When developers in Minneapolis come up with pie-in-the-sky ideas - say, a rooftop patio over a restaurant - they turn to Diversified Construction, a general contractor that relishes a bold challenge.
"We don't shy away from unusual projects," says Jeremy Pumper, a project manager for Diversified, based in St. Louis Park, Minn. "When an architect designs a project conceptually, we have to make it work mechanically.
"We enjoy those creative concepts. It may require a lot of work up front, coordinating things between designers and engineers and owners. But at the end of the day, it's a feather in everyone's cap when we make it work," he says.
Diversified actually did build a rooftop patio. It's nestled atop a Minneapolis theater building recently gutted and converted into a popular restaurant and nightclub complex.
The patio is at r.Norman's - a sleek, upscale steakhouse combining traditional dark-wood paneling ambience with a side of modern-day attitude - and the Seven Sushi Ultralounge, a sushi bar and nightclub. The project is part of an ongoing revival of the city's theater district, says Jodi Kirsch, who handles market and business development for Diversified.
With its views of the theater district and Minneapolis skyline, the outdoor deck is one of the restaurant's key attractions. Centered on an open-air, pavilion-like bar, it's dotted with intimate clusters of tables and chairs, punctuated by bench-lined planters filled with small flames. The patio is composed of pre-formed concrete tiles, spaced 1/8th of an inch apart to allow water to run off into roof drains, says Jerry Walsh, project manager.
Below the patio stands a 30,000-square-foot, three-level interior featuring a two-story all-glass wine locker, a mezzanine for dinner seating and private parties and a tri-level kitchen.
"It was a great project for us,'' Kirsch says. "It wasn't just a boring office build-out with plain white walls."
RING OF FIRE
Another head-turning project Diversified tackled was Flame, a Persian-inspired restaurant in Roseville, a northeast suburb of Minneapolis. The eatery's visual focal point is a 12-foot-diameter iron ring hanging above an open kitchen area and sporting 28 two-foot-tall flaming torches.
"It was a real challenge to design an exhaust system that eliminated the heat and combustible fumes while still keeping customers comfortable," says Pumper, who managed the project. "As you can imagine, there also are all kinds of fire hazards to consider."
A powerful exhaust system creates negative air pressure inside a building, making it difficult for people to do simple things like open doors. To resolve that problem, the restaurant features a separate air-handling unit that replaces the air removed by the exhaust fans and equalizes the interior air pressure, Pumper says.
In addition, the gas torches - which produce 6,000 Btus of heat - would set off normal sprinkler fire-protection systems. So the building employs special sprinkler heads with higher-than-normal temperature-activation points, Pumper says.
STARTED SMALL
Such glamorous projects must've seemed light years away when company owner James Rowland and his brother, Steve, first started working for their uncle, Dermot Rowland, who ran a small, mom-and-pop general contracting outfit. Founded in 1966, the company concentrated on residential and commercial projects.
In the early 1980s, James and Steve Rowland bought the business and decided to concentrate on just commercial projects. The brothers believed the commercial market offered better business opportunities, plus it didn't have as many competitors back then as residential building did, Kirsch says
Over the years, Diversified has carved out a niche as a middle-market general contractor focusing on transforming the shells of existing structures into restaurants, bars and nightclubs (those businesses comprise about 40 percent of Diversified's total sales volume, which was around $30 million in 2007). That middle-market niche benefits the company because it's not as exposed to the roller coaster-like highs and lows associated with the market for larger commercial projects, Kirsch says.
By providing service that emphasizes clear communication and concern for customers, the company enjoys a 90 percent repeat and referral business base, Kirsch says.
"One of our best assets is our personal touch," she says. "Many companies use a sales force to sell a job, then it's passed on to someone else. Our project managers are involved from sales to the completed punch list. Clients know who the contact person is at all times."
SUBS ARE IMPORTANT
Diversified also prides itself on establishing great relationships with subcontractors, rather than treating them as an afterthought, says Jerry Walsh, a project manager. Diversified makes subcontractors part of the building team and encourages them to bring ideas to the table. This philosophy pays dividends when those more unusual projects come along, Walsh says.
"It's interesting working with all the subcontractors to understand how the proposed (design) will affect their trade," he says. "We take all the information and offer solutions to the owner and architect, with all the pros and cons of each option laid out so people can make an informed and intelligent decision to get the project rolling.
"All the individual tradesmen have special knowledge about their trade, and they're happy to talk about it when people are willing to listen and understand what their concerns are," he continues. "This gives a greater sense of ownership within the trades and produces a great result for the client."
SELECTIVE ABOUT SUBCONTRACTORS
Kirsch says Diversified is picky about the subcontractors it hires. In fact, the company enforces a pre-qualification policy to ensure it always works with quality subcontractors who provide fine craftsmanship at reasonable rates. The process includes scrutiny of jobs completed by prospective subcontractors and reference checks, she says.
"It's not too hard to start up a construction company, so we want to be sure we're not working with fly-by-night contractors," she says. "A lot of the review process boils down to just asking questions and talking to people to make sure the suppliers are legit."
It's easy to do that kind of scrutinizing because the area's construction players comprise a close-knit industry where everyone knows everyone else, Kirsch says.
Good relationships with suppliers helps Diversified compete better in a market where more and more developers are casting a wider net when it comes to bidding out projects. And customers of the general contractors are casting a wider net as well.
"Before (the current economic downturn), they'd get one or two bids," Kirsch says. "Now they get four or five bids. We may not be the lowest bid, but we add value by providing comprehensive proposals, versus one-line proposals with a price at the end. Our clients know exactly what they're getting and how much it costs."
EMPLOYEE RETENTION
Kirsch says Diversified enjoys a low employee turnover rate, which helps the company retain solid relationships with clients and suppliers. The company attracts and retains employees by offering a variety of perks, ranging from an in-house physical fitness facility - complete with elliptical machines, treadmills, free weights, weight machines and showers - to flexible work hours.
"The workout facility is a bonus because we don't have to buy everyone a $60-a-month membership at a local gym," she says. "Some people come in and work out at 5 a.m., while others do it during lunch. Our flexible hours make it easier to get a workout in.''
Employees can work at home if needed; the company provides remote access to their computers at work.
"We understand that employees have a life outside the office," Kirsch says of the work-at-home option. "No one abuses it. Everyone knows what their workload is, and realizes there are consequences if it doesn't get done."
Diversified also has a kitchen for employees, so they don't feel compelled to go out and eat fast food every day. In addition, everyone from managers to clerical staff has their own office, and most of the offices have windows.
"The only person who doesn't have an office is the receptionist," Kirsch says. "It provides a better work environment if people don't work in a sea of cubicles."
One thing the newly built Diversified office lacks is a rooftop patio. But who knows, that might be the next project on the agenda.