Hensel Phelps invests in dot-com

Greeley mega-builder Hensel Phelps Construction Co. bought a $1 million stake in the future of its industry in mid-October when it logged on at e-IDC.com as an investor.

Through its e-IDC.com Internet front, Annapolis, Md.-based International Design and Construction Online Inc. is maneuvering to become a Web-based business-to-business marketplace for general contractors, subcontractors, engineers, suppliers, architects and potential clients.

“We see there are certain changes that are going to be made in how the construction industry operates related to business-to-business Web-based facilities,´ said Hensel Phelps vice president Eric Wilson.

“The expectation is people will actually transmit projects through the Web site,” he said, noting that Hensel Phelps soon will begin using the site to solicit subcontractors and suppliers for its projects. The company plans to test the e-IDC.com waters in the coming months with a project for the Pentagon.

“But we’re not just a consumer of the services,” Wilson said. “We’re hoping it will be a worthwhile investment as well.”

Joseph Boggs, a 30-year architect and veteran of building successful design companies and technology applications, established International Design and Construction Online in October, 1999, and launched the e-IDC.com Web site on June 23.

Michael Reibsamen, e-IDC.com chief operating officer, said Boggs previously worked on projects with Hensel Phelps and approached the international constructor about investing in his company.

“The investment is geared toward the services and needs of Hensel Phelps,” he said. “The nice thing about the Internet (is that) to serve the needs of one very large industry giant, we hopefully will serve the needs of other clients.”

International Design and Construction Online maintains partnerships with several midsized contractors based in the Annapolis area, but the Hensel Phelps investment, Reibsamen said, represents the company’s largest partnership to date.

Using the e-commerce requirements of Hensel Phelps as a guideline for the overall industry’s needs, e-IDC.com will increase its technology, develop new applications and add staff, Reibsamen said. Already the Web site – which will generate revenue through commissions on transactions, onsite advertising fees and subscriptions – includes a database of 25,000 products and 1,600 manufacturers. Products and services available on the site include links to project management software downloads and searchable classified ads.

Reibsamen said the Web site is available to any commercial construction firm.

“In order to do commerce, we need to bring buyers and sellers together, to build in community functionality,” he said. “(The site) offers various types of programs, solutions and offerings that cater to the different groups that make up the construction industry.”

Since its founding in 1937, Hensel Phelps has become one of the largest general contractors in the United States. The company maintains operations in six offices nationwide with approximately 430 employees in Northern Colorado, 1,980 employees nationwide and 1999 revenues of over $1.2 billion. Hensel Phelps ranks 54th on The Northern Colorado Business Report’s list of the region’s fastest-growing private companies and first among the region’s largest privately held companies.

“We certainly use the Internet to communicate with people in the industry and our Web site sometimes includes project specific Web sites,” Wilson said of the current extent of Hensel Phelps’ presence on the Internet. But the depth of services and networking possibilities available online – not only for Hensel Phelps, but for contractors worldwide – could be on the verge of revolution.

“Its an ongoing process as a construction project goes on,” he said, and e-IDC.com could soon help contractors find subcontractors that provide “everything from toilets to elevators to ordering structural scales overseas.”

on Facebook on LinkedIn