Executive Vice President & Partner at Friede & Associates, Scott Truehl is a seasoned construction executive with a proven track record of guiding clients through the complexities of building or renovating facilities. His expertise spans negotiation, budgeting, value engineering, municipal approvals, and marketing, underpinned by a strong entrepreneurial spirit.
Scott’s professional journey, now in its third phase, began in 1981 as the Governmental Affairs Director for the Greater Madison Chamber of Commerce. For six years, he facilitated business interactions with state and local governments in Madison, Wisconsin, gaining invaluable insights into the regulatory challenges businesses face. This role enabled him to connect with numerous business leaders, learning the keys to their success and representing their interests on various business issues. His next career move came when Wisconsin Power & Light (now Alliant Energy) recruited him as an Economic Development Specialist. Concurrently, he served two terms on the Madison City Council, representing his neighborhood. During his eight years at WP&L, Scott held multiple roles, balancing field operations with economic and business development. It was here that he first encountered the construction industry, collaborating with contractors to create proposals for businesses relocating to Wisconsin. This experience sparked his interest in construction, leading to his transition into the industry in the mid-1990s.
Friede & Associates, a fourth-generation family-run business, attracted Scott with its vision of transforming from a traditional “hard bid plan and spec” contractor to a negotiated design-build firm. This approach allowed the firm to offer comprehensive services beyond construction, including land acquisition, financing, negotiating incentives, identifying tenants, and sourcing building owners for clients. Scott’s extensive background enabled him to provide a holistic suite of services to businesses unfamiliar with the building process.
Scott’s partner invited him to buy into the firm, marking the beginning of his nearly 30-year career in contracting. His journey from governmental affairs to economic development and finally to construction exemplifies a dynamic and impactful career dedicated to helping businesses navigate their growth and building aspirations.
Expertise in Simplifying Complex Processes
Regarding skills in negotiating, budgeting, value engineering, municipal approvals, and marketing, Scott acknowledges that while his clients are often skilled in their fields, most have never navigated the construction process before. They are usually concerned about the amount of time required to achieve their desired outcomes. To alleviate this burden, Scott and his team guide clients through the entire process. This includes finding architects and designers who can create buildings within their budgets, introducing them to financial institutions specializing in new developments, and negotiating tax incremental financing incentives that clients might not have discovered on their own. Scott leverages a lifetime of learning and experience to help ensure the success of his clients’ projects.
Long-Term Client Relationships
Friede & Associates actively pursues clients rather than mere projects. According to Scott, the firm seeks long-term partnerships with businesses that could potentially utilize their services beyond initial engagements. These clients encompass various sectors, such as hospitality, where Friede & Associates undertakes diverse tasks ranging from minor renovations to significant expansions or the development of new attractions. Additionally, their client base extends to real estate brokers and bankers who appreciate their expertise and often recommend them to other businesses. This endorsement stems from their reputation for completing projects competently and handling client interactions with utmost professionalism.
Path to Success Through Authenticity
Before Scott joined Friede & Associates, he had already held several management positions and had begun developing his interactive style. He was fortunate to have become one of the youngest individuals to hold various roles throughout his career, supervising team members much older than him and collaborating with highly successful businessmen and women during his tenure at the Chamber.
Scott quickly realized the importance of being authentic and fostering a positive atmosphere of laughter and learning among team members. He also recognized early on that his success would hinge on acknowledging his limitations and seeking input from others to navigate challenges effectively. In every role he’s held, Scott has actively sought out the team’s perspectives and suggestions for enhancing job satisfaction and refining operational processes. By valuing and acting upon their team’s input, Scott has cultivated a loyal and dedicated workforce who appreciate his commitment to streamlining work processes and supporting their professional growth.
Scott firmly believes in the wisdom shared by Richard Branson, who emphasized the priority of caring for employees: “Clients do not come first. Employees come first. If you take care of your employees, they will take care of the clients.” This philosophy underscores Scott’s approach to leadership, where the well-being and satisfaction of his team members are paramount to achieving overall success.
Insights on Value Engineering
Scott perceives value engineering in construction as an ongoing quest for improved methods. This often involves seeking alternative products to achieve cost savings while maintaining the project’s desired aesthetic and functionality. Scott finds it counterproductive to spend excessive time and effort designing projects that exceed the owner’s financial capacity, a scenario he encounters frequently.
In Scott’s experience, businesses sometimes invest substantial resources in creating elaborate designs only to discover during budget preparation that the project is prohibitively expensive. This leads to frustration as efforts are then focused on reducing costs, often disappointing the owners with necessary compromises. This dynamic makes bid days particularly tense for designers, who anxiously hope their creations align with the client’s budget.
Nearly thirty years ago, Scott and his partner chose to operate within the design-build sector to address these challenges proactively. In this approach, they collaborate closely with an architectural partner and the client throughout the design phase. Real-time pricing ensures that the project remains within budgetary constraints while meeting all requirements. By integrating input from all stakeholders early in the process, they can identify cost-effective solutions, such as suggesting alternative materials or phasing construction to optimize scheduling and expenses.
This integrated approach not only fosters a cohesive project team but also enables timely decision-making and proactive management of critical project elements like long lead-time items. Scott emphasizes the importance of avoiding overpromising and ensuring that the final product reflects collective input and expertise. This methodology has proven effective in delivering projects efficiently, saving clients both time and money while achieving their vision.
