By KELLY LOUISEIZE
Like it or not, Bert Nielsen, owner of Pro Pipe Construction is poised to grow his company to meet the construction demand.
“I let everyone know that with or without their help we’re going for it,” he says.
Working for North America Construction Group, one of the largest water treatment builders in the world, whetted Nielsen’s thirst for his own water treatment facilities building and retrofitting operation.
Three years ago, his dream began at his home with a telephone wire extended 100 feet to the garage. In rain or snow the cable would short out and in the middle of summer the mosquitoes rendered him nearly anemic.
It was a slow start since banking institutions did not want to lend him any money. The only funding agency willing to give him a hand was the Timmins Venture Centre.
It did not take him long after the loan was provided that business started to heat up. After one year of full operation. Nielsen brought in $2 million in contract sales. Not bad for a starter. In fact, he grew to 25 employees and had to hunt for new digs.
He found a place on Laforest Road five kilometers north of Timmins. It is a 5,000 square feet facility with five extra acres of land for further development. He will need it. This year Nielsen intends on becoming a bondable company, which will allow him to vie for municipal contracts.
“No more dictation from banks no more dictation from contractors or from bonding agents,” he says.
The main reason for applying for bonding status from insurance company is to obtain more control over projects. For the first year Nielsen was comfortable with making himself a name, and allowing other contractors to call for a tendering job, which on average is worth a half a million dollars.
But now “I’m going after $20 or $30 million for my portion,” he says. “That is why I say this year we are moving.”
He knows the larger general contractors like Maple Engineering and Construction Ltd., North American Construction Group and H.I.R.A. Ltd. need him, so the company must be worth at least $5 million in bondable insurance, he says.
“There is nobody that can do it north of Toronto, it’s just me.”
The problem with being small and new is that the company can be worth thousands of dollars, but when a portion of the project funds is with held until the completion date it affects the operating budget.
“We may have a million in receivables but you don’t have fifty cents to operate and that is the problem with being small.”
With a bondable company there is no risk to the company he says.
Currently, Nielsen is going after two subcontracting projects worth approximately $45 million each in North Bay. His portion may be one-third or two thirds depending on the drawings.
Pro Pipe works on the site after the shell of a facility nears completion. Inside welders, electricians, pipe fitters, millwrighters develop what will in the future be a water treatment facility or sewage treatment plant.
Already Pro Pipe has concluded contracts in Mattice, Kapuskasing, Pembroke and Sault Ste. Marie while commissioning jobs in Niagara Falls, and Terrace Bay and bidding on North Bay and Hamilton projects.
“Once I’m bondable, well, look out.”
