Palacio Paves Way for Multi-Million-Dollar Construction Project

Palacio Collaborative Paves the Way for Successful Multimillion-Dollar CONSTRUCTION PROJECTS EARLY IN HIS CAREER, MICHAEL D. PALACIO WAS DETERMINED TO BECOME an architect. Along the way, he discovered a related talent that led to the creation of a multimillion-dollar construction cost-estimating firm. A graduate of the Georgia Institute of Technology, with a major in architecture, Michael initially “fell into” estimating (as he puts it), working as a cost analyst with architects and general contractors on large construction projects. Within two years, he reached a senior level, proving so good at this complex skill that his boss said, “You may not be as good an architect as you are at estimating,” he recalls. “I thought about this and decided he was right.” MANAGING COSTS FROM START TO FINISH Now, with more than 20 years of experience in the design and construction industry, he’s president of Palacio Collaborative, an Atlanta-based cost and value management firm he founded in 2006. The firm specializes in handling construction projects “Basically, up to now, my company’s been like a ranging from $1 million to more than $100 million. group of friends working together,” he says. “With expansion, we’re moving well beyond my comfort Palacio Collaborative’s core mission is managing zone. I’ve become more of a CEO than an owner/ costs from start to finish, preserving the integrity operator and have to learn to rely on others to help of the design and giving the owner “the most guide the way toward further successful growth.” building value the budget will allow.”

As a Certified Professional Estimator, Michael and his team have worked on construction projects in GETTING HELP FROM CEO PEERS a wide array of fields, including medical, municipal, In 2011, Michael joined The Alternative Board government, K-12, higher education, commercial (TAB), becoming a Member of a TAB Board headed and historic preservation. by Buddy Hull, President and Facilitator for The Alternative Board Atlanta-East. Since joining, Palacio Collaborative is a certified Minority Business he’s found enormous benefits from interacting Enterprise and Disadvantaged Business Enterprise, with CEOs and business owners in industries far with more than 100 years of combined staff different than his own. experience. The firm’s projects include the Atlanta Metropolitan College Academic Science Building, For example, Michael didn’t initially see the benefits Georgia Institute of Technology, North Avenue of having employees work remotely. Through TAB, Apartments dining facility, Emmanuel Episcopal he learned that many companies have adopted this Church and the Kennesaw State University policy. “Members helped me see opportunities and Science Laboratory. options I hadn’t considered before.” A key element of the firm’s success lies in its His TAB Board proved very useful with hiring specialized cost modeling system that helps clients challenges as well. “I face the issue of recruiting new more accurately understand, set and reconcile talent in unfamiliar markets, like North Carolina,” he project scope and budget. “This is the critical says. “A TAB Member who understands LinkedIn first step in improving the opportunity for project very well explained how creating the right profile for success,” Michael says. my firm would help attract the interest of qualified job candidates—again, very beneficial advice.” Building on the firm’s success, Michael is now in the process of opening two new offices in North Most small business owners aren’t business people, Carolina (Raleigh and Charlotte). he adds. “We’re individuals who are really good at something. I’m a great estimator, but that doesn’t mean I know everything about running a business.” GROWTH AND HIRING CHALLENGES At TAB Board Meetings, Michael benefits from the With success and growth come new challenges, expertise and insights of others who run businesses. particularly in the areas of hiring and business development. “At the end of the day, we all have issues revolving Michael is the first to admit he’s “not a natural around our products or services and have the at this,” having had no formal business training. same challenge of making more money than we Finding the most qualified people to run his spend,” he says. “TAB helps fill in the blanks in our planned expansion sites is a key objective, as is knowledge—including the things we don’t know broadening his professional network in order to we don’t know.” acquire new clients.

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Source: The Alternative Board