coast tocoast The Employee Magazine for Skanska in the U.S. 2007 / Issue 04 HOW THE U.N. WAS WON page 12 Standing Strong With Skanska page 6 McNally Steps to the Plate page 8 A GREAT YEAR TO BE WITH SKANSKA Dear Colleagues, Even though the year is not quite finished, we’re very close to reaching our outperform targets for 2007—an accomplishment that you can all be very proud of. When it comes to the four zeros, our loss-making projects are few and we’ve had zero ethical breaches. We had a great Safety Week with very few accidents, but safety is so important that we need to have our focus on it all year long. Not only have we not had any environmental incidents, we were named Top Green Contractor by ENR! The year 2007 has also been a year of big projects, like the contract to renovate the U.N.’s headquarters in New York. Big changes are also taking place. Mike McNally took over for me as USA Building’s Business Unit President in October and has whole-heartedly embraced this role. We also began a journey at the beginning of 2007 to unite all the U.S. business units behind the Skanska name, and to connect the dots by visiting you in locations around the country. At every stop I’m always impressed by the caliber of people who work for Skanska. Your dedication is what makes us successful and will continue to make us one of the world’s most respected construction companies. A big Thank-You for a great year, Johan Karlström Executive Vice President, Skanska USA CONTENTS 2007 • ISSUE 04 SAFETY 04 IN THE EYE OF THE STORM How two lives were saved in Florida during a lightning storm Page 4 Page 7 Page 7 05 The Scoop on Safety Week OUR PEOPLE 06 STANDING STRONG WITH SKANSKA Coast to Coast celebrates employees who’ve made a long-term commitment to the company 07 Jim Winchell, Great Boss 08 Mike McNally to lead USA Building 10 Community Service Timeline OUR PROJECTS Page 8 12 A UNANIMOUS ACHIEVEMENT Ethics and an international team played a primary role in winning this landmark project Page 12 12 A UNanimous Achievement 16 Respectful Relationships on Native Lands FOCUS Page 16 coasttocoast Page 18 18 GOING FOR GOLD IN TEXAS Taking advantage of the construction boom in the Lone Star State 19 Update from Skanska ID Publisher Johan Karlström Editor Cole Ruth Contributing Editors/Writers Anneli Andersson, Tom Crane, Caroline Bucquet, Karen Diemer, Allyson Orfan, Terry Kufl ik, Shana Bitterman, Mary Humphreys, Shelby Adams Printer Dolan Wohlers COAST TO COAST is the quarterly employee magazine from Skanska USA. Subscribe free of charge by sending an email to: [email protected] COAST TO COAST is printed on FSC certifi ed environmentally friendly paper. Feel free to copy from the magazine or quote us, but please name the source. No responsibility is taken for unsolicited material, though you are welcome to send your ideas and suggestions to the editor at: [email protected] If you have a story you’d like to see covered in COAST TO COAST, or one that you’ve written and want to see published, contact the editor at: [email protected] SAFETY CELEBRATING SAFETY WEEK This year Skanska teams all over the U.S. worked hard to reduce accidents and create healthy work environments during Safety Week. Here are some snapshots from the week. More photos can be found at: www.skanska.com/safetyweek IN THE EYE OF THE STORM Reports of lightning strikes reach their peak in July with Florida seeing twice as many casualties, deaths and injuries combined, as any other state. Most of these strikes occur in 2 1 the late afternoon, climaxing at 4 p.m. Fortunately, lightning never strikes twice in the same place. At least that’s what our team on the Peninsula jobsite in Jacksonville, Florida, is working hard to prevent. 4 3 5 6 1. Florida The project team from the Lynn Cancer Center cleans up the streets in Boca Raton, Florida. 2. Michigan General Superintendent Tim Hobson recalls that day in late July carrying on like any other. With good weather conditions, the masons gave the green light to bucket concrete for a pour. But as the afternoon wore on, workers found themselves at the forefront of an intense thunderstorm. Senior Superintendent Mike Brunson immediately cancelled the balance of the pour, but it was already too late. As crane operators wrapped up the job, lightning struck the crane’s ’’s cable and traveled down to the bucket being used for the pour. Mark Cummings of Cummings Masonry and his lead foreman Scott Cannon, who were positioned on a structural steel beam that was lying on the ground when the strike occurred, were knocked eight feet from where they were standing. Falling back on required first-aid training, the team employed a premeditated plan that included a flagman at the gate, access for the emergency vehicles and a clear pathway to and from the victims. The quick thinking actions of the subcontractors and employees on site paid off and Mark and Scott were treated at a local hospital and released the same day with only minor injuries. “We We are more aware than ever that the safety of our employees is paramount,” states Tim. “That’s ’’s why we’ve established a new policy that takes precedence over production at all cost.” This policy requires that all crane activity at the jobsite be shut down throughout a thunderstorm as well as during its 4 The Portage office held a Michigan Out-of-Doors hunting safety training session. 