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Sundt Annual Report 2011

1/13/2012
FROM THE CHAIRMAN
J. Doug Pruitt

J. Doug PruittThe end of fiscal year 2011 was another slow grind for the U.S. economy, and a much tougher scenario for the European Union countries such as Greece, Ireland, Italy and others on the brink of insolvency. Unfortunately what they elect to do or not do can have a major impact on the recovery in our country.
Officially, this recession started in December of 2007 and ended in June of 2009. I’m not sure most Americans would agree.  For many, the recession is still going on and deeply impacting their lives. As a country we have continued to limp along with an increase in our Gross Domestic Product hovering around two percent, or less, and with unemployment still at around nine percent. It is projected to continue that slow grind for the next two or three years.

The construction industry has been hit much harder than most. Our unemployment reached a high of approximately 24 percent, but has improved significantly and is now down to 13.7 percent. That is still 50 percent more than the national average. What our industry has experienced is a depression inside of a national recession. 

That brings us to Sundt. Fiscal Year 2011 was very good for us. In fact, it was the fourth best year in our history. Ray Bargull, our C.F.O., will discuss this in detail in the Annual Report Supplement, which will be distributed to employees with their next Sundt employee newsletter.  

As we move into fiscal year 2012, the economy continues to struggle and work is even harder to come by. But fiscal year 2012 still looks like it will be a decent year for Sundt and its employee-owners.
Why have we done so well during some very difficult times? I believe there are several things at play. First, we have continued to add to the talent base of our company. Second, we have become much more strategic and have developed the discipline to stick to our plan and not follow the whims of the market. Third, we have invested heavily in the training and development of our people when most of our competitors were cutting back, and invested heavily in technology that would improve productivity and quality.

Lastly, we have become a much more disciplined company. I think all of these commitments, coupled with the most talented group of people I have seen at Sundt in my 45 years here, are why we are still doing reasonably well in a very poor market. It’s not a time to become arrogant about our success. Rather it’s a time to reflect on what got us here and the discipline it will take to continue to advance and improve this great company.
Unfortunately the economy isn’t going to get much better very soon, but we enter these times with a very strong balance sheet and a reasonable backlog. And there are still opportunities for the pursuit of projects. That will require us to be very selective and pursue the work we have the best opportunities to get and have the skill sets to successfully perform.

This will be my last column in our annual report, so I want to thank all of you for giving me the opportunity to serve as your CEO, and I wish you the very best as you continue to work to take Sundt to an entirely new level.



FROM THE PRESIDENT & CEO
Dave Crawford

Dave CrawfordIn spite of a recession that we can’t quite put in the rear view mirror, Sundt experienced the fourth best year in its history. Although past recessions averaged about 1.5 to 2 years until recovery seemed to take hold, it now appears that it may be 2015 before we again see a strong economy for construction. This time frame seems to represent the industry consensus as expressed by a number of local and national observers and economists. It is a reflection of the struggle that all government agencies (city, town, county, state and federal) are experiencing with tax revenue and the uncertainty being expressed by private industry regarding major capital expenditures. Many economic indicators appear to have “bottomed out,” but we are experiencing a much slower-paced recovery than we anticipated. The global economy is having much more influence over the United States economy than in previous recessions. If we did not believe in a global economy before, we certainly do now.

Revenue was good last year, operating income and investment income were very strong, and our backlog remained consistent. Our cash position remains very strong and enabled us to make a few key investments; notably, acquisition of a piece of property adjacent to Arizona State University in Tempe.  The employee-shareholders of Sundt experienced almost a 13.79 percent return on their investment between the increase in our share price and the dividend distribution resulting in the aforementioned fourth best year in our history.

The economy presents an opportunity for us to anticipate and plan our future. As we strive to fulfill our vision and mission statements and achieve our Big, Hairy, Audacious Goal (BHAG), our decisions will be guided by a “Great by Choice” mentality. We have good people making good decisions in a collaborative spirit to better serve our clients and communities.

Our corporate strategic plan includes eight growth strategies that we believe are essential to achieving our goal of being a $3 billion company by 2020. We had champions working on three of those strategies in Fiscal Year 2011 – Work Obtained Excellence, Geographic Diversity and Market Diversity. One of the key questions that arose early from those teams was, “What is the key differentiator for Sundt?” We concluded that it was a quality experience. It applies to our relationship with a customer, an employee-owner, the communities in which we live and work and the industry in which we participate. In all cases, the experience should revolve around quality. This notion was the theme of our Leadership Academy this past summer and we think it is essential to our achieving our growth goals and to honor the values that have sustained Sundt over the last 121 years.

