Pontikes recalls how, in spring 2008, few people could have predicted that the construction market was poised for its worst downturn since the early 1980s. "I've been through a few cycles and just sensed that this downturn could well be a big one," he says. "But many people in the business hadn't experienced it."
Knowing that mid-sized contractors like S&P were at the greatest risk because they lacked the resources of large firms and the easy adaptability of small ones, Pontikes instructed his senior staff to pursue and secure as many new public-sector projects as they could.
"We went after everything we felt qualified to do," he says. "The bottom soon fell out, but we were loaded with good projects that reduced our vulnerability and allowed us to move ahead."
Characterizing the current recovery as "anemic," Pontikes nevertheless made sure his firm was ready for the inevitable pullback in public-sector work. S&P began pursuing private-sector opportunities, landing assignments from retail giant WalMart that included new 185,000-sq-ft and 159,000-sq-ft Supercenters in Helotes, Texas, and in Dallas; a 139,000-sq-ft Sam's Club in Corpus Christi, Texas; and Neighborhood Markets in Covington, La., and Virginia Beach, Va.
And with the region's energy companies stepping up efforts to extract natural gas from shale plays across the U.S., S&P launched Rollcon LLC, a subsidiary specializing in roller-compacted concrete paving.
Technology advancements and market cycles aren't the only adaptations that have kept S&P successful. The nature of the client-contractor relationship has also become far more complex.
Pontikes admits that things will never be as simple as the handshake that secured the company's first project, a new facility for a local air-conditioning manufacturer. For example, increased competition among contractors has made construction a buyers' market.
"Owners are going for lowest bids because they can," he says. "In a global economy, price matters."
Contractors with public-sector aspirations also have had to become adept at performing under various project delivery structures. Pontikes sees further growth of the "master builder" concept, with contractors, A/Es and owners working in a collaborative environment.
Toward Real Collaboration