3. Colorado “We are more aware than ever that the A subcontractor employee safely at work at the Rocky Mountain Arsenal landfill project in Colorado. safety of our employees is paramount.” 4. Texas Thomas Mostrom, Traffic & Revenue Tolling Director, proudly displays his certificate of completion of the Defensive Driving course—an achievement that reduces traveling risks and lowers car insurance rates. – Tim Hobson 5. New Jersey Safety Director Dan Wurzburg leads USA Building’s Headquarters in stretch and flex. leading and following edges. To better detect and prepare for oncoming storms, Mike adds, ““As part of our program, we are now in constant contact with the two tower crane operators who have eyes in the sky and we regularly monitor the weather radars online.” For our team working on the Peninsula project, every storm cloud has a silver lining. Tim says, “By setting these precedents and adhering to them we are showing trade workers as well as Skanska employees that above all else, safety comes first.” ◆ 6. Tennessee Workers at the BlueCross BlueShield of Tennessee Cameron Hill Campus project gather after watching the “Charlie” video presented in English and Spanish. 7. New York 7 The South Texas College project team in McAllen, Texas, gets the entire project site involved. 9. New Jersey Stretch and flex on site at the New Meadowlands Stadium in Rutherford, New Jersey. For more information contact: Tim Hobson at [email protected] or Mike Brunson at [email protected] coast to coast Bob Koch pays a visit to the team erecting the steel at Yankee Stadium. 8. Texas 10. Georgia 8 coast to coast 9 10 A supplier at the Turtle River Bridge project in Brunswick, Georgia, gives a fall protection demonstration. 5 OUR PEOPLE OUR PEOPLE STANDING STRONG WITH SKANSKA Lewis Holk Jacobs – 29 yrs Robert J. Moore – 29 yrs James K. Bradford – 29 yrs Frank J. Young Jr. – 29 yrs Donald H. Bullock – 29 yrs Willie James Childs – 29 yrs Beth C. Carchi – 28 yrs Clinton S. Jellison – 28 yrs Larry G. Hepper – 28 yrs Andrea E. Atherton – 28 yrs Charles K. Deans – 28 yrs Linda Essick White – 28 yrs Nancy D. Macey – 28 yrs Barry Steele – 28 yrs Ronald Everson – 28 yrs Paul Magagna – 28 yrs Dudley Eisser – 28 yrs Jerry Collins – 28 yrs As 2007 draws to a close, COAST TO COAST would like to pay tribute to those Skanska employees who are celebrating their 25th, 30th, 35th and 40th (+!) anniversaries. Your hard work and dedication over the years has not gone unnoticed. As this is Coast to Coast’s first year in publication, we are also printing the names of those who have previously celebrated anniversaries. If you know some of the individuals mentioned, be sure to congratulate them! 40+ Joe Goncalves – 48 yrs Jackie Bailey – 46 yrs Richard Redmon – 44 yrs Patrick L. Gallagher – 44 yrs Ronnie Carlucci – 4 yrs Dowayne Bockmann – 4 yrs Irene Bedell – 40 yrs Stanley Katz – 40 yrs Tom Collins – 40 yrs 35 + Salvatore Mancini – 39 yrs John Williams – 39 yrs Paul Wayda – 39 yrs Wyatt Andrews – 39 yrs Larry I. Waldrip – 39 yrs George Timothy Anderson – 39 yrs Samuel Clax – 39 yrs Zollie Privette – 39 yrs Larry McAllen – 38 yrs Thomas Maxwell – 38 yrs Michel Carricaburu – 38 yrs John Tudor – 38 yrs Bob Walker – 38 yrs George Travostino – 38 yrs Norman Bailey – 37 yrs John Withers – 37 yrs 6 Kenneth Dahlke – 37 yrs Byron Bean – 37 yrs Norman Kay Johnson – 37 yrs James E. Grizzard – 37 yrs John H. Halpin Jr. – 36 yrs Jeffrey S. Barber – 36 yrs Cecil Loftland – 36 yrs Gary Clayton – 36 yrs Michael Tracy – 36 yrs Frank Spore – 36 yrs Francis Mahady – 36 yrs Leon Collins – 35 yrs Robert Sirico – 35 yrs Michael Kowalski – 35 yrs Dennis Cox – 35 yrs Steven Koch – 35 yrs Sammie Lee Robinson – 35 yrs Alex Gary Byrd – 35 yrs Snoie “Jay” Carroll – 35 yrs Thomas Stephens – 35 yrs Bruce Lamarte – 35 yrs 30 + John Saunders – 34 yrs Jack Daly Jr. – 34 yrs Charlie Ware – 34 yrs John L. Griggs – 34 yrs Donald Raymond Monroe – 34 yrs James Sid Holcombe – 33 yrs Robert C. Watkins – 33 yrs Michael J. Donovan – 33 yrs Herbert Johnson – 33 yrs Alfred Treherne – 33 yrs Bill McGuinness – 33 yrs Danny Davis – 33 yrs Debbie Outten – 33 yrs Wayne Bell – 33 yrs Ed Tabor – 33 yrs Jack Carter – 33 yrs Stephen Rex Olin – 33 yrs Bob Koch – 33 yrs John B. Hargrove – 33 yrs Barry Ross – 32 yrs John Czarnick – 32 yrs Terrance Daly – 32 yrs Henry Lee Gilbert – 32 yrs Ralph Easterwood – 32 yrs Tj Hightower – 32 yrs Michael H. Gaston – 3 yrs Robert J. Thygesen – 3 yrs Dan M. Strickling – 3 yrs John H. Young – 3 yrs William Dahlke – 3 yrs James Tewell – 3 yrs Gary Allen – 30 yrs Clarence Kellam – 30 yrs Floyd Ruffin – 30 yrs Peter Franco – 30 yrs Ali Catik – 30 yrs Frizzel Burton – 28 yrs Nathaniel Fitchett – 28 yrs Larry M. Smith – 28 yrs James Toy – 28 yrs Burley Johnson – 28 yrs Wade Watson – 28 yrs Bill Eskins Jr. – 28 yrs Curley Collier – 28 yrs Walt Roberts – 28 yrs Nancy Ferguson – 27 yrs Bill Spence – 27 yrs Jack Liles Jr. – 27 yrs Frederick Baker – 27 yrs Leo Kellam – 27 yrs Michael Dixon – 27 yrs McKinley Joynes – 27 yrs Michael Toy – 27 yrs Albert Sinclair – 27 yrs Paul Brown – 27 yrs Mike Attardo – 27 yrs Vincent Santangelo – 27 yrs James Mullervy – 27 yrs Barry Nosowitz – 27 yrs Larry Vanderpool – 27 yrs Marty Massey - 27 yrs Scott McAllister – 27 yrs Bob Walent – 27 yrs Daniel Koch Jr. – 27 yrs James Becker – 27 yrs James E. Hamm – 27 yrs Mark D. Johnson – 27 yrs Duane Perry – 27 yrs Laurie Clifford – 27 yrs Frank Varisco – 26 yrs Dale Robinson – 26 yrs Charles Trower – 26 yrs Edward Joynes – 26 yrs Glenn Burton – 26 yrs Chris Nofsinger – 26 yrs Michael Cortez – 26 yrs Patricia Macias – 25 yrs Jesse Ruiz – 25 yrs Kevin Dockham – 25 yrs Kenneth Diamond – 25 yrs Ante Validzic – 25 yrs Curtiss M. Lindler – 25 yrs Linda L. Wheeler – 25 yrs Due to different HR systems, some names may be missing. If you or someone you know is missing from the list, please email us at: [email protected] Allamonte Ybarra – 30 yrs Randy Lee Rush – 30 yrs Ronald Warren – 30 yrs Jeffrey Buckmaster – 30 yrs Charles Blosfield – 30 yrs Raymond Macias – 30 yrs Tom Lane – 30 yrs Mark Apaliski – 30 yrs Herschel Hampson – 30 yrs James J. Cole Jr. – 30 yrs Sandy Hunter – 30 yrs 25 + Stephen W. Best – 29 yrs Gary Winsper – 29 yrs Robert Sellers – 29 yrs Dave Eseltine – 29 yrs Charles Askins – 29 yrs Chris Eastin III – 29 yrs Richard Shipley – 29 yrs Ricky Leroy Stewart – 29 yrs Jo-Ann Puskas – 29 yrs Kevin Lyons – 29 yrs Todd Donoho Collier – 29 yrs Robert W. Babitsky – 29 yrs Matt D. Edwards – 29 yrs Mark E. Mcquater – 29 yrs Marino A. Micheli – 29 yrs Ricky Clayton – 29 yrs coast to coast Joe, with his granddaughter, Christina, at Family Safety Day in Whitestone, New York. Pat proudly posing beside his Skanska-branded truck. Joe Goncalves, General Labor Superintendent, New York, New York, Employed 48 years Patrick “Pat” Gallagher, Superintendent, Southfield, Michigan, Employed 44 years What have you learned working for Skanska? This is a very good company to work for. I’m still glad to get up in the morning at 4 a.m. to go to work and I enjoy what I do. I especially like the chance to show the younger generation how the company works and how construction works. What have you learned working for Skanska? I’ve learned to push myself to do a job that I can hang my hat on when it’s complete. I always want to be proud to say that I did the job correctly, the owners are pleased, Skanska is satisfied and the job is profitable. How do you see Skanska in the future? This company has a very good future, especially for people that start now. The company offers people lots of benefits and opportunities particularly for the younger generation. How do you see Skanska in the future? I expect Skanska to be the number one construction group worldwide of course! coast to coast 7 OUR PEOPLE McNALLY STEPS TO THE PLATE GREAT BOSS INITIATIVE What are your priorities as BUP? People. People. People. Those are my top three. With great people, everything else happens automatically (satisfied customers, profits, etc.). Someone wrote a book recently about the employee being first, not the customer, and I firmly believe that. Train, Retain, Recruit. I also believe that great employees have positive attitudes. On October 1, Skanska USA Building welcomed Mike McNally as the new business unit president. COAST TO COAST spent some time speaking with How have you spent your first month as BUP? I’ve spent the first three weeks on the road, getting to know our business, starting with the Connect the Dots Roadshow in Boston, San Antonio, Detroit and Nashville. This week I’m in Oregon. Mike during his first busy weeks, to find out more about him and his goals for Skanska. What potential do you see in the future for the business units to work together? There is a huge untapped potential here. But the first step is to better understand one another’s businesses. An example of how good it can be is the Meadowlands Stadium. Skanska Koch is doing an amazing job out there. What possibilities do you see for leveraging Skanska’s combined expertise? Together we can do lump sum work for the benefit of both. The Meadowlands is a great case-in-point: We would not have the job without USA Civil; USA Civil would not have the job without USA Building. What has been the toughest part of your new position so far? So many meetings and not enough time. Where are you from and where do you live now? I grew up in Newport, Rhode Island. I attended the University of Notre Dame where I studied civil engineering. My first job was as an offshore field engineer in Egypt. I then came back to the states and got an MBA from the University of Rhode Island (where I met my wife). After that I took a job as a project engineer with Mobil Oil in Brooklyn, New York, and then in Philadelphia. I did that for about five years and then moved back to Rhode Island with my wife and took a job with a company called Marshall Contractors, where I ran construction operations. They were purchased by Fluor Daniel. I spent about 4 years there and then got the opportunity to run a company called Beacon Skanska in Boston. That started my career at Skanska 0 years ago. My wife Michele is a speech therapist. I have one daughter in college, Kirsten, and one daughter in high school, Caroline. We have lived in Rhode Island since 985, but we will now be moving to New York so that I can be closer to company headquarters. 