Rebuilding the Business 1986 - 1994 - Abigroup

REBUILDING
THE BUSINESS
1986 - 1994
The M2 Motorway, shortly after opening.

Turning things
around
JOHN CASSIDY 1986 - 2004
FORMER CHAIRMAN & CHIEF EXECUTIVE OFFICER
John Cassidy was the man who turned Abigroup around. Without John and his team’s
intervention in the mid to late eighties when the business was in a bad way, the Abigroup
flag could quite possibly not still be flying today.
It was late in 1985 when the then Chairman of Abignano, Clive Austin gave John a call.
‘I’d basically retired after over a decade working in South East Asia, but Clive asked
me to come and help for three months. The brief was to see if we could get some order
in the current construction figures with Abignano and to bring all losses to account. I
figured it was only three months, then I’d settle into life outside engineering.’
In the end, of course, John’s retirement lifestyle was delayed far more than three
months, but how did his life in the industry evolve ‘I completed a civil engineering
degree at Newcastle University and started work with Spie Batignolles, the French
multinational through their Australian subsidiary, Citra Constructions. Then in 1975 I
started my decade overseas by taking a role in Indonesia. Back then there was no tax
on foreign nationals, which was great, and it stayed that way until 1984. Whilst working
for the French I did stints mainly in Malaysia and Sri Lanka, working on major projects
such as port construction, power stations, metros and building projects. After ten
years abroad, travelling all over the world, we started thinking about coming home. In
September 1985 we moved back and bought a grazing property in northern NSW. I was
married with one child and we came back to live a different kind of a life, but that life
obviously didn’t last long!’
John quickly saw the need for major change at Abignano as he got into his “three month”
spell. ‘We brought $36 million worth of losses to account and could see that Enacon [the
major Abignano shareholder] was keeping the business afloat by taking on its losses.
As my three months drew to a close, the company was starting to get into some order:
people had been dismissed and roles had changed - but there was still a lot to do. As
long as Enacon continued to financially support the company there was still hope. There
were excellent skills within the workforce, but little direction. It was a matter of survival
and the team was willing to fight.
‘I was then asked to stay on as General Manager and I had to make a decision – another
serious role in the industry versus spreading fertiliser on the farm. I talked it over with
my wife and we decided that the farm could wait - but I had no idea it’d have to wait 18
to 20 years! The main reason I decided to take on the role is that I could see the quality
of people at Abignano and the potential of the business.’
‘There were excellent skills within the
workforce, but little direction. It was
a matter of survival and the team
was willing to fight.’
Lee Ming Tee was the major shareholder at the time as Jim Abignano had exited the
business. Jim’s long-term number two Allan Livingstone left shortly after and with the
wide and varied business interests Lee Ming was juggling, Abignano’s was rudderless.
‘Lee Ming had a number of businesses and at different stages Wormald, Sunshine and
Enacon actually owned Abignano as he tried to shuffle the debt around and minimise his
risk. When Jim [Abignano] bought into Enacon, it meant Abignano took ownership of all
sorts of unrelated businesses and put civil engineers in charge of running them. Marina
Cruisers [boat builders], for example, was losing $11 million a year. By 1988 Abignano
Ltd shares were trading at three cents and there were no buyers.’
REBUILDING THE BUSINESS
JOHN CASSIDY
50

REMEMBER...
• On 23 February, the first mobile phone call in Australia
is made.
• The Simpsons cartoon first appears on The Tracy
Ullman Show.
• Aretha Franklin becomes the first woman inducted into the
Rock and Roll Hall of Fame. Meanwhile, the Irish rock band
U2 releases their studio album The Joshua Tree.
Opposite Page:
John Cassidy, 2010.
Top:
Sydney SuperDome under construction,
1998.
Middle:
F3 Freeway under construction.
Above:
John Cassidy, 1987.
Most people would baulk at that level of financial difficulty and strategic uncertainty, but
John saw opportunities. ‘I had a good look at it and decided to form a buy-out group,
mainly from within the management, to see if we could take over control from Lee Ming
Tee and really focus our attentions on the core business of civil engineering and building.
I formed a company called Vercot in which my wife and I were the major shareholder and
also involved were Clive Austin, Darrell Hendry, Brian Allen and Norm Reich. We offered
Enacon [Lee Ming] one cent a share and by mid-1988 the deal was done.’
Abignano Ltd’s name was changed to Abigroup Ltd and the real work of turning the
company around began. ‘The company had 126 employees and a turnover of $126
million. Vercot acquired all the assets (though the plant and equipment was ageing)
but we also inherited some $76 million in debt. Vercot was supported by the (then)
State Bank of NSW. Darrell and I spent a lot of time convincing the banks that we were
a viable operation. Enacon also took Abignano’s Thos Clark business in the buyout
deal, which gave us some money, and we pursued our contractual claims through
the courts. There were some clients who delayed or stopped paying us because they
thought we would go out of business, but we fought for our entitlements. I took some
hard decisions in developing and refocusing the management team and Darrell focussed
on the administrative and financial side of things. There was no time for niceties, but
communicating to staff was easy because they wanted success and they were invigorated
by the new purpose and direction. I also made a point of remembering everyone’s name
and their kids’ names – it’s a small thing but we were a tight-knit group and this family
approach really helped. We eventually offered shares to the staff, too, and most of them
bought. We were all in it together. Meanwhile, we concentrated on winning blue chip and
government work because we knew they’d pay us. We settled most of the outstanding
claims and slowly, we started clawing our way out of the hole.’
As a symbol of the new beginning, John and his team also decided it was time to change
the name of the business. ‘Jim [Abignano] had moved on, Enacon was gone and the
industry needed to know that this was a new start – a new dawn. Out of respect for Jim,
we didn’t want to move too far from the Abignano name, and we’d generally been known
as Abi’s anyway. So we kept the stylised A and Abi in blue, then just added the group
part. We didn’t have money for consultants, so we just did it ourselves in my office. We
put the new Abigroup signage all over our equipment and sites and the word started
getting around. We weren’t an entirely new business, but it was a new beginning.’
But not everyone in the industry was happy with the changes afoot. ‘There was a lot of
opposition from competitors when we started to get back on track and bidding for bigger
jobs, and they definitely would have preferred for us to remain on our knees – it’s a
competitive industry.’
Innovation has always been a hallmark of Abigroup’s success, and John has an
interesting take on how this culture has evolved. ‘Innovation is a requirement of good
business because it can save time and improve efficiency. But innovation comes from
people within the company – people on the jobs. If you sit with say a bulldozer driver
over a beer in a pub, they’ll tell you what they think can be done better. I do wonder how
much business growth and new ideas have come about over a cold one after work!’
Many people consider winning the M2 project the turning point that finally got Abigroup
out of financial trouble, but John believes two earlier projects laid the foundation. ‘The
first one was the F3 in 1989. We were doing $5 million to $6 million jobs before then,
but that one jumped us up to $43 million. Then we won the Terrey Hills Golf Club job in
1991 where we built the clubhouse and did the earthworks for the course. It was a good
job financially, but the big thing was the relationship it helped us forge with Obayashi
in Japan and they were vital to us winning and succeeding with the M2 later on. We
did a great, profitable job for them without even signing a contract. After that Darrell
51 REBUILDING THE BUSINESS
JOHN CASSIDY

