Turner Construction

Last updated

Turner Construction Company
Company type Subsidiary
Industry Construction Management,
Consulting
Founded1902;122 years ago (1902)
FounderHenry C. Turner
Headquarters
66 Hudson Boulevard East, New York, NY 10001
,
United States
Area served
International
Key people
  • Peter J. Davoren (President & CEO)
  • Christa Andresky (CFO)
Servicesconstruction
Revenue$14.41 billion (2020) [1]
Number of employees
10,000 (2020) [2]
Parent Hochtief
Subsidiaries
  • Turner International
  • Turner Universal
  • Turner Logistics
  • Service Building Product
  • Tompkins Builders
Website turnerconstruction.com

The Turner Construction Company is an American construction company with presence in 20 countries. It is a subsidiary of the German company Hochtief. It is the largest domestic contractor in the United States as of 2020, [3] with a revenue of $14.41 billion in 2020. [1]

Contents

Turner Construction was founded in New York City in 1902 by Henry Chandlee Turner. Its first project was a $690 concrete vault in Brooklyn, followed by concrete staircases for the New York City Subway. By the late 1920s, Turner was constructing buildings for large businesses in the United States. Turner's stock began trading on the American Stock Exchange in 1972. Turner's projects have included large buildings and numerous sports stadiums. Then, in 1999, Hochtief purchased Turner.

In 2010s, the company was involved in a multi-year bid rigging scheme related to interior work at Bloomberg L.P. resulting in its then vice president Ronald Olson to plead guilty to federal charge of tax evasion on accepting $1.5 million in bribes from subcontractors [4] and then project superintendent Vito Nigro to plead guilty to grand larceny. [5] They were both also convicted of federal tax crime from this matter. [6]

History

Early years

In 1902, Henry Chandlee Turner (1871-1954) founded Turner Construction Company with $25,000 in start-up capital, at 11 Broadway, in New York City. [7] Turner's first job was a $690 project to build a concrete vault for Thrift Bank in the borough of Brooklyn. [8] In 1904, a Scottish industrialist named Robert Gair hired Turner Construction to build several concrete buildings in Brooklyn, including a plant that was recognized as the largest reinforced concrete building in the United States at the time. [9] [10] Around the same time the company was developing plans for the Gair building, Turner began building concrete staircases for the New York City Subway. The original design showed the stairs were to be made of steel, but Turner persuaded Gair to use concrete as an alternative. [11] His proposal was applauded and led to contracts for staircases and platforms for the Interborough Rapid Transit Company's first subway line. [12] [13] The company established branch offices in Philadelphia in 1907, [14] followed by Buffalo in 1908, [15] and Boston in 1916. [13] Within the first 15 years, Turner Construction Company constructed buildings for some of the country's largest businesses, including a building for Western Electric [16] and for Standard Oil. [17]

From World War I to the Great Depression, the company's billings grew to nearly $44 million. Like most industries, construction suffered during the economic collapse and Turner's volume fell to $2.5 million by 1933. [18] The company recovered and revenues increased to $12 million by 1937. [18] The company suspended commercial construction during the war years, focusing instead on the construction of military camps, factories, and government buildings. [19] In 1941, Henry Turner stepped down as president to serve as chairman and make room for his brother, Archie Turner, as president. [20]

In October 1946, Henry Turner retired as chairman, handing the post to his ailing brother. For his replacement, Archie Turner selected Admiral Ben Moreell, the individual responsible for forming the Seabees. [21] [22] One month after Moreell's appointment, Archie Turner died of a heart attack. [23]

1950s–80s

Turner, together with three other main contractors Fuller, Slattery, Walsh built the United Nations Secretariat Building in New York, [24] [25] which was completed in 1952. [26] Also in same city, Turner built the One Chase Manhattan Plaza in 1956. [27] During the 1960s, notable projects included the Lincoln Center [28] and Madison Square Garden in 1967. [29] From the early 1950s to the late 1960s, the company opened offices in Cincinnati, [30] Los Angeles, [31] Cleveland, [18] and San Francisco. [31] In 1969, Turner issued over-the-counter stock [18] and in 1972, the company's stock began trading on the American Stock Exchange. [32] Throughout the 1970s, the company added offices in locations such as Atlanta, [33] Seattle, [31] and Portland. [31] [34] Notable projects included the Vanderbilt University Medical Center Hospital in 1974 [35] and the John Fitzgerald Kennedy Library in 1977. [36]

Howard Sinclair Turner became president in 1965, and was chairman from 1970 to 1977, [37] when he was succeeded by Walter B. Shaw. [38] In 1984, Shaw appointed Herbert Conant as president. [39]

