Born in adversity, R&O prospers by 'getting projects done as promised and on time'
In 1979, R&O founder Orluff Opheikens found himself in a precarious spot as a successful homebuilder and real estate developer when interest rates began their climb to an unheard- of — and hard to even imagine — 20 percent.
“Things were going so well for me at the time,” Opheikens said. “I was only 32, had a shiny new car, we had just started a new condominium project in South Ogden and we had more than 100 homes going. I can remember the arrogance of thinking I had it made.”
A few months later, thanks to massive inflation, the economy changed almost overnight as interest rates forced many people out of the home buying and the home building industry.
“All the security I thought I had was gone,” he said. “Many of my friends ended up filing for bankruptcy and it was like D-Day for anyone in residential construction.”
Pulling together a few of his closest associates and friends, they made the decision to leave residential and turn toward commercial construction. Using all the capital he had left and $65,000 from family friend Les Randall, they formed R&O Construction in 1980 and began work in Opheikens’ basement.
It was slo -going at first and cracking into the market proved difficult. The team bid more than 20 jobs before landing its first significant project, a remodel of the Clearfield City Office Complex. A short time later, they landed the first of many Smith’s grocery stores and built R&O’s first store in West Valley City.
“We lost some money on that first Smith’s but we did a great job on the building,” Opheikens said. “That led to Smith’s owner, Dee Smith, asking us to keep bidding on future stores and soon we were negotiating their projects.”
Keeping in mind the saying, “You’re only as good as your word,” R&O focused on quality and getting projects done as promised and on time. This philosophy still emanates from all R&O employees and has led to steady growth.
Now in its second generation of family leadership, Orluff Opheikens’ sons, Slade and Chet, have continued what their father started, with Slade as president and CEO and Chet as vice president of business development, working out of the company’s Las Vegas office.
Growing up in the business didn’t mean either son was just given anything; in fact, it was quite the opposite.
“We had to start out at the lowest levels and learn everything it takes to make a company this size work,” Slade said.
Starting as a laborer and working his way up gave him a unique perspective.
“First and foremost, I gained a greater appreciation and understanding of everyone’s role,” Slade said. “I can relate to the challenges that are facing our organization and industry and look for solutions that are fair to everyone and help us succeed. One thing I know is that this industry is constantly changing. What worked yesterday will not work tomorrow.”
After a difficult 2008 caused by the Great Recession, a decision was made to build upon the company’s strong retail foundation and construct many other types of projects, including multi-family housing, higher education buildings, office buildings, warehouse construction, recreational construction, as well as senior care and medical housing.
“We had always been able to build many different types of projects, but after the economic turndown we decided to chase even more diverse projects, while preserving our roots in retail,” Slade said.
R&O is now a Top 300 Contractor in the country and one of the largest in both Utah and the Las Vegas area. Despite this growth, the company remains focused on building meaningful relationships with every client and delivering projects that stand paramount in the industry.
“We have clients that we have worked with since Day One,” Slade said. “We still build Smith’s and Harmons stores just about every year. Building long-term relationships with our clients, whether new or old, is what makes being in this business rewarding. It becomes our mission to help each client reach their own goals and we celebrate their successes.”