Houston construction firm works to right itself after ‘mistakes,' death of key executive in Tampa office
By Margie Manning
Tampa Bay Business Journal
Published: Oct 26, 2015

One of the nation's largest construction firms will take a financial hit for the third quarter of 2015 in part because of problems in its Tampa office.

Orion Marine Group Inc. (NYSE: ORN) said it expects to post a third quarter 2015 loss of 25 cents to 30 cents a share, citing the impact of five projects managed out of the Tampa office that will cost more than originally expected, and other factors.

The Tampa office, which handles projects in the heavy civil marine construction segment, had a "vacuum in ... operational leadership” following the death of the company's former chief operating officer, who was based in the Tampa office and had significant influence over its operations, Orion said in a press release. The COO, James Rose, died Jan. 21.

This led to mistakes on projects as issues arose, compounding production delays and extending time frames for the projects.

Orion won a $12 million dredging contract with Port Tampa Bay in May. That dredging was scheduled to begin in the third quarter and last three years, a May 1 announcement from Orion said.

Orion did not identify the specific Tampa projects that were delayed or over budget.

Mark Stauffer, Orion CEO, told analysts on a conference call that he was "disappointed with what's going on in Tampa.”

He said the company has realigned the leadership and the project management team in Tampa and implemented a cost-reduction program. Those moves, combined with the appointment of a new COO, Dwayne Breaux, will restore the Tampa operations to profitability, Stauffer said.

Margie Manning is Print Editor of the Tampa Bay Business Journal. She also covers the Money beat.