8 Was there anything you weren’t prepared for? The importance of the Swedish press and the affect of the U.S. business on Skanska’s share price. Skanska AB had to train me on what I can and can’t say. That was new for me. “People, people, people. These are my top three priorities. With great people, everything else “ JIM WINCHELL Project Manager Norfolk International Terminal (NIT) Project I began working with Jim Winchell when I was transferred to the NIT Wharf Extension Project in Virginia Beach, VA. Jim has provided me with multiple opportunities to challenge my leadership and technical skills and has also demonstrated his vast knowledge of concrete as well as his project planning capabilities. He’s also been very willing to teach me all he knows not only about working in the field, but also about how to strengthen and develop my relationship with owners, subcontractors and fellow employees. Jim’s contributions to this project and to his employees have proven to be invaluable in making the NIT Project so successful. Under Jim’s tutelage, I am continuously learning about the construction industry. His willingness to answer my questions and help me develop my skills has given me confidence for the future. — DOUG NAUMANN ” Do you have a good boss? Tell us what makes your boss great! Email: [email protected] What has been the best part? Meeting great people from all around the country. And what are you most looking forward to? The Sox sweeping Colorado. (Since Mike answered this question on October 22, prior to the World Series, we can only guess that he’s looking forward to next year!) happens automatically...” What was your role at skanska before becoming BUP? I was Co-Chief Operating Officer responsible for the Boston, New York and New Jersey offices. I have had the good fortune to be involved in many exciting projects such as Gillette Stadium and now the United Nations and the New Meadowlands Stadium. coast to coast Is there any one thing you would want to be remembered as doing/changing after you’ve left this position? Helping make Skanska a great place to work, a place where everyone in our industry wants to be and at the same time make our outperform goals—every year. coast to coast 9 OUR PEOPLE OUR PEOPLE HELPING HANDS What our People are Doing for the Communities in Which we Live and Work. Slidell, LA: Rebuilding for a cause Supporting the reconstruction effort after the devastation left by Hurricane Katrina, Skanska sponsored Superintendents Darrel Bolden and Stan Keagle and Project Manager John Clark who traveled to Slidell, Louisiana for six weeks to work for the East St. Tammany Habitat for Humanity to reconstruct a number of ravaged homes in the area. Southfield, MI: Riding for MS Five employees and an owner’s representative rode in two Bicycle Tours to benefit the National Multiple Sclerosis Society. Over the years, Team Skanska has raised more than $80,000 for the organization. Participants: James Harris, Mike Parker, Mark Oetting, Arthur Robinson, Jessica Barber and Bruce Singley. JUNE Cortez, CO: Elks Lodge gets a facelift The office provided manpower, equipment and a financial contribution to renovate the parking lot and clean the inside of the nearby Elk’s Lodge. The lodge is also a community center, and residents were delighted with the improvements. JULY Durham, NC: Students get books and a better school A dedicated team of employees spent the summer renovating the Communities in Schools learning center. Lisa Florack, Bobby Waller, Jennifer Suitt, Keith Dean, Russ Florack and Philip Henry, staff, family members and 12 subcontractors replaced carpets, built storage units and revamped bathrooms. Skanska also donated a book to every student. AUGUST Blue Bell, PA: Rowing for cancer treatment The Skanska Hammerheads competed for the first time in the International Dragon Boat Festival. This energetic group of paddlers, steersperson and drummer practiced for months before the race. Fellow employees and families cheered on the Hammerheads during their race along Philadelphia’s famed Boathouse Row. Proceeds from the event were donated to the Fox Chase Cancer Center. Whitestone, NY: Safety becomes a family affair More than 400 people attended Family Safety Day. Safety personnel designed special stations, and kids were given a card to have stamped at each one. NYPD and FDNY took fingerprints and talked about fire safety, and kids dressed their parents in safety gear. Uganda, Africa: Building unity abroad Sponsored by his fellow employees, Project Engineer Adam Neil spent two weeks in Uganda working alongside locals to construct a building that will serve as a cafeteria, school, church and general assembly. His team also worked with a neighboring orphanage, to which he contributed by sponsoring two homeless Ugandan children. Adam reflects on his trip saying, “It was a wonderful growing experience both emotionally and spiritually.” 