A handoff, rather than selloff, in future for T.W. Construction

When Leo Tuccori decided to retire, he could have taken the traditional route sold the company assets, said a regretful goodbye and driven off to the nearest golf course.

But Tuccori did it differently.

The founder of T.W.

Construction Company, Inc., a Reno company specializing in infrastructure which opened its doors in 1979, is handing the business off to three loyal employees.

"All of us have worked for about 15 years for Leo," says Fred Reeder, the president of the new firm, Reno-Tahoe Construction, Inc., that is forming in the wake of T.W.

Construction.

His two partners are Lenny Fagg, vice president, and Chris Ravencroft, secretary-treasurer.All hold a one-third interest in the company.

A natural division of labor takes advantage of Reeder as the engineer in the group, Ravencroft as the construction management specialist, and Fagg as field superintendent.

The three partners are two years away from full independence in a five-year handoff program.

It's unusual for an owner to do what Tuccori is doing, says Reeder.

He's handing off the business in increments with final handoff at the end of the five years.

The first year, the three new owners ran the business and took in 20 percent of the profits while Tuccori held 80 percent.

Essentially, they run Reno-Tahoe Construction side-by-side with T.W.

Construction, taking on more and more responsibility as the years go by.

They're at about a 60-40 split now.

By the end, Reno- Tahoe Construction will have enough assets, will have reached contract milestones, and will go its own way and separate from T.W.

Construction entirely.

"It's sweat equity," says Reeder.And a great opportunity.

In addition to coming into full independence gradually, the program allows the new company to hold onto its local contractor preferences on public jobs.

(A construction firm must be a local business for five years before earning the preference.) So, every public job that Reno-Tahoe Construction bids at this point, says Reeder, is a joint venture with T.W.

Construction, thus allowing it to hold onto that preference.

T.W.

Construction has specialized in groundwork, adds Reeder.

It did the sitework for the Silver Legacy, the infrastructure for Sparks Marina Park.

It does a great deal of the sewer rehab work for Reno's and Sparks' older districts.

And it does paving work.

Reno-Tahoe Construction will be carrying on in that same market segment.

The company employs about 100, says Reeder, the same number of workers as before the beginning of the handoff.