1990–present

The John F. Kennedy Library Jfk library.jpg
The John F. Kennedy Library

Turner Construction Company erected several professional sports stadiums during the 1990s. Sports construction was not new to the company: Turner's first sports contract was construction of the promenade at Harvard Stadium in 1910, followed by Pitt Stadium for the University of Pittsburgh in 1925. [40] In 1995, the company completed construction of the Rose Garden in Portland, Oregon. In 1996, they built Charlotte, North Carolina's Bank of America Stadium, followed by completion of Sports Authority Field at Mile High in 2001. [40]

In August 1999, Hochtief of Germany purchased The Turner Corporation for $370 million. [41] By extension, Turner Construction Company gained access to Hochtief's operations in Australia, the United Kingdom, and the heavy construction field. In 2002, Turner Construction expanded its presence in the Washington, D.C. area by acquiring J.A. Jones-Tompkins Builders, Inc., the former subsidiary of J.A. Jones Construction Company. Tompkins Builders, Inc., a new entity, is now a wholly owned subsidiary of Turner Construction. [42] By 2016, Turner had 45 office locations around the world. [31]

In August 2017, Turner Construction flouted permit regulations and unlawfully closed two lanes in middle of downtown Portland, Oregon. [43] [44] In response, the city withheld inspection until the fine was paid off and the behavior prompted city transportation commissioner Dan Saltzman to issue the following statements: [45]

"Amidst one of the busiest summer construction seasons in recent memory, I’m disappointed at the blatant disregard for the public," [43] "For a private construction company to block a lane during rush hour, delaying thousands of people and undermining our efforts to reduce traffic congestion is unacceptable," Saltzman said in the statement. "We will hold them accountable." [45]

2019 Cincinnati Center City Development site death

One worker was killed and four were injured in a partial collapse on November 25, 2019, in the 14-story luxury apartment at 4th & Race under construction in Cincinnati that is being built by Turner for Cincinnati Center City Development Corporation (3CDC) and Flaherty & Collins. [46] [47] Concrete was being poured onto the seventh floor which was being supported from below on a temporary structure called "shoring" placed on the sixth floor. Workers were inspecting for seepage from the sixth floor when the floor above collapsed from the weight of the concrete. [47] A worker who had gone missing in the collapse [48] was found dead more than a day later in the rubble. [49] [50] [51]

Turner's previous fatality was in 2012 in Hillsboro, Oregon. [52]

Bid rigging scheme

In February 2018, investigators with the Manhattan District Attorney's Office started looking into Turner Construction and Bloomberg LP over suspected construction fraud by employees in each company and 22 subcontractors. [53] [54] There was conspiracy, bribery and kickbacks involved which occurred between 2010 and 2017. [55] [56] [57]

In the multi-year bribery and bid rigging scheme involving Turner, a former Turner vice president, Ronald Olson, pleaded guilty to bribery in July 2020. Olson pleaded guilty to tax evasion for US$1.5 million he received in connection with Bloomberg jobs while he was working for Turner. [58] [59] He received bribes from subcontractors in exchanging for awarding them contracts for Bloomberg L.P. projects. [60] He was one of 14 individuals facing charges over this scandal. [61]

Operations

Exterior of Invesco Field at Mile High in November 2004 DSCN5753 invescofieldatmilehigh e.jpg
Exterior of Invesco Field at Mile High in November 2004

Turner has 46 offices in the U.S., is active in 20 countries around the world, and averages 1,500 projects per year. Turner services include construction management, general contracting, consulting, construction procurement, insurance, and risk management. According to Engineering News-Record's 2014 Top 400 Contractors Sourcebook, Turner is the largest "Green contractor" in the United States. [62]

