Case Studies

Path Construction Company

Building a future in the Midwest

All entrepreneurs consider the risks when embarking on a new business venture. Richard Krause was well aware of the possible consequences when he decided left the position he was in with a successful general contracting company. In 2008 Krause went out on his own and began Path Construction Company. Located in Arlington Heights, Illinois, Path Construction is a building contractor specializing in all aspects of the construction industry.

“We are very diverse, both public and private” says Krause. “We do everything from hotels and hospitals to treatment plants and bridge structures. We’ve also just started a heavy highway division as well.”

Path Construction began as a small company with a large company mentality. Krause has utilized his experience in the industry to create the growth his company has experienced. The business started with Krause and one other employee who was working part time. “We now have 45 full-time professionals,” explains Krause. “We also have another 30 to 40 regular tradesman.”

A growing portfolio

Path Construction recently completed a job for the Illinois Mathematics and Science Academy (IMSA). The academy is a three-year residential public high school located in Aurora, Illinois. IMSA is available to the state’s highest ranking high school students from all area of the state of Illinois.”

Path Construction performed a complete exterior renovation on seven of the schools dormitories. “We had a very tight deadline to complete the job,” says Krause. “We finished $5 million worth of work in two months, just before the kids got back to school.” The project also included the replacement of the heating and cooling equipment for each of the dormitory buildings.”

In 2014 the company completed construction on three new ground-up security buildings at the Cook County Jail in Chicago. This project included substantial upgrades to security systems within the surrounding areas of these new buildings, including new excess points for prisoners and visitors within the complex

Successful Leadership

Krause received a degree in engineering in 1982 and immediately began working for a local construction company. With more than 30 years in the industry, Krause’s entrepreneurial spirit dates back to when he was a child.  “My career really began long before that,” claims Krause. “I actually had my own construction company when I was 13 years old.”

This passion for the industry, along with Krause’s drive to succeed has served as the launching pad for not only his success, but the success of those around him. When Krause decided to build Path Construction from the ground up during one of the worst periods of economic decline in U.S. history, he relied on not only contracting knowledge, but his financial savviness as well.

“I’m frugal and disciplined in watching our costs,” says Krause. “I know how to spend money and be competitive about winning contracts.” Krause witnessed the direct results of these skills prior to founding Path Construction. “With the last company I worked for, I was very successful at finding work for us in new territories.”

Krause is well aware of the importance of relationships in the industry. Throughout his entire career, he has maintained partnerships with many of the sub-contractors with whom he has conducted business with. “I’ve always had great relationships with my strategic partners,” says Krause. When starting Path Construction, not only did I utilize the ones I had worked with in the past, but I’ve met and worked with some new, smaller sub-contractors and we’re enjoying some great relationships.”

Building success

In measuring success for Path Construction, Krause considers numerous factors when gauging key performance indicators. Overall health of the organization is the primary goal and several aspects contribute to that.

“Indicators that I look for when measuring our success is if our growth is strong and steady, and when our reporting functions such as the banks and CPA services that we work with inform us that we’re working at the higher level of all the organizations that they represent,” says Krause. “It’s also always important when customers let us know how satisfied they are with the quality service we provide.

Krause states that where he receives the biggest sense of pride in Path Construction is from the employees. “I love when I see that the people that are helping us grow this company, are also growing personally themselves,” explains Krause. “I also enjoy seeing how much they participate not only in the growth, but also the quality of the organization.

Krause is optimistic about future growth of Path Construction. “I’m really looking forward to the continued development of our management systems,” says Krause. “We’re also looking to expand further into the private sector while continuing our work with public institutions.”

Customers have come to rely on Path Construction to complete each job with quality and integrity. Path Construction Company will continue to serve its clients with a multi-talented team skilled in all disciplines of the industry. 

Published on: September 16, 2015

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