Experience changes firm's approach to golf market

Golf Course News, Nov 2002 by Overbeck, Andrew

JACKSONVILLE, Fla. MacCurrach Golf s experience at The Challenge at Desert Village and the subsequent slowdown in golf course construction have changed the way MacCurrach approaches new jobs.

"The error I made was not digging into the background of the ownership," he said. "That's an error I won't make again. In bid meetings it is taboo to stand up and ask how the owners plan on financing the project. Not enough guys do that, but I do now. If the client is too scared to answer, you might not want to be working there."

According to MacCurrach, since the financing landscape changed, problems that were usually hurdles for projects are now project killers.

"Financing has become more difficult with the stronghold institutions stepping down," he said. "The lenders that have followed are charging a lot more for their money because these are high-risk deals. Developers have to be prepared because obstacles now stop projects."

To avoid these risks, MacCurrach said he has downsized his company.

"We are now doing 10 to 15 percent less work. We have kept our best people and our best equipment and I feel great about it," he said. "If you try to expand in a tightening market, you are going to put yourself in positions you don't want to be in and take jobs you shouldn't take. We want to keep our selection criteria the same and the only way to do that in a tightening market is to do less work. New work has to be regional or have a good relationship behind it or we won't do it."

MacCurrach said he hopes Desert Village eventually opens so he can get his money out of the job.

"The bank is ahead of us, but hopefully the course will make it," said MacCurrach.