We are committed to improving our business development efforts. A Special Projects group was created to focus on larger, more geographically diverse opportunities. Key champions have been selected to spearhead our efforts for justice/detention centers, healthcare and mission critical facilities. We are pursuing additional opportunities in highway/bridge work, rail of all types, renewable energy, fossil fuel power generation, and mining. The federal market, higher education facilities, K-12 schools and biotech remain strengths for our company. Self-performed work remains a great pride of Sundt and we are looking to expand our capabilities to perform trade work.

Growth will come with some sacrifice by our people. As we pursue work in the markets noted above, we will have many employees living away from home or relocating their families. If we are to offer opportunities to our people and continue to enhance shareholder value, we must become more geographically diverse.

Successful growth will require changes in our training programs and even more diligence in the execution of our work. Discipline in our selection of owners and work opportunities, in our selection of subcontractors and suppliers, and in our administrative processes and procedures will continue to be critical to our success. Our investments in training and development, as well as technology accelerators, have helped us drive quality and productivity. We must continue to offer superior service to our clients.

We are striving to be a better company tomorrow, next month and next year. We are not waiting for the economy to improve; we are taking steps to shape our own future. I thank each of you for your hard work, dedication and loyalty – we are striving to be “Great by Choice.”

“What everyone kept saying was that Sundt kept promises, met deadlines, stayed under budget, did good quality work, paid its bills and played fair.”
ENR Editorial


TEXAS DISTRICT REPORT
John Carlson, Senior Vice President and Texas District Manager


West 7th Street BridgeOur primary goals in our first full fiscal year were to establish the foundation of our team, embed ourselves in the community, and win work – all three of which we accomplished.

Now that we have settled in, our team has a great foundation to build upon. Our leadership team is now in place. Jeff Webster, a former San Antonio City Councilman and Vice President from AECOM, came on board as Business Development Manager. Bill Steele made the move from Tucson to be Preconstruction Manager for building work. Chris Cedar was named Area Manager in charge of civil operations and Gus Hurtado joined the team as Preconstruction Project Manager for civil work. We are very pleased with this leadership team and have great confidence in them leading their respective efforts to be successful for the shareholders of Sundt. They have embraced and are practicing the values and culture of Sundt, which is incredibly important for the success of this office.

The entire staff has continued to invest in the community through the Sundt Foundation grants ($68,000 to date in less than two years), as well as involvement in various community and industry organizations. Ben Martin was selected to the SA Real Estate Council Leadership Class for 2012. Abigail Shaver was elected president of the Sundt Foundation, and is currently serving her term. Our team participated in many volunteer efforts — from building new ramps at Morgan’s Wonderland, a theme park for individuals with mental and physical challenges, to Christmas in April.

Operationally, our first job – the San Antonio Public Safety Answering Point – was nearing substantial completion at the end of the fiscal year. This has been a very important project for us, demonstrating Sundt’s commitment to excellence in delivering a critical facility to the community.

In FY ’11 we won a project to reconstruct the iconic 7th Street Bridge in Fort Worth, replacing an existing 98-year old structure. It is Sundt’s first project with the Texas Department of Transportation, an owner we are excited to work with on this and future endeavors.

There are numerous opportunities for the entire company in Texas, thanks to the state’s stable economy. The Texas District office is engaging and working with Sundt’s Southwest, Heavy Civil, Concrete, Federal, Industrial and California Divisions on some exciting opportunities. We are all supporting each other and our ability to get work for the benefit of the shareholders at Sundt.


BUILDING DIVISION - SOUTHWEST DISTRICT REPORT

Marty Hedlund, Senior Vice President and Southwest District Manager


Fountainhead Office PlazaFiscal year 2011 was a solid year for the Southwest District, with above-target margins and revenues just a shade below $300 million. With the still-weak economic conditions looming, it was critical that, while we were doing well operationally in 2011, we also make progress on our tactical plan to diversify our markets and geographic footprint. We have demonstrated that commitment this year by focusing our efforts on market diversity and strength, acquisition of key people, and serving the clients and communities where we work.

This year saw the execution of our first project in New Mexico, at New Mexico State University’s Chamisa Village Phase 2 Student Residences, and the winning of our first building project in El Paso, the Socorro Independent School District’s new elementary and middle school, which will start construction in the spring of 2012. Our expansion into Colorado has also shown significant progress with the cultivation of a strategic alliance with a local Colorado general contractor, Fransen-Pittman (F-P). F-P’s local relationships in the higher education, K-12, municipal and healthcare markets, combined with  Sundt’s resume and experience on large and complex projects in these markets  have allowed us to make significant headway toward winning F-P|Sundt’s first project in Colorado. Investment in the best people for our mission and tactical direction was another focus during 2011. Countless employee-owners took on new challenges, stretched themselves into new roles, and re-tooled their skillsets. In addition, we added several new team members, including Dan Osterman, Adam Veeh, Russ Korcuska, Rick Belanger, Tucker Macon, Melissa Einbinder, Ian Kennedy, Scot Bennett and Chuck Salt. Whether new or seasoned Sundt team members, each of us brings different perspectives and skills to be integrated into our future success.

