (them) over if I could've caught them out on a dark night," Humphries joked. "But now I'm so crazy about them I can't stand to go too long without having a meeting with them. It's been a wonderful experience."

The group has been able to learn from each other, including best practices, but also developed deeper understandings of each other, as well as other firms like subcontractors.

Simply, said Jernigan, "It's really neat to get together with a group of guys that you're beating heads against every day, trying to make a living, and trying to work together to do some good for the community."

Pinto agreed.

"What makes me come back year after year is the relationships that have developed among the members - often fierce competitors in our day-to-day business but of a single mind when we all put on our Glencastle hats," he said.

Michael Russell, CEO of H.J. Russell & Co. of Atlanta, added: "Everybody puts aside their agendas. It's the spirit that people can come together, even competitors, and understand the bigger picture and achieve this greater good."

When the projects start rolling, personal and professional pride kicks in, Pinto said via email.

"The competitive juices flow freely, whether you're leading the charge on a project or in a support role to one of the other members," he added. "You want to make sure that you and your company representatives are carrying their water. Nobody wants to let another member down and certainly no one wants to let our customer down."

Over time, the benefits have trickled past the board members and into the firms themselves, Pinto said.

"When you get your superintendents, your project managers or your accounting people involved, it helps them grow personally and it creates a much closer relationship with your own employees," he said. "Outside/inside, everybody takes something away."

Spread the Word

While there are similar ventures in other parts of the country, GlenCastle's board members are intent on spreading the gospel and encouraging contractors elsewhere to follow their lead and even improve upon their efforts. Over the years, they've saved charitable organizations millions of dollars - an estimated $500,000 on the ACFB project alone - so it's easy to see the reason for their passion.

"My hope is that we spark in other cities or communities a desire to take what we've done and continue the mission," Pinto said. "More Glencastle-type companies or consortiums will only raise the level of service to the ever-increasing needy populations in our communities."

Russell was more emphatic that other contractors should definitely follow in GlenCastle's footsteps.

"If you truly care about your community, and about improving its quality of life, you should be willing to engage yourself in an endeavor like GlenCastle," he said. "To me, that's the bottom line."