GILBANE BUILDING COMPANY 2016 ANNUAL REPORT

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TABLE OF CONTENTS A Letter From Our CEO | 3-4 FORWARD LEANING Client Satisfaction | 5-6 High-Performing Teams | 7-8 Gilbane Lean Is Powering Excellence | 9-11 Metrocentric Focus | 12-14 International Focus | 15-16 Individual Efforts = Collective Excellence | 17-18 Safety Leader | 19-20 A Letter From Our Chairman | 21-22 Gilbane Cares | 23-24 Commitment to Sustainability | 25-26 Building Our Future Board of Directors 2016 HIGHLIGHTS “Gilbane has been undergoing a technology transformation … we are an industry leader in the application of state-of-the-art technology ...” ACHIEVED OUTSTANDING FINANCIAL PERFORMANCE Michael E. McKelvy President and CEO Gilbane Building Company NON-NEGOTIABLES TOOK SAFETY STANDARDS Mission TO NEW HEIGHTS We are recognized as a global provider of facility solutions, operating as One Company, effectively integrating and leveraging all of RECORD SALES OF Gilbane’s expertise. $7.2 BILLION We embrace the historical family culture and live the core values of Gilbane.

Client advocacy and superior execution 13 YEARS ON serve as the foundation for exceptional TRAINING MAGAZINE’S customer satisfaction. TOP 125 LIST

Leadership embraces entrepreneurship and fosters a culture of innovation throughout the company. PROGRESSIVE PAID FAMILY LEAVE POLICY Gilbane is the recognized employer of choice. ROLLED OUT

We consistently achieve sustainable, profitable growth for the benefit of all stakeholders. RECEIVED TWO ENR GLOBAL PROJECT AWARDS

Cover Photo: Chris Utley | Project: Northwestern Mutual Virtual reality allows users to experience Tower and Commons, Milwaukee, Wisconsin facilities before they are built.

2 A LETTER FROM OUR CEO A Great Year When we look back over the last year, 2016 was a great During the last year, we made progress implementing year for Gilbane Building Company. We met our annual Lean practices across the company with our unique, three- operating plan for profit and exceeded the plan for sales, dimensional approach to individuals, project teams and with year-over-year improvement from 2015. our company’s processes and systems. Through the use of Advanced Planning and Scheduling, we were able to deliver This is no small accomplishment as 2015 was one of the some remarkable facilities for our clients in 2016. Our march best years in Gilbane Building Company’s history. One toward process simplification via the use of Playbooks made could argue that 2016 was the best year. In addition, our great progress with even more planned for 2017. plans for 2017 show continued growth in profits and sales. So the foundation of our company, built on the Gilbane has been undergoing a technology transformation core values of our founders, is rock solid. We adjusted as well. Nearly all of our job site teams have taken great our Vision 2020 strategy last year and set our sights on strides toward becoming “paperless,” and we are an industry the next three years to come. We have a plan and are leader in the application of state-of-the-art technology, working that plan across all of the company. We continue such as our proprietary project team collaboration tool, to make strides to show our strategy to each and every SmartApp, as well as building information modeling, employee to enable them to apply that strategy to laser scanning, virtual reality and more. We embrace their daily work. The outcomes are reflected in many these technologies, not just because it is good for the ways, from positive employee survey results to reduced environment or because it increases our productivity. We voluntary turnover in 2016 (down to 9.1 percent) to great embrace them because ultimately it is about customer customer survey feedback. satisfaction from a project well done. Our client Clay Goser, director of program management at the University of As good as 2016 was for the record books, there is Chicago Medicine, describes the use of Lean scheduling always room for improvement. Gilbane Cares – and our and our use of technology on his projects as the key to Michael E. McKelvy (left) interacts with the dedication to keeping everyone in our offices and job making all the work inside his hospital become “very, very South Street Landing team in Providence, R.I. sites safe – continues to be our No. 1 value. Although we predictable.” This applies as well to our internal customers … continue to be an industry leader in safety, there are still our employees, the true best resource in Gilbane. avenues to follow that could lead to even greater safety gains. Continued focus on caring and keeping everyone We continue to hear in our industry from teammates, When we look back over last year, 2016 was a great year for safe must always be at the forefront. Our implementation subcontractors, clients and new employees into the of our Gilbane Safety “Non-Negotiables” last year will help company, that there is a difference working with Gilbane. Gilbane Building Company. We met our annual operating plan us stay consistent across all our multiple locations. Our That difference comes from our roots and the humble mandatory requirement for fall protection above 6 feet beginnings of the Gilbane family. Their establishment of for profit and exceeded the plan for sales, with year-over-year helped save three lives during 2016. our Core Values – Integrity, Toughmindedness, Teamwork, Dedication to Excellence, Loyalty, Discipline and our more improvement from 2015. Our customer satisfaction and Although we did have a great year financially, we recent addition, Caring, applied consistently by us all truly can also make improvements on that front and we does make a difference. These values have kept us going safety results were also outstanding. hold ourselves to achieving a higher standard. We for more than 144 years and continue to provide the did, however, have a more “balanced” year across our cornerstone for our future. geographic business units with tremendous growth in City and . As we get into 2017, this is OUR even more so the case with New York City becoming our CORE largest unit. VALUES INTEGRITY TOUGHMINDEDNESS TEAMWORK DEDICATION LOYALTY DISCIPLINE CARING Michael E. McKelvy TO EXCELLENCE President and CEO Gilbane Building Company

