H3>JJO Construction
Working your way up
JJO founder Joe Orel did it by overcoming all obstacles
to found a thriving construction business
JJO was founded in 1993 by Joe Orel. He had been in construction since
he was 15, doing primarily cement work for a variety of general contractors.
"I figured if those companies could make it in this industry, so could
I," says Orel. "I had a dream, and I implemented it."
The company's early days, in the corner of the Orel household dining
room, were hardscrabble, with one phone line and a green-screen computer.
His first client went bankrupt before Orel got his retainage, so he was
stuck for $10,000. But to Orel, there was no such thing as "it can't
be done." "If someone says it can't be done, it just motivates
me to prove them wrong," he says.
He finished the home's basement and built an office there for his growing
company. Eventually, JJO moved to a two-room office that cost $300 a month
to rent, over his wife's objections. Orel admits that he sacrificed family
and personal time in an effort to grow the firm to where it is now, leaving
much of family life to his wife.
Early on, the firm established relationships with financier FirstMerit
and with Speedway, both willing to extend lines of credit to the fledgling
firm and both rewarded with continuing business. "The idea of relationships
may have dwindled in the industry, but we honor them," says Orel. That
extends to the building of FirstMerit and Speedway facilities over the years
as well.
The firm developed a five-year plan and moved to a 2,700-sf office in
Willoughby, and then to a 7,000-sf building that was half warehouse, half
offices just a few years ago. But JJO tripled in size within a year, from
$10 million to $30 million. It now employs 47 people, 19 in the office,
and the warehouse has been squeezed into a barely adequate corner. "We
ate up most of the warehouse," says Orel," but our plan is to
stay here. We want to be not the biggest contractor in Cleveland, but the
best. We want to stay in this niche."
Future plans
JJO is right now looking at tweaking its structure in order to accommodate
its growth. "We still have to provide the best possible service for
our clients," says Orel. "Since the growth, I can no longer get
as involved in each and every project as I have been, so we had to develop
the workforce." To do that, the firm hired a professional human resources
manager, Mary Ann Trubisky, to help develop stronger orientation and training
programs for new employees. "We now focus on networking to find just
the right people," says Orel.
Orel's daughter Nellita Womack, one of three children, is now office
manager and IT strategist. It was her idea to use laptops in the field,
as well as digital cameras and all-in-one printers.
Womack also designed, implemented and manages the sophisticated JJO website,
and trains the subs on how to use it to get plans, specs and bid forms.
There are currently over 800 users registered, but Womack is planning a
campaign to get 6,000 subs registered so they can see the business opportunities
available on the site. "To get started, they fill out a qualifications
statement online, so we can get a working knowledge of them. We want to
double our website use," she says. The site also has a complete JJO
project gallery.
Womack has just passed her GC exam there, an exam with a 70% failure
rate. JJO Construction Southeast LLC is expected to open for business early
next year, with Womack as an office of the new division.
Also part of the family firm is Orel's brother Ed, who came aboard to
handle all maintenance contracts. And fast approaching in the wings is the
other Orel daughter Kayla, now only 11 but planning to run the firm some
day, with her sister Nellita answering to her. "Kayla negotiates, and
she figures out how to get what she wants," says Orel proudly. Son
Jacob is only eight and so far has no plans to take over the world, but
that could change.
Over the years, Orel has put a lot into his business, but it is a labor
of love to him. And he has passed that attitude along. "When I was
growing up," adds Nellita, "I never listened to a word my dad
said. But now I quote him several times a day."
And there are a lot of Orel quotes. One final one testifies to his goals
for the future. "I am relentless. I will not give up." BXM
An impressive client list
JJO Construction specializes in retail and restaurants, sectors where
on-time performance is key , so planning, meeting and scheduling are paramount
at JJO. "Our target client is one in a 400-500 mile radius, who is
doing multiple projects over several years," says Joe Orel, president,
though the firm does work from Northern Michigan to Maryland.
Rite Aid has been a JJO client since 1993, and is still one, JJO having
been named its Contractor of the Year in 2004. "Once we get together
with a client," says Orel, "it is hard for them to get away."
And several clients, such as Advance Auto and Bob Evans, have asked JJO
to expand their reach to Florida. "The hurricanes have created so much
work that it is hard to find good contractors down there," says Joe.