This year also saw the creation of the “CoreMission” program. Each project team selected a charitable organization, neighborhood project, or other community-related program to get involved in as a group (including subcontractors, suppliers and in some cases our owners) within five miles of the job site. This included constructing a state-of-the-art playground, neighborhood clean-ups, serving meals to the homeless and much more. Our employee-owners truly “got involved” in the growing number of communities where we work!

The Southwest District had a solid 2011, contributed significantly to the company’s bottom line, served our customers and communities well, and is tactically positioned for growth in the years to come. 



BUILDING DIVISION - NORTHERN CALIFORNIA DISTRICT REPORT
Cody Pearson, Senior Vice President and Northern California District Manager

University of Nevada, Reno William N. Pennington Health Sciences Education BuildingFiscal year 2011 saw several significant accomplishments and challenges in Northern California. The start of some projects got pushed into FY 2012 with the impact of these late starting projects reflecting a lower than projected revenue for this year.

We finished several major projects and were complimented on the success of these projects by winning multiple awards. Noteworthy projects completed include the $31 million University of Nevada, Reno Medical Learning Lab, the first project on that campus built using the Construction Manager at Risk delivery method. 

We completed the Richard E. Arnason Justice Center and the Mammoth Lakes Courthouse, both projects for the Administrative Office of the Courts. The Richard E. Arnason Justice Center project won the California branch of the Associated General Contractors of America’s partnering award. The University of California (UC), Davis Graduate School of Management project, which we completed the previous year, won the 2011 Western Pacific Region and National Design-Build Institute of America Excellence award and achieved LEED Platinum certification. It is the first LEED Platinum building the Northern California District has built.

We’ve started a veterinary lab project at UC Davis and have also been selected to build a $71 million design-build student housing project there.

A major accomplishment for our district is the amount of work we’ve been selected on that will start in 2012 and 2013. This creates good potential for backlog. With close to $200 million in work selected, we will start 2012 in a very positive position, given the current market and economy. We have also been selected for projects that will start in 2013, which will help with consistent growth and revenue.

There are still significant opportunities available in the marketplace, albeit considerably more competition. We continue to pursue larger projects and develop new markets. The justice market is a market that we are specializing in. This includes courthouses, jails, prisons and correctional facilities. This market has great potential for the future and we continue to develop our resume and experience. 

Significant collaboration among all of the Sundt offices has helped us acquire work utilizing all of our resources. This is a strategy that benefits everyone in the company, and something we continue to focus on as we look toward the future. With this in mind, we began FY 2012 as one consolidated California district. This allows us to take advantage of combined resources, a larger opportunity pool and strategically positions us to achieve the 2020 growth goals.



BUILDING DIVISION - SOUTHERN CALIFORNIA DISTRICT REPORT
Jon Wald, Senior Vice President and Southern California District Manager
    
University of California, San Diego Muir College ApartmentsIn Southern California, our focus in fiscal year 2011 was to capture a strong backlog moving into FY ‘12 through ‘13 and make further strides toward broadening our diversity in both markets and geography to support the company’s growth goals for 2020. We made positive progress in both areas and brought more backlog into 2012 than any previous year.   

One of the most exciting developments this year was our decision to merge with our sister office in Northern California to create the new California District. This change will allow us to combine resources and better serve the state of California as a true regional contractor.  It will also help us be more cost-effective with our general and administrative overhead, leading to stronger bottom-line profits.  

While the U.S. and California economies continue to battle huge fiscal deficits and a very slow recovery, we still have good opportunities in the various markets where we are active. We have increased our business development efforts in the greater Los Angeles, Orange County and Riverside/San Bernardino areas. We have projects currently in either design or construction in San Diego, Los Angeles, Palm Desert, San Luis Obispo and Ventura.

In 2011 we completed the $32 million Sweetwater High School expansion, the $27 million University of California, San Diego Muir College Apartments and the $27 million Miramar College Classroom Buildings. We began work on the new $50 million City College Classroom/Garage complex, the $70 million San Diego State Aztec Student Union, the $14 million Grossmont High School Aquatic Centers, and the $9 million Monte Vista High School Classroom modernizations. In a joint venture with Kiewit and Sundt’s Heavy Civil Division we continued construction on the $230 million San Diego Airport Terminal 2 Landside expansion. We also were working on the $50 million Cal Poly San Luis Obispo Student Recreation Center expansion, the $24 million Miramar College Library and Learning Resource Center, and the $21 million Los Angeles Unified School District South Region Number 9 Elementary School.

