COMPANY PROFILE :: Marnevic Construction Ltd.TROY DECICCIO, JOURNEYMAN MECHANIC;A CAT 988B (RIGHT)“In the early years, therewere always rumoursthat Fox Creek wouldbe a ghost town by2000,” says MarnevicConstruction Ltd.’s NeilDeCiccio.Marnevic succeeds by concentrating onthe local market and avoiding biddingwars with larger companies. “Most contractors,they’re staying in hotel roomsand traveling across the province,” saysTodd DeCiccio, who takes care of theoperations and safety side of the business.“We pretty well stay within an 80-kilometreradius of Fox Creek, so our guys arehome every night.”Todd represents the third generation ofthe DeCiccio family to take an interest inthe company. His brother, Troy, is focusingon mechanical engineering. Familyand community are important themesat Marnevic. “Our jobs are such that ourworkers can go home at night and be withtheir families,” says Martha, the matriarchof the clan. “We’re having fun and weenjoy Fox Creek,” she adds. “We participatein helping the community and we’revery proud of the employees we have.”That spirit is reflected in the floats theDeCiccios have built in the Marnevicshop. Between 1989 and 1991, the companywon three awards at the KlondikeDays parade in Edmonton.There have been a lot of changes in the37 years since Bill launched the business.Instead of one employee, there are now 50full-timers on the payroll, with additionaltemporary jobs during the busy season.Marnevic maintains more than 35 piecesof machinery and 10 trucks. In 1975, thecompany purchased a rock crusher toprovide gravel surfacing for all-weatherroads, the start of what the DeCiccios liketo call their “Flintstone era.”What’s next for the company? “Thefuture depends on these grandsons ofmine, whether they want to expand andmove on, or stay and be like the rest us,”Bill muses. “As far as I’m concerned, wemake a damn fine living here so whyshould we move on.” Todd doesn’t thinkvery much of the idea of moving on,either. “I don’t see any reason why I wouldleave. I grew up here and I enjoy the smalltown. I went to university in the city, andI’m definitely not a city person. I wouldhave a hard time working in a bank orsomething where you are doing the samething everyday.”Fox Creek, population 2,500, haschanged a lot since Bill had his first lookat the place. There are schools and playgrounds,hiking trails and plans to build askateboarding park for teenagers. Nearbylakes offer top-notch fishing and boating.In the winter, the DeCiccios spend a lot oftheir recreational time at the curling rink,where Todd and Troy provide the sweepingpower for a championship foursomeskipped by Neil.The community and the companygrew up together. It is a relationship that islikely to continue for a very long time.PHOTOGRAPHY BY DUSTIN DELFS40 TRACKS & TREADS • Summer 2005 www.finning.ca
Bill’s BusinessBACKHOE BILL SEIZES AN OPPORTUNITY. GORD COPE EXPLAINS HOW BILLLANDS A NEW PIECE OF EQUIPMENT AND HIRES HIS FIRST EMPLOYEEILLUSTRATION BY SYLVIE BOURBONNIÈREOpportunityKnocksIt was a beautiful spring Saturday incentral Alberta. Bill Bako had just finisheddigging a basement with his Cat 320CLexcavator and was taking a coffee breakin his F 150. All around the subdivision,the air was filled with the whine of electricsaws and the sharp crack of hydraulic nailguns as construction crewsassembled homes.Bill glanced up as JackArmstrong, the developer,pulled up in his 4 x 4 and gotout. Bill pointed to the rollof blueprints under Jack’sarm. “How are the plans forPhase III going?” Jack noddedtoward a distant cloudof dust rising from the landscape.“The scrapers are justfinishing up with the topsoil.We need to get the crews in tostart the roads.” Bill finishedhis coffee. “Great. I shouldbe done here in time to startbasements once the roads arepoured.”Jack shook his head. “Youmight have to wait. My dozercrew took a job in Fort Mc-Murray. I don’t have anyoneto cut the roadbeds. You knowanybody with a dozer? I can promise eightmonths solid work.”Bill thought for a moment. “Sorry, no.But if I hear of someone, I’ll let you know.”That evening, Bill took advantage of thenice weather, having his buddy Wayneover for a barbecue. He told his accountantabout Jack’s problem. “My worry is that I’llbe idle for a couple of months unless hefinds a dozer soon.”Wayne came up with an idea. “If Jackis guaranteeing eight months work, youmight want to think about getting a D7yourself.” Bill laughed. “Great plan, Einstein.How am I supposed to operate twomachines at once?”“My neighbor’s son, Ricky, just got hiscertificate for dozers and he’s looking forwork.” A smile broke out on Bill’s face.“Give me his number.”Monday morning, Bill went to see Paul,his <strong>Finning</strong> customer account manager. “Anew D7 would cost $505,000,” Paul said.“A rent-to-purchase contract with CatFinancial requires at least 20% equity toflip. You can build that up with a sevenmonth rental, which is $17,600 per month,plus carrying interest. At the end of sevenmonths, you have $123,200, which is overthe 20% threshold. After that, we can putyou on a 48-month purchase agreement at$9,800 per month.”“What are my monthly expenses?”asked Bill. Paul chewed his pencil inthought. “The ownership payments are$17,600 per month. Fuel is $100 per operatingday, maintenance is going to run you$500, taxes $1,000, salary for your operator,$5,000, insurance $600 and miscellaneousstuff $500.”That afternoon, Bill and his wife Brendalooked at cash flow for the dozer. “It’sgoing to run $26,000 a month until I flipthe contract,” said Bill. “At $1,300 per daygoing rate, I’d need at least20 days to break even.” Heshook his head. “Pretty tight.”“You’ve been doing quitewell this last year with theexcavator,” said Brenda.“We’ve got a nest egg of over$80,000 in cash. You couldput $50,000 on the D7 andreach the 20% thresholdthree months early.” Billsmiled. “You’re right. Afterthat, monthly costs drop byalmost $8,000, and if we geta quiet month, we can usethe interest only paymentoption.”The next day, Bill went tosee Jack with his plan. “Bill,you’re a lifesaver,” said thedeveloper. “You can startimmediately.” Bill closedthe deal with <strong>Finning</strong> andRicky showed up at PhaseIII to crew the new dozer. “If you ever needmore guys, I got a whole gang of pals dyingto work local,” said Ricky. Bill stared outat the subdivision rising around him, andthen slapped Rick on the back. “I may justhold you to your word on that!”Next Column: Bill starts to expand.www.finning.ca Summer 2005 • TRACKS & TREADS 41