3 4 CLIENT SATISFACTION

Client Feedback

Exceeding Expectations THESE RESULTS DRIVE Client The results are in. PERFORMANCE, CHANGE Satisfaction Project Results Improvement In 2016, Gilbane received 967 completed satisfaction For the last several years, our clients have told us that AND TRAINING PRIORITIES surveys from our clients, architects/engineer partners, our values align with their own, and they rate us highest COMPANYWIDE project management firms and trade partners. In total, on integrity and honesty. Passed on from our founders, 99 percent of them reported that we had either met or Integrity is one of our driving values. Similarly, safety is exceeded their expectations. Delivering this high level of our top priority at all times, and our clients recognize client satisfaction has led to significant repeat business the comprehensive planning and oversight that Gilbane totaling 71 percent. uses to send everyone home safe from our project sites and offices. Also highly rated, is our proactive and We survey our clients at the start, midpoint and end collaborative planning along with diligent execution. 2016 of a project. The questions we ask provide us with a clear picture of where we stand and those areas that Gathering feedback and listening to the insights our need improvement. Our project teams and upper clients and partners offer drives our business planning. 2016 management review all of our survey results and thrive In 2016, this forward-leaning attitude helped Gilbane on the insights our clients offer. deploy Lean Advanced Planning and Scheduling. "EXCEEDING % By the end of the year, our client scores for schedule 71 The driving force behind this system is William J. Gilbane, EXPECTATIONS" reliability were rising. The same is true for technology of Gilbane’s work Jr., Vice Chairman, who helped invent the survey process, is our average rating is from repeat deployment to help drive high-performance planning clients which uses feedback to drive improvement and raise based on and collaboration. These efforts have led to steadily satisfaction year after year. This improvement journey increasing scores for the last four years when we asked C owner o s began with Bill’s steadfast attitude that if you measure m n 534 evaluations clients whether we were using technology effectively. p tio it, you can improve it. For more than 15 years, we have an ua ywide Eval received great and informative feedback from more than In 2017, we hope to receive surveys from record 13,000 evaluations. Bill says his passion is creating clients numbers of clients, drive excellence in everything we do for life by understanding our clients’ expectations and and cement new and exciting, long-term relationships. then overcoming whatever challenges come our way. Our Commitment to TOP 5 Corporate CONTINUOUS Our project teams and upper management RANKED AREAS by owners, trade contractors, IMPROVEMENT review all of our survey results and thrive on project management firms and in Corporate trade partners in 2016 the insights our clients offer. INTEGRITY AND HONESTY 14 15 16 17 RESPONSIVENESS TO ISSUES 20

CONSTRUCTABILITY REVIEWS Consistently increasing ratings on

SAFETY “Keeping You Informed”

PROJECT TEAM EFFECTIVENESS

5 5 6 Our people never stop looking for ways to meet Academic Commons at Salisbury University – Katy ISD High School – Katy, HIGH-PERFORMING and exceed our clients’ expectations. Here are a Salisbury, TEAMS few of the challenges our high-performing teams overcame in 2016.