A continued emphasis on improving our business development techniques, differentiating ourselves with current customers, cultivating new clients, and diversifying into new markets will all help drive us toward reaching our growth goals for 2020.


FEDERAL DIVISION REPORT

Tom Mertz, Senior Vice President and Federal Division Manager


Fort Bliss Warrior in Transition BarracksThe federal market is evolving, and so are we. The drop-off in private-sector and municipal opportunities has caused the competition for federal projects to increase to levels that have never been seen before. The significant increase in competition caused us to modify our approach to the lifecycle of projects - from pursuit through execution.

We have developed strong relationships with designers and subcontractors that have a national reach, which has allowed us to find ways to be price-competitive without sacrificing the quality of work or the quality experience that is so important to maintaining our reputation. Sundt’s long history in this market and our continued focus and commitment keeps us well positioned to pursue and win new work.

In fiscal year 2011, we wrapped up our large projects at Fort Bliss, Texas, completed another successful project for the Arizona Army National Guard in Marana, Ariz., and made considerable progress on our projects at Fort Sam Houston and Fort Hood, Texas, Fort Sill, Oklahoma, and Fort Polk, La.

Geographic expansion and growing our client base are keys to our future and part of the evolution of the Federal Division. We had great success in that by winning our first projects at Camp Lejeune, N.C. The two projects are Bachelor Enlisted Quarters with contract values of approximately $40 million each. These projects were won as part of a special joint venture program administered by the Small Business Administration known as an 8a Mentor-Protégé. Sundt is the mentor and our protégé is a small Phoenix-based firm, Andale Construction.

We also won our first project with the General Services Administration (GSA), the design-build contract for the John M. Roll federal courthouse in Yuma, Ariz. The courthouse is named after the judge who was instrumental in getting the courthouse project approved for funding. Sadly, judge Roll was killed in Tucson during the attack last January on Gabrielle Giffords.

The evolution of the Federal Division will continue as we expand our geographic reach, deepen our relationship with our military clients, mature the relationship with the GSA, and look to develop new relationships with other agencies.

The project wins and successful execution of those projects are impressive and demonstrate our focus on the Sundt vision of inspiring people to go beyond the expected and the Sundt mission of serving our clients and communities to increase shareholder value. 



HEAVY CIVIL DIVISION REPORT

Jeff Williamson, Senior Vice President and Heavy Civil Division Manager


Loop 101 High Occupancy Vehicle LaneFiscal year 2011 was a great year for the Heavy Civil Division. Our strategic plan for the year was focused on geographic expansion and getting large projects. The year was highlighted by numerous new project starts, completion of several major projects, and furthering our plan to expand geographically by opening a satellite office in El Paso, Texas.

Major project completions for this past year include the $90 million Loop 101 High Occupancy Vehicle Lane project and the $27 million Loop 303 Interim project for the Arizona Department of Transportation; the $30 million Tactical Equipment Maintenance Facility paving and utilities project and the $23 million Fort Bliss Training Area Tank Trails for the U.S. Army Corps of Engineers in Texas; the $25 million Roger Road to Ina Road Plant Interconnect project for Pima County, Ariz.; the $16 million Northern Avenue Storm Drain project for the City of Glendale, Ariz.; and the $12 million Salt River Bank Extension and Runway Safety Area project for the City of Phoenix at Sky Harbor International Airport.

The Heavy Civil Division was also successful in obtaining work for repeat clients and several new clients. Some of the major project starts include the $224 million San Diego Airport Landside Terminal Expansion, a $190 million Strauss Rail Yard project in Santa Teresa, N.M., the $160 million Sellwood Bridge Project in Portland, Ore., the $61 million Transmountain West Project in El Paso, Texas, the $52 million Cordes Junction Project in Ariz., and multiple projects for the U.S. Army Corps of Engineers at Fort Bliss and Fort Hood, Texas, with contract values totaling over $100 million. Many of the projects listed above are being performed with joint venture partners.  

Another major accomplishment this year was opening a satellite office in El Paso. Over the past three years the Heavy Civil Division has been awarded contracts totaling over $325 million in the El Paso region while, as a company, Sundt has been awarded over $600 million worth of contracts. Until recently, most of the work in El Paso has been completed at Fort Bliss. Opening the office in El Paso has helped establish Sundt’s presence outside the base and has already paid dividends in helping Sundt acquire work with the Texas Department of Transportation, Union Pacific Railroad, and the Socorro School District. Establishing the office has also helped strengthen our relationships with the local subcontracting community, which will help make us more competitive on future pursuits.

