2005 Top Contractor of the Year

Skanska USA Building New Headquarters; New Attitude

By Lucy Bodilly

Skanska USA Building, Seattle, boasts a 60-year-old presence in Seattle, including the 54 years the general contractor spent as Baugh Construction. With revenues at $805 million for 2005, it is the biggest general contractor in the Northwest.

A combination of shades and blinds control the amount of light that comes intoo the building.

Major projects under way include Lincoln Square, a mixed use project in Bellevue, Stadium High School, a renovation and addition to the Tacoma landmark; and Alley 24, located near Lake Union in Seattle.

The company moved into the office portion of the Alley 24 project in early March. It shares the building with NBBJ, the largest architecture firm in Seattle and several other tenants. Appropriately, NBBJ was the project designer and Skanska the contractor. A complete description of the project starts on page 20.

The new building is a birthday present for many employees whose careers span both ownerships. “We are very excited about our 60th year,” said Bob Babitsky, executive vice president of the company. Skanska is the only contracting company Babitsky has ever worked for, starting 28 years ago as a project engineer for Baugh.

“We are a very close knit group,” Babitsky said. “Some of our employees are the third generation in their family to work here.”

Along with the new building comes a new attitude for the employees and a marketing campaign. The new company slogan is People Community Partnerships.

For Babitsky, the building represents a stepping stone between the two companies. “We still have the core values of Baugh and now the resources of Skanska,” Babitsky said.

The design of the new building echoes the goals that Skanska is trying to achieve in the community. A central space acts as a “living room” for employees and the company hopes the new building can serve the same role in the community. “We designed it as a large open space, so people can have meetings here,” said Tony Stewart, Skanska director of marketing.

Though the company is the highest volume contractor in the area, “We are not into the market to chase volume,” Stewart said. “We want to service long term clients.”

A market share that is increasing for the company is the construction management side, which comprises 35 percent of the company’s work. It’s a sign that owners are becoming more willing to pay for pre-construction services,” Stewart said.

Both Stewart and Babitsky credit the commitment of long term employees for the successful transition of the company.

“Other local companies that have been bought out, immediately changed the company management team,” Stewart said. That turnover can be harmful, because construction is a local business, successful because of personal relationships with local subcontractors and clients. For highlights of Skansa’s new headquarters, see page 20.