Listen to this articleNorthwestern Mutual’s $500 million renovation of the North Office building has surpassed local business and resident contracting goals, according to a quarterly report written in April.
Gilbane Building Co. and C.G. Schmidt are leading interior and exterior renovations for the 540,000-square-foot North Office to mirror the Tower and Commons. Both buildings are on the insurance company’s campus in downtown Milwaukee. The project includes new connecting structures and a pedestrian plaza on Cass Street.
The project had goals to contract small business enterprises (SBEs) for at least 25% of construction and supply costs set through a developer-funded tax increment financing agreement with the city, the report showed. The company reported 32% of construction costs have gone to more than 30 SBEs. The report recorded results through March 31.
The city of Milwaukee also set goals for 40% of work hours to go to residents living in the city’s most vulnerable zip codes under the Residents Preference Program (RPP). Northwestern Mutual reported that 60% of job hours include workers who live in impacted areas.
According to the report, the total inclusive construction cost was more than $282.5 million to date. Professional services cost $12.9 million, applicable professional services cost $6.9 million and applicable construction draws cost more than $26 million.
Small business participation valued up to more than $90 million, the report showed. That exceeded the original goal for at least $70 million of project costs for small business.
Northwestern Mutual and its project partners hosted information sessions to ensure small businesses are aware of employment and training opportunities presented by the North Office renovation, a spokesperson for the company said. The team presented bid opportunities for interior packages and the bidding process is underway, they added.
Information about the make up of RPP workers and apprentices showed shortfalls of some demographics. Project and labor officials said it’s likely because the project is still in early stages and contractors haven’t hit their peak workforce.
Of the 107 RPP workers recorded before March 31, there were only two Asian and two Native American workers on the job, the report showed. There were only four women working as RPP workers in the last quarter.
On the apprentice side, there were only four Black apprentices of the pool of 40 included in the demolition phase, the report showed. There was only one female apprentice listed compared to 39 males.
“It’s the early days, plus the current phase is primarily demolition work,” said Northwestern Mutual’s project officials. “We’d expect to see the mix change as we advance in the project.”
In construction, Black and women workers are still underrepresented, and more than half of Black workers cancel their apprenticeships before completion, according to a report from the Wisconsin Policy Forum. However, industry officials acknowledged the issues and said they are working to address them.
“This is all great news that the project is reaching or exceeding it goals,” said Dan Bukiewicz, president of the Milwaukee Building and Construction Trades Council. “This is what the ordinance that contains the use of RRP workers intends to accomplish.”
“As for the apprentice’s lack of females or minorities at this early stage of the project many factors could be involved with the numbers,” he added. Ongoing projects such as the Baird Center might still be a priority for more RPP candidates, but they could move to Northwestern Mutual in the next part of the year, he noted.
Construction officials expected more female and minority applicants when the project contractors hit their peak workforce needs, Bukiewicz said.
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