We are looking forward to another successful year in fiscal year 2012.


INDUSTRIAL DIVISION REPORT

Steve Robinson, Senior Vice President and Industrial Division Manager


Chemical Storage Tank Farm, Glendale Oasis Water Treatment PlantThe Industrial Division had revenues of $140 million for fiscal year 2011. We expanded our power resume with the acquisition of five projects at the Solana Solar Generating Facility project in Gila Bend, Ariz. The projects’ total value is approximately $33 million and includes salt tank foundations, cooling tower foundations, Heat Transfer Fluid foundations, power block foundations and substation. In addition to this work we are actively pursuing $200 million in projects at the facility throughout FY ‘12. This will include additional foundations, solar field piping work, groundwater treatment plant and the power block process mechanical work.  

The mining market became more active in FY ‘11. We have been continually doing work at Resolution Copper. We made significant inroads at the Freeport-McMoRan Copper & Gold Inc. Sierrita mine as a result of the efforts of Clint Sundt and the project staff. We were awarded six projects in FY ‘11 at Sierrita and have been selected on three additional projects for FY ‘12. We will continue to pursue $50 million in projects at this mine site. In addition, due to the continued strength of the commodities market, we are pursuing projects at the following FMI sites in Arizona:  Bagdad, Morenci, Twin Buttes, Bisbee, Cypress and Chino. We are also actively working with Resolution Copper, Rosemont Copper and Asarco.

In FY ‘11 we successfully completed the Glendale Oasis Water Treatment Plant. The Val Vista Water Treatment Plant Granulated Activated Carbon Implementation Project and the South Tempe Water Treatment Plant are on schedule to be completed in the second quarter of FY ‘12. We were also recently selected for the Flow Splitting project at the Val Vista site.  

The Salt River Project Coronado Emissions Control Project in St. John’s, Ariz., is on schedule for completion in May and we will be pursuing the power plant’s Selective Catalytic Reduction substructure and mechanical packages in FY ‘12.

We have targeted multiple power projects – photovoltaic solar, concentrated solar power and traditional power projects – in California, Arizona, New Mexico, Texas and Colorado for FY ‘12.  

The Industrial Division’s geographic reach and range of project types continue to evolve as we actively pursue projects in power, mining, solar and water/wastewater. We are focused on increasing our annual revenue to $250 million by 2015. In FY ‘12, our challenge will be to broaden our geographic boundaries outside of Arizona into the Western states.


CONCRETE DIVISION REPORT
Mike Hoover, Executive Vice President and COO - Concrete Division Manager


San Diego Community College General Purpose Classroom & Parking GarageFiscal year 2011 was a success for Sundt’s Concrete Division. We had high goals and were able to achieve them thanks to several large, successful projects. In San Diego we had a $16 million contract for a classroom building and parking structure for the San Diego Community College District’s downtown campus. In the Phoenix metropolitan area we worked on the Phoenix Biomedical Campus - Health Sciences Education Building, placing almost $12 million worth of concrete work, and on the Arizona State University Interdisciplinary Science Technology Building 4, where we have put about $12 million of work in place.

Like many of the other offices at Sundt, the Concrete Division has been looking beyond our traditional areas of Arizona and Southern California for opportunities. In FY ’11, we worked on projects throughout Texas, including the Digital Air-Ground Integration Range at Fort Bliss. This project includes constructing 23 miles of tank trails, installing 200 pre-cast concrete targets, and building six support buildings. A casting yard allowed us to mass produce the structures like an assembly line. It was extremely successful to produce them this way, enabling us to beat our production rates by completing them 30 percent sooner than anticipated.

Our ongoing goal to cross-train engineers, estimators and project managers from other profit centers has been a valuable process. It helps Sundt train future builders, which is an important tenant of the company. Sundt promotes itself as a builder rather than a broker, and we’re continuing to sustain this through our training process.

Heading into fiscal year 2012, we certainly see some great opportunities for the Concrete Division. We have been actively pursuing projects in a wider geographic region with other contractors. However, we anticipate the majority of our work will still be supporting Sundt projects. We believe we’re going to capture somewhere around $65 million from Sundt work and an additional $28 million from projects outside of Sundt.


MORE THAN A MOTTO, “OUR PEOPLE MAKE THE DIFFERENCE” REFLECTS SUNDT'S APPROACH TO HUMAN CAPITAL
Richard Condit, Chief Administrative Officer


Although a lot has changed about Sundt since the company was founded 121 years ago, what remains the same is the fact that Our People Make the Difference. Employing some of the most talented people in the industry has helped us grow from a small, family-owned firm into a large, regional contractor that is expanding into new markets and geographic areas – even in these challenging economic times. In order to stay on this path and thrive, we have to continue to attract and retain the very best people, which is why in fiscal year 2011 we embarked on an aggressive plan to raise the bar on human capital management through the work of the Human Capital Management Committee. 

