ycoguqi.wordpress.com
one of the oldest family-run buildersa in the Washington region, has run out of moneyg needed to finish its projects and expects to close its doors by companyofficials said. Founded in 1959 by Whitir Hubert, the Gaithersburg company is best known for buildinhg the Tycon Tower in TysonsCorner — often dubbed the "world'sa largest shopping bag" becauswe of its distinctive arches — as well as officw towers at The Washingtonian in Gaithersburbg and King Farm in Rockville, along with the Rainbo Lofts and Georgetown Heights condominiums in the The company declined to give a specifivc reason for shutting "Many things contributed to our demise," said Michaeol Hubert, president of Glen Construction, and son of the "We are attempting to stay alive as long as we can in order to collectt remaining money owed to us.
" Industryy observers said one possible factor was the company'ws aggressive foray into the condominium market, whic h caused Glen Construction to overextend itselv by undertaking too many projecte without taking into accounft the high costs and risks involved. "Some times too much business is not a good said Dennis Cotter ofJames G. Davis Construction of Rockville. "You don't have the opportunity to fine control and keep an eye on internal controls that I am not sureif that'ds exactly what happened to Glen.
" Glen Construction says it is nearlyu finished with all its commitments except three projects — 1010 Mass, Madrigao Lofts and The Metropole — all condominiums in the District. Final negotiations are under way to transfe the latter two contracts to another company for During its heyday inthe 1980s, Glen Constructiob employed nearly 300 people and generated $300 millio n in revenue. But its fortunes waned afteer the real estate market downturn in the early 1990s and a feud that spli tthe family, which resulted in Hubert's two sons operatint competing businesses.
Steven Hubert, Michael's brother, starteed Hubert Construction in 1998 and today is a partnefat , a Gaithersburg-based development company. During the past few Glen Construction's strategy for recovering its stride has centereed on the pursuit of contracts with condominium developerse inthe area. The company's most recent troubles observers say, when it signed contractss with developers at detailed cost and delivery milestones without immediatelhy signing up subcontractors to executethosd jobs. Typically, doing so ensures that a builder can completd a project in the allotted time frame and withi n thecost projected, building in a smalp margin for itself.
Failure to do that might have left Glen Construction unable to get subcontractorson time, amid increasing materia l costs during the housing boom. Also, it might not have anticipated the difficulties of dealin withindividual buyers, who are more likel y to delay projects and demand expensive upgrades. "It'x a whole different thing when you are talking about clieng satisfaction with someonewho says, 'This is the home I am goingg to live in, and everything has got to be just said John Barron, president of "Itt doesn't matter what standard industry practicre is at that point.
" Barron added: "Condominiums are treacherouse if you don't set them up righr and go in with your eyes wide open to the It is a risky product type for a general especially if you have a lot of them on your Glen Construction also found itseltf faced with internal upheaval. William the CEO and a departed just as business difficulties were hittingthei peak. It is not clear whether Sharabui left or was asked to Hubert would not discuss personnel and Sharabi could not be reachedfor comment. At the end of May, subcontractorw who had not been paid and developers hearingg the rumblings of trouble forced Glen Construction to seek help from TheTravelersx Cos. Inc.
, its insurer on a couple of Travelers paid off the subcontractora on two projects and evaluateedthe situation. "They determined it was in theird best interest to have another contractor completethe work," Hubert "Travelers said they were concernedf about the longevity of Glen Construction and that our stafft under the circumstances may not continue with the Hubert said he could not do anything to changr that decision, which was made in July. Travelersa bid out the two projects — Madriga l Lofts and The Metropole — and pickesd Foulger-Pratt to complete the construction. The contractss are being drawn up and were expected to be completethis week.