and I travelled to Japan to meet Obayashi’s Chairman and senior staff and they asked if
there was anything else they could do for us in Australia - I said that we needed a $500
million bank guarantee for the M2 job. Over another handshake, the deal was done and
we successfully tendered in Joint Venture for the M2, which ended up earning them $60
million and putting us on the map.’
After the M2 the next big thing for Abigroup was the 2000 Sydney Olympics in which
the company secured six contracts including the building of the prestigious Sydney
SuperDome for the basketball and gymnastics. John said the pressures on getting the
venues ready on time were immense. ‘We did a lot of construction for the Olympics –
hockey, tennis, roads, water features – but the main project was the SuperDome because
it was a complex design, construct and operate job and there were so many obstacles
to us reaching the Olympic opening deadline. For example, the roof was the largest
unsupported roof in the southern hemisphere and part way through, a major structural
contractor walked off the job. So with the help of Bob Gusheh’s expertise (who at the
time was Senior Project Manager) we ended up putting the roof on ourselves. At first
Peter Deane’s (then Project Director) team said, “We can’t do it,” so I told them to go
away and think about it more. They came back again and said, “Maybe we can do it,” so
I told them to go away again. They came back again and this time said, “I think we can
do it.” I told them to try some more. Eventually they came back and said, “We’ve found
a way to do it.” I told them that’s what I wanted to hear - the Olympics were knocking on
our door and failure wasn’t an option! I was down at the site every day overseeing the
preparation of the venue. Two months before the opening, we still didn’t have any of the
external paving completed around the SuperDome and Sam “The Paving Man” said he
couldn’t do it by the deadline. So I asked him what was needed to make it happen and
he said four tickets to Pavarotti would be great. I told him he could have a corporate box
and you should’ve seen it – he got family and friends and everyone down there working
and we got it completed on time.’
With the success of the M2 and then the Olympic projects Abigroup was in good shape
and then in 2003 with the winning of the $1.5 billion M7 contract in a joint venture
with Leighton Contractors the company truly had entered the big league. It was all a
far cry from those desperate days in the late eighties and early nineties. ‘There were
huge financial risks for all of us and it was not until ’92 and ’93 that we were able to
begin stabilising our debts. From ’94 onwards the pressure began to ease as the M2
got underway. This major project, the first with electronic ticketing in Australia, was
completed months ahead of schedule and earned us significant bonuses.’
The financial risks John and the Vercot owners endured paid for themselves after Vercot
sold Abigroup to Bilfinger Berger with the aim of giving the business increased financial
muscle that would allow for growth. It also meant that John could finally start thinking
about spreading fertiliser on his long-neglected farm. His is initial 1982 land purchase
of 8700 run-down acres in New England was subsequently added to, so that “Merilba” is
now some 35,000 acres of prime farmland near Armidale where John now farms sheep,
cattle, lambs and Boer goats. Merilba Estate now also makes wine and runs a cellar
door and function centre. Life is different to what it was, but when he reflects on his
emotional and financial rollercoaster with Abigroup, one thing supersedes all others. ‘I’m
still fantastically proud of the company and what it’s achieved. Our people are industry
leaders – first class, world-class people. I’ll always be proud of Abigroup and what it
continues to achieve. It was all worth it.’
The management buy-out that John led, and the people that were trained and developed
during that time, is perhaps Australia’s most successful corporate success story ever.
REBUILDING THE BUSINESS
JOHN CASSIDY
52

This Photo:
Sydney SuperDome,
as it was known at
the time.
MILESTONE PROJECTS
F3
Information from ‘Abitorque’ internal
company newsletter – thanks Peter Walton!
Location: Sydney to Newcastle, NSW
Delivery Method: Construct
Commenced: 1984
Completion: 1990
Three main sections of the main arterial
linking Sydney and Newcastle
• 8 million cubic metres of bulk earthworks.
• 46km of continuous concrete paving.
• 14 bridges.
Section 1, Kariong to Somersby – 1985
($7.3 million)
• 5.8km of dual carriageway.
• The first freeway contract let by the DMR
involving all complete works, including
pavement.
• Five main cuts of up to 19m deep, and
four fills up to 18m high.
• 1.5 million cubic metres of earthworks.
• Abigroup’s first road job involving 78,000
cubic metres of concrete.
• Three bridges, including one with an
82m span.
Section 2, Pearce’s Corner to Mount
Colah – 1989 ($43.5 million)
• The second largest contract the DMR had
let and the largest let on the F3.
• Acknowledged as the most complicated
contract of the time, with massive works
through residential areas and adjacent to
sensitive National Park land.
• Continuously Reinforced Concrete
Pavement was used for the first time in the
industry.
• Over 77,000 cubic metres of concrete
paving.
OLYMPIC GAMES – SYDNEY 2000. NSW
A number of projects were secured under
tender for the 2000 Olympics.
• State Hockey Centre
Civil works to upgrade the centre.
$3 million.
• Tennis Centre
Circular stadium with seating for 10,000.
15 tennis courts with associated facilities.
$35 million.
• Regatta Centre, Penrith
New pavilion and boatsheds.
Irrigation works.
$5.7 million.
• Sydney SuperDome (Acer Arena)
Australia’s largest indoor arena.
Capacity in excess of 20,000 seats.
$200 million.
• Sydney SuperDome Carpark
3,500 car spaces.
Eight storeys.
Largest carpark in the Southern
Hemisphere.
Constructed in a record 18 months.
$60 million.
• Northern and Central Water Features
Prominent public spaces within
Olympic Park.
Environmentally friendly water
reclamation.
Wetland creation and restoration.
$17 million.
• Southern Terminus
Three structural steel pedestrian bridges.
Flexible and block paving and extensive
landscaping.
Section 3, Palmers Road to Wakefield –
1989-1990
• 6.8km section.
• Five bridges.
• Continuously Reinforced Concrete
Pavement for the entire Southbound
length.
• 82,000 cubic metres topsoil removal.
• 21,800 cubic metres of excavation for
stormwater drainage.
• 2,656,300 cubic metres of earthworks.
• 36,085 cubic metres of flexible pavement.
53
REBUILDING THE BUSINESS
JOHN CASSIDY