0 SEPTEMBER Virginia Beach, VA: Sponsoring brighter smiles Training Manager Patrick Query won two tickets to attend Operation Smile’s 25th Anniversary Event. The tickets were raffled off by the Virginia office to sponsor four children’s reconstructive pallet surgery. Whitestone, NY: Promoting a healthy lifestyle for kids Estimator Michelle Blattner ran in the New York Marathon to support Team for Kids, a group of adult runners who run to raise money for the NYC’s Roadrunner Foundation. Skanska also donated $500 to the cause. OCTOBER NOVEMBER San Antonio, TX: Fundraising to boost community CPR skills The project team at Methodist Stone Oak Hospital hosted a charity golf tournament to benefit Harper’s Embrace. Riverside, CA: Serving up gratitude Hosting the 1st annual Gratitude Barbecue, staff showed appreciation for local heroes at the Fire Dept., Police Dept., SWAT and Highway Patrol for keeping Skanska’s personnel safe. Rockville, MD: Earning mileage at Habifest 2007 Five members of the super fast Skanska Speedster running/ walking team participated in the Habitat for Humanity of Howard County 5K walk/run. coast to coast coast to coast 11 A UNanimous Achievement What does it take to win a $1-billion renovation project for the United Nations? Besides some of the best brains at Skanska and a lot of coffee, the final decision came down to one critical ingredient: values. From the very start, Skanska’s New York team saw the opportunity to renovate the United Nations Headquarters in Manhattan as a “must-win” project. After all, Skanska has a long history of working with the U.N. Slattery-Skanska was part of the original joint venture that built the iconic complex, and Skanska has continued to work with the organization around the world. But there is another, more important reason why the Skanska team wanted this project so badly. As EVP Johan Karlström puts it, “We want to work for clients who share our values.” “It was vital to the U.N. that the chosen firm have a dedication to the Global Compact, a strong ethical culture and, as a natural extension, an enormous commitment to safety,” says Steve Pressler, VP and Area General Manager for USA Building’s New York operations and Principal-in-Charge of the U.N. work. MORE THAN VALUES ON THE LINE The pursuit of the U.N. renovation project also required stamina. Skanska submitted its first letter of interest in February 2006. The Request for Proposal arrived in July. Then came the Request for Information period, which culminated in a formal interview in October 2006. In February 2007, one year after the process began, Steve Pressler got word: Skanska had been selected and the U.N. was ready to negotiate. Officially called the United Nations Capital Master Plan, the massive assignment involves a complete rebuild and renovation of the U.N. headquarters—the organization’s largest investment ever. Due to the high degree of security surrounding the organization and its headquarters, the U.N. kept the only set of project drawings—and no copies were allowed. So the Skanska team made numerous trips to U.N. to scrutinize the documents in order to plan their logistical and technical approach to the project. Steve Pressler, Dan Kolakowski, Jack Raff, Steve Aspden, Richie Christ, Jennifer Buermann and Elizabeth Heider all racked up many hours in those hallowed halls. Back at the main office, Aaron Guzman and Jason Reynolds lent tireless support with proposal and graphics production. And the legal team, consisting of Lynn Shavelson and Richard Kennedy, in cooperation with Russ Johnson, VP of Risk Management, spent long nights going over the proposal, the Request for Information and the negotiations. In the end, more than two dozen of Skanska’s top people provided input throughout the process. “It took hundreds of hours over several months before we really understood the project and the client’s concerns so we could devise the best approach,” says Steve Pressler. Members of the project team, left to right: Richard Christ, Susan Jenkins, Steven Pressler, Daniel Kolakowski, Susanna Catalano and Jack Raff SAFETY OUR PROJECTS OUR PROJECTS For a safe and healthy workplace. As an industry leader in Green Building, Skanska eagerly took up this challenge. Skanska is the only construction firm that is consistently included in the Global 00 Most Sustainable Corporations in the world announced each year at the economic forum in Davos, Switzerland. Skanska is also one of the founding members of the Sustainable Building and Construction Initiative, a Green Building initiative launched by the United Nations Environment Programme earlier this year. “The most exciting thing for me is that this is a high-profile building that everyone has seen or heard about.” – Peter Wieslander, Skanska International The team that won the project. Standing, left to right: Jason Reynolds, Susanna Catalano, Susan Jenkins, Danielle Siringo, Steve Pressler, Richard Christ, Amy Chase, Steve Allen and Donna Licciardi. Sitting, left to right: Deborah Ippolito, Nancy Etherson, Jack Raff, Jennifer Buermann, and Dan Kolakowski “I was very proud to be selected since the United Nations represents the international community. This will be the most important project in my career.” - Ted Jadermark MIRROR IMAGE If it was important to the U.N. that they chose a partner whose organization mirrored their values, the Skanska team took for granted that the U.N. would also want to work with a team that mirrored their own in diversity. Since the project will employ more than 70 Skanska professionals at its peak, Mike McNally, Steve Pressler and Dan Kolakowski worked with Human Resources to review resumes of Skanska personnel from around the world. Johan Karlström also located Steve Aspden, Peter Weislander and Ted Jadermark, who had experience managing large, complex projects for Skanska International. All three have spent the last few years working on the Mater Dei Hospital in Malta – a 2.6-million-square-foot, state-of-the-art facility with a 480 construction value. 