From Pea Gravel Spreader to President and CEO
Path Construction’s team hones skillsthrough a lifetime of learning
Path Construction President and CEO Ric Krause immersed himself in the construction trades beginning in the summer when he was just 9 years old. He visited his father, a carpenter, on jobs in residential subdivisions. One day, the concrete company on-site put him to work shoveling pea gravel and stripping forms. He was a quick study, and by the next summer, he was bending conduit and pulling wire for an electrical contractor.
“I began watching, step by step, how things got done,” Krause says. “When you learn at such a young age, it becomes second nature.”
The following two summers he worked for a carpentry contractor and then a plumbing company, but Krause says his career really began at the age of 13 when his parents’ friend asked him to finish his basement. Krause quickly became well known in the neighborhood for his quality of work.
Krause’s childhood job culminated in the building of Path Construction (Path), a general contracting firm with offices in Arlington Heights and Champaign, Illinois; Scottsdale, Arizona; and Charlotte, North Carolina. Krause describes Path as “a midsize company with the sophistication of a large company,” boasting a diverse client portfolio that includes health care facilities, senior housing, multifamily housing, retail spaces, self-storage centers, hotels and sewage treatment plants.
“I am a huge believer in diversity,” he says. “Whether it’s learning every trade or getting involved in any type of project.”
Just Keep Learning
After high school, Krause attended the University of Illinois to pursue a degree in construction management, but he found little value in that endeavor given his already-extensive construction background. Instead, he earned his degree in civil engineering, with a focus on structures and soils engineering, in order to add that aspect of the development process to his repertoire. During his time at the university, Krause also assisted with developing new courses for graduate engineers.
“I just wanted to keep learning,” he says. “And I hire people who want to learn, do well and serve customers. That’s what we’re about.”
After graduation, Krause went to work for Walsh Construction (Walsh), a diverse firm where his career progressed at a rapid pace. Just one year out of college, he estimated, bid and managed one of the company’s largest projects. Shortly thereafter he was tasked with leading the building division and was instrumental in the opening of the company’s Washington, D.C., office. During his tenure with Walsh, he helped the company grow from $30 million to $3.5 billion in annual sales.
Another Path
While Krause achieved great success at Walsh, he wanted to go out on his own, building on what he started in his neighborhood as a boy. In 2008, he left Walsh to open the original Path Construction office in the Chicago suburb of Arlington Heights, joined by just one part-time employee. Three additional offices followed, with Path Construction Southwest opening in Scottsdale in 2016.
Today, Path employs 90 professionals and 30 tradesmen companywide, averaging about 30 open projects valued at approximately $100 million. The Path team has completed jobs in more than a dozen states across the country. “We have setbacks just like anyone else, but we just keep solving and moving forward,” Krause says.
Path has a diverse project portfolio in Arizona, such as the San Tan Justice Court, a single-story facility with two courtrooms, holding facilities, jury areas, offices and a lobby. Other public facilities include the Pima-Dynamite Trailhead Improvement Project, Mesa Fire Department Station 209 and the Scottsdale Police and Fire Headquarters. Private projects have included construction of the Scottsdale Cosmetic Health Institute, a WoodSpring Suites hotel in Mesa and a number of self-storage facilities throughout the state.
A Leader in Design
Path’s design capabilities, creativity and attention to detail are qualities that Krause says allow his team to deliver a better value to customers. “Construction always presents challenges and you have to figure out how to overcome them. We use creativity every single day and always think outside of the box.”
The team provides design services and uses building information modeling (BIM) to transform drawings and blueprints into 3D models to help clients visualize the space, as well as to provide accurate pricing.
“Many firms have in-house design capabilities with preconstruction services,” Krause says. “But our clients have let us know that our approach provides the right information needed at critical stages of the decision-making process, giving them greater value.”
Paul E. Peterson, Village Administrator at Village of South Chicago Heights, says, “Path effectively anticipates problems and makes necessary adjustments to resolve issues. They also take great pride in their work and are willing to exceed goals to ensure the project team is satisfied with the results.”
Path’s BIM approach also helps subcontractors coordinate the placement of piping and other infrastructure. Krause says, “Sometimes this part is hardest, particularly in buildings such as hospitals and labs. Having these drawings in a 3D system lets contractors know if they’re about to put ductwork where the plumbing is going to be before the physical condition arises.”
Krause cites this attention to detail as an edge over competitors. He says, “I tell my staff to take the drawings into a room and build that project like they’ll do every piece of it themselves. That way we know the job so well that we can sort out challenges early on.”
Scott Miller, Vice President, Director of Development - Western Region for Retail Properties of America, Inc., says, “They were excellent at identifying shortfalls in the plans in coordinating the architectural, MEP (mechanical, electrical and plumbing) and construction solutions. They provided ownership with excellent reporting and presented options for key decisions in a timely manner.”
Many of Path’s projects have been certified by the U.S. Green Building Council’s LEED program, including two projects that were certified Platinum, the highest level of certification.
One of those projects was construction of the four-story, 42,000-square-foot Engineering and Computer Science Building at the College of Lake County with an additional 25,000 square feet of interior renovations to the existing space. Green components include photovoltaic solar panels, green roofs of planted vegetation, geothermal heating and cooling systems, energy-efficient fume hoods in the chemistry labs, LED lighting, daylight harvesting and rainwater retention.
Rolling Knolls Event Pavilion, a recreational facility in Elgin, Illinois, is also certified Platinum through the LEED program. The project scope included renovation of the former clubhouse (which now serves as a welcome center and lodge building) and construction of a pavilion for event and meeting activities. Renovations also involved improvements to the area’s walking trails and creation of a nature play area.
Leading by Example
Aside from its commitment to quality work and superior design input, Krause believes his background is what truly sets his company apart. The talent and experience he began accumulating from a young age led him to cultivate a similar sense of drive and curiosity throughout the team.
He says, “A company has the personality of its leader. Path is special in part because of my background, in addition to our great management staff that fulfills my shortcomings. It is that management support that fosters the growth we are seeing and helped build a culture where people have the same strong work ethic and desire to learn. Our employees are focused, driven and want to grow along with the company. At the end of the day, that’s what allows us to do a good job and treat customers well.”