Holding it
together
DARRELL HENDRY 1984 - 2005
FORMER CHIEF FINANCIAL OFFICER
Darrell Hendry joined Abigroup in 1984. Back then the business was still known as
Abignano Limited and it was a turbulent, whirlpool kind of a time to start. ‘I was a
Chartered Accountant working in the audit division of KPMG, but I was keen to move into
a commercial role. Abignano Limited was looking to fill a new finance role in its Head
Office, created to manage the financial affairs of a group of businesses recently acquired
from Enacon Limited. The Enacon businesses included a large variety of operations, and
each business had its own management team and was run as a separate unit. One of
Enacon’s major investors, Lee Ming Tee, had structured the deal with Jim Abignano on
the basis that Abignano Limited would acquire the Enacon businesses partly for cash and
the balance by Abignano issuing additional shares.’
The reasoning behind the decision to acquire the Enacon group was strategic – to
move Abignano away from a total reliance on core civil engineering projects to a
more diversified mix of businesses. It made sense on paper, but the reality was not as
straightforward. ‘It’s fair to say that the integration process did not go smoothly and it
didn’t take too long for everyone to realise that a number of Enacon’s businesses were
bleeding cash terribly – the worst of which was the Graham Evans building group. I was
six months into the new role when I was asked to become the CFO of that business, with
the brief to put structure into its financial and administration reporting and processes.
Graham Evans Victoria had senior management problems, the Queensland company was
suffering losses from the construction of high-rise residential towers on the Gold Coast
and in NSW there were major union problems particularly with the construction of a new
Sydney Police Headquarters in the CBD.’
As the scale of the commercial problems in the Enacon business grew, so too did the
animosity between Jim Abignano and Lee Ming Tee. ‘In 1985 as the story goes, Jim
went back to Lee Ming Tee and advised him that the acquisitions were performing so
poorly that he intended to sue Enacon for breach of contract. It was a very messy
period for the company as we did not only have to deal with many operational problems
in the businesses but we were also attempting to manage the haemorrhaging cash
situation. Litigation also commenced between Abignano Limited and one of its major
shareholders. The string of events could easily have resulted in Abignano’s total demise,
however Enacon purchased Jim’s personal investment in Abignano Limited. The deal
was completed in late 1985, and in early 1986 Jim and [MD] Alan Livingstone left the
company.’
Whilst the ownership issue had been settled, Abignano still had to deal with all the
operational problems. ‘Abignano needed a leader who could solve the big issues. Clive
Austin, the new Chairman, who was appointed on the departure of Jim Abignano,
approached John Cassidy. John was initially appointed as a consultant to come in and try
to work out what could be done to turn the company around. John and Clive called and
asked me to take over as the CFO of Abignano which they intended to rename Abigroup.
I agreed to stay on and work with John to try and turn the company around.’
‘... with sweaty palms and a great
deal of trepidation we completed
the transaction (a management
buyout) on 30 June 1988.’
REBUILDING THE BUSINESS
DARRELL HENDRY
54

John and Darrell got to work, shedding what needed to be shed and restoring some
confidence in the group. ‘Lee Ming Tee was still very much in the background. He had
a reputation as a corporate raider but appeared to have no interest in the day to day
operations of the businesses he had invested in. The problem for Lee Ming Tee was
that if Abigroup went into receivership, it was likely clients would pull the outstanding
bank guarantees the company had issued to undertake their projects and this would
significantly increase the company’s exposure to the banks. So it was in his interest to
continue to financially support Abigroup, but this wasn’t a sustainable situation. The
balance sheet value of the business was close to zero at times and it was difficult to
see how the company would survive. During this time, Lee Ming Tee also transferred
his shares in Abigroup to his other investment vehicles with total disregard as to its
impact on the company’s staff and other stakeholders. In a space of less than two
years Abigroup had three different major shareholders. There was a significant level of
uncertainty in the marketplace about the company’s future particularly with the banks –
we were in a parlous state.’
But John Cassidy saw opportunity, and Darrell felt the same way. ‘The only thing of real
value in the business was the people and the culture, but you had to see it first hand to
appreciate it and that wasn’t Lee Ming’s strength. So John and I started talking about
forming a management group to buy out Lee Ming Tee’s interest in Abigroup. A company
called Vercot was established with John, the major shareholder. The other shareholders
were myself, Clive Austin, Brian Allen and Norm Reich. It was first necessary to ensure
the company had sufficient banking and guarantee facilities going forward and this
required significant negotiations with the bank. After much negotiation and soulsearching
we made an offer. Abigroup needed stability, so the buyout decision came
naturally, but in no way does that mean it was easy.’
This Photo:
Terrey Hills Golf Course
under construction.
Opposite Page:
Darrell, 2010.
REMEMBER...
• Australia celebrates its bicentennial day with
the arrival of the First Fleet re-enactment
voyage and a tall ships parade in Sydney
Harbour. World Expo opens in Brisbane later
the same year.
• Pan Am flight 103 is blown up over Lockerbie,
Scotland, killing 270 people.
History shows that the decision was a significant success, but not even in Vercot’s most
positive, blue-sky dreaming could they have imagined the business would get to where
it did. ‘The bank required the Vercot shareholders to take out mortgages over their
houses, to support the company’s bank facilities. We paid one cent a share for Lee Ming
Tee’s shares plus 0.1 cent for all of his options, which came to around $256,000. It was
actually a great deal for him considering the very poor state of the company’s balance
sheet. With sweaty palms and a great deal of trepidation we completed the transaction
on 30 June 1988. Part of the deal required all loans between Enacon and Abigroup to
be cancelled which removed part of the debt burden and we immediately began working
hard to convert the outstanding contractual claims into cash.’
As expected there wasn’t a quick fix to the company’s problems and until 1994, things
remained on a knife’s edge. ‘I regularly had to go to the banks and convince them that
we were on the road to financial recovery. We remained positive about our ability to
survive, but the bank still required regular independent audits of our position. We had to
be extremely careful in managing our cash so that we didn’t exceed our overdraft limit
and this provided the bank with a level of confidence that we had control of the business.
Everyone in the company was just brilliant in helping us to turn the ship around. In 1994
we were awarded the M2, but it wasn’t until around 1996 that we felt secure that the
business was on track and that our houses were safe!’
55 REBUILDING THE BUSINESS
DARRELL HENDRY

But nothing is easy, and there’s a story behind how the M2 was won. ‘In the early
nineties we had bid for a proposed toll road project that didn’t eventuate, but through
that process we established a relationship with the Obayashi Corporation of Japan. We
then successfully built the Terrey Hills golf course and club house for Obayashi and
the relationship grew stronger. We knew they wanted to participate in the Australian
construction market more seriously, so we discussed with them whether they would be
prepared to provide their balance sheet as security because we had no chance to even
bid for the M2 using ours alone. Back in those days contractors were also required to
leave some “skin in the game” and take equity in the project, we also needed a $15
million bank guarantee to support our equity obligations. Obayashi indicated that they
would not only provide the performance guarantees but also the equity guarantee and
we would only be required to provide them with a $1 million bank guarantee in return.
It was a massive leap of faith on their part and we all laughed that if we failed, we’d
have to change our name to AbiYashi! We won the M2, but there was still significant
risk - there was a change of government soon after we won and they wanted to cancel
the project. They couldn’t because contracts had already been signed, but there were
no assurances that we’d earn a good return from the job particularly when it required
numerous government approvals. The penalty for not completing the project on time was
the payment of liquidated damages that could have easily run into millions of dollars,
so there was plenty to be nervous about! However, we had selected Abigroup’s “A” team
to build the project. Whilst we had real concerns around those issues that we could not
control, we had total faith in our construction staff. The project director was Peter Brecht
and he had a young engineer named David Jurd working for him. In fact looking back on
those days there are many people still employed by Abigroup that were part of the team
on that company making project.’
The success of the M2 underpinned the balance sheet for a number of years and the
share price rose up to over $4 in early 1997. The improvement had been a long time
coming. ‘I think it was the late eighties, when the Stock Exchange contacted us to
advise that we had less than 300 shareholders - the minimum required to remain a
listed company. So we approached our staff and asked them to consider buying $2,000
worth of shares at 20 cents a share if my memory serves me. Many of our staff decided
to invest - as did their family members - and remained shareholders for a long period.
Those who invested at the time made their money a number of times over, which was
great because they deserved the reward – it was they who had helped put the company
back on its feet.’
In 2005, Darrell moved on to become CFO of Abigroup’s parent company Valemus,
previously known as Bilfinger Berger Australia. But how did Bilfinger Berger Germany get
involved in the first place ‘In the early 2000s, it became clear that as projects became
bigger and bigger, the bank guarantees required to support the bids were also growing.
By 2003 Abigroup’s annual turnover had grown to in excess of $700 million and Vercot
still held 51 per cent of the shares. To bid for the M7, which was approximately three
times bigger than the M2, we needed to provide a $100 million guarantee to support
our equity investment plus another $70 million guarantee to provide security for the
construction. We managed to do that, but we were heavily penalised by the financiers
and that rocked us. So to give ourselves a chance to take the next step in our growth
path, we decided we would look for a cornerstone investor who could provide financial
This Page, Top:
Terrey Hills Golf Course
under construction.
This Page, Bottom:
Terrey Hills Golf Course
clubhouse.
Opposite Page, Top
and Bottom:
M2 Mototrway.
REBUILDING THE BUSINESS
DARRELL HENDRY
56

