JE Dunn Rocky Mountain Region Inc.: Surmounting a Challenge
Profile
By Genevieve Diesing   
Thursday, 17 April 2008
JE Dunn Rocky Mountain Region



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JE Dunn’s Rocky Mountain Region is a powerhouse of a construction company. The general contractor has more than 280 employees, $250 million-plus in annual revenue and is a member of the fifth-largest general building contractor in the United States, JE Dunn Construction Group. But even a powerhouse faces challenges, and has the capacity to learn.

This was the case during JE Dunn’s Spire project, a 41-story mixed-use condominium project in downtown Denver. The company began working in May 2007, but in August, the senior lender backed out of the project’s instruction loan. Four stories had already been built, but construction was suspended indefinitely.

“I’ve gained a tremendous amount of knowledge on how to make a job work when it gets tough,” Project Manager Dustin Liljehorn says.

“I’ve learned key points from a lot of the players – from our company president and our leadership group, on the way to handle this type of situation.”

New funding for the project wasn’t procured until January 2008, but, as Liljehorn proudly notes, the company resumed construction the next day with full crews, following the closing of the financing.

“There were a lot of rumors around town,” he says. “Jobs like this usually don’t get subcontractors back, and there are price escalations. People have a tendency to give up on the job.”

But JE Dunn didn’t give up. The company communicated thoroughly with its subcontractors, and continued to invest time and resources.

“That really kept the subcontractors around,” Liljehorn says. “They really felt good about the open communication line and just the dedication we had.

“When it first went down, knowing what our odds were, there were definitely some doubts in our minds. We did everything we possibly could. We worked hand-in-hand with the developer, the Nichols Partnership, [and] their communication line helped make it successful as well.

“Prior to restarting, we did reach a new agreement on time and cost. We did get a lot of participation with our subs, which was a tremendous help. They really helped support us.”

Vast Project
The $175 million project should be completed in December 2009. It will contain 503 one-and-two bedroom homes and 7,633 square feet of retail space. The 948,139-square-foot building will stand 474 feet high and will include 33 stories of residential space resting on an eight-story podium of parking and retail.

The residential units feature 10-foot ceilings, floor-to-ceiling windows and balconies. Outdoor pools, hot tubs and a health club will also be included in the design.

JE Dunn has completed more than $160 million of multi-unit residential construction in the Denver area in the past four years. Liljehorn says the key to winning the Spire project was JE Dunn’s ability to “understand the nuances of this building type and price it competitively.

Construction on the Spire is in full swing, and the company says it finishes a new story every 12 days. However, the bustling environment of downtown Denver has posed some challenges. The environment is essentially property line to property line, Liljehorn explains. “There are two major intersections downtown, a one-way street and existing parking lots on both sides. This makes the logistics very tough.”


 
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