Pernix Group, Inc. provides general contracting, design/build, and construction management services to public and private agencies in the United States and internationally. The company has full-scale construction and management capabilities, with some of its subsidiaries located in the United States, Guam, Fiji, Vanuatu, South Korea, Africa, and Germany.
Segments
The company operates in construction and power services segments.
Construction Segment
This segment includes both general contract...
Pernix Group, Inc. provides general contracting, design/build, and construction management services to public and private agencies in the United States and internationally. The company has full-scale construction and management capabilities, with some of its subsidiaries located in the United States, Guam, Fiji, Vanuatu, South Korea, Africa, and Germany.
Segments
The company operates in construction and power services segments.
Construction Segment
This segment includes both general contracting and construction management services with significant pre-con consulting. The company has responsibility from contract award through the successful completion of each project. The company’s general contracting services focuses on its domestic and international projects. Construction services include pre-construction (pre-con) consulting services, construction management, design build and general contracting delivered either in lump-sum, guaranteed maximum cost or cost-plus contract models. Markets include both U.S. Department of State (DOS) and other government clients and private sector commercial clients, the latter typically in either technically based or commercial facilities.
Construction Management: The company’s construction management services provide a systematic project review, including a comprehensive construction and start-up schedule.
Design Build: The company follows the design/build model to ensure completion of construction projects from analysis, architecture and permitting, through engineering, construction, completion and customer acceptance.
Power Services segment
This segment focus includes operating and maintenance of power production facilities typically with longer term contracts. The company’s Power Services business segment includes plant Engineering, Procurement, and Construction (EPC), operations and maintenance (O&M) services, and Build, Own, Operate, Transfer (BOOT) capabilities. It focuses its service offerings on small to mid-size power plants, as well as transmission and distribution grids and underground cable installation.
O&M: The company’s O&M services provide an integrated scope of services to maintain and manage all aspects of power operations. Its services include maintenance and operations, engineering, on-going reliability studies, construction management, recovery/rebuild, specialty services and rehabilitation. The company performs plant audits and provides a comprehensive plan, including timelines for assuming responsibility of the operation, as well as initial and long-term maintenance requirements.
EPC: The company also provides start up and commissioning services to ensure that the equipment is fully integrated with all other operating systems, as well the transmission/distribution system and power grid. The company provides the appropriate training for startup, as well as future O&M.
BOOT: The company has the ability to implement projects via a BOOT model to help its customers finance and manage their current and potential infrastructure projects.
Power Operations: The Power Generation Services segment operates power plants in the Republic of the Fiji Islands (Fiji) and the Republic of Vanuatu (Vanuatu).
Pernix Fiji Limited (PFL): PFL is a subsidiary of the company that conducts power generation activities in Fiji. PFL has long-term contract with the Fiji Electricity Authority (FEA) to operate and maintain two separate diesel fired power generation plants. The O&M contract for these plants expires in May 2028 and includes management of a total of 110 MW of diesel power generation installed capacity in Fiji. In 2014, Fijian Holdings Limited (FHL), an unrelated third party, acquired a 25% interest in PFL.
The company operates two power plants in Fiji. The Kinoya Power Plant, situated near Suva, the capital of Fiji, is part of the FEA grid and is a diesel fueled power plant in Fiji with an installed capacity of 86.1 MW. The Vuda Power Plant, situated between Nadi and Lautoka is the second largest diesel fueled power plant in Fiji with an installed capacity of 24.2 MW for a total combined installed capacity of 110 MW.
Business Strategy
The company’s business strategy as a diversified contractor focuses on expanding its public (government funded or sponsored) as well as private sector construction management services and power services construction market segments. Key elements of its strategy include the following: expand and foster positive relationships with governments, public agencies and private entities worldwide; capitalize on opportunities in challenging geographic locations; utilize its long-standing relationships with industry specialists; continue to pursue its acquisition strategy; and strengthen and support human capital.
Customers
The company provides its services in a range of end markets, including construction, construction management, power and facility O&M services. As of December 31, 2015, the power services segment has two primary customers: the FEA and the Government of Vanuatu.
Recent Acquisitions
In 2015, Pernix Guam LLC (PPG), a wholly-owned subsidiary of the company, acquired certain assets of dck Pacific Guam LLC, including Guam-based experienced operations and sales personnel, and a 55% membership interest in dck-ecc Pacific Guam LLC joint venture (collectively PPG).
In 2015, the company acquired KBR Building Group, LLC, now known as BE&K Building Group (BEK BG), a diversified domestic construction services company serving advanced manufacturing, food/beverage, biotech/pharma, healthcare, higher education, commercial/mixed-use and institutional clients nationally.
Regulations
The company is subject to various government laws, regulations and/or applicable laws pertaining to the protection of the environment, primarily in the areas of water and air pollution, i.e. Council on Environmental Quality, the Environmental Protection Agency (EPA) and FEA. In the United States, the company deals with the DOS to bid and execute on the construction of the U.S. embassies and other projects.
History
The company, formerly known as Telesource International, Inc., was founded in 1994.
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