support for major projects. John and I travelled to Asia and Europe visiting past major
construction partners to gauge their interest starting in Japan with Obayashi. In the
end, the German company Bilfinger Berger AG showed the most interest. We initially
met them in Singapore and within a few weeks they asked if they could undertake
due diligence. They finally indicated that they were interested – but only if they could
buy 100 per cent of the company. John and I were aware that Bilfinger had acquired
Baulderstone Hornibrook some ten years earlier and left it in the hands of the Australian
management. We both liked the concept that Bilfinger would keep the Abigroup name
and leave it in the hands of the existing management, in addition to providing additional
financial support for major projects. We were confident they would just let us keep doing
our own thing, and that’s what has happened. So Vercot sold its 51 per cent interest and
Bilfinger then made an on market takeover offer for the remaining 49 per cent. By March
2004 all the shares in Abigroup had been acquired and another page had turned.’
John Cassidy exited the business, but Darrell stayed on, secure in the knowledge that
his house was well and truly safe again, but not quite ready to leave Abigroup behind
forever.
MILESTONE FACTS
Abignano Limited
1985 Group Of Companies
Air Conditioning (industrial)
• Thos Clark & Son Pty Ltd
Air Diffusion Equipment
• Anemostat Pty Ltd
Building Contractors
• Graham Evans & Co. Pty Ltd
• Graham Evans & Co. (Qld) Pty Ltd
• Graham Evans & Co. (Vic) Pty Ltd
Civil Engineering Contracting
• Abignano Ltd
• Abignano (Qld) Ltd
• Abignano Constructions (NT) Pty Ltd
• G. Abignano Construction Pty Ltd
General Engineering
• J. Kohler & Sons Ltd
Industrial Fans
• Pitstock Pty Ltd
Medical Services
• Cenrin Pty Ltd (50% owned)
Printed Circuit Boards
• Printronics Pty Ltd
• Printronics China Ltd
Pleasure Craft
• Mariner Cruisers
• Mariner Cruisers (Mfg) Pty Ltd
• Mariner Cruisers (Overseas) Pty Ltd
Welding Products
• Armalloy Pty Ltd
• Vida-Weld
57 REBUILDING THE BUSINESS
DARRELL HENDRY

Bridging the old
and the new
ERIC KING 1984 - 1997
FORMER BOARD MEMBER
Eric King and his wife Dawn are happily retired and living in Avalon Beach on
Sydney’s northern beaches. They have five children, 14 grandchildren and three great
grandchildren to keep him busy. They are a great source of pride for Eric, but it is quickly
obvious that there is still a great deal of pride remaining for what Abigroup has become.
Eric spent 42 years in the Department of Main Roads, chiefly as the Department’s
Engineer for the construction of freeways. 1984 came around, and Eric was preparing for
retirement but Jim Abignano had different ideas. ‘Jim had actually approached me earlier
because he knew I was retiring. I was purposely slow in answering him because I was
looking forward to retiring. However he was persistent and I began to get interested.
Being on the Board means you aren’t at work every minute of the day, but it wasn’t long
after joining that I ended up spending lots of time in the office and out on projects. It
was always exciting and I took an active, personal interest. I stayed 14 years.’
But don’t let that picture misguide you into thinking that everything was always rosy.
The mid-eighties were tumultuous and Eric was there on the front line. ‘It wasn’t the best
situation at the time. Jim had ventured to take control of another group called Enacon
and we diversified too much. We had things like building and joinery, yacht building,
small engineering operations and electrical circuit manufacture and were getting away
from our core activity of civil engineering. The business we took over virtually took us
over. At that time Clive Austin, the chairman of the board, informed me that they were
bringing in John Cassidy as managing director. I believe the motivation was to get him to
sort things out and then sell it all off. However John saw the possibilities and organised a
company buyout.’
Eric says that he will never forget the day John told him his plans. ‘John lived at
Newport and he would often come around for a cup of tea and a chat on a weekend.
One Saturday, he said he was considering a company buyout. I was surprised as I didn’t
have that in my mind at all. It was very chancy, but something had to happen and John
had the drive and ability to make it so. He gained the confidence of the staff and the
construction world and the loyalty he built up in the business is still there. John was a
compassionate man and was always interested in the welfare of all employees.’
Eric became the only bridge between the old and new when the new board was formed.
The new board quickly divested all the interests outside the core functions and focussed
their attentions on turning things around. They also changed the name to Abigroup
to hold onto the strength of the past but also to herald a new dawn. ‘The shares went
right down to something like two cents and it all rested on John and the buyout team to
‘...we’re now a firmly established
major player in the construction
sector and that’s as good as it gets.
Abigroup people still love their work
and it shows.’
REBUILDING THE BUSINESS
ERIC KING
58
REMEMBER...
• The fall of the Berlin wall on 9 November.
• The “beginning of the end” for the communist
rulers in Eastern Europe: the Cold War comes to
an end.
• Exxon Valdez oil disaster in Alaska in March has
massive ecological and economic repercussions.
• Milli Vanilli gets Best New Artist grammy, which
is later stripped when it’s discovered they were lip
synching.

