Gilbane

Gilbane, Inc., based in Boston, Mass, is a family-owned, national construction and real estate development company. Forbes ranked Gilbane as the 108th largest privately held company in the United States in 2006 with estimated revenues of $2.83 billion.

Gilbane Building Company is one of the nation’s oldest builders. The company was founded in 1873 by William H. Gilbane and his brother Thomas as a family-run carpentry and general contracting shop in Providence, Rhode Island. Originally known as William H. Gilbane and Brother, the firm quickly developed, building some of the homes in Providence. New projects soon followed, including churches, hospitals and other public buildings that are still in use today. Today, fourth and fifth-generation members of the family lead the company, which has more than 50 offices worldwide. Paul J. Choquette, Jr., son of third-generation family member Virginia Gilbane Choquette, is vice chairman of Gilbane Inc. Thomas F. Gilbane, Jr. is chairman and CEO, and William J. Gilbane, Jr. is vice chairman of Gilbane Building Company. Robert V. Gilbane is chairman and CEO of Gilbane Development Company. Michael McKelvy is CEO of Gilbane Building Company.

Gilbane has been family owned and operated throughout its entire history. The Harvard Business Review says customers prefer family run companies.^[1]

In the early 1900s, William H. Gilbane took control of the company and steered it through the lean times of the Great Depression. In the 1930s, his sons Thomas F. Gilbane and William J. Gilbane joined the company and made Gilbane’s reputation as a pioneer in construction management — first with major defense projects during World War II, and then with the Smithsonian’s National Air and Space Museum, which opened on time and budget in Washington, D.C. on July 4, 1976. In 1970 Gilbane expanded its services and formed the development of a sister company known as Gilbane Development Company.

Leadership

Gilbane Building Company named Michael McKelvy its new president and chief operating officer in 2015. McKelvy went on to be named CEO in 2016. He is the first non-family member to hold those positions since the company’s founding in 1873.

Focus on client satisfaction

For the last 15 years, Gilbane has been committed to measuring performance on all its projects through client surveys to see what needs to be improved. The project team, as well as upper management, review findings then reach out to the client providing ways to improve on areas that the client felt did not measure up to their expectations. William J. Gilbane, Jr. speadheaded this effort, saying ‘if you measure it, you can improve it.’

In 2015, Gilbane received 905 completed surveys from our clients and architects/engineers. In total, 98.6% of them reported that the company had either met their expectations, 39%, or exceeded them, 59.6%. Delivering these high levels of client satisfaction has led to securing repeat business and creating a cycle of constant improvement, according to its 2015 annual report. ^[2] More than 1,300 clients and architects/engineers that recommend Gilbane to others, and 65% of Gilbane’s work is from repeat clients.

Notable Projects

During the past two decades, Gilbane has completed a number notable public projects including:

- Lake Placid Winter Olympics Facilities, Lake Placid, NY

- Cleveland Museum of Art Campus Expansion & Renovation- In 2002, the museum embarked on a $350 million capital campaign to dramatically modify the institution's blueprint while reorganizing and renewing the presentation of its unrivaled collection. The 12,000-square-foot interactive learning center was reopened to the public in 2013.

- Vietnam Veterans Memorial, Washington D.C.^[3] The Vietnam Veteran’s Memorial Fund (VVMF), incorporated in 1979, was a nonprofit organization created to establish a national memorial, in Washington, DC, to honor and recognize American veterans of the Vietnam War. On July 1, 1980, the government, by a unanimous joint resolution of Congress, authorized the VVMF to establish the memorial on two acres of national park land in Constitution Gardens near the Lincoln Memorial in 1982.

- Discovery World Science & Technology at Pier Wisconsin - Located on the shore of Lake Michigan in downtown Milwaukee, the sustainably designed Discovery World is an interactive exploration center with exhibits, aquariums, amphitheater and more. The 120,000 square-foot facility includes interactive exhibits, the Reiman Aquarium, a digital theater, learning labs, live theater shows, and more.

- Smithsonian Institution's National Air & Space Museum, Washington D.C.

- The National Archives, College Park, MD

- US Strategic Petroleum Reserve for the Department of Energy, New Orleans, LA

- O'Hare International Airport, Terminal 5, Chicago, IL

- Union Station Restoration, Washington D.C.

- U. S. Department of Justice, Washington D.C.

