Q2 - 2025 - Kovach Ink

KOVACH INK Q2 2025

Hi Team, Greetings from Colorado!

Even though I’m not in the middle of the daily hustle now, I’m definitely cheering you on from afar. I know this Q2 edition is landing a little later than usual—thanks for hanging in there with me. There’s just been so much happening at Kovach that I wanted to make sure I captured it all and shared the story the right way. Honestly, I think it was worth the wait! Putting this together honestly makes me smile—it is a chance to reflect on everything happening across the departments. Seeing all the wins, the teamwork, and the way you all keep stepping up just reminds me how lucky I am to be part of this team, even from afar.

As you read through, take a moment to really appreciate what’s here. There’s so much to be proud of—stronger relationships, big wins, and the way you’re all living our Kovach values day in and day out. That’s exactly what’s helping us grow—not only toward becoming Subcontractor of the Year, but also toward building a thriving, successful ESOP company. Honestly, you’re crushing it, and I couldn’t be prouder to be part of this team.

If you’ve snapped any photos along the way, please add them to the Company Events folder in the “S-Drive” or you can always send them my way—I’d love to include more of those moments that capture the energy and positivity across Kovach.

Thanks for everything you do. Here’s to owning every moment and making the next quarter even better!

—Angela

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Laying the Groundwork: Relationships, Grit & Greatness in Precon, Sales and Business Development The 2nd Quarter had a heavy focus on refining relationships, reinforcing trust, and leaning into the deep value of technical expertise and ownership.

One standout challenge involved working with a particularly detail-oriented general contractor, Holder Construction.

Which means our communication must be buttoned up and precise.

Instead of letting the pressure strain the relationship, the team leaned into the moment, actively listening, adjusting when necessary, and ultimately strengthening trust. Relationships are truly the backbone of our success.

We are learning that the team’s ability to “listen to understand” also paid off during a Design Assist collaboration, where open communication helped align scope, budgets, and timelines from the beginning. These moments required patience, empathy, and the confidence to lead with clarity.

It is important that we check in with people—not just for progress reports, but for well-being.

Empathy creates space for honest conversations and builds resilience within the team.

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Taking ownership also defined the team’s approach this quarter. Early in one project, they identified a potential scheduling issue. Rather than letting it become a downstream fire drill, they addressed it immediately, reinforcing Kovach’s core value of “Own It” and keeping the client experience smooth.

The team’s grit showed up in every stage of the sales cycle. Q2 came with its fair share of scope changes and lost bids, but instead of being discouraged, we doubled down. We fall back on relationships. We doubled down. When we lose, we still follow up to learn what went wrong and how to improve. That’s grit in action.

Despite the hurdles, the team remained optimistic. We have doubled down on the use of internal data to spot win trends and redirected their energy toward efforts with the highest potential. Keeping a positive mindset—even during complex planning and difficult negotiations—is a powerful differentiator.

Our Design Assist team is one of the strongest in the country. That expertise continues to elevate proposals and secure new opportunities, showing how technical knowledge paired with trust can become a competitive edge.

Reflecting on the quarter, we have tried hard to work with operations partners earlier and more collaboratively. The result was better workflows and less stress for everyone involved. It’s clear that through empathy, insight, and relentless ownership, the Precon and Sales team is laying the groundwork for long-term success—one relationship at a time.

Project Management Strategic

Accountable

Collaborative

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Project Management: Leading with Ownership and Empathy —Submitted by Rudy Hernandez, Director of Project Management Owning Challenges, Delivering Solutions In Q2, our Project Management team continued to strengthen collaboration with the field and other departments, reinforcing a culture grounded in trust, open communication, and shared ownership. A standout example was how we handled a material delay issue. Instead of letting it escalate, we coordinated across vendors and adjusted sequencing to keep the project on track. It was a clear demonstration of what it looks like to own a challenge and follow it through to a solution.

Leading with Emotional Intelligence One moment that stands out involved a conflict between the field team and a supplier regarding delivery delays. Rather than escalating the situation, our team took the time to actively listen to both sides. We acknowledged the field team's frustration and engaged the supplier to understand their limitations. By showing empathy and staying focused on solutions instead of blame, we were able to reset expectations, adjust the schedule, and maintain strong working relationships with both groups.