esurrect the company. There were times it looked as if it might all go down. However
there was a full, experienced board and administration and a much more professional
show. The only things we held onto when selling the non-core activities were some blocks
of land that took a long time to get rid of and a yacht which we decided to keep for a
while.’
Slowly, more jobs came in and the business became more robust. A commonly accepted
turning point project was the M2 in 1994, and Eric agrees. ‘It was the first of our really
big jobs. We had support from Obayashi and we had the staff and the expertise. We were
ready. It was not straightforward though – there were all sorts of protesters out there
saving the trees.’
For a long while the Eric King Award was presented to the top Abigroup project for
engineering excellence in a given year. Not necessarily the largest but the one where
engineering excellence and profitability were achieved. The award was symbolic of the
emphasis Abigroup placed on getting the job done well and the winners were often
difficult to choose.
The Eric King Award has now become known as the John Cassidy Award, and Eric could
not be happier about it. The important thing, he believes, is the message the award
conveys and how it is a celebration of how far Abigroup has come. ‘I’m intensely proud
of Abigroup and what we’ve achieved. We may not be the largest but we’re now a firmly
established major player in the construction sector and that’s as good as it gets. Abigroup
people still love their work and it shows.’
Opposite Page:
Eric, 2010.
Top:
M2 under construction.
Above:
F3 Opening, 1993 (Eric 2nd
from right).
Right:
The Eric King Award.
59 REBUILDING THE BUSINESS
ERIC KING

A people-oriented
business
RICHARD FRENCH 1986 - to date
GENERAL MANAGER PLANT
When you’re running a fleet of equipment that takes 40,000 – 60,000 litres of fuel a
day per project, and when each big scraper costs in the order of $2.3 million dollars –
including an average $22,000 a tyre – you’ve got a serious job on your hands. Richard
French is the man at the helm of the management and maintenance of one of the jewels
in Abigroup’s crown, and it’s a job he takes very seriously.
‘We’re here to make sure the machines are maintained and functioning to their capacity.
Each project has its own maintenance team in the field, so it has to be a big problem if
it makes it all the way to us [in the depot]. But what we do is try to cut those problems
off before they happen, with scheduled maintenance and lots of planning. It’s the same
when we’re getting new equipment – we don’t really have issues with lead times or not
getting what we want because we schedule things well in advance.’
It’s the job of Richard’s team to work on machines and manage Abigroup’s fleet, but the
success in this division is largely due to the strength of relationships with people. ‘It’s
unique for a business like ours to own, operate and maintain its own equipment and this
helps us stand out. We love the machines, but the reason we’re all here is because it’s a
people-oriented business. It’s a great aspect of our business internally, but it also helps
externally. We’ve dealt with suppliers like Westrac [Caterpillar], Komatsu and Michelin for
years and our relationships with them have been very important for a long time.’
Richard started life with Abigroup as Maintenance Manager in 1986. He was poached
from an Abigroup competitor, Citra, as a result of his relationship with John Cassidy, and
he has seen plenty of change in his 25 years with the business. ‘In ’86 there were around
50 motor vehicles and now we have over a thousand. Our earth-moving equipment has
trebled and our fleet is much more modern and presentable now. The big periods of
growth were around the M2 and Yelgun to Chinderah Pacific Highway upgrade projects.
We’ve now got 52 people in the team, but the thing that hasn’t changed is the passion of
the crew – if we didn’t have that we wouldn’t achieve anything.’
Originally, the plant depot used to be at Jim Abignano’s place, before it moved to Asquith.
In the late eighties, the main depot shifted to the current site in Mt Kuring-gai, and there
are now support depots in Queensland and Victoria. Equipment and fleet training is held
on each project site, and Abigroup now also has the only two mobile scraper simulators
in the world to assist that process. ‘The simulators were developed with Cat – one of
them is based here [at the depot] and the other can be taken around to the jobs in a
trailer. We also have an apprentice school here now for plant mechanics and we’ve had
20 through to date who are now out in the field.’
It’s an indication of Abigroup’s commitment to this area, and Richard is quick to agree.
‘Management is always supportive of capital expenditure requests and it keeps us ahead
of the pack. The fleet is always modernising and this gives us a tremendous advantage.’
In the beginning, Jim Abignano’s plant and equipment consisted of a compressor and a
shovel – soon followed by a wheelbarrow. These days it’s a fleet worth over $150 million,
and the point is not lost on Richard. ‘History shows us how far we’ve come, but the place
is still very much about people. It’s why we’re here. It’s very exciting times for Abigroup
and it’s great to feel so very much a part of it.’
‘History shows us how far we’ve
come, but the place is still very much
about people. It’s why we’re here. It’s
very exciting times for Abigroup and
it’s great to feel so very much a part
of it.’
REMEMBER...
• Hit singles of the time were the likes of Nothing
Compares to You by Sinead O’Connor, Ice Ice Baby
by Vanilla Ice, Vogue from Madonna and U Can’t
Touch This by MC Hammer. Rock On!
• The first McDonald’s in Moscow, Russia opens.
REBUILDING THE BUSINESS
RICHARD FRENCH
60

Opposite Page:
Richard, 2010.
Above:
The Abigroup fleet of the past.
Left:
Cooroy to Curra, Bruce
Highway Project, 2010.

Cultural
continuation
RON LOVETT 1978 - to date
EXECUTIVE MANAGER - SOUTHERN REGION
In 1987, Abigroup was ailing and looking for a cure. Its building capacity needed a boost,
as did its presence in Victoria, and a company called Robert Salzer Constructions Pty Ltd
would prove to be just the tonic.
Ron Lovett joined Salzer as Construction Manager in 1978 and witnessed the company’s
development first hand. ‘Salzer began in 1969 and was owned and run by Bob Salzer, an
immigrant from Austria. I applied for the job through a top head-hunter and had to do
psychological testing, which was very unusual back then. But it showed to me that Bob
was serious and it was a good indication as to his personality.
‘Next, I came down to Melbourne from the country, met a few senior managers and that
was it. He’d already done his homework beforehand. He offered me the job, and the next
thing I knew I was around at his home, walking past the grand piano in the parlour out
to the sun deck, with Nola [Ron’s wife] having a cup of tea with Bob and his wife Betty.
It was all very civilised and a great welcome to the Salzer family. Then on my first day
at work, he pulled me aside and said, “Ron, I’m paying you enormous money and I’ve
had to increase all the other management wages – now make sure you earn the business
some money”. He was an affable, gentle and creative person, who beamed positiveness
and was also deadly serious about his business and he wouldn’t accept second best. But
he was also a believer in people – at 27 I was about to run half of his business!’
Salzer’s first job back in 1969 had been building 15 Collins Street, Melbourne, a multistorey
building that was the first high-rise apartment block in Melbourne’s commercial
business district, and it set the tone for the success of the business. But it was a business
with its owner at the fulcrum – not unlike Abignano Ltd with Jim at the reins. ‘A couple of
weeks after starting, I asked to see the figures on the jobs I was managing – I saw a key
part of my job managing projects as making sure each of them were profitable, as I had
done with my previous company. But Bob asked me why I wanted them, so we discussed
it for a while until he told me, “Don’t you worry about that – I’ll tell you if you’re losing
any money.” Sometimes I’d see his perfectly-kept, handwritten ledger book in his bottom
drawer, but for years he wouldn’t let anybody manage the profit and loss except himself.
It was amazing when you think that we were a complete Master Builder with probably
300-plus people on wages and multiple big projects on the go.’
The seventies and eighties were a very active, aggressive time for the unions in the
building and construction game, but Salzer had a good reputation that kept them largely
out of trouble. ‘We paid the team well with outstanding performance and loyalty being
rewarded. It meant that people liked working for Bob because he kept his word and was
genuine. They felt part of his family because he related to you regardless of your position
in the company and consequently, we had very few industrial issues.’
‘John [Cassidy] and his team
understood our can-do mentality
and consequently this alignment of
culture along with the continuity of
employment meant that we were
able to carry on being successful.’
REBUILDING THE BUSINESS
RON LOVETT
62

