business. “We’ve been doing this for so long that regulatory compliance is second nature,” Baxter states. “It’s not really a challenge anymore. It’s how things work here.” Safety is another critical focus. Kitsap Construction invests heavily in training and certification to ensure that crews operate safely and responsibly on every site. “We’re very safety-oriented,” Baxter adds. “We make sure everyone is up to date on their training and certifications.” FINANCIAL DISCIPLINE Kitsap Construction takes a conservative and disciplined approach to financial management, prioritizing stability over rapid expansion. One of the company’s defining characteristics is its commitment to operating without debt. “We don’t borrow money,” Baxter states. “We’re completely debt-free.” When new equipment is needed, the company purchases it outright rather than financing or renting long-term. “If we need a piece of equipment for six months out of the year, we just buy it,” Baxter explains. “That includes forklifts, backhoes, scissor lifts, and company trucks.” Short-term needs are addressed through rentals, but long-term assets remain in-house. This approach provides flexibility while protecting the company from financial strain.“Nobody likes making payments,” Baxter adds.“Being debt-free gives us peace of mind and keeps the focus on the work.” MERIT OVER LOW BID A key component of Kitsap Construction’s success is its participation in the State of Hawai’i’s preferred small contractor programs. These invite-only programs emphasize merit, performance, and reliability rather than the lowest price alone. Deja Corpening, Controller at Kitsap Construction, outlines the process. “These programs require you to submit extensive documentation about your experience and performance,” Corpening explains. “You’re graded, and if you don’t meet the requirements, you’re not accepted.” “Permitting is always a challenge,” Baxter notes. “Between inspections, submittals, long-lead materials, and closeouts, everything has to be timed carefully.” In many cases, state agencies apply for permits themselves, but the process can still be lengthy. “Permitting in Honolulu takes a long time,” Baxter explains. “Sometimes we’re asked to start work while we wait for the permit, then we operate under courtesy inspections until everything is finalized.” Rather than viewing these constraints as obstacles, Kitsap Construction treats them as part of doing 40 BUSINESS VIEW MAGAZINE VOLUME 13, ISSUE 01
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