Apple Hires New General Contractor for Apple Campus 2, Sparking Delay Speculation

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Apr 12, 2001
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As construction on its "spaceship" campus in Cupertino continues, Apple has hired a new general contractor, sparking rumors questioning whether the new campus will be finished by the company's prospective 2016 completion date.

According to the Silicon Valley Business Journal, Silicon Valley company Rudolph & Sletten Inc. will take on the buildout of the Campus 2's interior structure, a job that was previously thought to be going to DPR Construction Co. and Skanska USA, the two companies heading up the construction project.

Most recent image of the ongoing construction of Apple Campus 2, from the City of Cupertino.​
It's unclear why Rudolph & Sletten is being brought in and exactly what DPR/Skanska's involvement will be going forward. Two sources said the DPR-Skanska joint venture would still complete the core and shell -- or the basic structure -- of the circular building. It's also possible that DPR and Skanska never intended to do more than the core and shell.
Neither Apple nor the three companies involved in the construction of the main ring-shaped building would comment on the involvement of a new general contractor for the interior of the building, but sources in the local construction industry that spoke to the Silicon Valley Business Journal believe the new addition could potentially point towards delays.

Campus 2 delays could potentially end up causing the cost of constructing the massive structure to skyrocket beyond its current $5 billion estimation. Prior budgeting issues caused Apple to revise its Campus 2 plans, splitting construction into two phases to save money. Phase 1 includes the main Apple campus and several buildings like an auditorium and fitness center, while phase 2 focuses on the Tantau Development, a 600,000 square foot area housing research facilities. Plans for the second phase of construction were submitted to the city back in October of 2014.

The Tantau development area
In Cupertino, the base structure for the main ring-shaped campus has been completed, and walls have been going up for the last several months. Construction is also continuing on an underground parking garage and several ancillary buildings

Apple's second campus will feature a massive 2.8 million square foot ring-shaped main building, an underground parking facility capable of accommodating 2,400 cars, a 100,000 square foot fitness center, and a 120,000 square foot auditorium. The entire campus will be outfitted with hundreds of trees for 80 percent green space, along with a central garden with outdoor dining areas.

Thus far, city officials have not received word of a potential delay from Apple, suggesting construction may still be on track. Apple plans to complete its new campus by the end of 2016.

Article Link: Apple Hires New General Contractor for Apple Campus 2, Sparking Delay Speculation
 

ThunderSkunk

macrumors 68030
Dec 31, 2007
2,993
2,568
Milwaukee Area
Well right, that's how it goes.
When have any construction projects been completed within budget and on time? Major ones?

How about never...
 

kdarling

macrumors P6
Wasn't one reason why the building was going to cost so much, the fact that it called for construction (especially interior) tolerances far beyond any done before?

So it might make sense to have one contractor do the rough build-up, and another to do super fine work.
 

i5pro

macrumors regular
Jun 17, 2010
164
233
NNJ
There's typically about 30+ contractors/subs on a major building project. I imagine this is just an interiors contractor who will be scrutinized to the nth degree, while the core and shell can usually get away with normal working tolerances...and then the mechanical HVAC, electrician, carpenters, laborers, masons, iron workers, etc....
 

citysnaps

macrumors 603
Oct 10, 2011
6,252
10,449
San Francisco
I don't understand what the issue is. For a project of this scope, different GC's for different project aspects.

Why someone would conclude there was a problem or a delay is baffling. Guess it makes for good media buzz and click bate. No doubt it will get a lot of people frothed up here.
 

Gdgtguru

macrumors member
Oct 7, 2011
73
2
Prior budgeting issues caused Apple to revise its Campus 2 plans, splitting construction into two phases to save money.
Yeah, they have been a bit tight on money recently...:rolleyes:
 

PinkyMacGodess

macrumors 601
Mar 7, 2007
4,935
1,625
Midwest America.
This isn't very clear. Is 'Apple Campus 2' actually 'Apple Campus Phase 2', or did I miss the memo?

Having two (three) contractors working on the same parcel, on two different phases, so close to each other isn't going to make things go faster without some damn good project management.

Never mind. I got it...

----------

I don't understand what the issue is. For a project of this scope, different GC's for different project aspects.

Why someone would conclude there was a problem or a delay is baffling. Guess it makes for good media buzz and click bate. No doubt it will get a lot of people frothed up here.
It is a little odd, but it's their money.

Plus I think the 'money budget' thing was more about the time than the actual cost. If the mains were doing it all, there would be that much more added to the tasks, and that much more potential for the project to run 'long' on both budget and time. But perhaps there is a cost benefit to having a different main for phase 2.
 

Gizmotoy

macrumors 65816
Nov 6, 2003
1,081
118
Building a new HQ is often seen as a curse in business circles. I don't know if it's because it's a distraction from the core business, or plain bad luck, but it's often linked to downturns at the companies building them.
http://www.businessinsider.com/poorly-timed-headquarters-2009-11?op=1

A project this big is bound to be delayed and thus this news isn't particularly worrisome, but it's worth keeping an eye on.
 

