| Company: Cobalt Contracting Co-Owners: Kevin Nelson and Jeff O’Connell New home price range: $550s - $800s Primary building locations: Brookhaven, Decatur, anywhere inside the Perimeter Website: www.CobaltContracting.com |
Cobalt Contracting, co-owned by Kevin Nelson and Jeff O’Connell, is a home building company located in the Brookhaven area. They build custom and spec. homes and have a busy remodeling business as well. Friends since high school, Kevin and Jeff started their own company in 2004 after quitting corporate jobs.
“We took on a lot of odd jobs, additions, and remodel work to get hands-on experience before quitting our day jobs,” said Jeff. “After we went out on our own, we built three spec. houses in the Walden Park master planned community located in South Fulton.”
That was the beginning of the company’s success that includes building many new homes and additions, and most importantly, having happy clients. Their business continues to grow despite the economy. “This will be our best, or second best, year in business,” said Kevin.
Stress-Free Pricing Structure
A big part of their success can be attributed to their pricing structure. They give their clients a price for a project, and stick to that price. No hidden fees or nickel and dime charges surface during the building process.
If hand-dug concrete piers are needed in the footing due to poor soil, their clients will not be asked to pay for that extra, unforeseen work.
When asked about this, Kevin explained, “If we were to go back to our client with extra charges of $200, $500, or $1200, then tension would develop. They would become uneasy with the building process. Because we stick to a set price, we remove that obstacle and let them relax and focus on the excitement of getting a new house.”
Jeff added, “Our job is to internally manage a building budget based on the price we gave them. Sometimes our client will ask about the budget, and we always respond by telling them that we are building their home for the price we quoted, so that they never have to worry about changes to a budget.”
| “Since using Herbert Construction, we’ve reduced the amount of time spent on foundations. They’ve eliminated the headaches and problems that are common with that stage of home building. We recommend them to everyone.”
— Jeff O’Connell, Cobalt Contracting |
The entire process is designed to give the client a stress-free building experience. The payoff is in the referrals from these happy clients. “All of our work comes from word-of-mouth referrals,” said Kevin. “Our past clients are our best sales tool.”
Cobalt is known for going back and doing minor repair work, or reso
lving issues on homes they completed years ago. Jeff explained, “We don’t have a ‘one-year warranty’. We guarantee our work. We will come back and fix things long after many other warranties have expired.”
Kevin and Jeff are also active locally. “Most of our clients live where we live,” said Jeff, “they’ve become friends that we see throughout the year. We’re all part of the same community.”
A Passion for Home Building
When asked if the dramatic decline in new home construction has made them question their decision to become entrepreneurs, they quickly dismiss the idea. “We just really enjoy this and want to build houses,” said Kevin. “We both have other skills and could go get a corporate job. This is where we both choose to be.
Jeff added, “We actually look forward to coming to work every day.”
This passion is evident in how they deal with their Trades and clients. What you see is what you get. They are honest, relaxed, and friendly.
The Cabinet Business
Kevin and Jeff had a hard time finding high-quality cabinets that didn’t cost their clients an arm and a leg. They realized that there was a need for this - even in the depressed housing market. After checking into it, they decided to start their own cabinet company, Cobalt Cabinet Co.
This decision proved to be beneficial to their own home building business. And, that new business has grown as they’ve begun manufacturing cabinets for other builders as well.
Good Trades Are Crucial
One of the biggest lessons Kevin and Jeff have learned throughout their building career is the importance of having the right Trades. “They are the ones actually doing the work,” said Kevin. “You have to have a good group of subcontractors that you work with.”
“Herbert Construction is our best subcontractor,” stated Jeff. “They are a top notch company. We know their foundations will be trouble-free and last a lifetime.”
Kevin added, “They are a ‘real’ company, not some guy with a set of forms that’s only been around for a couple of years. They are super professional, extremely organized, communicate with us constantly. They always show up on time, and they do what they say they’ll do.”
When asked about the Turn-key process, Kevin said “We’ve used labor-only concrete guys in the past. Once we started using Herbert Construction’s Turn-key service, we have saved ourselves a lot of time and headaches. We make one call and it’s all done for us. Bottom line, they save us money.”
Jeff added, “We know we can’t buy concrete as cheaply as Herbert Construction Company can, so why bother? It’s cheaper for us to have them take care of everything.”
David Summey, General Superintendant at Herbert Construction Company, manages Cobalt’s business. “David is great to work with. He responds quickly and we can always count on him. He is really good at establishing wall heights. I have 100% confidence in his abilities – which frees me up to do other things.” said Kevin.
Free Time
When asked what they like to do when they are not working, both replied that they like to spend time with their family. “And watch college football,” added Kevin with a grin.
We have seen more activity in the single-family market over the past year than the previous two years. You may ask, “Is this a trend?” or “Is this a sign that we have seen the bottom and are on our way out of the great recession?” 
