Alberici's long construction history is built on strong relationships.
“In the construction business, it’s important to do what you say you are going to do. If we make a commitment, we follow through. We have had the same experience with Commerce. That’s what makes our relationship strong.”
Richard Jaggers, Chief Financial Officer
Alberici Group
Timely execution and rock-solid reliability are important to Alberici, one of the nation’s oldest and largest construction companies. Now in its 102nd year, the third-generation, employee-owned firm has completed large-scale industrial and commercial projects throughout North America.
Financial strength also matters. Since its 2013 acquisition of Tulsa-based Flintco, another large employee-owned contractor, Alberici has further expanded its geographic footprint and grown revenue to more than $2 billion a year.
“We run a business where safety, diligence and attention to detail are critical,” says Richard Jaggers, Alberici’s chief financial officer. “But we also try to maintain a sense of humility.
In Commerce Bank, Alberici feels like they found a bank with similar values. Commerce has been one of Alberici’s key financial partners since 2003 and serves as one of five partner banks in the company’s credit facility.
“Our credit facility is there as a safety net,” explains Jim Bredenkoetter, Alberici’s controller. “Even though our balance sheet is strong, we like the fact that it is there if we need it.”
On a day-to-day basis, Alberici relies on Commerce for a variety of other banking needs, ranging from treasury services link opens to a Commerce page. to investment management link opens to a Commerce page.. Most recently, the contractor began using Commerce’s e-payables program link opens to a Commerce page. that allows it to pay suppliers and vendors electronically using single-use credit cards, rather than checks.
“The fraud prevention and other benefits of a single-use card really caught our attention,” notes Bredenkoetter. Even so, he admits it took a bit to convince him and others that the program would be welcomed by the contractor’s suppliers and vendors. “Even though our vendors would get paid sooner with this approach, we knew it wouldn’t necessarily work with everyone’s business model,” he says. Not all vendors, for example, are set up to accept credit cards.
“Our bankers helped us do our due diligence to see if an e-payables approach was a good fit for us,” says Jaggers. “They helped us scope out the program’s size and identify prospective participants. The closer we looked, the more sense it made to move forward.”
Over the initial six-week implementation period, Commerce helped Alberici enroll approximately 250 of its vendors. “We’re off to a good start and enrollment is high,” says Bredenkoetter. “Our bankers were outstanding throughout the process. We’ve heard only positive things from those who have enrolled.”
“As with our construction partners, we approach our banking relationships on a long-term basis,” notes Jaggers. In fact, Alberici reduced the number of banks it works with in recent years to focus on strengthening those relationships.
“Commerce is responsive to our needs,” adds Bredenkoetter. “So much of what we do is time-sensitive. Commerce knows that and works to help us meet our commitments. There is good alignment between our business and theirs.”
