This Australian contractor oversees its projects from start to finish, and promotes a philosophy of balanced living for optimum employee performance
Written by Sarah WolfeA.G. Coombs has a long tradition of excellence in the Australian marketplace. Allan George Coombs started the company in 1945 as a “one-man plumbing business” operating from the back of a house in Bentleigh, Victoria. In the decades following the business relocated to a facility in Moorabbin, Victoria, and services grew to hot water, heating and ventilation.
Among the company’s first significant projects were the Olympic Village Complex for the 1956 Melbourne Olympic Games and the Royal Children’s Hospital Nurse’s Home & Hospital Complex – the country’s largest mechanical services project at the time.
Today A.G. Coombs is firmly established as a top industry player, providing HVAC, refrigeration, mechanical services, fire protection and multi-services installations in commercial and industrial buildings and the construction industry.
“The way we differentiate ourselves from other contractors in the industry is through our whole-of-life model,” says Russell Telford, Managing Director. “Through our company structure we’re designing, constructing and operating systems, working from start to finish.”
This approach is especially helpful when services are becoming more advanced and building regulations are increasing, causing a bump in operating costs. As a single-source provider, A.G. Coombs determines the most efficient routes for on-time and on-budget delivery of projects, and stays involved afterwards through extended warranties and comprehensive long-term maintenance coverage for its work.
The company is regarded as having among the best technical staff in the industry, with years of experience that can help in minimizing energy costs and saving on future upgrades. Many have been with A.G. Coombs for decades.
“I’m one of the new ones – just over 20 years,” Telford says chuckling. His primary training came from working for his family’s plumbing business, before taking an apprenticeship to gain more experience. In 1988 he joined A.G. Coombs as a site foreman at age 23. Telford worked his way up the ranks, as an estimator, senior site manager for a large Canberra defense facility project; and head of the special contracts division – until being appointed in 2001 to his current position as Managing Director.
He works out of the company’s Group Headquarters in Moorabbin, Victoria. An additional office for Servicing and Walker Fire Protection is located in nearby Port Melbourne.
Projects and Green Star
A.G. Coombs has many direct customers across Australia, from data centers to pharmaceutical companies to building owners and many major builders and developers. It self-performs 70 percent of the work and uses subcontractors for the other 30 percent.
Among its portfolio of projects are the 120 Collins Place building in Melbourne, the National Australia Bank headquarters at Docklands, a redevelopment at the National Gallery of Victoria, a data center for Hewlett Packard, a unit parts building and weld shop for Toyota, the Herald Weekly Times Building in Melbourne, and redevelopment of the Melbourne GPO.
“Right now we’re working on a new six Green Star-rated building for the new ANZ bank at Docklands and data center projects in Melbourne and Sydney,” Telford says.
Among A.G. Coombs’ partnerships, it has joint ventured twice with AE Smith, who offers similar services. They first collaborated 15 years ago on a three-way joint venture with another company for the Crown Casino in Melbourne. The two are now joining forces on a large-scale project at the New Royal Children’s Hospital, also in Melbourne.
“We did the original children’s hospital 50 years ago and it was the largest mechanical services project at the time, just over AUD $1 million/US $778,000. Today the project will cost more than AUD $120 million/US $93 million,” Telford says.
The two companies will be joint venturing on part of the mechanical services at the
new hospital.
Many of A.G. Coombs’ projects involve efficiency upgrades to buildings that boost Green Star ratings, which are similar to LEED points in the US for design and functionality. The certification comes from the Green Building Council of Australia (GBCA).
“We’re seeing an increase in sustainability upgrades as people are trying to have more Green Stars,” Telford says. “There needs to be at least four for the government to occupy a building. Over the last 10 years people have been moving into new buildings that already have a five-star building rating so they’re upgrading them even higher.”
Economy and balanced living
The average growth at A.G. Coombs the past five years has been 20 percent and annual revenue is at roughly AUD $150 million/US $117 million. The company has felt some of the global economic downturn with projects on hold for new buildings – particularly in office and retail. Telford says the Australian government has been encouraging infrastructure work on roadways and school and government buildings.
Another trend he’s seen in relation to the economy is “a freeing up of the labor market.” Since many companies have stopped hiring or have let workers go, there are more potential employees to choose from. Unfortunately for those people, he says, there’s also been a wave of Australians returning from studies and work in the UK who are snatching up jobs because of more extensive resumes and experience abroad.
Those hired at A.G. Coombs find a structured development program built on the philosophy that everyone needs training – no matter how experienced – to keep them fresh. The company also offers a business excellence program to encourage creative and personal development and Leading Edge, a new, revamped leadership program that a majority of senior leaders attend.
A.G. Coombs is piloting its Lifestyles program this year, which encourages employees through an online network to lead healthy, balanced lives. Information includes health tips, seminar dates, gym memberships and calls for team participants for marathons and cycling races.
“If you look at most people’s development, it’s easy to focus on training and career paths. The ones who are truly successful know if you don’t have your personal life in check it’ll hold you back. If we develop a whole person, we get a better contributor to the company,” Telford explains.
And having a strong team of employees will only help A.G. Coombs reach its goals faster. The company has a 10-year plan to expand its presence further across the Australian states.
“We’re also focusing on a stronger integration of the group, leveraging our capability for our clients,” Telford adds. “Having stronger integration will give accelerate our geographical spread.”
View Digital Corporate Profile of AG Coombs in Construction Digital June 2009