Opposite Page:
Ron Lovett, 2010.
Left:
Salzer’s first project at
15 Collins Street, 1969.
Bottom Left:
Salzer’s second project,
Chateau Commodore
reception, 1970.
Bottom Middle:
Chateau Commodore
project, Lonsdale street.
Bottom Right:
An early Salzer
company brochure.
Early company brochures encouraged prospective clients to “call Robert Salzer directly”
with enquiries, but by the mid-eighties, Ron could sense that his boss and mentor was
beginning to feel he’d run his race. ‘Many of the older management team were retiring
and Bob himself was getting older. By 1986 he was looking for a buyer, and engaged
a Sydney-based agent to find someone. At the time, Abignano was looking to acquire
a building operation in Victoria that could take on its Graham Evans Victoria business
down here – to take on the order book and the debts and manage the operation, which I
believe was about $6 million in debt at the time. There were two interested parties when
Bob finally decided to cash in his chips, but Bob was loyal to his workforce and wanted to
sell to an operation that would keep them on the books rather than let them go and just
use a sub-contracted labour force. Abigroup won out.’
By this stage, the Salzer offices had moved to 15 Pickering Road, Mulgrave, a site out
of the city that also housed the joinery, scaffolding, cranes and other equipment. It
was Salzer’s philosophy to own as much as possible outright, and it wasn’t the only
similarity Ron noticed after the 1987 buyout. ‘Look, Bob was wealthy, but he didn’t need
to externally display his wealth. He’d wear gumboots out on jobs and get his hands
dirty. His car was a Toyota Crown – comfortable but not flash. He was an inclusive,
approachable person who had high standards for himself and his people and especially
post-1988 and the John Cassidy management buyout; there was a similar feel at
Abigroup. John was more extroverted than Bob, but in many ways they were the same
and that made the transition much smoother than it could’ve been. Both were peopleorientated
and liked to give individuals a chance and both would much rather take a punt
and do something rather than sit around and talk about it. John and his team understood
our can-do mentality and consequently this alignment of culture along with the continuity
of employment meant that we were able to carry on being successful.’
Two big jobs that straddled the 1987 takeover were 90 Collins Street ($46 million)
in Melbourne’s CBD and The Pines shopping centre development ($20 million) in the
expanding outer suburb of Doncaster East. ‘The Pines in particular was a very successful
flagship project. At that stage of my career I preferred the adrenaline rush of general
management responsibility rather than specific project management, however Bob asked
me to “come off the road” and do that job as a favour because it meant a lot to him. He’d
been so good to my family, as with many others in his family, there was no way I could
disappoint him, so of course the answer was yes. I remember John [Cassidy] coming
out to the site with Abignano management to see the project before the management
buyout he led in 1988, but he hardly said a word. Looking back, he was clearly assessing
the work and assessing the people running the Victorian operations before he activated
his management buyout of the business. Meanwhile, the now Salzer/Abigroup team
was closing off the Graham Evans Victoria work and still making money on our projects,
but it was awkward. The changing face of Abigroup ownership was both amusing and
worrying during this period as our successful operation - still used to the stability and
dependability of the Salzer regime - received payment drafts now controlled by the
central Abigroup treasury in Sydney. And there appeared to be changing ownership
by various group entities such as Wormald Securities, then Sunshine or others, so the
transition wasn’t always a comfortable time.’
63 REBUILDING THE BUSINESS
RON LOVETT

And the Vercot management buyout wasn’t a panacea to all Abigroup’s commercial
woes either. ‘It was frustrating because our operations were making money and were
successful, but money we made was paying for other unsuccessful operations. Due to
the failing Hughes Brothers cash flow issues, subbies began to factor into their prices the
fact that they might not get paid on time, so costs began to balloon. We couldn’t deal
easily with suppliers that we’d previously had good relationships with because they were
no longer getting paid on time and although Bob wasn’t involved anymore, he was angry
because he felt it tarnished his reputation and his name was out there associated with
things he could no longer control. There was also a feeling in the Victorian operations
that the money we made here was being sent up to Sydney but there was never enough
allocated for our business to be sustainable, and ultimately this would affect our viability.
So it was far from perfect in many ways, even though the culture match was good.’
Ron is also keen to explain that the financial difficulties weren’t solely related to Hughes
Brothers acquisition and the Abignano ownership issues at that time. ‘In the late eighties,
the whole industry went into a downward cycle and it was very tough. We [now Abigroup
Victoria as the Salzer name transitioned out] went from nearly $100 million to $35 million
revenue in a year, with cuts in the workforce from 250 down to 50. The recent Global
Financial Crisis could’ve potentially seen a repeat of this traumatic outcome, especially
in the Building Division, had it not been for the growth in the capability and diversity
of the business that was learnt from the late eighties experience. Abigroup in Southern
Region has consequently been able to grow its business by targeting critical opportunities
in tough periods such as the Government stimulus program, and related opportunities
where we’ve had over $300 million of work from schools program down here. Currently,
the Southern Region employs 700 people and there are significant opportunities for more
growth.
‘Back then, John [Cassidy] and Darrell [Hendry] had a way of making you feel you
were on their team; together we will get it done - hence the “can do” culture. In fact,
John’s whole business model was based on it and it still serves the business well today.
For those involved in the acquisition and transition it’s a continuation of the Bob Salzer
business, really. There’s an Abigroup philosophy that was unsaid but very much lived at
Salzer, and that’s to take your idea and get on with it – seek forgiveness later if you get
it wrong. Abigroup is now a $2 billion dollar business with a conservative order book of
$4.5 billion, but I think that philosophy will underpin Abigroup’s success no matter how
big the place gets.’
‘I have no doubt that Bob Salzer would be very proud that original contributors to his
business with continuous service such as Mick McGuire (42 years), Frank Taverna (41
years) and Brian Moody (37 years) have worked for Abigroup for so long. Bob’s wish
when he sold his company to Abigroup in 1987 was that his legacy of a company that’s
recognised as having a can do culture has continued through the actions and loyalty of
people like these who are held in the highest regard by their peers.’
REBUILDING THE BUSINESS
RON LOVETT
64