Addressing Workforce Challenges
Scott identifies the primary challenge facing the construction industry as the difficulty in attracting new employees. He notes that traditional pathways into the industry, such as growing up on farms or attending local shop classes, are no longer as prevalent. To address this issue, Friede & Associates has taken proactive steps to engage with schools and promote the advantages of pursuing careers in mechanical trades and construction. They aim to raise awareness among students about the promising opportunities available nationwide within their industry.
Recognizing the importance of nurturing talent internally, Friede & Associates has played a pivotal role in establishing youth apprenticeship programs at local high schools. These initiatives provide students with practical, hands-on experiences in the field, fostering their interest and skill development early on. Moreover, the firm has enhanced its commitment to training by bringing back a senior field superintendent to focus on safety and education. This move ensures that young recruits receive comprehensive training in essential construction skills such as concrete finishing and rough and finished carpentry.
To minimize the impact of training efforts on project timelines and costs, Friede & Associates charges these activities back to their shop and yard operations rather than individual projects. This approach safeguards against negative cost variances while allowing the firm to invest in developing its workforce effectively.
Furthermore, Scott emphasizes the importance of continuous learning for all employees, highlighting the need to stay updated on evolving construction methods, processes, and client requirements. Participating actively in industry trade shows focused on sectors like restaurants, hospitality, and senior housing enables Friede & Associates to stay abreast of market trends and better serve their clients.
Commitment to Industry Leadership
Throughout Scott’s career, he has actively engaged with trade associations such as the Associated Builders & Contractors (ABC) and played a pivotal role in founding the Construction Leadership Network (CLN). This network spans North America and serves as a platform for members to exchange best practices and learn from each other’s experiences. Scott has been a dedicated educator within these forums, conducting numerous sessions on topics ranging from marketing and sales to management and team building.
Reflecting on his own professional journey, Scott acknowledges the invaluable guidance received from mentors who invested their time and knowledge. In turn, Scott is committed to nurturing the next generation of industry leaders by sharing insights and fostering continuous learning among peers and aspiring professionals.
A testament to his adaptability and resilience, Scott highlights how Friede & Associates swiftly responded to the challenges posed by the Covid-19 pandemic. The Friede team successfully transitioned to a remote and virtual work environment, ensuring uninterrupted project delivery by prioritizing essential tasks and providing necessary technology infrastructure. Lessons learned during this period have been integrated into improved communication practices, utilizing platforms like Microsoft Teams and Zoom for enhanced collaboration with clients and partners. New project progress meeting processes have also been implemented to streamline updates and track project milestones efficiently.
Scott firmly believes in the principle that continuous learning is key to success in the construction industry, emphasizing the need to remain agile and prepared for unexpected challenges. By leveraging his experiences and the collective wisdom of industry peers, Scott and Friede & Associates are well-positioned to navigate future uncertainties and drive innovation in their field.
Three Principles for Success in the Construction Industry
Scott’s advice for those aiming to forge successful careers in the construction industry revolves around three key principles: Laugh, Learn, and Love. Firstly, Scott advocates for maintaining a sense of humor and humility. He encourages professionals to laugh at themselves and their mistakes, emphasizing that errors are inevitable and owning up to them is crucial. Scott’s openness about his own fallibility fosters an environment where team members feel comfortable admitting when things go wrong promptly. This proactive approach, encapsulated in his mantra “bad news doesn’t get better with age,” underscores the importance of addressing issues promptly to prevent them from escalating.
Secondly, Scott stresses the importance of continuous learning. He immerses himself in trade publications and stays abreast of industry trends, not only within construction but also in sectors relevant to his firm’s clients. Scott actively participates in national trade shows alongside customers to explore new products and services that could impact their projects. Engaging with trade partners allows him to evaluate innovations critically, understanding their potential benefits and drawbacks in the context of construction processes.
Lastly, Scott emphasizes the significance of loving what you do. Drawing from his diverse experiences, Scott finds fulfillment in his work by integrating his past roles into his current position. This integration has made his professional journey enjoyable for decades. Scott values the relationships he has cultivated with industry peers and clients, viewing these connections as a testament to the satisfaction derived from solving clients’ challenges creatively and effectively.
Building a Legacy
Scott and his partner have been diligently preparing the next generation to assume leadership at their firm. Over the past year, significant steps have been taken, including the appointment of a new President, the establishment and recruitment of a Human Resources Manager, and the promotion of several existing employees to form a robust management team. This restructuring aims to decentralize decision-making, moving away from the sole reliance on Scott and his partner that has characterized the firm for decades.
As part of this succession plan, Scott plans to step back from his day-to-day responsibilities at Friede by the end of July, marking the beginning of what he calls his “fourth act.” Despite this transition, Scott remains committed to the construction industry. He intends to continue serving his long-term clients and supporting industry friends by sharing the wealth of knowledge accumulated over his 30-year career in his new company, Dairyland Development Advisors.
Scott’s proactive approach to succession planning ensures continuity and growth for the firm while allowing him to transition into a new role where he can contribute his expertise and mentorship effectively. This strategic move reflects his dedication to both personal fulfillment and continued service to the construction community.
