DPR and Skanska, the two construction companies heading the development of Apple’s Campus 2 are getting the boot from Apple after negotiations over their continued involvement could not come to an agreeable conclusion. In an internal email sent from Skanska Chief Executive Richard Cavallaro to the firm’s employees, the two construction firms “will transition completely off the project in the next several weeks.”
In Cavallaro’s email, he stated that the departure will lead to a cancellation of $800 million in order bookings for Skanska. Cavallaro stated that they “were unable to come to an agreement during negotiations for the revised scope of work for its research and development campus in California.”.Apple had made the decision awhile back to bring in Rudolph & Sletten to take over the interior buildout of the new Apple campus. This project reassignment given to Rudolph & Sletten was in all likelihood the beginning of the contractual disagreements the two construction firms and Apple had. However, DPR and Skanska were still expected to complete the “core and shell” of the ring-shaped campus.
After it was all said and done, the two construction firms along with Apple found it in both of their best interests to separate ties. Cavallaro said in the email that the news is “disappointing,” but reassured that “this decision is in the best interests of our shareholders and employees.”The exact reasons for why the project partnership with Apple had ended still remains unknown but it is said that the Apple Campus 2 project involved a lot of first-time construction methods that DPR & Skanska may not have been able to achieve, thus, forcing Apple to look elsewhere.
Sources within the industry have suggested that the Atlanta-based Holder Construction will take over the development but this still remains speculation and the legitimacy of it has yet to be confirmed.
— SVbizjournal (@SVbizjournal) June 9, 2015