A new 625,525-square-foot high school located on a 147-acre site to serve over 3,000 students. Two, 3-story academic wings with classrooms supporting CTE (Career and Technical Education), science labs and collaboration spaces as well as two dining commons, a performing arts center, four gymnasiums, a natatorium and competition baseball, softball, football and track facilities. Mike Matula, Gilbane Project Executive – “The project team overcame numerous challenges on this project but maintained a positive attitude, and we are delivering a project that all stakeholders can be proud of.” College of Architecture and Environmental Hartford Hospital Bone and Joint Institute – Design at Kent State University – Kent, Hartford, Hudson Yards – New York City, New York 115,000-square-foot building features a highly energy- 28-acre Hudson Yard development. World-class five-story, 150,000-square-foot hospital for efficient glass and glazing system, a geothermal well The anticipated LEED Gold, 51-story, 780- preventing and repairing joint damage. system and a green roof. foot commercial building will include more Eight operating rooms and 48 inpatient beds with room Visually stunning design with museum-quality finishes than 1.25 million square feet of office space to expand. delivered on a tight budget. Design-build, four-story, 244,000-square-foot project. and feature a unique curtain wall. Features sweeping curved structures throughout with the Chris Kowalcyzk, Gilbane Project Engineer – “We did Ian Walby, Gilbane Senior Project exterior wrapped in 1/8-inch-thick aluminum plate. Creates a dynamic, highly used campus focal point things beyond our contract. When they wanted us to stand in for students and faculty. Executive – “Bordering an MTA subway Chris Enders, Gilbane Senior Project Manager – “We did an owner-rep role, we did that. We filled that need and acted station, crane placement was a challenge 145-foot-tall bell tower and marble columns blend not have a lot of space. We basically took two parking lots to as a kind of mediator with the architect sometimes and said, for the site team. The only available crane with the surrounding historic brick buildings. do two buildings next to an existing building we could not take 'Look, this is what’s going on. This will cost us some money. location was on the 11th Avenue side of the down. So there were very tight constraints on design as well as This is how we can resolve that issue.' The owner really looked David Childress, Gilbane Senior Project Manager – site, which is also a viaduct that could not construction; but in the end, this team delivered a facility that’s a to us for help beyond the usual construction management “We would hold separate meetings with our trades sustain a crane’s weight. And we couldn’t credit to this city and a real boon for the patients.” roles, and we were happy to take that on so they could be each week. One for the interiors. One for the exteriors. place the crane directly at street level comfortable.” And we would whiteboard the schedules. We walked without having to replace the road when the site prior to the meetings and took photos of every construction finishes, so we had to focus elevation in the building. We’d put it up on the screen on innovative solutions. The end result was Johnson & Johnson Vision Care, Inc. Solvent Tank Farm – and compare last week’s photo to this week’s photo, and cantilevering the crane above the street. Jacksonville, Florida we would cloud the areas and say, ‘That was supposed It sat on steel beams connected to the to be done last week. Get it done this week'." building’s core.” 35,000-square-foot manufacturing plant expansion including 10,000-square-foot central utility plant. Marathon Petroleum Campus – Findlay, Ohio Increased capacity of isopropyl alcohol and propylene glycol systems supports three new disposable contact lens manufacturing lines. Campus consolidation program included construction of a new 120,000-square-foot office building, two parking structures totaling 2,000 spaces and a support building. John Bowen, Sr. Staff, Engineer Facilities Planning – “The project was time- New consolidated campus brings together 1,900 employees. constrained in that we had manufacturing lines scheduled to arrive at a specific time. Prior to being able to start the project that would house the manufacturing Brett Meyer, Vice President, Columbus Business Unit – “This is a great example of lines, we had to complete a new tank farm so that we could tear down the old tank how working with a challenging client with high expectations really raised the bar of our farm. So it was logistics not only for building the building but for the sequencing of own performance. We quickly understood the expectations they had on the construction the project that made this a challenge.” site were the same that they had on their refineries.”

7 8 Our Lean Transformation For over 140 years, Gilbane has defined our value as a family-owned company through a people-first approach. In recent years, the construction industry has faced increased pressure to deliver safe, high-quality projects faster, more economically and with superior quality. Amid these pressures, how will we maintain our time- honored focus on our people, our greatest resource, so they can deliver better and better results for our clients? owe Our answer is Lean. is P ring an E e xc L e To achieve our Vision 2020 goals, we are in the midst of a Lean e ll transformation journey, literally leaning into the future. Our Lean n e a n b c approach is unique and industry leading. We are grasping and l PEOPLE i e

implementing Lean in three dimensions: developing individuals into Lean G Practitioners; building high-performing project teams with our clients, designers and trade partners; and identifying and implementing process PROJECT improvements across our company. TEAMS

How does our Lean journey impact our clients and partners? COMPANY We believe that our Lean transformation will truly produce better results PROCESS and better experiences for our customers only if we apply Lean across all the dimensions of our system – with personal learning, project teams, and our company-wide business processes and management.