Developing a human capital management system is difficult, which is why getting the people side of a business right is the real differentiator for any company. I am willing to bet that sometime in the past few weeks you had a defining experience with someone from another company. Perhaps a service technician came to your house and was friendly, giving you confidence that he or she was honest, respected your home and privacy, etc. As a result, you formed or maintained a favorable impression of that company and will probably do business with it again in the future. That person made the difference. The same is true for Sundt: each and every interaction we have with others defines their impression of our company. If we are courteous, tactful, solution-oriented, respectful and act with integrity, those qualities will also be associated with Sundt and become part of our corporate brand. 

Organizations thrive when they have the right people with the right skills to achieve their strategic goals. Sundt has been working for many years to put in place all of the components that define a quality experience, what we like to call “The Sundt Experience.” 

Our Human Capital Model shows each of the components we are continually trying to improve and how they work together. For instance, retaining talent starts with acquiring people who fit the company culture by embodying our values of integrity, honesty, safety, and a commitment to our communities and the construction industry. They must feel that the company supports their professional development and does what is necessary to keep them engaged in their jobs. It is important to note that in our model we placed those who lead and supervise others in the middle. They play a critical role in human capital management by conducting job interviews, understanding how to engage people, reducing the risk of people
leaving, ensuring that people are deployed to positions that will advance their careers, and much more.

Human Capital Management Model

During the past year, the Human Asset Management Committee developed a plan to continue our aggressive efforts to get better at the people side of the business in each of the components of our model – the areas that will determine our continued success as a company more than anything else. We are looking to implement a more disciplined and purposeful approach to human capital planning over the next 12 to 24 months, which is the strategic process for aligning talent with the business strategy that enhances the prospects of delivering on both short- and long-term objectives.


We are also working to become more targeted in our talent development efforts. As mentioned above, quality of supervision is perhaps the most important factor in human capital management, and therefore we are using a number of analytical tools to help our supervisors excel in this area. As part of the overall assessment of our processes and the technology we use with them, we are looking at how we can integrate all of the human capital processes we have in the company. 

Our people have been, currently are, and will be the most important factor in Sundt’s success. We will continue to give this issue the attention it deserves so that the company will continue to grow and thrive for the next 121 years.



NEW PROGRAM EMPHASIZES POSITIVE FEEDBACK AND THE "WHY" OF SAFETY
Paul Levin, Corporate Director of Quality & Safety 

Safety By ChoiceMost safety programs focus on the “how” of staying safe – processes and procedures to avoid accidents and injuries and keep projects running smoothly. Sundt’s new safety program, Safety By Choice, takes a different approach by emphasizing the “why” of safety. The idea is to focus on the many reasons our employees want and need to stay safe: the families who love and depend on them, the friends they enjoy spending time with, their health, livelihood, and the ability to do their favorite activities. By emphasizing good safety choices and providing immediate recognition to those who make them, the program is designed to support and maintain a positive safety culture while improving Sundt’s overall safety record, which is already among the best in the industry.

A visual reminder of who’s awaiting our safe return from work each day could be the difference between making the right safety choice and a careless decision that has lasting consequences. That’s the reason for the large “family boards” that are being created and displayed at each of Sundt’s jobsites and offices. They contain photos of employees’ family members, friends, pets, favorite activities – whatever it is that motives them to stay safe and help their co-workers do the same. Seeing the boards frequently will remind employees to think about how their choices affect themselves and their colleagues in a more personal way, said Area Safety Manager Jerri Dragt.

Safety is playing an increasingly important role in contractor selection, which is another reason the new program has been introduced and is expected to have a positive impact on Sundt’s ability to compete for top projects.

“Sundt already has an excellent safety record, but we can’t be satisfied with what we’ve achieved and just stop there. We want to be the best of the best,” said Assistant Safety Director John Schultz. “Our clients are always looking for contractors that have good safety records, and that’s one of the reasons they choose us. Every time we get better at safety, we are awarded bigger and better jobs.”

Instant recognition is another key component of the program and a way to keep the message positive. Any employee “caught in the act” of making a good safety choice and being a positive role model will likely receive kudos and a hardhat safety sticker from his or her supervisor.

“Instant recognition gives immediate feedback in a positive way,” Schultz explained. “We want middle and upper management, when they’re on jobsites, to start recognizing people when they do the right things. We’re all good at pointing out the negative, but when you’re doing everything right, sometimes you might not even get an ‘atta boy.’ We want to encourage people to recognize good examples and leadership when they see them – right away.”