4 GLOBAL ABILITY From the very beginning, Stuart Graham, CEO and Chairman of Skanska AB and Johann Karlström, committed the firm’s worldwide resources to the project. And throughout the process, the Skanska team highlighted its strengths as “one Skanska.” In addition to having access to Skanska’s worldwide human resources capabilities, the team appealed to Skanska’s financial strength and proven commitment to the U.N. Global Compact since 200. Skanska’s good corporate credit allowed the company to provide the United Nations with a corporate guarantee from Skanska AB, in lieu of a conventional bonding mechanism. “Given our international capabilities, we also identified global procurement opportunities,” adds Steve Pressler. “This was especially key to an organization comprised of 92 nations.” When it came to purchasing, Bill Flemming, Co-Chief Operating Officer at USA Building, sits on Skanska’s International Procurement Committee and provided invaluable support. THE IMPORTANCE OF BEING GREEN The United Nations emphasized its commitment to being sensitive to the environment throughout the project and that the building will be designed to meet new energy standards. coast to coast COMPLEXITIES OF THE JOB Currently in pre-construction, the construction management assignment will be performed on a phased basis through 204. For each phase of the project Skanska will negotiate separate Guaranteed Maximum Price contracts with the U.N. Throughout the entire construction period, the U.N. will carry on its daily operations. In one of the first phases, Skanska will manage the construction of a 02,000-square-foot temporary on-site facility to house the General Assembly and Conference Building. Seventeen floors of swing space will also be outfitted at a separate location for office staff. Solutions discussed in Skanska’s proposal included how to efficiently handle equipment and material deliveries in a densely populated urban area and move tradespeople through security checkpoints for the job’s duration, especially during construction peak, when ,200 tradespeople are expected to be on site. These are just a few of the deciding factors that went into turning this “must-win” proposal into a win-win for Skanska and the U.N. “It is an honor for our entire team to have been chosen to represent an organization that works for peace among nations,” Steve Pressler concludes. “The fact that we were selected from a group of national competitors through a rigorous process is extremely validating.” ◆ coast to coast ABOUT THE PROJECT The U.N. Headquarters includes • Six buildings: The Secretariat Building: 4-stories, The Conference Building, General Assembly Building, The Dag Hammarskjold Library, North Lawn Building, and South Annex Building • Total floor space of 2.6 million square feet. • 17-acre campus • Location: Along Manhattan’s East River, extending from 4st to 46th Streets • Pre-construction contract amount: billion 15 OUR PROJECTS OUR PROJECTS been good for the Navajo Nation,” says Cary. “When I first started, the payroll was 6 million per year. Now it’s 5 million.” The company within a contract Based in Shiprock, New Mexico, NECA is a major employer on the reservation, which is 27,000 square miles (larger than West Virginia) and encompasses parts Utah, Arizona and New Mexico. The Navajo population is more than 250,000, making it the biggest Native American nation. NECA works mainly through the federal government’s Bureau of Indian Affairs (BIA) and Indian Health Service to build infrastructure as part of a concerted effort to better the lives of the Navajo people. NECA performs earthwork, paving, and bridge construction under negotiated highway construction contracts with the federal Bureau of Indian Affairs. For the Indian Health Service, NECA builds projects to deliver safe drinking water and modern sewer systems to communities throughout the reservation. “Through NECA, we give local workers marketable job skills so that they are employable when their project is completed. It instills a feeling of pride among NECA employees to know that they’re contributing to a better life for their people and they are able to support their family at the same time.” Pictured, from left: Ron Everson, Frank Smith, Cary Patterson, and Brett Grubbs RESPECTFUL RELATIONSHIPS ON NATIVE LAND In the southwestern U.S., a small team of Skanska employees plays a big role in the Native American community. USA Civil’s Cary Patterson doesn’t just manage one project – he manages all of the projects on behalf of the Navajo Engineering and Construction Authority (NECA). According to Cary, doing this successfully requires a light touch and a firm hand. 6 In 99 USA Civil West’s Rocky Mountain District signed a contract with NECA to manage the company’s construction activities on the reservation for the Navajo Nation. Having begun his work there as Operations Manager in 993, Cary has seen NECA evolve first-hand. Today he is General Manager, a position previously held by both Chris Eastin and Curtis Broughton, who still work for USA Civil in the Rocky Mountain District. Cary’s team also includes Operations Managers Frank Smith and Brett Grubbs. Ron Everson is Manager of Engineering with responsibility for estimating and project support. Their small team supervises about 580 NECA employees – 99 percent of whom are Navajo and other Native Americans. “NECA’s significant