- World War II Memorial, Washington D.C.^[4] A memorial built in 2004 to commemorate service to World War II veterans on The Mall in Washington DC. The memorial includes two entry arches, a wall of commemorative stars, a water feature, lighting and engraved stone to honor those who have served.

- US Capitol Visitors Center, Washington D.C.

- George R. Brown Convention Center, Houston, TX

- Prudential Center, "The Rock" New Jersey Devils Arena, Newark, NJ

Family Business Magazine ranks Gilbane as the 64th largest family business in the United States.

Engineering News Record ranked Gilbane Building Company as the 5th largest construction manager in the United States in 2007.

Ethics

Gilbane Building Company Publishes Ethics Hotline Online

Gilbane’s anonymous ethics hotline is now available for all clients, subcontractors, vendors and other partners to maintain open channels of communication and transparency in reporting any situations or concerns

Gilbane Building Company, who has long held an ethics hotline for its employees, has published the hotline numbers to their company website. This proactive approach ensures easy access to this important and anonymous tool for all its clients, subcontractors, vendors and other partners. To cultivate a highly ethical culture and create open channels of communication, Gilbane maintains the hotline numbers which can be used to report any situation where there are concerns or questions about ethical procedures. Reports to the hotline receive immediate and confidential attention from Brad Gordon, Gilbane’s chief ethics officer and general counsel.^[5]

Recent Industry Awards and Recognition

Gilbane Wins Prestigious CURT Construction Industry Safety Excellence Award

Training magazine names Gilbane in Top 125 Best Practice Programs

Associated Builders and Contractors recognizes Gilbane for National Safety Excellence Award http://www.abc.org/en-us/membership/memberawards/nationalsafetyexcellenceaward.aspxExcellence

Gilbane Building Company Earns Two Merit Awards from Engineering News Record Southeast Best Projects

Gilbane Recognized by Associated General Contractors of Massachusetts with 2015 Mass Merit Award

Gilbane Federal was honored by NAVFAC’s Commander Lagerquist, Public Works Officer, Camp Lemmonier, Djibouti, Africa, with aLetter of Appreciation for project P686, Power Plant Upgrades, for “professionalism and commitment to safety”

Allegations of Gilbane Public Ethics Violations and Improper Bidding

Over the last 15 years, Gilbane Building Company has been involved in a number of cases involving allegations of government ethics violations or improper bidding for public work. In four of these cases, public officials were charged with accepting improper gifts from Gilbane while the firm was either performing work for their agency or pursuing a contract for work with the agency. As a company, Gilbane itself has only been charged in a couple of these cases, and one was dismissed on a technicality. However, government officials in California, Arizona, Connecticut and Ohio have been terminated, caused to resign, and/or faced civil penalties in connection with ethics scandals involving Gilbane. And in one instance, a former Gilbane executive admitted to lavishing public school district officials with gifts, avoiding felony charges only by agreeing to a plea deal. This trail of public corruption raises serious questions about Gilbane and its methods of procuring public works jobs. The cases include:

• 2012 – Former Gilbane Executive Pleads Guilty in “the Largest Public Corruption Case of its kind in San Diego County.”^[6] 1 In March 2012, former Gilbane executive Henry Amigable pled guilty to charges that he bought expensive meals, tickets to high-profile events, and other gifts for members of the San Diego-area Sweetwater Union High School District to convince the officials to award school construction contracts to Gilbane and later to two other firms.^[7]

According to one press outlet, “Amigable’s expense reports to Gilbane Building Co. show that he brought various Sweetwater officials to [a San Diego fine-dining establishment] at least 18 times, spending more than $8,000 on the officials in the months leading up to Gilbane being unanimously awarded a three year $7.5 million contract.”^[8]

According to the San Diego County District Attorney’s office, other gifts Amigable produced for Sweetwater officials while working for Gilbane in 2006 and 2007 included dinner and drinks at various restaurants; as well as tickets to a San Diego Chargers football game, to two different showings of the musical “Jersey Boys” at the San Diego Civic Center, and to the Rose Bowl football game. The latter allegedly also came with a two-night’s stay for two officials at the Biltmore Hotel in Los Angeles.^[9]