People First The goal of our Lean Practitioner program is to “I am passionate about making a great provide coaching, small group first impression to our new hires in their interaction and breakthrough thinking to employees who onboarding experience. On my Lean are pulling for knowledge Practitioner journey, I learned how to do and looking to advance their careers. Our candidates a comprehensive root cause analysis so I learn Lean principles and could see the right problems to solve. I made a process techniques and immediately apply them to problems that improvement, not just in my work, but with shared get in the way of delivering ownership among the team! And, that results in a value to our customers. This program is a learn- more welcoming onboarding experience for the new while-doing effort, where employees I care so much about.” process improvement results Kavon McAdams accompany personal mastery Lean Practitioner and growth. Human Resources Process Manager

Gilbane field staff use an electronic plan table to coordinate work.

9 10 METROCENTRIC FOCUS

Redefining the American City

Gilbane Chicago team engaged in a Pull Planning session.

Building High-Performance Teams Industry research and our own successful projects have taught us “It’s so rewarding for our project that results are driven by effective collaboration. We are implementing teams – owner, architect, project behavioral systems and processes that transform project team collaboration management firm, Gilbane, trade from an art to a science – Lean teams are powering excellence. For contractors – to all go through this example, our Advanced Planning and Scheduling coaching program uses coaching and move from doing their Lean construction techniques – from Pull Planning to 5S – to look down the task well to truly acting as a high- road proactively and prevent risks and problems, resulting in reliable schedules performing team. For a successful for our clients. Our Advanced Planning and Scheduling coaching program is project, it’s all about the team.” an investment in helping our teams Ashley Phelps perform at a higher standard than they Lean Practice Manager ever did before – better, faster and safer.

55 Hudson Yards in New York City 10 11 12 METROCENTRIC FOCUS

American cities are undergoing a rebirth as outstanding places to live and work. Gilbane is proud to

be taking part in New York City Boston Chicago Houston Milwaukee Providence Atlanta Austin , D.C. this transformation The Brooklyn Navy Yard In the off season, Gilbane The new Will County The Phillips 66 The 32-story Northwest South Street Landing was The 27-story luxury tower The Gables Republic Square The Diplomacy Center as our projects is a flagship commercial completed renovations Courthouse is an 11-story, Headquarters included Mutual Tower and an abandoned power at 1000 Park Ave. sits in the Apartments and Hotel Zaza Pavilion forms a large high-rise, built on a dry at the iconic home of the 375,000-square-foot construction of 16- and Commons is the largest station built in 1931, which heart of the prestigious is a 24-story, mixed-use glass jewel box cradled redefine skylines dock. The 675,000-square- Boston Red Sox, Fenway building that contains 30 14-story towers that house office building in the city through adaptive reuse Buckhead district in tower that includes the within the arms of the and city centers foot project will transform Park. The project included courtrooms, offices for the 1,800 employees. Located with more than 1 million has become a vibrant downtown Atlanta. The Hotel ZaZa, a high-end existing Department of the storied location construction of an additional Will County Clerk of the on a 14-acre site, the square feet of floor space. home for Rhode Island concrete tower features boutique, 159 hotel rooms State office building. The across America. into a 16-story building luxury suite along the left Circuit Court and other visually striking campus The project also includes a Nursing Education Center 267 apartments and four and 221 luxury apartments 30,000-square-foot project Here are just a with innovative and field line and a new section judicial building features includes a parking garage, three-story commons area and Brown University stories of parking. across from Republic Square sits on two levels. collaborative work spaces, of rooftop-level seating with a focus on enhanced conference center, fitness and public green space. administration. Park in Downtown Austin. few examples of state-of-the-art amenities above. Gilbane has provided security. center, cafeteria, rooftop Gilbane’s work. and breathtaking views. construction management soccer field and other services for Fenway Park supporting facilities. since 2007.