ABOUT ROBERT SALZER
Robert Salzer was born in Vienna in 1924, but the advance of Nazism forced his
family to flee to Britain. It was there, in 1950, that he met Betty Reid, whom
he would marry in 1954. They moved to Melbourne in 1961, where Bob began
the construction career for which he was awarded the Order of Australia (AO) in
1993. After selling his business to Abigroup in 1987, he committed $500,000 to
start the Robert Salzer Foundation to support the Victorian arts community, and
his wife Betty added another $500,000 upon Bob’s death in 1995, aged 72. The
Foundation remains an important contributor to Victorian artistic life.
MILESTONE PROJECTS
Above:
Bob’s retirement dinner. Bob is the
first man seated from the left.
Far Left:
A Salzer social event –
Ron Lovett is in the red tie.
Opposite Page:
Ron Lovett, 2010.
Early Salzer Milestone Projects:
• 1969.
15 Collins Street, Melbourne.
Bob Salzer’s first job.
• 1970.
Chateau Commodore, Lonsdale Street,
Melbourne.
• 1971.
15 Pickering Road, Mulgrave.
(Salzer’s new premises.)
• 1972.
356 Collins Street, Melbourne.
• 1973.
Monash University’s physics and
chemistry buildings, Clayton.
Transition Projects:
(1987-1988, completed during
Abigroup acquisition)
• 1987.
16 Flinders Lane, Melbourne. Nine storey
office / carpark development, linked to
No. 1 Collins Street by covered suspended
walkway.
$12,000,000.
St Moritz Hotel, St Kilda Esplanade.
$23,000,000 (approx).
90 Collins Street, Melbourne. 27 storey
CBD office block with a composite steel /
concrete construction.
$46,000,000.
Pines Shopping Centre, Donvale. Major
retail centre comprising 44 specialty stores
plus major chains and parking for over
1000 cars.
$20,000,000 (approx)
• 1988.
55 King Street, Melbourne. Eight storey
office block with acoustic design plus
fitout.
$23,000,000.
REMEMBER...
• Gulf War: Operation Desert Storm begins
with air strikes against Iraq on 16 January.
• The United States Department of Justice
announces that Exxon has agreed to pay $1
billion for the clean-up of the Exxon Valdez oil
spill in Alaska.
• Paul Keating replaces Bob Hawke as Prime
Minister of Australia.
65 REBUILDING THE BUSINESS
RON LOVETT

Employees
come first
PAUL McGILVRAY 1987 - to date
COMMERCIAL MANAGER,
GATEWAY UPGRADE PROJECT
Paul McGilvray is the Commercial Manager on one of Abigroup’s biggest projects: the
$2.12 billion Gateway Upgrade Project in Brisbane. He has come a long way from his
formative years in Canberra where he completed his trade as a carpenter. In the mideighties,
he was made redundant following the completion of the Australian Defence
Force Academy, but he didn’t let it slow him down. ‘I had a young family and a mortgage,
so I straight away went to the social security office and got an in-fill job. A few weeks
later I got a call from an ex-colleague who was working at Hughes Brothers. I joined
them as a building cadet and went to work on the new Parliament House. Our contracts
were for the fitout of the Prime Minister’s office, the member and guest dining room
and the cabinet room. I still remember the ceiling of the cabinet room, it was inlaid with
detailed veneer that was all done on the Hughes Brothers’ premises. It was impressive
stuff.’
Formed by Tom and Bill Hughes in 1946, Hughes Brothers was a building company
based in Port Kembla. In 1953 they won work on the Snowy River Scheme, which led
to the company’s diversification and expansion - with offices in Sydney, Canberra and
Newcastle as well as Port Kembla - and work across NSW and ACT through the seventies
and eighties. ‘The Canberra office was probably four or five full time staff. We were a
tight group. During my time at Hughes Brothers (and later as part of Abigroup) I had
the opportunity to work on a number of the landmark buildings around Canberra. I
remember renovating the Queen’s room before her visit, and we couldn’t touch the
walls after they were painted or we’d need to repaint them to make sure there were no
fingerprints or marks.’
But whilst the work was satisfying, the Hughes Brothers’ business was obviously in
financial difficulty. ‘We finished Parliament House and had submitted a number of
contractual claims. I went down to the Port Kembla head office to work as part of the
team negotiating the claims. Just prior to Christmas we were told that the directors had
accepted an offer from the client to settle. We were told that the business needed the
cash for the Christmas holiday pays and that the settlement was about ten per cent of
the submitted value. I remember driving home to Canberra disappointed at the outcome.
They were worrying times in many ways.’
In 1986, Abignano became Abigroup, and one of its first acts under the new banner was
to buy the Hughes Brothers business. It was a strategic decision because it meant taking
on the Hughes Brothers debt, but the aim was to develop Abigroup’s building capacity
in NSW – and as a long-term decision it has proven fruitful. ‘I was surprised about the
buyout, however it was like a second chance in some ways and it was business as usual
for us in Canberra. Most of our work was with the ACT Government and whilst it wasn’t
large in dollar terms, it gave us the opportunity to work on iconic buildings and keep the
team together.’
Paul could see the personal opportunities that might come from being employed by
Abigroup – a much larger and diverse operation than he was used to. ‘While I enjoyed
‘I had my wife and kids on site
filling sand bags, climbing scaffold
to try and divert a disaster. We
succeeded.’
REMEMBER...
• One and two cent coins are withdrawn from
circulation, forcing shopkeepers to
round off items to the nearest five cents.
• An historic High Court ruling in the Mabo case
recognises Native Title to land.
REBUILDING THE BUSINESS
PAUL McGILVRAY
66

Opposite Page:
Paul, 2010.
Left:
Hughes Brothers Portfolio Cover,
1980s.
Below:
Work underway on the second
Gateway Bridge.
my time in Canberra, I wanted to move to Sydney where I believed there were greater
opportunities. There weren’t any straight away, so I moved to Dubbo to work on a
shopping centre extension. It was a real “family project” with a small, close group and
it was a good chance for me to take a step up. Though I do remember we had a major
concrete pour, it was 40-plus degrees during the day and too hot to undertake the pour,
so we did it at night. We brought in three major concrete pumps from Sydney and had
every concrete truck in Dubbo and the surrounding districts working that night. The slab
adjoined the rear loading dock of the existing Coles supermarket. The specification had
us curing the concrete with water – the problem being that the run-off ran into the Coles
docking bay and flooded the back of their store. It was Easter Saturday and most of
the team had gone away for Easter, so I had my wife and kids on site filling sand bags,
climbing scaffold to try and divert a disaster. We succeeded.’
After 18 months in Dubbo and still looking towards working in Sydney, Paul and his
family moved to Terrigal on the NSW Central Coast and he took the role as site manager
on a project at the Lamington Mine in the Hunter Valley. ‘We were building a $3 million
bath-house for the miners. In those days this was a pretty big job for NSW Building.’
Abigroup struggled through the late eighties and early nineties, relying on the company
spirit to get through. ‘I remember our salaries being paid up to two weeks late and not
having a salary review for four years. Our trading accounts were all overdue and I had
to buy materials on a personal credit card. However, at no time did I ever think that I
wouldn’t be paid.’
Following the award and success of the M2 motorway project things started to improve.
‘John Cassidy and the team lifted the vibe, finalised claims and improved cash flow. I was
on the path to a project management career, which was fine, but I saw my strengths in
the administration side of the business. Alan Cassin was then the NSW Administration
Manager of the civil operations and when he went out to work on the M2, I decided to put
my hand up for Alan’s job (although it took me two days to work up the courage). The
Managing Director of the time had to think about it, then said, “My brain says no, but my
guts are going to give you a go.”’
The decision proved fruitful for both parties, and Paul has now worked up to the position
of Commercial Manager on the $2.12 billion Gateway Upgrade Project in Brisbane. ‘It’s
exciting to be a part of this iconic project and makes me so proud to see what we have
achieved. At its peak the project had approximately 370 salaried staff, 350 blue collar
workers plus the subbies. We have a strong relationship with the client [Queensland
Motorways] - they have 30 or 40 staff on the project every day – a couple of decades
ago that’s more people than on the whole Abigroup building staff!’
The Gateway project is a joint venture with Leightons, and working with them has shone
a light on the Abigroup culture. ‘Abigroup rarely has position descriptions and there’s
little restriction regarding levels of authority – we’re all in it together. Leightons are
much bigger and much more regimental and structured. I am seeing us move towards
the Leightons regimented processes and whilst some of the longer-term employees
might want to resist that change I think we have to recognise that we can’t run a $2
billion company like we used to run a $200 million one. But that said, the thing that has
remained exactly the same is the fact that employees come first, and I think that’s the
company’s greatest strength.’
67 REBUILDING THE BUSINESS
PAUL McGILVRAY

