Maximizing Client Value, Not Project Cost
C & J Contracting, Inc. begins every project ‘as if we owned it ourselves’
C & J Contracting, Inc. (C & J) is a commercial and industrial contracting company based in San Jose, California. They provide design-build and construction services to the commercial, industrial and retail sectors in Northern California and beyond. Their projects range from tenant improvements and seismic upgrades to site and building repositionings of every size (taking an old project, putting a new face on it and getting it market-ready).
President Scott Reno started the business in 1982. He shares management responsibility and decision-making with his executive team, longtime employees Vern Pitts Jr., Vice President of Operations and Senior Project Manager, and Art Javier, Controller and Vice President of Finance. Their project management team and skilled administrative staff include Scott’s daughter, Amy Johnson, and son, Chris Reno, who are both project engineers.
“Our goal is to maximize client value, not the cost of the project,” Scott says. Beyond construction, C & J can provide clients with an entire design team, from architects and designers to structural engineers. “We also have a great subcontractor pool built on long-term relationships. This adds greater value to any project.”
Asset Evaluation and Due Diligence
C & J assists potential buyers of commercial and industrial real estate in evaluating a property’s potential. “We put together a great team to help potential buyers of commercial and industrial real estate understand the condition of the property and the potential costs of repositioning an asset to bring it to market,” Scott says.
Brokers and developers who are considering a site want to know what the bones of the project are like and what it would take to bring it up to marketing condition. “We’re able to give them the working numbers they need to create a proposal for the site’s potential use,” he adds. Value engineering is one of the key benefits the company’s design and construction team brings to the table. This allows for greater financial flexibility for clients to achieve their investment goals.
One example is C & J’s transformation of the former Kellogg’s cereal packing plant at 2020 Williams Street in San Leandro, California. After performing due diligence and providing cost estimates to structure the purchase, the firm converted the 1950s-era facilities into a 400,000-square-foot, multitenant business park that retains its original 80-foot-tall concrete grain solos. The $7 million transformation included major site and building demolition, removal of the Williams Street Bridge and the building of new facades. Today, a decade later, C & J continues to perform work at the property for the owner and tenants.
C & J also repositioned an aged, nondescript 110,000-square-foot concrete structure at 3001 Orchard Parkway in San Jose. They turned the industrial tilt-up concrete structure into a high-end research and development space. The project features the first installation in the United States of a LängleGlas exterior glass curtain wall system. “We led the architectural and structural team in designing the system,” Scott explains. “Our design made it possible for this architectural application to be successfully attached to and work with this type of building.” The $3.5 million project was recognized as a finalist in the Silicon Valley Business Journal’s Structures Awards 2014 for Best Reuse/Rehab Project. C & J subsequently performed improvements for the project’s tenants.
“We look at every project as if we own it and provide a thorough evaluation to our clients,” comments Brett Johnson, Director of C & J’s Painting and Special Coatings Division. This allows the client to develop a financial plan for developing the asset while minimizing potential cost overruns, provided the agreed upon scope of work remains unchanged.
Self-Performing Work
C & J has always self-performed metal framing, Sheetrock, taping, texture, painting and special coatings with its own in-house crews. This allows for greater control over pricing, scheduling and quality control.
Quality control was essential in the renovation of two sizable buildings bordering Bothin Marsh Preserve in Mill Valley. “There could be absolutely no paint overspray allowed on surrounding vegetation and wetlands,” Brett says. C & J ensured the vegetation was covered and protected and that the work accounted for wind direction and tides to prevent materials from entering the water. This meticulous approach paid off: “We had no punch list and 100% approval from everyone involved,” adds Brett, who has been with C & J for 26 years.
A memorable—and aromatic—project was the renovation of the former Wrigley gum factory on Mission Street in Santa Cruz that C & J self-performed. One aspect was dealing with the existing interior surfaces that were infused with the aroma of spearmint. “Every nook and cranny had to be sealed and painted, multiple times in some cases, particularly the rooms where spearmint was stored for 50 years,” Brett recalls. The space now has multiple tenants, including art studios, design labs, showrooms and startups.
Additional C & J projects for vintage and historic properties include the renovation of three floors of the Tribune Tower in downtown Oakland. “There were several old decorative plaster finishes, original crown molding and antique walnut-paneled walls to match: all of our work had to blend in,” Brett recalls.
Fast, Accurate Budgeting
C & J first developed its unit price estimating system to provide fast and accurate budgeting in the mid-1980s. Through continuous improvement over time, the system now includes 300-plus items. It allows the team to produce budget estimates quickly and accurately.
The firm uses ECL Software’s (Eclectus, Inc.) CMIS software, a comprehensive construction management and financial reporting program, to manage projects.” I love this system,” Scott says. “We’re able to provide clients with both aerial and detailed views of their projects as well as current cost reports and progress updates.
Great People on Great Projects
“We work with great people,” he says. This includes clients, employees, subcontractors and material suppliers. Harnessing these relationships has helped them sail steadily through economic highs and lows, especially during the tough times of the 2008-2009 financial crash.
In 2010, Brett broke a vertebra in his back. He endured three years of crippling pain until he had successful spinal surgery. “Scott was a rock,” Brett says. “He kept me employed the entire time. He’s an unbelievable human being. He sat me down and said, ‘One day you’ll be better.’ I told my wife, ‘I can’t get another Scott. C & J is our home.’ ”
Brett adds: “I can’t image a better company to work for. I think we do a great job for our clients. It’s really busy in the Bay Area and the competition for skilled workers is fierce. Yet, we haven’t lost anyone. That says a lot for the company.” Loyalty is always in style at C & J.
“We look out for our client’s best interest,” Scott says. “We’re not a one-project contractor. We still work with some of the same clients we started off with more than 40 years ago.” He then adds with a wink, “We like to make our clients co-dependent on us!”