New York City Atlanta Chicago Washington, D.C. Boston Charlotte Houston Cleveland Chicago San Jose The New York Wheel The Gwinnett County Gilbane worked with The Gilbane was proud Gilbane recently completed The Lincoln-Harris project The Menil Drawing Institute The Cleveland Indians’ The confidential high-rise Gilbane is providing is a new, high-profile Justice and Administration University of Chicago to lead the landmark a fitout of the 16th floor is a new 10-acre mixed-use (MDI) is a 30,150-square- Progressive Field Suite restacking project sits construction management destination on Staten Center expansion will Medicine to improve modernization of the at 53 State Street, just one development in Uptown foot museum and Renovations is refreshing downtown and includes and program management Island’s north shore. add 180,485 square feet facilities at the Center for Martin Luther King Jr., example of the numerous Charlotte, including academic building that will multiple units and building out the entire services for Phase II of It features the tallest to hold court functions Care and Discovery. This Library. The remodel complex high-rise remodel office, hospitality and house the Menil Collection converting single suites into 36th floor to accommodate Mission College’s Main observation wheel in including courtrooms, complex renovation project features the addition projects in Boston. This multi-family buildings. in Houston. The MDI will multi-use party areas. This consolidation of personnel Building Replacement. the Western Hemisphere judges’ chambers, jury converted vacant space of a new fifth floor to building was originally built Demolition of the existing be the first free-standing project follows successful located on the 10th and The 100,000-square foot, (standing 630 feet tall). deliberation rooms and a into patient floors with a the existing building, by Gilbane. Charlotte Observer office facility in the U.S. devoted completion of the right field 29th floors, as well as the three-story facility will jury assembly room. total of 203 new beds. extensive green roof space, building made way for this to the exhibit, study, renovation and concourse Main Distribution Frame on house multiple programs. restoration of the historic complex. storage and conservation and concessions projects the fourth floor. facade and construction of of artworks on paper. Its over the last two off-seasons. a new indoor/outdoor cafe. collection includes more than 1,200 works.

13 14 King Khalid Air Base Constellation Brands | Mexico (multiple sites) INTERNATIONAL Khamis Mushait, Saudi Arabia FOCUS

In Saudi Arabia, Gilbane is performing a design-build construction project In Mexico, Gilbane is helping Constellation Brands meet an ever rising for the Royal Saudi Air Force in the thirst for its beers. Constellation produces both the Corona and Modelo southwest of the kingdom. The project, brands and became the No. 1 brewer and seller of imported beers in the at King Khalid Air Base, was awarded by U.S. last year. In addition, it posted record volumes in fiscal 2016. the U.S. Department of Defense and was Gilbane helped the company expand brewery and glass plant designed to create facilities needed to operations in Mexico – first at the Nava facility and more recently in support new F-15SA aircraft at the Mexicali, Baja , Mexico. This new facility contains the same air base. technological and operations advancements as the Nava brewery and It features the construction of King will provide consistency in brewing and production processes with the Khalid Training Center, which will highest level of product quality expected at both facilities. provide academic and hands-on training for F-15SA aircraft maintenance within a campus environment, a new In Okinawa, Japan, avionics and pod facility; and a variety of Gilbane is using our Bob Hope/Amelia Earhart Gilbane Is renovation work on existing facilities. extensive expertise in Elementary School | Okinawa, Japan The project, which is funded by the the K-12 educational Saudi Arabian government, is a joint market to help the initiative between the U.S. Air Force U.S. Army Corps of Helping Clients and the Royal Saudi Air Force and is Engineers District in managed by the Air Force Life Cycle Japan build the new Management Center. Bob Hope/Amelia Earhart Elementary Around the World Adhering to Gilbane’s high standards School. This new for job site safety, this team has worked school replaces two King Khalid Air Base almost 5 million hours without a lost in Saudi Arabia older facilities and meets the 21st Century Education Facilities time accident. This achievement is Specifications, as well as brings invaluable modern infrastructure. largely due to the team’s proactive approach to seeking out hazards and Located on Kadena Air Base, the new school will consolidate facilities recognizing safe work. In all this team into a 194,692-square-foot, two-story complex, which is compliant The high standards of excellence in safety, has conducted 3,700 safety inspections. with LEED and EPACT; provides new water/sewer, electrical, In addition, seven languages are spoken and mechanical utilities; improves associated roads, sidewalks, on site and Gilbane’s borderless safety and parking; and meets AT/FP, low impact development, and quality and innovation that Gilbane maintains tools have helped everyone better environmental impact standards. understand unsafe conditions. Project Manager Kinsson Gracien says the TOA/Gilbane joint venture help us deliver exceptional facilities to a wide team is working seven days a week to complete the advanced school building in time for classes in August. He adds that having a top Japanese firm teamed with an experienced school builder from the variety of clients in international markets. U.S. has allowed for the use of an American design and materials in Japan – not an everyday occurrence.

