®
A Publication of the Associated General Contractors of Wisconsin
ISSUE 4 • 2010/11
KRAUS-ANDERSON
CONSTRUCTION COMPANY
BREAKING NEW GROUND SINCE 1897
KRAUS-ANDERSON
CONSTRUCTION COMPANY
BREAKING NEW GROUND SINCE 1897
by Mark Crawford
Staying in business for over a century means maintaining a reputation
for quality and honesty that lasts for generations—something KrausAnderson Construction Company makes look easy.
Founded in 1897 in the Twin Cities, Kraus- states Madison-based Kraus-Anderson DirecAnderson is consistently ranked by Engineer- tor of Operations Tom Roepke. “We can draw
ing News Record as one of the top-50 Con- on the wealth of experience from our various
struction Managers-at-risk in the United offices for any project.” For example, what
States. With a network of regional offices in the began as a parking garage RFP in 2007 for
Southwest and Midwest, the company is well- Gundersen Lutheran Health System in La
positioned to compete for projects throughout Crosse has now expanded into a much largerthe country.
scale
hospital
project
A key to Kraus-Anderbecause Kraus-Anderson
Kraus-Anderson
son’s success is its strong
brought in a highly experibelief in collaborating with
enced
hospital construction
Construction Company is
owners, architects, and other
team
from
Minnesota to
experienced with every
planning team members in
review other aspects of the
delivery format,
the earliest stages of a proproposal and eventually win
ject. By sharing its deep
the contract.
including negotiated
knowledge and expertise
Kraus-Anderson does
general contractor,
regarding cost analysis,
not just focus on big proconstruction management,
scheduling, and value engijects—it accepts many small
design/build,
projects with the same dedineering, Kraus-Anderson
cation to quality, efficiency,
helps the team make
and traditional
informed decisions to assure
cost control, and personal
design-bid-build.
the highest quality and best
service. Over the past five
value.
years the company has comKraus-Anderson has worked in Wisconsin pleted on average more than 300 projects per
for over 50 years, both as a builder and com- year valued at $500,000 or less. “We can promercial real-estate owner and developer. The vide highly competitive rates to every client,
Wisconsin office was established in 2002 with large or small, because of our extensive
a focus on the health care, education, senior resources and the reputation of our parent
housing, retail, and hospitality markets. company, Kraus-Anderson Companies (conThe company also owns more than 500,000 struction, real estate, insurance, financing,
square feet of office and retail property space communications),” says Roepke.
Kraus-Anderson Construction Company
in Wisconsin.
“As a construction management company, enjoyed a record year in 2007, topping $1 bilour expertise is leadership on the jobsite,” lion in overall sales. The recession cut sales in
8
Wisconsin Constructor® / Issue 4 • 2010/11
2009; in 2010 that number improved to
over $700 million.
“The Wisconsin office has followed a
similar pattern,” adds Roepke. “Our best
year was 2008, when we exceeded $80
million in sales. Last year was about $40
million. Our team works very hard and
we are off to a great start in 2011. We
expect 2011 will be a prosperous year and
leave us in good position for 2012.”
A Partner from the Beginning
For any project, the decisions made at
the earliest stages of planning and design
largely determine the overall project
direction and cost. “By getting us
involved when the early concepts and
designs are being developed—including
tapping the expertise and resources of
our strategic partners and subcontractors—our clients have a deeper understanding of the construction process and
can make better decisions,” says Roepke.
Kraus-Anderson Construction Company is experienced with every delivery
format, including negotiated general
contractor, construction management,
design/build, and traditional design-bidbuild. “We prefer a collaborative delivery
model, where we join the team early and
provide preconstruction services and
continue as construction manager at
risk,” says Roepke. Kraus-Anderson provides the project architect with the most
current construction information, as well
as options regarding construction materials and building systems that improve
building performance and save money.
Every section of work is bid competitively across a field of highly experienced,
trusted subcontractors to ensure the
highest quality of work and reliability.
Investing in People
The company’s internal training
organization—KA University—provides
training company-wide for safety, quality
management, LEED, scheduling, and
software/IT. Staff also bring in outside
trainers and speakers to discuss a wide
range of HR issues, such as conflict management. KA University also partners
with local colleges and universities to
provide training for other audiences,
including clients and subcontractors.
“LEED training for our employees
and the contractors with whom we partner continues to be popular,” says Roep-
Lowe’s — Wauwatosa, WI
Roundy’s Supermarkets: Pick ‘n Save — Oshkosh, WI
ke.“We currently have 25 LEED APs and
4 Green Associates throughout the company. We also collaborate with various
educational institutions to develop curriculum on health care infection controls,
sustainable construction, safety on the
job, and other topics. Kraus-Anderson
has also reached out to nontraditional
workforces including women, minorities,
and other groups and we have been recognized for those efforts.”
