Overcoming the Odds
Second Generation Frost Construction Co.
After decades as a busy and successful Houston-based entrepreneur, Dale Frost set his sights on retirement. In 2001, the Founder of Frost Constructors, Inc. moved back to his hometown of Nacogdoches, Texas, where he enjoys a comfortable and peaceful life spent in the company of his sisters, his wife, and her extended family.
Dale does not while away idle hours. He is an active leader within his church community, using his carpentry skills to build crosses for both the church and local residents. His long-awaited return home has brought him great happiness and a renewed sense of purpose.
Dale first left his hometown for Houston in 1968, where he started his career working for a major Houston-based general contractor. He advanced through roles that included Project Manager, Estimator and Superintendent, until he eventually became Vice President. In 1989, with over 20 years of experience under his belt and an entrepreneurial spirit, he left to start his own general contractor business, Frost Constructors, based in Humble, Texas.
Dale’s company quickly became known for its commitment to quality, honesty, hard work and loyal relationships.
“My dad is the kind of guy who makes a friend everywhere he goes,” says Scott Frost, who worked alongside his father Dale for many years. “He is well known and well respected in the business and the industry, and that helped me. It’s the way he taught me to be—show respect and you’ll get respect.”
That education proved invaluable. Following Dale’s example, Scott entered into the construction industry straight out of college. But unlike others in his position, he was wary of using his father’s success to get ahead. Instead, he gained experience and built his credibility at other companies before eventually choosing to work at Frost Constructors.
“Every guy wants to stand on his own,” says Scott. “Riding on someone else’s coattails; I never subscribed to that philosophy.”
A Family Affair
When Scott joined his father’s business, he was in very familiar company. His mother, LaVera Frost, worked as the receptionist and bookkeeper, and before long Scott’s wife, Cindy, became her understudy.
The work of a general contractor inherently involves risk. Even with meticulous preparation and planning, a small mishap can have huge implications on the success and timeline of a project. The variables of risk are numerous—from delivering the wrong materials, to a workplace injury. Managing these and other risks comes with a high level of stress.
While other families may struggle to work productively under such pressures, the Frosts find a way to thrive. “We all check our egos at the door,” says Scott. “We just come in and do our jobs and support each other. We figure that is the best way to get through the day.”
In the early 2000s, father and son began to devise a succession plan to fill key leadership positions in the company following Dale’s retirement. They decided that Scott and Cindy would serve as second-generation business owners to carry on the enduring values of hard work and loyalty first established by Dale.
Together, the family prepared for this major transition, which happened gradually over six years. During this time Dale mentored Scott in managing the company’s vast range of projects, juggling the demands of subcontractors, clients, suppliers and deadlines. Dale moved Cindy through each position in the office, from administration to finance and accounting to bids, until she had a complete understanding of internal operations.
A New Chapter with New Challenges
A new company was formed in 2001, Frost Construction Co., Inc. Scott launched the new business to build upon the legacy his father had started. Frost Constructors closed in 2007, and Frost Construction Co. was up and running in its stead. Scott and Cindy felt the heavy weight of responsibility on their shoulders. They had a reputation to uphold, and expectations to fulfill. They had retained the entire staff first employed by Dale and were determined to hit the same revenue targets as the previous company. But just as new contracts started to roll in and confidence began to build, disaster struck.
In September 2008, Hurricane Ike swept through the Caribbean and North America with terrific force, destroying infrastructure, agriculture and buildings from Texas through to Cuba. The total cost of property damage in U.S. coastal and inland areas was estimated to be upwards of $29 billion. In Texas alone, damages totaled nearly $20 billion.
“My dad … is well known and well respected in the business and the industry, and that helped me. It’s the way he taught me to be—show respect and you’ll get respect.” Scott Frost, Owner, Frost Construction Co.
Right before the hurricane hit, Frost Construction Co. was getting ready to hand over the keys to two major projects in Texas it had just completed, an air traffic control tower for the Conroe-North Houston Regional Airport and a tilt-wall project in La Porte in Harris County. Both were significantly damaged by the tropical cyclone.
“Hurricane Ike hit, and those tilt walls fell down, then all those windows on the air traffic control tower blew out. That’s when things really started to get costly because we had a deductible that we had to pay on our insurance,” says Cindy. “We had these projects scheduled for pictures and boom! We got stuck with a very hefty bill for the insurance deductible that year.”
Just as the company started to rebound from its losses, a second calamity surfaced. The debilitating effects of the global financial crisis began to reverberate throughout the construction industry. Soon, the flow of new projects came to a grinding halt.
“In this business, you’re either bidding or working,” explains Cindy. “After January 2009, it was two years before we got another project.”
Like many other small businesses across America and around the world, the shock of the Great Recession was both financial and emotional. Scott and Cindy fought hard to retain all of their employees, but eventually they were forced to lay off staff that had worked with the family for years. An analysis of data collected from the U.S. Census Bureau reveals that more than 170,000 small businesses in the U.S. closed between 2008 and 2010, according to a 2012 article published by The Business Journals.
“It humbled us,” says Cindy. “But the main thing is that we’re still here.”
Loyalty and Perseverance
To persevere through the most difficult times, Cindy and Scott returned to the lessons passed on to them by Dale and LaVera. They refused to give up hope, worked all of the hours available to them, and supported each other along the way. As the recession eased and business picked up again, they contacted their original staff members to invite them back to work.
Today, Frost Construction Co. boasts an impressive client list spread across the Houston Metropolitan area. With a staff of 10 and an extensive network of specialized subcontractors, the company is equipped to handle commercial interior build-outs, building alterations and additions, and new construction. It also recently expanded into maintenance and repairs. Frost Construction Co. has performed work on a wide range of facilities, including financial institutions, churches, hospitals, factories, retail stores, K-12 schools, municipal buildings and airports.
Now, the company is so busy that Cindy and Scott forgot to celebrate the 15-year anniversary of its incorporation in 2016. One of their longest-standing employees reminded them of the date.
“If you love what you do for a living, it’s not work—it’s a joy,” says Scott. “My dad is a good teacher and mentor, and he wants me to be successful in this business. He loved this business when he was in it. He loved it as much as I do.”