Callahan Construction and Velney Construction Team Up to Meet Twin Challenges
By Pat Callahan
The need for housing in Massachusetts and across the country is immense. As a general contractor and construction manager with a wealth of expertise in building housing of all types (i.e. market-rate, affordable, age-restricted) Callahan sees how critical it is to bring these projects online. However, especially in today’s market, it is extremely challenging.
One of the biggest challenges we see in the industry right now goes beyond simply financing the work at the state level. The 2021 MBTA Communities law as well as the recently passed Affordable Homes Act, are major steps in the right direction, but we see some additional steps needed to truly maximize the impact of public dollars – which is why our company recently took the proactive step to form a strategic partnership with Somerville, -based contractor Velney Construction.
Right now, the construction industry faces tremendous change as generational shifts that are impacting every layer of society also alter how we do business. Many seasoned professionals are aging out of the industry, leaving voids we desperately need to fill to meet the ambitious goals of the housing bills.
Callahan Wins Too
It is essential to build the bench of the next-generation of Massachusetts general contractors to ensure our industry is future-proof. Recently, groups like the SouthCoast Workforce Housing Coalition have been created to address the need to create good-paying jobs and increase housing stock in order to future-proof our workforce, a goal that our company shares with state leaders.
As Callahan continues to grow both geographically and in the scope of the projects we manage, partnering with companies like Velney will enable us to provide more resources to our customers while also ensuring that smaller and historically disadvantaged business have access to the tools necessary to grow professionally.
We see Velney as an ideal partner for pursuing joint venture opportunities on new housing projects and for helping a next-generation company invest in the tools needed to grow and succeed.
Firms like Velney often find it difficult to afford the resources necessary to grow smart and manage risk appropriately. We have found that many startup construction organizations fail due to financial strains on their business, or because they have taken on work without the proper resources to manage it.
Callahan will be helping Velney train its own employees both in practical jobsite skills along with utilizing technology tools such as Building Information Modeling (BIM), Procore and estimating software, along with internal resources like legal, accounting, risk management and quality control.
We believe this partnership will let Velney build a track record for sustainable and manageable growth, with the goal of eventually competing on their own with other larger GCs.
Higher Construction Costs Hurt WMBEs
New building codes, as well as changes to federal policy such as the 2023 overhaul of the Davis-Bacon Act, sharply increased construction costs. Massachusetts’ new Home Energy Rating System (HERS) program also increased costs to build while passing future savings from reduced energy expenses on to the consumer down the road.
While these programs ultimately aim to protect workers and consumers, they also make it increasingly difficult for young companies to enter into an already expensive industry. Simply getting a shovel in the ground doesn’t mean a business is instantly profitable, as the road is long and challenging from signing a contract to being financially stable – and we believe companies like Velney can get there with some strategic support.
For Callahan, this relationship helps us become more diverse, grow our MBE/WBE partner base, provides our customers with more options and gives us the pride of helping others. We also see it as a critical way to help address the state’s housing shortfall by bringing on resources to help us build faster and smarter, all the while training next-generation workers who will someday build these projects on their own long after the current crop of leaders age out of the business. Massachusetts has made great strides to address the housing gap. We at Callahan are excited that this partnership with Velney will not only support ambitious investment in this state and the Northeast but also in a company that is ready to rise to the next level.
This story originally appeared in Banker & Tradesman
(BRIDGEWATER, MA – 8/21/24) Callahan Construction Managers (Callahan), a full-service construction management company headquartered in Bridgewater, Mass., announced today that it has formed a strategic alliance with Velney Construction, a 100 percent veteran, service-disabled veteran- and minority-owned company located in Somerville, MA.
The partnership is part of Callahan’s ongoing diversity and inclusion initiative to equip local minority-, women-, and Section 3-owned trade partners with the tools and resources necessary to compete for contracts in affordable housing and other key construction sectors.
“Persistent challenges for small businesses in the construction industry are the financial restrictions which slow a company’s ability to obtain the resources essential for growth,” said Patrick Callahan, President of Callahan. “Through this initiative, we aim not only to share our management expertise with Velney but also to help Velney expand and grow its financial resources. The partnership will also help Callahan expand and strengthen our network of M/W/D/VBE companies, ultimately creating more opportunities for all involved.”
Josue Velney, Owner and CEO of Velney, stated, “We are thrilled to collaborate with Callahan and leverage its vast expertise in housing and other sectors of construction. This partnership will allow us to better manage different aspects of a project with the help of Callahan’s oversight and expertise. We are excited to be a part of their project teams that will provide valuable insight into how to best build and manage a project.”
Velney Construction, a VBE, SDVOSB & MBE-certified construction company based in Somerville, MA, manages residential and Commercial projects across Greater Boston. Josue Velney holds a degree in Building Construction Management from Wentworth Institute of Technology, where he graduated Cum Laude Honors and Tau Alpha Pi National Honor Society. Josue was selected Boston Business Journal’s 40 under 40 in 2022 and Wentworth Institute of Technology’s Alumni Entrepreneurship Award in 2023. For more information, visit: https://www.velneyconstruction.com/.
Callahan Construction Managers is a full-service construction management company based in Bridgewater, Mass., with a regional office in White Plains, NY. Callahan has served the New England and Northeast regions for over 70 years. As one of the region’s largest open-shop construction firms, Callahan provides a wide range of preconstruction and construction management services to local, regional, and national clients. Callahan’s markets include multi- family residential, senior housing, affordable housing, hospitality, life sciences, corporate office, educational, retail, and tenant fit-up. Callahan was voted a 2023 “Top Place to Work” by the Boston Globe and 2024 “Best Place to Work” by the Boston Business Journal. Visit: www.callahan-inc.com for more information.
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