By pleading guilty, Amigable avoided felony charges of offering a bribe and obtaining a thing of value to influence a member of a legislative body.^[10] He was sentenced to three-year’s probation, a $1,000 fine and 100 hours of community service.^[11] In 2014, the Sweetwater school district filed a lawsuit seeking the return of $26 million in taxpayer funds paid to a joint venture of Gilbane and SGI Construction pursuant to construction contracts awarded around the time of Amigable’s alleged illicit gifts.^[12] In February 2016, a California appeals court denied the motion of Gilbane and SGI to dismiss the case on the ground that the gifts constituted protected free speech and ruled that the school district has “demonstrated a probability of prevailing” on its claim.^[13]

• 2012 – Gilbane Gifts Cited in Phoenix-Area Ethics Scandal. In December 2012, 11 employees of Maricopa Country were placed on administrative leave following an internal investigation revealing that the employees had violated the county’s ethics policies by accepting improper gifts from contracted vendors, including Gilbane.^[14] Gilbane was at the time constructing a $340 million criminal court tower for the county.^[15] (In March 2010, Gilbane was awarded a separate $37 million contract to complete the court tower’s interior.^[16]) Five employees resigned, one was terminated and three were suspended in connection with the investigation.^[17]
• 2013 – Florida College Throws Out Gilbane Award after Rival Firm Alleges Improper Bidding. In April 2013, St. Petersburg College in Florida canceled the selection of Gilbane for a $14 million contract to construct a new campus building after rival builder Peter R. Brown Construction, Inc. protested that the college’s president had ignored the recommendations of a college selection committee and personally chosen Gilbane, even though the selection committee had ranked Gilbane’s proposal last out of three bidders.^[18] The college denied that the bidders had been ranked. Ultimately, a third firm, LEMA Construction, was awarded the job.^[19]
• 2010 – Committee Funded by Gilbane and Other Firms Cited for Illinois Elections Rule Violations. In November 2010, Gilbane was connected with another political impropriety, this time involving election rule citations by the Illinois State Board of Elections. A referendum was passed approving the sale of $168 million in bonds to fund construction and renovations at a Chicago-area community college.^[20] Gilbane was among the largest donors to the Supporters of College of DuPage, a ballot initiative committee that supported the referendum.^[21] Gilbane was the construction manager the oversaw the recent completion of the college’s Health and Science Center. Other donors to the group had also done business with college.^[22] The state elections board ruled that the political committee violated elections rules by failing to disclose its identity on campaign signs advocating for the referendum’s passage.^[23]
• 2005 – Connecticut State Ethics Commission Penalizes Gilbane for Unlawful Gifts. In June 2005, Gilbane agreed to a settlement with the Connecticut State Ethics Commission for unlawful gifts to public officials.^[24] The commission charged that in 2002, while Gilbane was doing business with the state’s Department of Public Works, Gilbane president William Gilbane, Jr. purchased food, drinks and/or “golf related expenses” for one department employee and bought another department employee food and/or drinks as well as a piece of art.^[25] One of the department employees was found to have accepted gifts from the company on more than one occasion.^[26] Under the terms of the settlement, Gilbane agreed to pay a civil penalty of $5,000.^[27]
• 2003-2004 Ohio Ethics Commission Charges Gilbane and State Official in Pay-for-Play Scandal. In 2003 and 2004, the Ohio Ethics Commission charged Gilbane and former Executive Director of the Ohio School Facilities Commission, Randall Fischer, with state ethics violations. In a textbook “pay for play” case, Fischer failed to report gifts worth a total of $1,289 from contractors performing work for his agency; $862 of that $1,289 allegedly came from Gilbane. According to the Ethics Commission, over a period from 1997 to 2002 Gilbane officials provided Fischer with meals, several golf outings and a two-night stay at the Rhode Island home of the company’s president, Thomas Gilbane. During the same period, Gilbane was awarded more than $10 million in no-bid construction contracts approved by Fisher. A municipal court judge dismissed the complaint against Gilbane because it was filed too late,^[28] but Fischer was found guilty of conflict of interest charges and was fined the maximum amount of $1,250 plus court costs.

References

http://www.abc.org/en-us/membership/memberawards/nationalsafetyexcellenceaward.aspx

Sources

http://www.forbes.com/lists/2006/21/biz_06privates_Gilbane_GTFO.html http://www.familybusinessmagazine.com/top150.html http://enr.construction.com/people/topLists/topCmRisk/topcmrisk_1-50.asp

External links

• Gilbane, Inc.