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References

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  2. ↑ "About Us | Turner Construction Company" . Retrieved 8 October 2020.
  3. ↑ "ENR 2021 Top 400 Contractors 1-100". ENR. Retrieved 20 July 2021.
  4. ↑ Rebong, Kevin (2020-07-30). "Ex-Turner Construction Exec Pleads Guilty in Bribery Scheme". The Real Deal New York. Retrieved 2020-09-23.
  5. ↑ Manrodt, Alexis (2020-10-06). "Turner Construction Exec Pleads Guilty in Bloomberg Case". The Real Deal New York. Retrieved 2020-10-06. Vito Nigro, a project superintendent, pleaded guilty on Tuesday to grand larceny for inflating subcontractor bids on Bloomberg projects, filing bogus change work orders and misappropriating unused funds, Manhattan District Attorney Cyrus Vance Jr. announced.
  6. ↑ "D.A. Vance Announces Guilty Pleas in $15M Bloomberg LP and Turner Construction Bid-Rigging and Commercial Bribery Conspiracy". Manhattan District Attorney's Office. 2020-10-06. Retrieved 2020-10-06. As a result of the D.A.'s Office's investigation, CAMPANA, NIGRO, OLSON, and GUZZONE were also convicted of federal tax crimes by the U.S. Attorney's Office for the Southern District of New York.
  7. ↑ To Commemorate the 40th Anniversary of the Founding of the Turner Construction Company, May 6, 1902. Turner Construction Company. 1942.
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  24. ↑ "H. Chandlee Turner Jr., Leader Of Construction Firm, Is Dead". The New York Times. 1973-04-13. ISSN   0362-4331 . Retrieved 2020-09-22.
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  27. ↑ "Chase Manhattan Bank Breaks Ground for 60-Story Headquarters". The New York Times. January 29, 1957. ISSN   0362-4331 . Retrieved May 6, 2020.
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  31. 1 2 3 4 5 "PCAD - Turner Construction Company". pcad.lib.washington.edu. Retrieved 2020-03-05.
  32. ↑ International directory of company histories. Vol. 23. Grant, Tina., Thomson Gale (Firm). Detroit, Mich.: St. James Press. 1998. p. 486. ISBN   978-1-55862-664-5. OCLC   769042349.{{cite book}}: CS1 maint: others (link)
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  39. ↑ "Executive Changes". The New York Times. 1984-03-06. ISSN   0362-4331 . Retrieved 2020-03-05.
  40. 1 2 Turner News: Centennial edition Archived 2007-09-26 at the Wayback Machine Turner Construction, 2002
  41. ↑ Hochtief agrees to buy Turner for Euros350.1m Business International, 1999
  42. ↑ CapNet leaves nest Washington Business Journal, 8 August 2003
  43. 1 2 "Portland punishes construction companies that block traffic". Portland Business Journals. American City Business Journals. August 7, 2017.
  44. ↑ KATU Staff (2017-08-07). "PBOT fines two contractors who blocked right of way on Burnside Bridge and downtown". KATU. Retrieved 2020-09-23.
  45. 1 2 Njus, Elliot (2017-08-07). "Portland fines two construction firms for blocking traffic". oregonlive. Retrieved 2020-09-23.
  46. ↑ Caproni, Erin (December 3, 2019). "Work resumes on downtown building after partial collapse". Cincinnati Business Courier. American City Business Journals.
  47. 1 2 Hager, Sarah. "Visual breakdown of what caused the partial collapse at downtown Cincinnati building". Fox 19. Retrieved 2020-09-24.
  48. ↑ "Man lost in building debris following accident in Cincinnati". The Daily Standard. November 26, 2019. Retrieved 2020-09-24.
  49. ↑ Mitchell, Madeline; Knight, Cameron (November 26, 2019). "Construction worker buried by partial collapse of Cincinnati building found dead". USA TODAY. Retrieved 2020-08-21.
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  56. ↑ Ramey, Corinne (2018-12-11). "Kickbacks and 'Sandwiches': How Insiders Ran an Alleged Construction Fraud at Bloomberg". Wall Street Journal. ISSN   0099-9660 . Retrieved 2020-09-15.
  57. ↑ "Ex-Turner Construction VP admits evading taxes on $1.5M in bribes". Crain's New York Business. 2020-07-29. Retrieved 2020-09-15.
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  59. ↑ "Former Construction Executive Pleads Guilty To Tax Evasion In Connection With Bribery Scheme". www.justice.gov. 2020-07-29. Retrieved 2020-08-21.
  60. ↑ "Former Turner Construction Executive Admits to Tax Evasion in Bribery Scheme | USGlass Magazine & USGNN Headline News". www.usglassmag.com. 11 August 2020. Retrieved 2020-09-15. Ronald Olson, a former vice president and deputy operation manager for Turner Construction Co., pleaded guilty to charges of evading taxes on more than $1.5 million in bribes he received from subcontractors in exchange for being awarded contracts for Bloomberg projects. He is one of four who have been charged in the scheme, which amounted to bribes exceeding $5.1 million.
  61. ↑ "Former Turner Construction executive pleads guilty to evading tax on $1.5m in bribes - News - GCR". www.globalconstructionreview.com. 4 August 2020. Retrieved 2020-09-16.
  62. ↑ "The Top 100 Green Building Contractors". ENR. ENR.
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