November 28, 2007

Paul Cocker, current chairman and CEO of McKay-Cocker.

Niche Marketing

Extended working relationships benefit McKay-Cocker longevity

PETER KENTER

When Hugh McKay and Herb Cocker formed McKay-Cocker Construction company in London, Ontario 62 years ago, it was based on the simple premise that they enjoyed working together. That’s the same concept that energizes Herb’s son, Paul Cocker, current chairman and CEO.

“I love to interact with people,” says Cocker. “I’m excited to see the enthusiasm our staff has for the whole construction process. The owners know they can contact me directly if anything comes up.”

The company thrives on extended relationships with clients, sub-contractors and partners. At least 70 per cent of its work is repeat business. As one of the largest privately-owned construction companies in the province, McKay-Cocker moves nimbly in the market. One of the cornerstones of the company’s success is an understanding of the niche it holds in the Ontario marketplace, says Cocker.

The company concentrates on a geographic market extending from Kingston to Sarnia. A second office in Mississauga helps to anchor contracts closer to Toronto. The success of the strategy is reflected in the scope of its projects, including the Woodstock Toyota plant, and the Ontario Power Generation Nuclear Support Office project in Pickering, for which the company was awarded the Canadian Design-Build Institute’s Award of Excellence.

McKay-Cocker received the Canadian Design-Build Institute’s ‘Award of Excellence’ for the OPG Nuclear Support Building project in Pickering, Ontario.

“There’s a certain size of project that our clients know we can handle well and that’s our focus,” says Cocker. “It’s easy to take on too much work, but you can’t be working on a $20-million project you’ve negotiated with a client and then get distracted by another one the size of the SkyDome.”

An open communication strategy helps clients to understand where the company is investing its resources at any given time. While working on the Toyota project, the company sent out letters explaining that its design-build and special projects divisions weren’t impacted by the large construction contract.

“We received a lot of feedback from clients telling us that receiving that letter made a difference in their business plans,” says Cocker.

Existing clients are also kept informed about project scheduling with a one-page colour-coded monthly report providing a snapshot of the progress of each phase of construction.

Cocker says the company is excited about getting its teeth into Public Private Partnerships and Ontario’s Alternative Financing and Procurement (AFP) contracts. “We’ve been getting involved a little later than some other companies with Infrastructure Ontario AFP projects because some of them were too large to tackle alone,” he says. “After our success working with Walbridge Aldinger on the Toyota plant, we’re looking forward to being more involved with joint AFP proposals.”

Three-quarters of the company’s contracts are currently negotiated under a total management approach strategy as opposed to lump sum tendering. “These processes assemble a team early in the process, bringing owners, designers, consultants, contractors and sub-trades together at the same table,” he says. “There isn’t the adversarial position that can be created with the lump sum tender because the risk is shared in a way that everyone anticipates. There’s no dumping a problem onto sub-trades who are least able to defend themselves if something goes wrong.”

McKay-Cocker faces the same challenges as other Canadian construction industry players: A rapidly-rising Canadian dollar and the increasing complexity of alternative project delivery among them. The market is also shifting to include more foreign clients, some with unique expectations who want to build in Ontario.

But Cocker isn’t sweating it.

“It’s easy to be consumed with details and failing to see the big picture,” says the guy who still sometimes wears company colours — green shirt, black suit — to the office. “We’re enthusiastic, work to our realistic capacity, and don’t spend a lot of time stewing about where our next project is coming from.”

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