Through membership with AGC since
2002, Kraus-Anderson’s employees have
also participated in the AGC’s excellent
training opportunities. Administrative
personnel benefit with classes such as
Lien Law and Advanced Blueprint Reading, while leadership staff become
involved through course offerings such as
Supervisory Training Program and Lead-
ership AGC. Beyond the classroom,
Kraus-Anderson staff has access to the
AGC’s legal services to assist and inform
them on labor relations, jurisdictional
concerns, and governmental items that
affect the industry.
Safety is a top priority throughout the
company. An internal safety program,
combined with AGC’s safety training, has
resulted in an impressive mod rate of 0.7.
KA construction sites are subject to frequent internal audits and third-party
audits through the company’s insurance
carrier.
“We employ three full-time safety professionals who work with our project
managers and superintendents to review
our safety methods,” adds Roepke. “Our
superintendents have regular safety
training and carry that through to weekly
Wisconsin Constructor® / Issue 4 • 2010/11
9
Prescott High School — Prescott, WI
jobsite discussions with our subcontractors and all onsite personnel. AGC has
consistently ranked us in the top 25 percent among our peers for our safety
record.”
Nationally, Kraus-Anderson’s emphasis on safety extends beyond their own
employees to clients and even the greater
public. For hospital and elderly care
remodeling projects, Kraus-Anderson
develops programs to ensure the safety of
staff, residents, and patients during construction. As construction manager at
Minneapolis/St. Paul International Airport, the company puts safety measures
in place that protect more than 33 million
passengers who pass through the facility
every year.
Striving for a diverse workforce is part
of the Kraus-Anderson culture. The company has been recognized for its efforts to
reach out to diverse groups, including
female- or minority-owned subcontractors and suppliers. In 2008 and 2010,
Kraus-Anderson projects were recognized by the Metropolitan Economic
Development Association (MEDA) for
creating construction opportunities for
women and people of color on their jobsites in the Minneapolis market.
In 2009, Kraus-Anderson was honored by the Department of Defense for its
support of veterans on duty overseas. As
a participant in the Employer Support of
Guard and Reserve (ESGR) program,
Kraus-Anderson received the“Above and
Beyond” reward for granting leave and
providing other support for their employees deployed for military service. KrausAnderson is also working with other corporations to create a permanent network
of support for their service personnel and
military families.
Selected Projects
Amery Intermediate School — Amery, WI
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Wisconsin Constructor® / Issue 4 • 2010/11
Prescott High School, Prescott
Kraus-Anderson completed a 94,600square-foot remodel at Prescott High
School on a compressed 24-week schedule. Work included total masonry restoration, new roofing, new exterior windows
and doors, and mechanical and electrical
upgrades. The new construction blends
with the existing facility, utilizing masonry with brick veneer, structural steel framing, and precast hollow core plank floor
and roof systems.
“Doing a complete remodel and addi-
tion to a school built in the 1920s is
always a challenge,” indicates Roger
Hulne, District Administrator for
Prescott School District.“I was impressed
with how Kraus-Anderson worked with
us to keep the project on time and within budget. The daily on-site supervision
was invaluable and they took care of any
surprises that came up. The project
superintendant attended a lot of local
planning meetings and gave us plenty of
cost options. What could have easily
been a nightmare project turned out
really well and the community was
extremely pleased with the finished
product.”
Amery Intermediate School, Amery
A testimony to its communication
skills, Kraus-Anderson was selected to
assist the Amery School District in prereferendum discussions with the public
about the school district’s proposed
remodeling and expansion plans. One of
the projects that followed the successful
vote was the construction of a 91,000square-foot, single-story intermediate
elementary school. Features include concrete masonry and structural steel construction, multiple skylights, terrazzo
flooring, precast columns, atrium and
courtyard, and arches with brick fascia
and brick interior partition walls.
“The project manager did a fantastic
job coordinating with the architect,”indicates District Administrator Steve
Scheills. “All the meetings were on time,
with the right people attending. We got
great bids from subcontractors. In fact,
the project came in under budget by
$750,000, which allowed us to build a
bus garage. I brag about Kraus-Anderson to anybody.”
Amery Regional Medical Center,
Amery
This 120,000-square foot, two-story
critical-access hospital includes emergency department, radiology department, three operating rooms, cardiac
trauma, laboratory, physical therapy, and
patient rooms. State-of-the-art equipment includes a 64-slice CT scanner,
MRI, and nuclear medicine scanner. Sustainable features include a green roof,
rain gardens, and regional natural materials such as rough-cut Kasota stone,
masonry, and timber.
“From the very beginning, KA com-
Amery Regional Medical Center — Amery, WI
Wisconsin Constructor® / Issue 4 • 2010/11
11
piled an outstanding team of construction
specialists,” says Michael Karuschak Jr.,
CEO for the hospital. “They always kept
us informed on the status of our project.
They came in on time and on budget.
