Saint Luke's Health System

Kelly Construction Group expands reach, builds new headquarters

The Great Recession may have dried up projects and forced many general contractors out of business, but it also created an opportunity for Scott Kelly, Jason Betts and Travis Lourens. The trio worked together before the downturn and were determined to leverage their respective expertise and positive relationships into a new, diverse construction company.

“Things started slowing down and the economy slowed to the point that you had to recreate your business a bit and make sure you were staying in relationship with your clients,” said Scott Kelly, president of Kelly Construction Group, Inc. “So we started talking about how we could take our existing customer base, maintain those relationships and work through a difficult time with the expectation it was going to pick back up.”

The former colleagues launched Kelly Construction Group in 2011, blending Scott’s healthcare expertise with Travis’ municipal and government experience and Jason’s book of business that included developers, retailers and hospitality groups. That decision has paid off, with 2 million square feet currently under construction and the company on target to reach its most recent five-year master plan goals in half the time.

“Establishing and maintaining and nurturing relationships, that’s the key. We’re not going to be everything to everyone, but our company is the right size for a lot of projects—not too small but not too big,” Lourens said. “We are schedule driven and we expect people who work for us to be part of our team and be committed to the same goals.”

Kelly Construction has landed projects for top companies such as Cerner, KCP&L, Merck and UMB, as well as just about every metro-area hospital group including Saint Luke’s Health System, KU Medical Center, Shawnee Mission Medical Center, Children’s Mercy Hospital, and HCA.

In the past two years, Kelly Construction has almost doubled its headcount to 36, prompting it to build a new 20,000-square foot corporate office in Grandview’s SouthPointe Business Park. Recent projects include the conversion of 650,000 square feet of office space for Cerner in South Kansas City, more than 250,000-square feet of tenant improvements for Lee’s Summit’s Summit Technology Campus, and a new parking garage for Shawnee Mission Medical Center, as well as the upscale The Monarch Bar on the Country Club Plaza.

“The Monarch was the first notable project for this type of venue in many years that wasn’t a chain. It’s more of a boutique, standalone space with high-end finishes,” Betts said. “The architect (David Manica) had a vision and he felt we understood that vision.”

Maintaining client relationships has been key to Kelly’s success. With the construction market sizzling, the company remembers the lessons of the past and is focused on smart, controlled growth.

“One of the biggest things we talk about is making sure we meet or exceed expectations on any project. That’s our focus,” Kelly said. “We don’t aspire to be the biggest firm. We want to be known for doing what we say we’re going to do and where we can still feel like one of the three of us has given personal attention to every project we build.”

Above: Kelly Construction Group principals include Travis Lourens, Jason Betts and Scott Kelly. 

Healthcare Panelists: Disruptors include tech, politics and consumer-centric market

Several disruptive trends could provide headwinds to the typically stable healthcare development market over the next two years, including insurance industry uncertainty, shifting political power, ongoing consumer demand for mobile connectivity, and a move to patient-centric drivers in service delivery.

Panelists offered insight into those trends and more at MetroWire Media’s 2018 Healthcare Summit on June 26 at Blue Hills Country Club. Moderated by Dan LacyMcCownGordon Construction vice president of operations, here’s a snapshot of comments:

“The landscape for healthcare in general is the most dynamic it has ever been in KC. If you look from Holmes Road along I-435 to Metcalf Avenue, you’ve had 450,000 square feet of new construction occur. So that corridor and that visibility takes on a rank-and-file in commercial real estate that we have never seen before-- to the delight of investors, to the delight of institutional owners and to the delight of real estate developers.” -Suzanne Dimmel, Senior Vice President, Cushman & Wakefield

“Getting patient care close to home is obviously a big factor, and you also have the search for getting market share, so bringing patients back to the 'mothership' hospitals-- whether it’s tertiary care or regional hospitals-- you see providers really trying to gather that market share.”    -Mitch Hoefer, Founding Principal, Hoefer Wysocki

“We are building critical care clinics that are non-traditional in a sense because they are owned by the insurance companies themselves. They are eliminating the middle man to keep costs down, and we are seeing this all over the country.” -Kevin Rogers, CEO, United Excel

“I think you will see growth in outpatient recovery and sending people home with medical equipment that is connected back to the ‘mothership,’ so patients don’t have to recover for the entire time in the hospital. That could actually reduce the numbers of beds.” -Rick Embers, Principal, Pulse Design Group

“We are looking at flexibility in how we design wireless networks because everyone wants to get on the network with their iPad or phone while sitting there and waiting, but that has to be separate and secured different than the patient network. There’s a huge push there as well as a push to get equipment connected from wireless spaces.” -Jeremy Bechtold, Vice President- Facilities, Construction & Real Estate, Saint Luke’s Health System

“When you’re talking about qualifications and procurement from a design-build standpoint, the process gets a lot more streamlined. The goal of design-build is that we’re all looking for better outcomes, so the goal is to provide that in collaborative manner with teams so they can get engaged with the users.” -Matt Miller, Project Executive, Turner Construction

“Tight construction timelines and speed-to-market pressure means contractors need to custom order product with plenty of lead time… as far as disrupters (to the industry), I think it’s going to be the consumer experience of health care, the demand for convenience and the demand for value.” -Meghan Dudek, Principal, Benson Method

Check out the Event Slideshow