Synergy Projects: Synergy Creates Success
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Thursday, 26 June 2008
smc Synergy's work for the Bavaria BMW Dealership, Edmonton, Alberta, Canada, involved extensive site development and aggressive schedule. The steel structure includes an underground parkade.
Synergy's work for the Bavaria BMW Dealership, Edmonton, Alberta, Canada, involved extensive site development and aggressive schedule. The steel structure includes an underground parkade.




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“We're in the shelter business; it’s that simple,” Synergy Projects President Dennis Mozak says. “If it goes under a roof, our team can build it.” Mozak is dining in Downtown Edmonton, Alberta, Canada, and explaining his business to the vice president of one of Canada’s largest financial institutions. After just 12 years, Synergy has become a major player in the Alberta construction industry, and the company is being courted by the banker as a prospective new client.

“We started wanting to be involved at the development level as well as in building the structure,” Mozak explains. “The first project we did was a new plant and headquarters for All Weather Windows. The land was $9,000 per acre and we built it for around $28 per square foot. Now, that land is up to $750,000 per acre, and construction would be well over $90 per square foot foot.”

Mozak says the company was successful because “we partnered with the company. We weren’t just going in to make a profit on the building phase. We listened to what they were looking for, sourced the land and saw it through the site development and construction phases right through to completion.” It was the largest construction project in Edmonton in 16 years, he adds.

Now, more than a decade later, All Weather Windows is still operating out of that space, and Synergy Projects has moved on to be a self-described “boutique-style” general contractor in one of North America’s fastest-growing economies.

‘Special Place to Work’
“I have always tried to focus on doing what is right,” Mozak says. “That commitment has served us well as we’ve grown – even when it came at a cost. Right now, the biggest issue for this industry is labor, and that means we have to invest in our people if we want to continue to grow.”

For the Synergy staff, that means everything from an annual bonus and profit-sharing structure, to an on-site fitness facility and a head office located on prime real estate in the center of Alberta’s capital city. “I know that we provide one of the best compensation packages in the city,” Mozak says. “And it’s not just the wages; it’s about quality of life, the people you work with, and about feeling appreciated for what you bring to the table.”

“I like the family atmosphere, and the quality of the team,” says Jacquelyn MacKenzie, project manager for the company’s special projects division, Synergy:Elite. She joined Synergy in 2005 after working for a competitor. “I knew there was opportunity to grow here, and I like that I have been challenged,” she says. “I have been encouraged to try new things, to take more responsibility, and to focus on my own goals and how the company can help me achieve them.”

Not yet 30 years old, and with a young family, MacKenzie says she appreciates the chance to work for a company where each employee is given the opportunity to grow. “It’s not everywhere that the company president will sit down with you to discuss where you want to go in life, and how your job fits into that picture,” MacKenzie notes. “This is definitely a special place to work.

“Just recently we have been talking about getting more into high-end residential renovations,” she continues. “There is a lot of opportunity for us to work with respected interior designers, and many contractors would stay away from that in favor of the larger commercial projects.

“But, it’s something I’m personally interested in, and the management team is supportive of us moving forward to explore that side of the business.”

Hands-On Management
With more than 70 percent of Synergy’s staff working in the field, Mozak says he realizes the importance of extending the team atmosphere to every job site.

“I try to visit a few sites each week just to see everyone and to give them a chance to ask me any questions,” he explains. “Our management team definitely takes a ‘boots on the ground’ approach, and sometimes that is the only way you hear the real issues and have a chance to address them.”

Vice President Barry Robertson acts as a project manager for one project at a time, in addition to his management duties. “Let’s face it – that’s the fun part of our business,” he admits.

“Dealing with clients and trades and being in the field is why we all got into this. I didn’t stick with this industry so that, one day, I could sit in an office and read financial projections.”

Currently, Robertson is heading up a new building for the town of Hinton, Alberta, about 200 miles west of Edmonton. The Infrastructure Services facility is a $10 million project and the main challenge is the site.

“We needed to bring in all of the services, and the water table is just 18 inches below the surface,” he says. “That’s the challenge of that particular project.”

Moving on Up
Superintendent Rob Liber says the ongoing challenges for Synergy are keeping a strong team and making sure employees have the opportunity to grow professionally. “The best guy on the team is going to be the one who wants my job,” he says. “He’s going to work harder, learn more and be more committed than someone who isn’t as focused on moving up.”

Liber initiated a mentorship program that provides field workers the chance to move up in the company. The mentorship program draws on the journeyman education and the qualifications recognized by Red Seal, but includes lessons that are particularly useful to company, he adds.

“Say you are a foreman, and you have set your sights on being a superintendent and maybe eventually a project manager,” Liber explains. “Not only do you have to learn the skills you’ll need, but you also have to be aware that the people around you are looking for you to mentor them at the same time.”

 In addition, field employees complete an annual self-evaluation of their skills, rating themselves from 1 to 5 on their expertise in different project areas and tasks. Robertson says, from a management perspective, identifying the particular skills and strengths of field workers makes the most sense when assigning who will work on a particular project.

“The teams are always changing because we make sure to assign our guys to projects where they can excel and gain more expertise,” he says.
    “If someone wants to specialize in industrial projects, we can provide that opportunity. It doesn’t mean they won’t be working on other things, but where possible, we will place them where they can bring their best skills to the job and grow where their interest lies.”

Meeting Industry Challenges
The hot Alberta economy has created the biggest challenge facing the construction industry, according to Robertson. “There’s more money in the system,” he says. “But, you’re spending more on inefficiencies. There is a lack of motivated, skilled labor and that applies not just to contractors, but to all of our sub-trade partners.”

Unfortunately, he notes, this issue has no immediate solution. “Of course we would prefer a short-term solution, but there just isn’t one,” Robertson says. “The industry as a whole is working hard at marketing trades as an honorable profession, but a lot of people don’t want their kids getting into blue-collar work like they did. They encourage them to go into universities. We need to be reaching them in high school and promoting that it is not undignified to go into the trades and build your career.”

Relationships with trades have also changed in recent years. “It’s not strictly about price, and the trades have definitely become more of a partner,” Robertson says. “The price has to be fair, but it’s not always the determining factor.”

Demanding Project
When extensive renovations were needed at the Edmonton International Airport, many in the industry expected that only the largest general contractor in the area could handle the job, Mozak says. “When we got the contract, I’m sure there were people thinking we couldn’t do it,” he recalls.

“The airport is a very demanding, complex environment. We were challenged by the high security of working airside and the need for the airport to deliver high quality passenger service during construction.

“Our safety officer was on-site almost full-time, working with trades and suppliers to make sure everyone complied with the needs of the airport. In the end, we delivered and I’m proud of our team.”

‘Doing What Is Right’
Another example of Synergy’s approach to partnerships is a condominium complex built just as the construction boom was beginning. “Construction costs were already rising, but the sale prices had yet to catch up,” Mozak remembers. “We knew it would happen, but the owners couldn’t reflect that in their financial pro forma.”

Without having a crystal ball to project what the sales would be, Mozak’s team looked at how to build more cost effectively. “We were able to identify some design changes that would bring the costs in line with the sales figures of the time,” he says.

“In that instance, we also brought some financial partners to the project. Again, we counted on our relationships to bring success to our client. It’s the ‘we care’ attitude that sets us apart, and that is how we’ll continue to grow.”
    The growth of Synergy is what attracted the attention of a major financial institution, Mozak adds.  
    “Twelve years ago, if I was having lunch with a banker I was definitely picking up the tab,” he says with a laugh. “Luckily, I found people to believe in what we were doing and to show them it was possible to build a business based on doing what is right.”

 
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