He Rose Up by Knocking Things Down

Michael A. Castro was a project manager for a general contractor and noticed as he collected receipts that the subcontractors on the front ends of the jobs, like the demolition crew, always got paid promptly. The idea of demolition fascinated him and so he decided to open his own company. By pre-qualifying as a minority, disadvantaged business, he has been able to bid on large jobs, including the $441,000 demolition contract he won recently on the Alameda Corridor project. Castro was interviewed by freelance writer Karen E. Klein.

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I had heard about the Alameda Corridor for years and then, one day--boom!--I saw the advertisement soliciting contractors to do the north end of the project. The average person probably looks at the process to bid on these contracts and goes, “Oh, forget it!”

But I feel that it is worth it, even though there is some extra time and effort--and paperwork--involved in acquiring the jobs. I don’t mind the work. As a minority, I feel I’ve always had to work harder, faster and longer to survive and make it.

When I started out, I was pre-qualified by Los Angeles County’s affirmative action office as a Hispanic-owned, disadvantaged business, which basically just means I do less than $7 million in annual revenue. The federal government classifies mine as an “emerging business.”

I spent years going to cities and looking for work through redevelopment agencies. There was stability there and I knew I would get paid.

I hit some roadblocks along the way. For instance, I had to have $1 million in insurance to do certain jobs and the bonding requirements were tough to meet. But as time went on and I persevered with job after job, I started picking up more and more bonding and insurance.

After I got regular work from one or two agencies, I started getting word-of-mouth referrals. I got calls from Los Angeles County and the city of Los Angeles to help clear several thousand burned buildings after the riots. Then I did demolition after the Northridge earthquake and the Malibu and Altadena fires.

When I saw the ad for the Alameda Corridor, I picked up the bid documents and got involved in an outreach program, meaning I had to solicit work from other disadvantaged businesses to work under me as subcontractors on this project. I have to follow strict guidelines to comply with the program, meaning I have to place ads in newspapers and other publications and interview potential subs to do different portions of the contract.

There is a tight time frame, and if you blink you’re out of it.

I ended up hiring a woman entrepreneur who has her own equipment-rental company in Alhambra, and a local black-owned trucking company from Los Angeles.

A lot of my regular subs asked why I wouldn’t hire them on, but I enjoy giving other disadvantaged businesses a chance to get some new work. It is really encouraging for me to give them a shot at making it, just like people did for me when I started out.

On this project, we will be razing eight buildings and doing a lot of soil work. I’m hoping to be involved in upcoming phases as well. There will be a lot of work for the next five years until this $2-billion project is completed, and I’m planning to do some more of it.

* MORE SMALL BUSINESS: D4-D6

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At a Glance

* Company: Ground Zero Demolition Co.

* Owner: Michael A. Castro

* Nature of business: Demolition, excavation and construction

* Location: 1526 W. 259th St., Suite 11, Harbor City

* Founded: 1986

* Employees: 10

* Annual Revenue: $1.4 million