growth has coast to coast Giving local work to local people The sovereign status of the Navajo Nation as a government has a major impact on NECA’s operations. Although NECA is a for-profit business, it is ultimately accountable to the Nation’s government. With an unemployment rate on the reservation of more than 45 percent, there is a serious need for NECA to employ Navajo people. Some core NECA employees have worked there a long time. They go where the work is, traveling around the reservation to different NECA projects. However, since jobs are scarce, local communities often want NECA to hire their own people. “We’re there to help the Navajo develop NECA and help them be profitable,” says Cary. To do this, Cary’s team works as a partnership with the Navajo Nation. “We don’t just employ people,” he explains. “Through NECA, we give local workers marketable job skills so that they are employable when their project is completed. It instills a feeling of pride among NECA employees to know that they’re contributing to a better life for their people and they are able to support their family at the same time.” Skanska’s management also works closely with NECA’s directors, superintendents, engineers, and administrative personnel to train employees in the latest construction and management methods. coast to coast Cary talking with a NECA employee. Respectful on foreign soil For all intents and purposes, Cary and his team are foreigners on the reservation. If they want to maintain their contract with NECA, they must abide by Navajo traditions and respect the Navajo way of life. For example, a NECA project often starts with a groundbreaking ceremony in which Navajo spiritual leaders perform traditional blessings. Cary and his team also do what they can to contribute to the local Navajo communities. They often take on minor projects as pro-bono work, such as grading a road or parking lot or clearing debris from a flood. This work is often in remote locales with limited access to equipment and skilled personnel. “Anything reasonable that can be done as an in kind contribution to help the Nation we do,” says Cary. Through NECA, Cary and his team have also contributed over 4 million for scholarship funding. All of these things go a long way toward the Authority being viewed as a valuable member of the community and of the Navajo Nation. After nearly 5 years on the reservation in the Four Corners region, Cary and his team have proven that they have what it takes to make this contract a success. “It all comes down to respect,” Cary concludes. “They respect us and we respect them. They know that at the end of the day, we will always do what’s in the best interest of the Navajo Nation.” ◆ For more information about Skanska’s work with NECA, contact Cary Patterson at: [email protected] 17 FOCUS FOCUS Harlingen Over the past few years, operations in Texas have grown at such an incredible pace that establishing an additional office in south Texas was necessary. Like Houston and San Antonio, education is surfacing as a major industry in Harlingen and the team is reaping the benefits. Project Manager Josué Reyes is working on La Joya High School, a 58-million job that includes the construction of four buildings. Like the majority of the projects here, the school is being used as a benchmark to showcase the quality that clients can expect from Skanska. As the new kid on the block, Josué acknowledges the merit in adhering to a new corporate philosophy, pointing out that the Harlingen staff can already be defined by its desire to embrace the Skanska way of working. He is also prepared for the growing pains that come with achieving a streamlined version of the Houston and San Antonio offices. “We differ from the others in that we are a smaller, scaled back operation,” he adds. “We’re pretty far removed on Texas’ southern tip and it hasn’t been very easy to facilitate communication.” The tides are already changing though as Josué indicates that an open dialogue is developing among the offices – and this is facilitated by events like the Connect the Dots Roadshow. In fact, Josué has no reservations, just high expectations when it comes to expanding the brand and becoming a dominant force in a new region. ◆ GOING FOR GOLD IN TEXAS The oil industry is not the only booming business in the Lone Star state these days. Home to the second largest economy in the United States, Texas is transforming into a mecca of opportunity. With this comes a crucial need for expansion and Skanska dove right in with a collection of healthcare and education projects. As the growth will only continue, the ability to progress in this new market is limitless. Central Texas The new San Antonio office will open in mid-November and with five projects underway, Skanska is primed to become a major player in this thriving city. With higher education making up one-third of the company’s Texas portfolio, it comes as no surprise that General Superintendent Russ McLeod, who has more than 20 years of experience under his belt, is overseeing a 56-million project at Alamo Community College on the St. Phillips College in San Antonio. The job includes construction of two blocks of parking lots, a three-story educational facility and a diesel lab. “The university system in Texas will be spending a lot of money to accommodate the rising number of students, so there will be a constant growth in higher education work,” he states confidently. 