Company Report: Summit Contractors Group
Choosing quality over quantity EVP Marc Padgett tells Exec Digital that the strategy to remain regional has paid off for Summit Contractors Group

A few years ago, the Summit Contractors Group made a decision that would greatly impact its future.

At the time the Jacksonville, FL based firm was experiencing rapid growth across the country, stretching from the East Coast to California. However, management decided enough was enough. They were happy where they were and didn't want to grow further.

The reasoning was simple: quality over quantity. The dedication to quality is the company's cornerstone and why it has been an industry leading general contractor of multifamily units and commercial buildings. Marc Padgett, a 20-year veteran of commercial and multifamily unit construction, says the company feared their rapid territorial growth would impact its quality and customer satisfaction.

"In 2004-05 we decided it was more important to focus on what made us the nation's largest third party multifamily builder in the first place," recalls Padgett. Summit's repeat business had been achieved by maintaining close client relationships and being able to service these clients to the best of Summit's capabilities. The original operation never anticipated regional growth more than 100 miles beyond its Jacksonville headquarters. However, after forming solid relationships with clients, Summit continued to do projects for them in other parts of the country, received many referrals, and eventually came to be known as the "go to" company for multi-family projects. Eventually, Padgett says the company learned saying no to some projects was probably the best thing it could do to maintain its quality and customer satisfaction.

"We have mostly built in the Southeast over the past few years. We also like going to Texas and a few of the Midwestern states. That is where our subcontractor base is strongest, our projects are all easily accessible, and we have always experienced the most success," Padgett says.

PROJECT PERFECT
In the Sunshine State alone Summit has an impressive resume of projects. The company has worked everywhere from Cantonment, on the western most point of the Panhandle, all the way down to Miami. Additionally, it has worked on countless projects in all but around nine other states in the country.

"We finished three projects in Greenville, SC last year and a 305-unit project there this year which we were able to complete in 12 months. We have a student housing project going in Greensboro, NC, a 360-unit project in Madison, AL, and very large project going on in Tampa, a large urban type development right next to Tampa airport. It's a four-story wood frame building wrapped around a parking garage with a little over 400 units," says Padgett of current projects.

CONTINUOUS IMPROVEMENT
The ability to procure a wide array of projects has been made possible by Summit's continuous improvement structure. Along with bi-weekly scheduling meetings and monthly owner reports, management has frequent reviews discussing current projects as well as any other prominent issue.

The company recently looked to become a paperless office and increase efficiencies. Another area of constant improvement at Summit is technology. Padgett says the company is always on the lookout for programs and software which may be better than systems they already have in place.

Summit is also extremely sensitive to the waterproofing and mold prevention of their buildings. The company implemented a program a few years ago that outlines their own "minimum standard" system for waterproofing. Summit began using items such as top of the line housewraps and window tapes, taping or double wrapping exterior corners, putting plastic corner flashings in windowsills, and setting all windows in a silicone sealant. The flashing system and tape system of their windows is extensive enough that Summit has to add an additional 3/8 of an inch to their windows rough openings. Lastly, Summit holds a mandatory waterproofing meeting at the framing stages of each project to review waterproofing details and processes with every subcontractor that will impact the exterior of the building.

Since implementing this program Summit has seen warranty claims literally drop to virtually zero, which is pretty substantial for a company with revenues in excess of $100 million.

The company relies on solid relationships with its sub-contractor base and employees to strengthen its reputation in the industry. Padgett says the company has worked with a lot of the same sub-contractors for 10-20 years, often traveling to various projects across the country. The company enjoys a low turnover rate and displays great appreciation for its employees.

TOUGH TIMES
Like many others in the construction industry, the recession has made financing of projects very difficult for developers. "We are seeing more and more requests for the general contractor to post the bond in lieu of a major sub posting one," Padgett says. "We have a relationship with Liberty Surety and have no problem putting a bond up if that is what it takes to make the lending institution comfortable."

Regardless of the way the market turns, Summit Contractors Group will remain a strong industry presence due to its complete commitment to customer satisfaction.

"Our dedication to customer satisfaction is unique. We're very driven to make sure our clients are happy at any cost. We've never been on a project that we did not complete. We have very good employees, people like working here, and that helps us keep a good base of people and helps us keep clients. Our systems and management have been very refined over years of experience and we're very good at what we do. We can do it cost effectively, quickly and safely, with quality," concludes Padgett.

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