With integrity and growth at its core, Downes Construction strives to enhance communities
Having recently transitioned into an Employee Stock Ownership Plan (ESOP) company, Downes Construction prides itself on integrity and is committed to the communities in which it works. With a vision to ‘leave every community stronger than we found it,’ the company’s mission is to build great places in the safest and smartest way possible.
Having celebrated its 90th year in business in 2024, we’re joined by David Patrick, President and CEO, and Jeffrey Anderson, Vice President, Preconstruction, to learn more about the evolution of Downes Construction and its project capabilities. “The company was established in 1934 and is now in its fourth generation after being previously led by three generations of the Downes family,” David opens. “In 2020, we, as the employees of Downes Construction, agreed to buy the company and form a 100-percent employee stock ownership plan.”
Jeffrey adds: “We’re in the process of rebranding the business with a new logo, tagline, and mission statement to emphasize our employee ownership and reflect our ongoing commitment to the communities we work, live, and play in. Our moral values of integrity and strong work ethic have been passed down through generational leadership and they continue to shape our day-to-day mentality even today.”
David confirms: “These values speak to the investment we make to the communities in which we operate. When people ask me why we do what we do, I think of the benefits we provide by enhancing communities, and while it’s inevitably important that we remain financially strong, we see money as a byproduct.
“To qualify for municipal work, we must post 100 percent performance and payment bonds, and we must prove we have the working capital, people, and technical resources required to complete a project. Converting to an employee-owned company has enabled us to grow our bonding capacity from $300 million to $750 million, which will give us the financial strength to compete for larger projects. We’re proud to improve the towns and cities we work in, and we’re excited to be part of some larger projects moving forward.”
Team support
Turning to Downes Construction’s operations, David explains: “As a construction management company, we don’t carry out many general contracting type assignments, but instead 99 percent of our work is based around project management on behalf of the owners. More specifically, we focus on managing K-12 schools, public safety complexes, municipal buildings, libraries, and museums, and on the private side, we work with healthcare providers and hospitals.
“We’re a strong team operating from Rhode Island and Connecticut, and we act as the owners, dealing with project managers, architects, designers, and construction managers to guide them through the construction process,” David continues. “We are usually hired at a similar time to the architects and engineering staff, meaning we follow projects from concept all the way to finish.”
Jeffrey elaborates: “We have a robust preconstruction department that works with clients, engineers, and architects to evaluate the owners’ requirements, preferences, and budget. Cost has become even more important in recent years, especially considering the substantial escalation of materials and supplies that has driven increased construction costs. We typically take each project through three phases of costing documentation – firstly a schematic design estimate, then a design development estimate, and finally a construction estimate – to provide clients with a guaranteed maximum price.
“The construction economy is fairly strong at the moment, which has contributed to our impressive growth in recent years. We’ve grown to a total of around 93 employees and our employee retention has grown too; our revenue was $123 million in 2022, $139 million in 2023, and we were on track to reach around $170 million in 2024.”
David adds: “However, the economy is not the only factor fueling such growth. We strive to maintain a positive and accepting company culture, and transitioning to an employee ownership trust has enhanced this even further. Everyone now feels like a key part of the business and goes above and beyond to collaborate on new projects or sales initiatives. As managers, we never take our position for granted and we’re very active in the company’s overall operations, forming partnerships or assisting customers where required.”
Vision for expansion 
In terms of projects, Downes Construction boasts positive, long-term relationships that have resulted in repeat work. “Just before Covid hit, we began working with Stamford Healthcare, a growing hospital network in Connecticut that needed a construction partner, to complete a renovation project,” Jeffrey explains. “However, with plenty of time to review the plans during the pandemic, the project looked completely different by the time we returned to site.
“Our relationship has continued to thrive from there; we’ve just finished our eighth project for Stamford Health, with a total cost of over $50 million. Aside from the healthcare industry, we’re a leading K-12 builder here in Connecticut and we have several success stories and case studies from a diverse range of sectors.”
“We’re continuing to grow the business without overselling, as we want to retain our culture and ensure we can complete projects to the high standards we’ve become known for,” David shares as our conversation ends. “Implementing technology can help us in terms of efficiency and productivity. We’re currently using a cloud-based system that provides real-time data, information, and insights to all partners. We’ve got a new estimating program with an AI component, and we’ll continue to cautiously investigate AI applications to streamline processes where possible.
“However, while AI is a valuable tool, we must remember that machines don’t build buildings, people do. Our people are the backbone of Downes Construction, and that’s why safety is a huge part of our culture. We see ourselves as a safety leader in the industry and we pride ourselves on the phrase ‘safe today, home tonight’ to reflect our commitment to safe field operations.
“Our long-term strategy is very much focused on how we can expand the business,” David concludes. “While New England is our home, we’re continuously doing more work in Rhode Island and we’ve recently completed our first project in Massachusetts, which saw a new animal hospital built in the state.”