Building Trust Through Communication Communication between the office and the field improved significantly through more consistent check-ins and clearer documentation of project priorities. That clarity helped eliminate misunderstandings, created space for real-time feedback, strengthened trust, and ensured alignment between office planning and field execution.

Modeling Ownership in Action As a leader, I’ve been intentional about making the concept of “thinking like an owner” visible in my daily decisions. I treat every project expense as if it were my own money, reviewing material orders for cost savings, questioning unnecessary purchases, and ensuring rentals are returned promptly when no longer needed. Just as important, I communicate the reasoning behind these decisions with the team, explaining the financial impact and how it ties back to our shared responsibility as employee-owners. By modeling this behavior, I’ve seen the team adopt a similar mindset—evaluating costs more critically, anticipating project needs, and taking greater ownership of both the small details and the bigger picture. It’s a shift that’s building stronger accountability across the board.

Influencing Long-Term Success As employee-owners, we know our impact goes beyond meeting project deadlines.

Our team consistently looks at how today’s decisions influence the long-term success of Kovach—by building lasting client relationships, improving internal processes, and finding cost-effective solutions that protect both quality and profit.

We see every project as an opportunity to grow the company’s reputation and position us for future success.

Living the Core Values Our team is also raising the bar by living our core values: staying positive in pressurefilled situations, owning our responsibilities from start to finish, leaning on our expertise to deliver high-caliber results, and showing grit when timelines get tight.

That consistency is helping us build client trust—and bring Kovach closer to earning the title of Subcontractor of the Year.

Driving Culture Forward The PM team is contributing to a more unified and positive company culture by promoting open communication, supporting collaboration between departments, and addressing challenges with a solutions-focused mindset. By celebrating team successes, sharing knowledge, and fostering mutual respect, we are creating an environment where everyone feels valued and aligned toward common goals.

Celebrating Growth And finally, a well-deserved congratulations to Tyre on his promotion to Project Manager! His growth is a testament to our commitment to developing talent and building strong leaders from within.

Kovach Shop Boosts Efficiency with New Router Table The Kovach Shop is excited to announce the addition of a new router table machine to its workshop. This cutting-edge equipment is set to significantly improve the fabrication process for ACM and Aluminum panels.

The new machine is designed to be both faster and more efficient, allowing the Kovach Shop to increase its production capacity and turnaround times. This investment reflects the Kovach Shop's commitment to using the latest technology to deliver superior products. The enhanced capabilities of the new router table will enable the team to handle a wider range of projects with even greater precision and speed.

This upgrade positions the Kovach Shop to continue its tradition of excellence while meeting the growing demands of the industry.

CONSTRUCTION‌ Construction: Leveling Up in Q2!

There’s no denying that Q2 demanded grit, flexibility, and solid communication—and the Construction team delivered. Jansen Miller’s reflections show exactly how Operations came together, owned challenges, and kept projects moving.

Trust + Communication = Progress "Working through problems and solving them as a team, with trust and open communication, is a priceless tool in making the right decisions for Kovach."

That mindset played out on Herberger, where both glazing and metal teams needed a workforce boost to finish strong. They didn’t operate in silos; they collaborated. Crews from Echo Cliffs shared labor, communicated what was needed, and worked together to push both jobs forward. The result? Progress fueled by connection and shared commitment.

Making Time to Talk—Not Just Type Fast-paced projects like TSMC don’t leave much room for miscommunication. That’s why Brandon Ware, Jaime “FINO” Gonzales and, Jose Carmona emphasize the importance of going beyond email. “You have to make time to talk to people face-toface when possible. It’s about communicating accurately and responding in a timely manner.” This people-first approach helped crews stay aligned and feel heard, even under pressure.

Owning the Outcome At TSMC, with future work riding on the success of FAB 2, the team rose to the occasion.

