Forward Thinking

Chris Avant has an ambitious plan that builds on the foundation of Canyon Construction. Founder and former owner Deva Rajan ran the company for 34 years, then sold it to Avant, a long-term employee, who has run it for six years.

Thirty-seven-year-old Avant worked his way up from apprentice to laborer to carpenter to project coordinator to vice president. Ten years ago, he made a deal with Rajan to purchase the Moraga, Calif.-based company. Rajan stayed on for five years during the transition, and now participates as an adviser.

Avant's early tenure was during a rapid growth period for the company. When he was an apprentice, the firm's revenue was $2 million. Ten years later, when he took over as owner, it was $14 million. The company currently stands at $16 million.

Avant preferred purchasing an existing company to forming a new one. “I was able to work within an established team and grow from that core,” he says. “I also liked the idea of being part of a larger organization because we would have a greater impact on the industry in continuing to promote green (building) and creating a company culture.”

Canyon Construction worked with architects Simpson & Associates and Holey & Associates on this contemporary custom home.

Credit: Indivar Sivanathan

The firm now has 80 employees with 55 in the field and 25 in the office. The main office is in Moraga, but the company also has another office in Oakland. “With residential remodeling, you need a presence in the town where you're working. All our marketing is local,” Avant says. Though both towns are in the same geographic area, he says, they are culturally very different.

The firm's work is 65% remodeling projects, 25% new homes, and 10% commercial jobs, with field crews working on all project types. Remodeling projects range from $100,000 to $5 million, and usually are for baby boomer clients and triggered by an empty nest. The company has a reputation for handling difficult sites and complicated projects. For a two-year remodel of a 4,000-square-foot Swiss-style home, the team set up a woodworking shop on site to more easily match the home's original decks, trellises, shutters, and moldings.

"I am interested in acquiring other smaller companies with a long track record and systemized programs." -- Chris Avant, owner, Canyon Construction

Credit: Max Whittaker / WpN

Two employees sell, bid, and run commercial jobs, which include a garden for an Asian art museum, retail projects, and tenant improvement work for universities. The firm has worked with the University of California at Berkeley for almost 20 years. “We have built a legacy there and have worked on almost every building on campus,” Avant says.

Just as with residential projects, the company prefers more challenging commercial jobs, so it does not bid on large, straightforward projects, but instead relies on referrals from architects.

The firm has a design department that is run as a separate company. Two in-house designers work on smaller remodeling jobs, such as kitchens and additions, but they also facilitate larger projects designed by outside architects. Many outside architects are busy and lack the staff to handle all the detailing, drafting, and shop drawings. For example, if the project needs a tile layout, Canyon Construction's design department will lay it out in a CAD program and send it to the architect for approval. “We have a reputation for handling unusual projects with the appropriate amount of management. You do not want to be so overly managed that you are bureaucratic, but you need to have enough so it does not cost more or take more time. You need to find that balance on every job,” Avant says.

When hiring, Avant looks for both experienced employees and those from a younger generation who are excited about a career in construction. “We're looking for people with shared values and a work ethic. We can train them if needed — in fact, sometimes it is better to train employees our way,” he says.

He attends a job fair at U.C.'s Berkeley campus where he usually finds one good employee each year. Canyon Construction also offers a summer internship. “Sometimes interns stay, sometimes they move on, but they bring us new ideas,” Avant says. He also uses the Craig's List (www.craigslist.com) Web site to promote job openings.

“Whether you have a job opening or not, if the right person comes along, hire them,” Avant advises. He recently hired an employee who had run his own company. “You rarely find people with that much experience. After I hired him, a project came along that was a perfect fit for his skills,” he says.

Avant feels that the key to human resources is retention. A strong benefit package is a good base. He notes that the minimum in today's market is health insurance, a 401(k) retirement plan, and profit sharing. He says employees also like working on unusual designs and projects with well-known architects. “If you don't keep talented people engaged in interesting projects, they will go somewhere else,” he says.

The modern master suite is typical of the high-end projects by Canyon Construction.

Credit: Indivar Sivanathan

Canyon Construction also has a consistent review system, and in-house and outside training. “At the beginning of each year I review the trade show schedules and determine who will go to each one, for the best impact,” he says. However, he notes, the biggest return on investment comes from bringing speakers to his company. “It brings people together and creates new dialogue,” Avant says.

He sometimes asks employees to spend their off-hours in training. For a recent green certification course, the first day was mandatory and paid for by the company. The second day of the certification was voluntary, but all his employees still attended. Sometimes Avant holds training sessions after lunch, with employees being paid until the end of the work day; any after-hours time is voluntary.

The whole-house project, designed by architect Rick Kattenburg. won the 2005 Remodel of the Year award from the city of Moraga.

Credit: Indivar Savanathan

Avant wants moderate growth in volume for the company, with a focus on growing profit margins. His current plan is to grow 10% per year, reaching $30 million by 2013. “It's a constant evolution,” he says. “If you understand business principles and provide a valuable service, you can get an organization to be profitable and grow.” This growth will likely include green design and build consulting work.

Achieving this growth goal will also rely on acquisitions. “I am interested in acquiring other smaller companies with a long track record and systemized programs,” Avant says. Similar to baby boomer clients who are looking to retirement, there are older remodelers who are looking for a succession plan for their companies.

For the past year, Canyon Construction has been renovating an old hotel for use as its new headquarters. It is aiming for platinum LEED (Leadership In Energy and Environmental Design) status — the highest rating in the LEED certification program. The renovation will maintain the historic exterior of the 1914 building, but will update 3,200 square feet of interior space.

This rendering shows the final design of a green renovation that will house Canyon Construction's new headquarters.

Green elements include solar roof tiles, a rainwater capturing system, radiant heating, and an advanced lighting system with motion sensors and dimmers. “People associate green with contemporary design. I want to show people you can build very green in a historic setting,” Avant says.

The renovation has provided a great learning experience for the company's crews. “This building has pushed us to another level,” Avant says. “I would recommend it to anyone, both as a way to build equity and as a way to integrate green building into your company's consciousness.”