Mates and
memories
ALAN CASSIN & RON YATES 1976 & 1989 - to date
CENTRAL REGION HUMAN RESOURCES MANAGER &
MANAGER, COMMERCIAL PROJECTS AND SYSTEMS
Abigroup’s Alan Cassin and Ron Yates have together racked up a combined 55 years
of service. The two are good mates and have plenty to say about the company - so
much so, in fact, that other staff members have taken to naming them after the two
grumpy old men from The Muppets! However when we caught up with the pair, they
were overwhelmingly positive. Oh – and neither of them wear three-piece suits or have
oversized noses...
Alan originally joined Abigroup as a labourer in Asquith in 1976. He did it because it
was a job and brought in some money, but he stayed because the people there were
fair and he was paid well. He’s been a storeman, a truckie, an admin manager and
many other things along the way to becoming the Central Region Human Resources
Manager. He takes pride in passing on the company’s culture and it’s fair to say that the
business means much more to him than a regular salary. ‘When I started, we were a
strong contractor with I guess around 300 people and a $7 million - $8 million turnover.
Jim Abignano was hands on and ruled with an iron fist. He’d sit on a hill and watch the
machinery at work. But he knew his stuff and was a fair and honest man. The staff were
like his indirect family and it’s difficult not to be affected by that.’
Ron joined in 1989 as a contract engineer and has since had roles working on projects,
contract management and management systems. Currently, he is Manager, Commercial
and Project Services, but his start wasn’t so auspicious. ‘I joined Abigroup because I
knew it was one of the few contractors out there that could do a reasonable settlement
on claims. They had a practical approach and knew it was better to avoid arbitration.
I knew a lot of the people already and culturally, it was pretty much what I expected.
But not long after joining I did wonder what I’d done… the place was struggling. We’d
subsequently found out a company we had bought was in trouble financially and we had
to go around and tell our subbies that times were difficult and that they’d have to wait for
their money. Those guys were our bankers, really, and probably because of our approach
of being honest and truthful, they responded remarkably well.’
‘It was tough times for our staff, too,’ Alan adds, reflecting back himself.
‘That’s true,’ Ron agrees. ‘Everyone would be waiting around on a Friday afternoon when
John Cassidy would come down and let everyone in on the status and where we were…
and if we could have a drink that night!’
‘People used to joke that we were “Scabby Abi” back in those days!’ Alan laughs. ‘The
more you could save, the more you made, and it’s not a bad attitude, really. Though I
remember times way back when I’d fill up drums of fuel to use and Jim [Abignano] would
stick a dip-stick in them to see how much had been used out there! I remember another
time when I had a ute and had to transport two crusher jaws up the Bells-Line-of-Road. I
wasn’t given chains or ropes and on the hill, I began to lose steering at the front because
there was too much load shifting in the back. So I had to knock over four guide posts
from the side of the road to use to keep the jaws in place and get up that hill!’
‘Everyone would be waiting around on
a Friday afternoon when John Cassidy
would come down and let everyone
in on the status and where we were…
and if we could have a drink that
night!’
REMEMBER...
• Schindler’s List, wins seven Oscars including Best Picture
and Best Director (Spielberg).
• Michael Schumacher wins his first Formula One World
Championship.
• The 50km Channel Tunnel opens between England and France.
Over 15,000 workers took seven years to complete the project.
REBUILDING THE BUSINESS
ALAN CASSIN & RON YATES
68

We’d also heard that Alan had once tipped a truck in front of his boss’s window. Not a
good career move, surely ‘That’s true,’ replied Alan, a sheepish grin on his face. ‘I was
in a Bedford K-Series which was good for carrying four tonne and I had more than that in
it and the thing tipped. It was right in front of Jim’s office… he stormed out but he didn’t
have a go at me… he just said, “How are we going to pay for that”’
After a period of financial instability, John Cassidy and his team steered the ship into
calmer waters and later came the takeover by Bilfinger Berger Australia [BBA]. Ron’s
comments about that time are pragmatic, accepting that it had to be done if the business
wanted to go and play with the big boys, but Alan is more emotional. ‘I split the history
of our business into four chapters. The first was with Jim Abignano at the helm, the
second was John’s [Cassidy], the third has been the BBA period, and the fourth is yet to
be written. To be honest, I felt a bit betrayed when Jim first floated because we had such
loyalties to him. Then the same depth of loyalties were created for John and I felt that
loss again when that chapter closed. But having BBA as the owners didn’t make any real
difference to the culture the two previous eras had developed, and in actual fact, every
one of those steps has been positive and important. Without them, we wouldn’t be where
we are now and we wouldn’t have the same can-do culture.’
Things have changed dramatically now.
‘We’ve come so far with safety,’ Ron remarks. ‘The Lost Time Injury Frequency Rate was
15 about 15 years ago and is one or two now. It’s not just us that’s improved in this area
it’s the whole industry.’
‘Absolutely,’ Alan agrees. ‘Safety back then was basically a combination of luck and one
of your workmates calling you names if you were doing something stupid. And years ago,
no-one cared about the environment and Human Resources was just a big stick. Probably
the only thing that’s similar is the attention to quality because we’ve always wanted to
leave a legacy.’
Change has been driven by Government departments being down-sized, resulting in
more and more work being outsourced. ‘They could no longer be the controllers of
quality, so they needed to get assurance from the contractor,’ Ron states. ‘Because of my
background I drew up our first quality assurance documents. Then safety became more
important in the nineties and that led to the creation of our systems for this. Procedures
for environmental management came next and this one has been the toughest to drive
through our culture, but the easiest one was probably the quality because we’ve always
gone for that.’
Above:
Alan & Ron, 2010.
Top & Left:
Workers on site, 1982.
Opposite Page:
Alan & Ron, 2010.
The other thing they agree on is how good they all looked back in the day. ‘The Village
People – couldn’t be anything else! Hairy chests, the ciggies under the sleeve… it was a
man’s industry back then, that’s for sure!’ Ron sits back and laughs in disbelief as they
think back.
These two stalwarts may no longer fill out their tight shorts so magnificently as they
once did, but they remain proud of where the business has come from, and excited about
where it’s heading - no matter what they’re wearing and what changes are afoot.
69 REBUILDING THE BUSINESS
ALAN CASSIN & RON YATES