Crews stayed efficient, kept quality high, and leaned into accountability. “There are always growth opportunities when someone comes across something new for the first time,” Jansen said. “It’s great seeing how Kovach encourages individuals to lead and push to innovate and make sure we are doing everything the most efficient way as possible.”

CONSTRUCTION CONT...‌ CONSTRUCTION CONT...‌

Problem Solving Is Part of the Culture Issues are bound to pop up on any project—but for this team, it’s not just about fixing them in the moment. It’s about asking the bigger questions: How can we prevent this next time? What could we have done differently? That mindset shows up daily. It’s less about blame and more about learning—because every challenge is a chance to get better.

Every Day, 1% Better Improvement isn’t a box to check—it’s part of the everyday mindset. “Everyone knows they have a voice and is encouraged to challenge the status quo,” Jansen said. “If something can be improved, we’re going to improve it.” That continuous momentum is what keeps the team sharp, efficient, and ready for whatever’s next.

The Construction team didn’t just talk about core values this quarter—they lived them. Positivity showed up in their mindset: “We accept the challenge. If it can be done, Kovach can do it.” Instead of working in isolation, they leaned on one another’s expertise, knowing someone likely had relevant experience to share.

Own It was clear when Eddie Vidal committed weekly on-site support until an issue was fully resolved. And grit came through when Alvaro Villalpando and his crew powered through 12+-hour days to complete interior fire-rated panels—finishing ahead of schedule. These values weren’t one-off moments—they’re part of the team’s daily rhythm and what continues to move Kovach forward.

Looking Ahead Jansen summed it up well: “Kovach is growing, and we need to hit a growth stride we’ve never seen before. We all have to be up to the challenge to level up.”

The work done in Q2 laid that foundation—and the Construction team is more than ready to keep building on it.

Safety & Risk Management

Kovach Safety Update: Summer Success Built on Proactive Safety As we push through the final stretch of another relentless Arizona summer, we want to take a moment to recognize the hard work and commitment from all of our field teams across projects. Despite the extreme heat and tough working conditions, your dedication to safety has shown incredible results.

We’re proud to report that we’ve had only one OSHA recordable injury so far this summer which was a severe laceration. While any injury is one too many, this low number is a reflection to the proactive safety culture you’ve all helped build on the jobsite.

One standout example of this culture in action has been the success at Project North where our team has navigated both tight schedules and high temperatures. This level of performance doesn’t happen by luck it comes from careful planning, accountability, and looking out for one another every single day.

Safety & Risk Management

Let’s keep this momentum going by staying focused on the basics that protect us: Complete thorough Pre-Task Plans – Make sure everyone on your crew understands the risks before starting work.

Wear all required PPE – Hard hats, gloves, eyewear, and highvisibility clothing, and face shields are your last line of defense.

Watch out for your team – Speak up if something doesn’t look right. Peer checks save lives. Your efforts are what keep our jobsites safe and productive.

Let’s stay sharp, finish strong, and continue making safety the foundation of our success.

o m C m e r itte u t l e Cu Q2 was bursting with energy, thanks in part to the Culture Committee! We kicked off the quarter by wearing blue to raise awareness for Autism and to show support for some of our own owners and their families affected by Autism. Fun Fridays were filled with activities that brought owners together, and in May we turned up the celebration with a Fiesta theme featuring a lively Mariachi band. We also continued our quarterly Bingo, this time shining a spotlight on Mental Health Awareness.

June wrapped the quarter in true summer style with fundraising and community impact.

Leaders took to the tank for The Patriotic Plunge, raising $2,500 (and counting through year’s end) for Folds of Honor, which provides scholarships to the spouses and children of America’s fallen or disabled military. At the same time, Kovach owners came together to donate three pallets of water to the Chandler Police Department, which helps distribute that water throughout the Chandler community where it’s needed most.

These moments weren’t just about having fun (though we did plenty of that)—they were about building connection, recognition, and a stronger sense of ownership across the office, field, and shop.

Now we’re looking ahead to a fresh start this Fall. The Culture Committee is hitting reset with new ideas, new leadership, and the same mission: to make Kovach more connected, more fun, and more meaningful for every owner. From celebrations to community impact, the best is yet to come—so get ready for what’s next!