The new Safety By Choice program isn’t limited to the decisions made in the field, says Area Safety Manager Paul Sprecco. It’s also intended to prompt management to reflect on the choices they make that contribute to others’ safety. 

“It’s about choices, which means you have to look all the way back at the decisions that occurred way up the line. And you have to look at everything – not just the injuries, but also the near misses. What choices did we as managers make in estimating, scheduling, etc. that could have an impact on safety? For example, what forming systems did we choose, what access for those forming systems did we choose? This is not just about craft workers; it’s about all of us.”



SUNDT FOUNDATION GAVE A RECORD $700K IN FY ‘11
Abigail Shaver, Sundt Foundation President


The Sundt Foundation gave more than $700,000 to a variety of charitable organizations in fiscal year 2011, making it our most successful year on record. Most of that money went to programs and services that directly benefit children in the communities in which we live and work, including places where Sundt maintains a satellite office or has a current project for the U.S. military. It’s exciting to see our corporate values reflected in the numbers: each year we raise and award more money than the last, to the tune of $4.75 million to date. We’re well on our way to achieving a major milestone in 2012 by crossing the $5 million mark!

When the new Tucson office was completed in early 2011, a number of Western paintings from the old office were sold and the money was given to the Sundt Foundation for grant-making purposes in Tucson. More than $58,000 was netted by the art auction, most of which came from the sale of Winter Work by well-known Western artist James Reynolds, which sold for $63,450 before commissions and fees. The Sundt Foundation voted to use the money to give $10,000 grants to five Tucson charities, with the remaining $8,300 held over for future grants in Tucson.

Sundt volunteers help with "Thirst Aid"Volunteerism was also strong in FY ‘11. Sundt employees opened their hearts to their communities and took an active role in helping others in need by donating nearly 3,000 hours of their time to a variety of causes. It’s wonderful to see so much generosity, particularly since - for many of us - time is just as valuable as money.

Several new board members were elected in 2011, among them Lisa White who was chosen by Phoenix-area members to represent them on the board. San Diego members selected Jacquelyn Hoppes to be their representative, and Sacramento members elected Tom Camden.

The annual Mike Gaines MDA Golf Tournaments held in Phoenix, Tucson, San Diego, Sacramento – and now San Antonio – have raised almost $1 million since the first tournament was held in 2001 in Tucson. San Antonio was new to the list of locations this year, and I’m pleased to report that its debut was a great success with more than $15,500 raised. All of the money is given to the Muscular Dystrophy Association to help find a cure for Amyotrophic Lateral Scleroses (ALS).

Thank you to everyone who helped make 2011 another great year for the Sundt Foundation. As Sundt employees, we have worked together to make a positive impact on the lives of thousands of people.


AWARDS 2011

Western Pacific Region of the Design-Build Institute of America Award2011 Best Places to Work in the Valley, Large Business Category – 6th Place given to Sundt by the Phoenix Business Journal

2011 National Design-Build Excellence Award – Educational Facilities, presented for the University of California, Davis Graduate School of Management Maurice J. Gallagher Jr. Hall; Davis, Calif.

Best Government/Public Building Project – ENR magazine’s Best of the Best 2011 Project Awards, presented to Chandler City Hall; Chandler, Ariz.

Southwest Project of the Year – ENR Southwest Best of 2011 Project Awards, presented to Chandler City Hall; Chandler, Ariz.

Best Government/Public Building Project – ENR Southwest Best of 2011 Project Awards, presented to Chandler City Hall; Chandler, Ariz.

Best Office Project – ENR Southwest Best of 2011 Project Awards, presented to The Sundt Companies Headquarters; Tucson, Ariz.

Best Small Project – ENR Southwest Best of 2011 Project Awards, presented to the Rachel Ann Perkinson Center MDA addition; Tucson, Ariz.

2011 Crescordia Award – Environmental Excellence Award for Chandler City Hall, presented by Valley Forward Association; Chandler, Ariz.

2011 Safety Award – presented by the American Society of Concrete Contractors for an incident rate below the national average for contractors

20th Annual Excellence in Masonry Architectural Awards – Honor Award presented by the Arizona Masonry Guild for Chandler City  Hall; Chandler, Ariz.

20th Annual Excellence in Masonry Architectural Awards – Merit Award presented by the Arizona Masonry Guild for Maricopa Community College - Bridget Hall; Mesa, Ariz.

