Contractors find fewer big-revenue projects

Last year was a mixed one for metro area construction companies. Some saw revenues drop while others doubled their numbers.

Some blamed a still-sluggish economy and a decline in public sector work for low revenues. Others said the reduction was caused by a lack of large non-recurring jobs that inflated revenues in previous years. Still others said the market is growing increasingly competitive.

For businesses with increasing revenues in 2003, the reasons ranged from a strong backlog to landing large projects with big price tags.

Barriere Construction Co.'s revenue increased 14 percent to $90 million from $79 million in 2002. The New Orleans-based company had a higher backlog of work going from 2002 into 2003, which put us in a position to choose to compete for contracts that maintained our activity level... said President George Wilson Jr.

This year, the general contractor budgeted for a 7 percent increase in revenue, he said. Major projects include the $8.1 million Earhart Boulevard bridge replacement, drainage electrical duct bank and concrete roadway replacement work and the $3.6 million Whitney Avenue box culvert and road construction work..

At Carl E. Woodward LLC, a design/build contractor based in New Orleans, revenues increased 46 percent to $73.8 million from $50.5 million.

Scheduling sometimes affects revenues, said Terry McCubbin, chief financial officer. He said many jobs started late, which meant revenue was recognized late.

He projects 2004 revenue to be between $70 million and $80 million.

In one of its top projects, the company is working on a new $35 million, approximately 350-room Marriott Hotel on Convention Center Boulevard. The expected completion date is early 2005, he said.

At Boh Bros. Construction Company LLC of New Orleans, gross revenues jumped 7 percent to $262.2 million from $244.8 million.

President Robert S. Boh attributed the increase to several large projects outside Louisiana that were completed during the year.

This year, Boh expects heavy competition for new projects.

One major job is the $35.7 million Harvey Canal sector gate project for the U.S. Army Corps of Engineers.

Revenues fell 20 percent at Ellis Construction Inc. of New Orleans to $11.3 million from $14.2 million.

President Bret Ellis said the economy was depressed in 2003. He labeled it a moderate year. This year, Ellis expects revenue to move back to 2002 levels or higher.

The company is working on two condominium projects in the Warehouse District that total about $8 million.

Gibbs Construction LLC's Vice President Robert Wooderson said a 9 percent revenue decline to $85.7 million from $94.3 million in 2002 was the result of just a slowdown in the general business climate.

The Harahan-based company also completed major projects at the end of 2002, and projects of that scope are now nonexistent, Wooderson said.

He expects this year to be as slow or slower than 2003 and revenue to remain static. The company started 2004 with a backlog of $55 million in projects, he said.

Wooderson said with a booming 2005 forecast, the company is taking advantage of the slowdown to prepare for the anticipated work.

Donahue Favret Contractors Inc.'s revenue dropped to $42.8 million from $49 million. The 13 percent decrease was the result of a large $21 million project completed the year before, said President Jack Donahue.

This year, the Mandeville-based company expects to generate about $46 million in gross revenue, he said.

Bill McDonnel, director of business development for The McDonnel Group LLC of Metairie, said revenues were flat in 2003 at $24 million, down from $28.3 million in 2002.

The company is landing more negotiated jobs and less public- sector work, he said.

Revenue for 2004 is expected to top $25 million. A major company project is the $6 million St. Augustine High School expansion.

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