2025

We’re thrilled to share the Q2 project wins Kovach has been awarded! Each new project reflects our team’s expertise, dedication, and reputation for excellence.

These opportunities allow us to showcase our skills, deliver exceptional results, and continue building strong relationships across the industry. Check out the latest projects that are putting Kovach on the map!

Kovach’s Q2 Wins

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The Kovach MVO Awards honor those who go above and beyond to embody our core values and make a lasting impact.

Congratulations Owners!

Own It

Positivity Ken Keating

Pablo V asquez Sr Carpenter.

Special Projects Metal

Juan Armenta

Tyre Kim Project Manager

Lead Glass Design

Expertise Victor “Memo” Panuco Shop Supervisor Nathan Mower Sr. Project Mgr.

Grit John Froio Asst. Project Mgr.

Jaime “Fino” Gonzalez Superintendent Metal

KOVACH ESOP Q2 Employee Ownership Insights Recap This past quarter reminded us what it really means to be employee-owners at Kovach. We learned that ownership isn’t just a title—it’s a way of securing our financial future, raising our own standards, and actively shaping the culture we want to be part of.

On the financial side, we dug into the real benefits of our ESOP. Unlike a 401(k), our ESOP is fully funded by the company, which means every year we stay and contribute, we’re building wealth without dipping into our own paychecks. With retirement savings, tax advantages, and the promise of our first valuation coming soon, the groundwork is being laid for long-term success.

Ownership goes beyond numbers—it’s about how we show up every day. This quarter, we focused on raising the bar and following through. Whether it’s double-checking details, so the field has what they need, hitting higher install numbers, or simply finishing strong, these actions don’t just make us better workers—they make us better owners.

And at the heart of it all is involvement. Q2 was a reminder that every voice matters, no matter where you work—shop, office, or field. The ideas we share, the credit we give, and the ways we step up all help build trust, improve performance, and strengthen our ESOP. Culture doesn’t just happen—it’s built by the choices we make and the energy we bring.

Looking ahead, the challenge is clear: keep raising the bar, keep speaking up, and keep owning it. Together, we’re not just building projects—we’re building a company and a culture worth owning, rooted in Positivity, Expertise, Grit, and the belief that we all have a role in shaping the future of Kovach.

Kovach Owners of the Month Our Owner of the Month recognizes those who don’t just do their job—they own it. These individuals lead with initiative, accountability, and heart, setting the standard for what it means to make Kovach stronger.

Congratulations JT Hanger!

April 2025

J.T. Hanger was selected for April’s Owner of the Month in recognition of his strong alignment with Kovach’s core values. J.T. consistently brings a positive mindset to work, no matter the challenge. He doesn’t shy away from difficult projects or tight schedules—instead, he steps up and takes ownership.

Recently, J.T. jumped in to support both the Herberger and Align projects, demonstrating true grit and accountability. He works hard, manages his time effectively, and stays focused on hitting deadlines. His drive, initiative, and willingness to tackle complex issues make him an invaluable part of the team.

J.T. leads by example, always looking ahead and taking action to keep projects moving forward. His dedication, reliability, and can-do attitude embody what it means to “Own It” at Kovach.

Congratulations Jesse Vela!

May 2025

We’re proud to announce Jesse Vela as Kovach’s May Owner of the Month! Jesse consistently demonstrates grit, accountability, and leadership on the floor. Known for his skill in fabrication and frame assembly, he not only trains fellow team members but also sets production goals and tracks progress to ensure the team’s success. His commitment to continuous improvement and his ability to take full ownership of his area make him a standout example of what it means to lead with an ownership mindset.

As part of this recognition, Levi will receive:

$150 Gift Card, and, A custom Kovach Owner of the Month Challenge Coin

This recognition is more than a congratulations—it’s a reminder that each of us has the power to make a difference. As we honor the winners, let’s be inspired to carry the same initiative, accountability, and grit into every day ahead.

WOMEN IN CONSTRUCTION Q2 was filled with moments that highlighted appreciation, community, empowerment, and wellness. From honoring mothers with a thoughtful gesture of flowers, to serving families in need with a home-cooked meal, to creating hands-on opportunities for women in the trades, and finally carving out time for mindfulness and self-care, KWIC showed what it means to support women in every aspect of life.