Arizona’s Most Admired Companies 2011 – presented by Arizona Business Magazine and BestCompaniesAZ

2011 CMAA- San Diego Region Project of the Year – presented to Sundt by the Construction Management Association of America - San Diego Region for the Miramar College Arts and Humanities & Business Technology Classroom Buildings; San Diego, Calif.

2011 Western Pacific Region Design-Build Award – Best Corrections Facility presented to Sundt for the San Bernardino Juvenile Detention and Assessment Facility; San Bernardino, Calif.

2011 Western Pacific Region Design-Build Award of Excellence – Education
Presented to Sundt for the University of California, Davis Graduate School of Management and Conference Center; Davis, Calif.

2011 – Best Places to Work Top Ten (Large Companies) – presented to Sundt by the San Diego Business Journal

Nevada Chapter AGC Safety Award – No Lost Time Accidents 2010 – presented by the Nevada Chapter AGC

2010 Safe Site Program Award Winner – presented to Sundt by the AGC Nevada Chapter

2011 Build San Diego Merit Award – Excellence in Public Construction – presented to Sundt by the AGC – San Diego Chapter for Miramar College Arts and Humanities & Business Technology Classroom Buildings; San Diego, Calif.

2011 Partnering Award - Projects Under $50 Million Presented by AGC of California to Sundt Construction for the Richard E. Arnason Justice Center; Pittsburg, Calif.

2011 Marvin M. Black Excellence in Partnering Award – presented to Kiewit/Sundt, A Joint Venture for the Loop 202 Widening project; Phoenix, Ariz.

2011 Marvin M. Black Excellence in Partnering Special Recognition Award – presented to Sundt for the Fort Huachuca Advanced Individual Training Barracks Complex; Sierra Vista, Ariz.

2010 Award of Merit for Best Public/Private Special Use Facility – presented by the Pacific Coast Builders Conference Gold Nugget Awards for University of Arizona Student Recreation Center Expansion; Tucson, Ariz.

2010 Excellence in Structural Engineering Award – State of Arizona, presented by the Structural Engineering Association for the University of Arizona Student Recreation Center Expansion; Tucson, Ariz.

2011 National Certificate of Recognition - American Institute of Steel Construction, Ideas² Awards, University of Arizona Student Recreation Center Expansion; Tucson, Ariz.

2011 Outstanding Sports Facilities Award – presented by the National Intramural-Recreational Sports Association (NIRSA) for University of Arizona Student Recreation Center Expansion; Tucson, Ariz.

2011 ACUI Facility Design Award – presented by the Association of College Unions International (ACUI), University of Arizona Student Recreation Center Expansion; Tucson, Ariz.


CLIENTS SERVED 2011


Abengoa
Administrative Office of the Courts
Arizona Board of Regents
Arizona Department of Emergency & Military Affairs (DEMA)
Arizona Department of Transportation
Arizona Electric Power Coop
Arizona Public Service
Banta Elementary School District
California Polytechnic State University
California State University - Channel Islands
California State University East Bay
Carlton Senior Living
CDM Constructors, Inc.
Central Arizona College
City of Avondale
City of Chandler
City of Glendale
City of Phoenix
City of San Antonio
City of Tempe
County of San Bernardino
East Valley Institute of Technology
Educare Arizona
Foothill-De Anza Community College District
Freeport - McMoRan Copper & Gold Inc.
Grapevine Advisors
Grossmont Union High School District
GSA Region 9
Henkel Company
Judicial Council of California
Livermore Senior Housing Associates, LLC
Los Angeles Unified School District
Marana Unified School District
Maricopa Community Colleges
Multnomah County Transportation
Muscular Dystrophy Association, Inc
NAVFAC Mid-Atlantic
NAVFAC SW
New Mexico State University
Northwest Fire District
Office of Court Construction and Management
Peoria Unified School District No. 11
Phoenix-Mesa Gateway Airport Authority
Pima County
Port San Antonio
Quality Investment Partners
Resolution Copper Mining, LLC
Salt River Project
San Diego Community College District
San Diego County Regional Airport Authority
San Dieguito Union High School District
Socorro Independent School District
State of Nevada Public Works Board
The Sundt Companies, Inc.
Sweetwater Union High School District
Texas Department of Transportation - Fort Worth
Teyma USA and Abener Engineering and Construction Services General Partnership
Town of Gilbert
Tucson Unified School District
United Communities, LLC
University of Arizona
University Medical Center
University of California, Davis
University of California, Merced
University of California, San Diego
University of Nevada, Reno
U.S. Army Corps of Engineers - Fort Worth District
U.S. Army Corps of Engineers - Los Angeles
U.S. Army Corps of Engineers - Savannah
U.S. Department of Homeland Security
USAA Real Estate Company
Valley of the Sun YMCA
Yuba Community College District