KA’s reputation was an important factor
for the selection committee, having
already completed a new dental clinic and
several new schools in our community.
The bottom line is they delivered a beautiful new facility and campus and it was a
great experience working with them.”
Cabela’s, Richfield
Kraus-Anderson has constructed over
2.4 million square feet of retail space for
Cabela’s nationwide—mostly in the Midwest. “We started as Cabela’s designbuild contractor in 1997 and continue to
build their new stores as they expand,”
says Roepke. “The scheduling is aggressive, so we must anticipate their needs
and adapt to changes in design, materials,
and concepts.”
Cabela’s is not the typical big-box
store—instead it has unique outdoor
themes and comes with stadium-high
ceilings, natural stone columns, lodgelike wood framing, and abundant skylights. Much of the floor space is devoted
to nature displays, dioramas, aquariums,
and waterfalls—all of which must be
installed.
“Kraus-Anderson has been a reliable
partner for us over the years,” says Mark
Nienhueser, vice president of real estate
and construction. “The quality of their
work is outstanding and they always
meet their deadlines. Probably the
biggest challenge for KA was the Richfield store because of the wet conditions—even with heavy rains and difficult
soil conditions, the store opened on
schedule.”
Cabela’s — Richfield, WI
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Wisconsin Constructor® / Issue 4 • 2010/11
Roundy’s, Madison
Roundy’s Supermarkets, another
long-time Kraus-Anderson client, is one
of the midwest’s oldest and largest grocers and continues to expand throughout
Wisconsin and Illinois. Kraus-Anderson
recently completed a 54,550-square-foot
remodel in Madison, converting a Pick ‘n
Save to a Copps Food Center. The store
remained in operation throughout construction, with much of the work being
performed at night. Construction included mechanical, electrical, and plumbing
work and moving or replacing freezers,
Gundersen Lutheran — La Crosse, WI
coolers, and cases; exterior work included EIFS restoration and building signage.
Kraus-Anderson has also recently
completed two new Roundy’s projects
(Madison and West Bend) for Developer
General Capital Group. A third store is
starting construction in Mount Pleasant,
Wisconsin in April.
“As big and professional as they are,
KA feels like a conservative family-run
company where the owners show up
and work hard every day,” says Michael
Weiss, president of General Capital
Group in Milwaukee, a real-estate development firm that represents Roundy’s.
“All our projects have gone really well.
KA’s business development representative and I talk regularly to share leads
and ideas. Openness and trust evolves
according to time and good performance—we’ve gotten there with the KA
team.”
Gundersen Lutheran, La Crosse
Construction is under way on a new
400,000-square-foot hospital for Gundersen Lutheran Health System in La
Crosse—one of the largest health care
construction projects in southwestern
Wisconsin. Last year Kraus-Anderson
crews finished a three-level, 600-car
parking ramp for the hospital—the first
phase of the four- to eight-year project.
When completed, the energy-efficient
design will help Gundersen Lutheran
achieve its goal of being 100-percent
energy independent by 2014.
“Kraus-Anderson has delivered an
excellent product so far,” says Kari
Houser, Director of Construction and
Project Management for Gundersen
Lutheran Health System. “We selected
them as the non-self-performing construction manager as we looked ahead to
our new hospital bed tower. A project of
that magnitude and complexity—building a new hospital structure and attaching
it to our existing hospital—is not something every contractor can do. We truly
wanted to ensure that local contractors
could compete on the bed tower project,
but the project also had to be delivered on
time and on budget. Our experience with
Kraus-Anderson on the ramp fully supports our expectations for the new bed
tower and we could not be more pleased
with the collaborative effort.”
Future Plans
Kraus-Anderson is always seeking
ways to improve the building processes—
from applying lean manufacturing principles to the jobsite to investing in technology to incorporating sustainable
construction practices.
Last year Kraus-Anderson adjusted its
long-term strategy to focus on the health
care, education, senior housing, and gov-
ernment markets. “We also anticipate
continued opportunities with our longstanding retail clients,” Roepke notes.
“Senior housing will be a rapidly growing
market, especially with baby boomers
getting ready to retire.”
On every project Kraus-Anderson
managers are intent on providing extra
value. “Our employees have a broad
range of unique skills,” says Roepke. “We
want to utilize these skills in the most
creative ways to provide our clients the
highest quality and value for the dollars
available.” Over 80 percent of KrausAnderson’s sales volume comes from
repeat or referral business—powerful testimony to that quality and value.
“We continuously challenge ourselves
to bring the right talent to the early stages
of every project to help clients move forward, going beyond construction if needed to provide assistance with development, financing, or other resources,”
concludes Roepke.“Our mission is to be a
trusted partner and deliver the highestquality services to our clients in every
possible way.” ■
Kraus-Anderson Construction
Company has been a member of the
AGC of Wisconsin since 2002.
Wisconsin Constructor® / Issue 4 • 2010/11
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