PinkyMacGodess

macrumors 601
Mar 7, 2007
4,935
1,625
Midwest America.
Building a new HQ is often seen as a curse in business circles. I don't know if it's because it's a distraction from the core business, or plain bad luck, but it's often linked to downturns at the companies building them.
http://www.businessinsider.com/poorly-timed-headquarters-2009-11?op=1

A project this big is bound to be delayed and thus this news isn't particularly worrisome, but it's worth keeping an eye on.
AND run long. The cost of finishing curved walls isn't going to be inexpensive, and there always seems to be delays and extra costs. Always...

And there is no argument that this is bound to be a distraction. It would be hard for upper management not to be spending more time watching the construction than running the business at hand.

A place I worked at was involved, a few months after I hired in, in renovating a building and moving into it, and it always seemed like there was something that needed attention. I was in IT and the networking end, and there were conversations about where jacks needed to be placed, how many, what color, etc... Where the server(s) should go, what cooling they needed, which way doors should swing, where lights should go, what kind of lights, how big the rooms should be, etc... Some days I barely got anything done.
 

Kissaragi

macrumors 68020
Nov 16, 2006
2,340
369
Wasn't one reason why the building was going to cost so much, the fact that it called for construction (especially interior) tolerances far beyond any done before?

So it might make sense to have one contractor do the rough build-up, and another to do super fine work.
Yeah steve called for some much finer tolerances than usual if i remember right so its not going to be an easy job at all.
 

Amacfa

macrumors 68000
May 22, 2009
1,685
3,283
D.C.
AND run long. The cost of finishing curved walls isn't going to be inexpensive, and there always seems to be delays and extra costs. Always...

And there is no argument that this is bound to be a distraction. It would be hard for upper management not to be spending more time watching the construction than running the business at hand.

A place I worked at was involved, a few months after I hired in, in renovating a building and moving into it, and it always seemed like there was something that needed attention. I was in IT and the networking end, and there were conversations about where jacks needed to be placed, how many, what color, etc... Where the server(s) should go, what cooling they needed, which way doors should swing, where lights should go, what kind of lights, how big the rooms should be, etc... Some days I barely got anything done.

Well this is Apple, they typically consider the details.
 

tooloud10

macrumors 6502
Aug 14, 2012
363
512
Well right, that's how it goes.
When have any construction projects been completed within budget and on time? Major ones?

How about never...
Maybe in the public sector but it happens all the time in the private sector. Most budget issues are caused by owner changes after the initial contract has been awarded, and the most competent companies negotiate early completion bonuses.

As for the 'tight tolerances' that others have mentioned, I can promise you that the builder and subs have seen worse specs in many modern hospitals and industrial projects. Ask for something too crazy and the cost just gets jacked up to accommodate it and it will be done--that's all up to the owner.

"Radius walls?" Please, it's just another day for the guys on the job site. No big deal except that it costs more and takes longer, all of which is allowed for by the estimators quoting the job.
 

coolfactor

macrumors 601
Jul 29, 2002
4,714
4,893
Vancouver, BC
The construction industry is so wasteful in terms of actual productive man-hours. How many times do you drive by a building or road construction and see workers standing around talking, while being paid $30-40 an hour? Get back to work!
 

skycorgan

macrumors newbie
Jul 29, 2013
24
2
It is not uncommon in the construction industry for a Construction Manager at Risk project to hire a General Contractor, or multiple General Contractors, to handle parts of the project.

Typically the CM will bid out the GC portion of the project, and if the other company comes in lower than their in-house team then they are obligated to take the lower bid in most cases.

When you're dealing with a very large project like this, there is a lot of nuanced contracts that occur between firms that are not necessarily indicative of the trajectory of the project and more of legal/liability/contract questions?
 

jdechko

macrumors 601
Jul 1, 2004
4,127
242
Well right, that's how it goes.
When have any construction projects been completed within budget and on time? Major ones?

How about never...
Hit the nail on the head. My comment was going to be: "Breaking news: Construction project experiences delays"

:rolleyes:
 

Jax44

macrumors 6502a
Jul 24, 2010
666
745
Carmel, California
Wasn't one reason why the building was going to cost so much, the fact that it called for construction (especially interior) tolerances far beyond any done before?

So it might make sense to have one contractor do the rough build-up, and another to do super fine work.
I worked for R&S when they built the Monterey Bay Aquarium. Very well run, meticulous company. We did all kinds of first of kind things on that project.
 

Jason83

macrumors regular
Sep 30, 2014
210
230
PA, USA
It's also possible that DPR and Skanska never intended to do more than the core and shell.
Looks like a great time to speculate that the above could not possibly be the case and instead Apple is DOOMED! :eek:
 

VulchR

macrumors 68020
Jun 8, 2009
2,388
11,530
Scotland
The reason is that Apple found the NSA bugs built into the building by the first contractor, right next to the ones from Russia, PRC and Korea.
 
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