Q2 Highlights: Mother’s Day Celebration – Members handed out flowers to the mothers at Kovach, a thoughtful gesture to honor and recognize their impact both at work and at home. It was a small but meaningful way to show appreciation, bringing smiles and a moment of joy to those who give so much every day.

KWIC Cooks Together – KWIC members came together to prepare and deliver a homemade meal to the women at A New Leaf – Autumn House. For those rebuilding their lives, the comfort of a shared meal can bring both hope and connection. The Kovach ladies provided more than just food—they brought encouragement, compassion, and a shining example of Kovach’s core values in action.

KWIC & Build Her Up – This hands-on event focused on empowering women in the trades through education and training, featuring an inspiring panel of leaders from the American Subcontractors Association of Arizona’s Build Her Up program.

Building Your Best Self – Yoga for Women in Construction – This wellness-focused event gave members the chance to recharge through mindfulness and self-care. Guided by Nikki Matthews from Fleming West, the ladies stepped onto the mat for a calming yoga session that encouraged relaxation, balance, and renewed energy.

Looking ahead - KWIC plans to expand its mentorship programs, create more hands-on learning opportunities, and continue fostering community involvement. With Kovach’s growing representation of women in construction, KWIC is committed to building a supportive network, empowering women to thrive, and sharing knowledge that strengthens our industry.

Kovach Wellness Committee This quarter, the Wellness Committee focused on strengthening relationships across departments while continuing to encourage wellness and positivity. Our Fruitful Monday's initiative was at the heart of this effort, bringing owners together over something simple yet meaningful: fresh fruit. Owners have shared that they look forward to Fruitful Mondays each week, noting how it brightens their day and sparks conversations around wellness. The feedback confirmed that even small initiatives can make a big impact on connection and morale.

Key Takeaways from Q2 Building Connections: Fruitful Mondays created a welcoming space where coworkers could gather, chat, and support each other across departments.

Employee Feedback: Positive reactions highlighted that the weekly fruit bowls are both appreciated and effective in promoting healthy habits.

Living Our Core Values: Positivity – Brightened Mondays and lifted spirits.

Own It – The committee followed through on commitments and kept wellness a consistent priority.

Expertise - We applied thoughtful planning to deliver simple, high-impact offerings.

Grit – We learned that every voice matters and that perseverance builds a stronger, healthier workplace.

Looking Ahead to Q3 The Wellness Committee will expand its focus to include financial initiatives, while continuing to nurture connection, culture, and involvement across Kovach.

By staying committed and adaptable, we’ll keep building momentum toward a healthier, more positive work environment for everyone.

Stay Healthy Everyone!

True wellness is balance.

Caring for our minds, bodies, and financial well-being lays the foundation for everything you do.

This quarter, we continued our 1% Better journey, diving deeper into the lessons from The 7 Habits of Highly Effective People. Each week, Brad shares a reflection that encourages us to pause, think, and apply small but meaningful changes in the way we live and work.

Q2 Reflections

These weren’t just exercises for self-improvement— they were challenges to strengthen our culture, build better relationships, and embody our values of Positivity, Expertise, Own It, and Grit.

Week 26–27: We began with humility—learning the courage to apologize when we’re wrong and the strength to forgive when others fall short.

Week 28–30: Shifting our perspective, we explored Win-Win thinking, letting go of scarcity, and embracing an abundance mentality where success is shared, not hoarded.

Week 31–32: We practiced balancing courage consideration and building Win-Win agreements strengthen partnerships.

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Week 33: A reminder to give credit generously, recognizing those who support our success.

Weeks 34–36: We dug into the heart of communication with empathic listening—seeking first to understand, opening our hearts, and avoiding the trap of listening only to reply.

Together, these lessons pushed us to reflect not just on how we work, but how we connect—with each other, our clients, and ourselves.

Building Better, One Habit at a Time

Thanks for an Incredible Q2 and for Reading Kovach Ink!

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