Matt Plaskoff Construction Year Founded: 1988 Core Business: Building custom homes and remodeling older ones Revenues in 1998: $4 million Revenues in 1999 (projected): $9 million Employees in 1998: 15 Employees in 1999: 27 Top Executive: Matt Plaskoff Goal: To expand remodeling and business construction work Driving Force: A strong economy that’s sparking new construction and remodeling of aging housing stock By JENNIFER NETHERBY Staff Reporter The phones are ringing off the hook these days at Matt Plaskoff’s office in Sherman Oaks. With demand booming for custom homes and major remodeling work, work at Matt Plaskoff Construction Inc. has doubled in past year. His projects have stretched from Santa Barbara to Hermosa Beach and included everything from remodeled kitchens that start at $10,000 to custom homes that run into the millions of dollars for 20,000 square feet or more. “Business has been good,” Plaskoff said. “Something like half of the homes in California are over 50 years old. You’re talking a lot of homes that need a lot of work.” This year, Plaskoff expects revenues to hit $9 million a figure that’s more than double the total of $4 million for 1998. Where is all that work coming from? Industry officials say the continuing strength of the economy is allowing more people to build new homes or fix up old ones. “As real estate values increase, people are willing to spend money on remodeling,” said Gregg Brown, president of the Building Industry Association of Southern California. “People spend money if it’s a return on their investment.” In addition, an increasing number of people who sell homes can now afford to custom-build new ones, Brown said. Still small by construction industry standards, Plaskoff’s firm does 20 to 40 projects a year. Some of his custom homes have been featured on the pages of In Style magazine and Architectural Digest, among other publications. Plaskoff is one of an increasing number of small construction firms in the Valley. During the recession of the early 1990s, a number of contractors left the area to search for work in Nevada, Arizona and other states. But many are returning to Southern California now that real estate is on the rebound. While work is easy to find, hiring laborers can be a different story. “There’s plenty of work for everyone,” Brown said. “If anything, there’s a labor shortage.” Plaskoff deals with that problem by confining his staff to a few project managers while hiring subcontractors to do plumbing, electrical and other work that requires labor crews. He can afford the added cost of contracting out the work because of the high-end projects he does. Five of his project managers have been with him since the early 1990s. To keep them, he offers bonuses linked to the cost of a project and performance feedback from customers and workers. Customers are given pager numbers to contact the project manager with requests and questions. That frees up Plaskoff to line up future work. He also subcontracts with architects to design the homes and then works closely with that person to manage costs. Plaskoff started the company in 1988 after he was asked to build a 6,000-square-foot home. He was working as a general contractor at the time, but decided to quit and take on his first major solo project. Business took off after that first house. “People started calling because it was such an awesome home,” he said. He was unlucky enough to start his business just before the recession and real estate slump of the early 1990s. In the beginning, he was building about five homes a year, mainly for upper-income clients. That low volume and high-end niche helped him weather the economic downturn. “We were small enough that we didn’t require a huge volume of work to survive,” Plaskoff recalled. “And we cater to high-income people who really weren’t affected by the recession.” Nearly 90 percent of his projects now come via referrals from previous clients. Up to this point, Plaskoff has focused exclusively on residential construction, but that is changing as his firm grows. The company’s latest project is a pool and waterfall at the Los Angeles Zoo for the new black bear exhibit. It was the first commercial job for Plaskoff, who said more are on the way. He got the job after remodeling the home of a zoo trustee who was impressed with his work. “Our motto is we build habitats for all species,” Plaskoff joked.