The formation of JJO Construction Southeast LLC should help that to change.
Some of JJO's major clients:
Retail
- Rite-Aid Pharmacy
- Advance Auto
- Save-A-Lot
- FirstMerit Bank
- Sherwin-Williams Paint Stores, including Strongsville's Sherwin-Williams
Plaza
- Valvoline
- Speedway
Restaurants
- Bob Evans Restaurants
- Steak and Shake
- Penn Station, Mentor
- Donatos Pizza
- Popeyes Chicken & Biscuits
- Panera Bread
- Rally's
Hospitality work
- Hilton Hotel Porte Cochere and
- Hilton Hotel Fitness Center
- Hilton Hotel pool renovation
- Hilton Hotel Porter's Steak and Seafood
- Hilton Hotel Capers Lounge
Results, not excuses
With a focus on client satisfaction, employee teamwork and going the
extra mile
"Results, not excuses" is the driving force behind JJO Construction's
success, according to owner Joe Orel. "The clients are here to get
results," he says, "so we expect results from our staff. We don't
want people who will dwell on problems. Our employees look for solutions."
He adds, "It is not unusual for us to get a call at 4:00 on a Friday
from a client who needs thus-and-so done by Monday morning. With us, it
will be done early Monday. The project team meets and everyone contributes
solutions, so we can meet the client's needs."
Orel confides that once consultants were brought in to try to improve
operations, only to leave, saying they could be of no help. "They said,
'You do anything in the world to meet your client's objectives, but you
don't protect your bottom line,'" he says. "But I am investing
in my company's future when I do this. And happy clients mean repeat business
for us."
He says, "I like to say that I am just a dumb construction worker,
and I like to say 'Keep it simple.' Simple things are what work. No client
has ever gotten angry at you for exceeding their expectations. But when
you give clients just a little less than they expected, you have made it
easier for them to do business with someone else."
Orel adds that "One thing that I do upfront is let them know that
on a three-to-four month project, we will make a mistake. But they will
be the second to hear about any problems. I will be the first. And they
will always be in the loop. Our clients are never blindsided." When
JJO deals with corporate accounts, says Orel, by the time the vice president
of operations finds out about a problem, and calls about it, "I can
tell him I already know, and here's what we are doing to solve it."
The client is always right
Clients, he adds, "have a choice in who puts up their buildings,
and we need to prove that they were right in choosing us. I found out in
my early years," he goes on, "that GCs spend a lot of time arguing
about change orders. But if you do that, you alienate clients. I do it the
simple way: I show them the added cost in materials and labor, and I ask
them to tell me what they are willing to pay. We don't argue over pennies.
The client is always right. So instead of getting the money, I get repeat
business down the road."
"We protect our clients," says Orel. "So the next time
there is a close bid, our client will protect us. They are my partners."
One example: Bob Evans Restaurants. Their fiscal year is at the end of March,
says Orel, and there is always a project that has to be done by then. "For
those projects, I give them the superintendent who will make sure that it
is done. On time. Who has more to lose," asks Orel, "Bob Evans,
or me?"
Teamwork
Orel's solution-oriented approach means that the firm must allow people
to make decisions, and that requires training in the 'JJO method.' "One
of our biggest problems is finding competent people," says Orel. "Anyone
can put up a building, but we build our people and they build the buildings."
JJO's lean and mean management structure means that "we can be innovative
and move fast," says Orel. "We stay flexible, so we can change
how we do things. We are never complacent, but constantly trying to become
more efficientand that takes a calculated risk. But we balance between
risk and gain."
One key player in the JJO management team is Ken Kozak, controller. "He
doesn't know construction, but he does know administration," says Orel.
"He knows more about our finances than I do. He weighs risk and gain
and keeps the company stable."
Another key staffer is Charlie Simmons, who runs the Estimating Department,
housed in an open environment so that all staff can work together on bids.
Says Orel, "He is a very organized individual, so he thinks things
through and comes up with the right answer."
That teamwork extends throughout the entire construction team. Says Nellita
Womack, office manager, "We have a core group of vendors and great
subs. We get the right subs out on a job, and it is a team effort to finish
a project." It's a solid approach: client, staff and subs work together
to make great buildings. At JJO, it's the results that count. BXM