8 As for healthcare projects, the surge can be attributed to a number of factors including antiquated resources and an aging population. Russ points out that “most baby boomers are at the point of retirement or, at least, thinking about retirement.” So, the healthcare industry is preparing for the demands of this mounting demographic by expanding and enhancing facilities. While the opportunities seem never-ending, there is a downside to working in an emergent market – there are more jobs than there are workers. Then again, Skanska has the chance to earn a reputation for enticing qualified personnel, training them and retaining them. Houston Working in Texas’ largest city makes it pretty easy to get lost in the shuffle. As a result, Project Manager J.P. Chandler and his team are focused on a certain distinguishing trend in construction. “Ninety percent of potential clients ask if we have LEED® accredited professionals on our team,” he remarks. “So we’re concentrating on attaining accreditation for our employees in Texas.” J.P. looks forward to starting up jobs at the Houston Community College and the University of Houston. Much like Russ, he is confident that higher education will remain one of the largest sectors for Skanska in the state. He says, “Right now, most universities are turning away applicants because of the lack of space. As the schools expand, we’ll be there to help them.” Getting in on the ground floor of the higher education movement will help the Houston team’s stronghold on construction in the area. Drawing on the city’s unrivaled concentration of healthcare facilities, J.P. anticipates tapping into the industry by gradually building Skanska’s presence before taking on larger jobs. coast to coast Skanska ID: North American Update The new business plan for Skanska Infrastructure Development North America concentrates on bidding and winning green field toll road projects in the home Skanska USA Civil markets of the Mid-Atlantic and Southeast U.S. regions. Skanska ID is also active in Canada, where there is steady, predictable deal flow. As of fourth quarter 2007, Skanska has earned shortlist bidder status on U.S. Route 460 in Virginia, SH 6 in Texas, and Port Mann/Highway in Vancouver. We are preparing to pre-qualify for the Midtown Tunnel project in Norfolk, Virginia. By year’s end we will know if Skanska is selected as a short-listed bidder for the I-595 managed lanes project in Ft. Lauderdale, FL. US PPP road projects are hotly competitive, highly complex and range from -3 billion in value. A typical bid process lasts two years from prequalification to financial close. “We’re focused in markets where Skanska has a competitive edge, where the procurements are fair and predictable, and on projects that can deliver long-term value,” says Karl Reichelt, Executive Vice President for Skanska ID North America. “Expectations are high, and 2008 is shaping up to be a big year for Skanska.” For more information, contact Joey Hatch at: [email protected], or at: 615-238-6710 STAT SHOT: TEXAS OFFICE Location Contact Personnel Location Contact Personnel Location Contact Personnel coast to coast Central Texas Tel: 254-778-8941 12 in the office / 46 in the Field Houston Tel: 713-401-5200 8 in the office / 20 in the Field Harlingen Tel: 956-412-3866 2 in the office / 24 in the Field Florida I-595 Focus In November, Skanska ID North America, with partners John Laing plc, Fluor Corp, and USA Civil, submitted a Statement of Qualifications (SOQ) to the Florida Department of Transportation. The opportunity? To design, build, finance, operate and maintain the Interstate 595 Roadway Corridor Improvements Project. The contract term is expected to be between 35-50 years. Containing more than ,500 pages, the SOQ provides information about the team’s technical and financial capabilities to deliver the 0.5-mile east-west roadway project that includes toll lanes, interchange ramps, bypasses and accommodations for future transit. The availability payment/shadow toll concession project is expected to improve travel for commuters and trucks, and will be constructed at-grade in the median of an existing, heavily congested highway through Central Broward County in Florida. The Skanska-Laing-Fluor partnership—joined under the team name of “Direct Connect Partners”—expects to know more about the selection by December 3, 2007. A formal, detailed proposal follows, with preferred bidder selection scheduled for mid-2008. Visit www.i-595.com for project info. 19 “When building schools you have to be able to face your toughest critics.” Todd Predmore, Skanska Project Manager Our educational clients demand grade “A” work. That’s why detailed constructability reviews were used to streamline construction at Witch Hazel Elementary School in Hillsboro, Oregon. According to Todd Predmore, tactical solutions such as creative steel engineering and erection sequencing were also critical to the project’s success. “It’s rewarding when the schools we build exceed our client’s expectations,” says Predmore, “but it’s even more rewarding when I see how happy it makes the kids.” www.skanska.com coast tocoast The Employee Magazine for Skanska in the U.S.
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