15 16 Gilbane employees across America and around the Independence Day Rescue Junior Builders Learn First-hand INDIVIDUAL EFFORTS = globe are driving our company forward in a myriad of COLLECTIVE ways. Here we highlight a few of the individuals who EXCELLENCE have helped contribute to our collective success.

Faced with a rapidly rising Newsmaker Honors for Sousa Racing The River Mississippi River and a critical AT&T facility in the 100-year Corporate Security Director Jim Gilbane was boating in flood plain, Project Manager Narragansett Bay when he witnessed a plane crash just a few Aspiring builders, architects and engineers at the Mike Smith jumped into action hundred yards away. In true Gilbane Cares fashion, he quickly Perrysburg, Ohio, Intermediate School have become at AT&T’s Olive Branch, , motored over to pull the downed pilot from the water. The Junior Builders thanks to Project Engineer Corey central office. He pulled young pilot had been flying a promotional plane over the Kennedy and the rest of the Gilbane team on that together a team of laborers and crowded Narragansett, Rhode Island, beaches when it lost project. During their time on the site, students study they worked 35-hours straight power. “The engine stalled when the pilot switched from one drawings and specifications, as well as take tours and – well into New Year’s Eve – fuel tank to the other,” Jim said. Jim carefully brought the boat get first-hand insights into what it takes to build a filling and placing more than around, avoiding the plane’s tangled promotional banner, and school. Kadee Anstadt, executive director of teaching 12,000 sandbags. The facility pulled the pilot aboard. A short time later, beach lifeguards and learning for the Perrysburg Schools system, says remained dry through the flood and the Coast Guard arrived. “He was really lucky,” Jim said of the facility has been certified as a STEM school and emergency. the pilot. “I’m just glad he wasn’t hurt.” the Junior Builders program was a key part of its application. “These weren’t kids with just hard hats and T-shirts on, but they were actually out there being Project Executive Mike Sousa (first row, Training Magazine’s Top 125 names Gilbane #29 Mentoring in Boston ambassadors for the building, and I really think that second from the right) took home Engineering Greg Duncan (left), learning and development manager, went a long way.” News-Record’s Newsmaker Award for his work accepted Training Magazine’s prestigious heading up Gilbane’s Ministry of Defense Top 125 training award at the Training 2016 Complex project in Kabul, Afghanistan. Known Conference & Expo Gala at Disney’s Coronado Integrity in action as “Building 100,” the MoD headquarters Springs Resort in Orlando, Florida. Now in its Since 2013, Gilbane has helped building is analogous to our Pentagon, 16th year, the Training Top 125 is the only report 4,800 families throughout housing Afghan National Army leadership that ranks companies unsurpassed in harnessing that were affected and command personnel. The 414,000-square- human capital. In 2015, Gilbane was ranked #32. by Super Storm Sandy. Led foot facility includes Afghanistan’s National Congratulations to the Gilbane University team by Deborah Pereira, senior Military Command Center, executive and who continue to raise the bar in developing project executive, team members administration offices and facilities, dining award-winning interactive and dynamic training have completed more than 8,000 facilities and kitchens, a 936-fixed-seat platforms in support of continuous learning. Greg is inspections, processed more than 7,300 payments to On the Dearborn Academy project in Roxbury, auditorium and many other features. joined in this photo by Vice President and Director of Enterprise homeowners and certified tens of thousands of closeout (the first new school building to be constructed in the City Learning and Development Nancy Libardoni. documents that help get residents back in their homes. of Boston in more than a decade), Project Executive Mike Gilbane’s commitment to Integrity and Dedication to Marcella and his team joined forces with Roxbury-based, Excellence on this demanding program was recently Smart Partnership in Boston minority-owned partner, Janey Construction Management. The highlighted when a third-party audit of more than 1,000 Boston Celtics’ guard Marcus Smart and New England Business Unit two groups created a mentor-protégé program where Gilbane processed payments gave Gilbane outstanding marks Leader Ryan E. Hutchins (second from left) recently unveiled the serves as a mentor to support the enhancement of capabilities and found only a handful of minor administrative issues NBA standout’s first Smart Center, sponsored by Gilbane Building of Janey as a construction manager and general contractor. that had no impact on homeowners. Company, Eliassen Group and Enterprise Holdings, at Boston Medical Center. The Smart Center, a program of Marcus Smart’s YounGameChanger Foundation, is a portable cart that will move Every Child is Able to Play between BMC’s pediatric inpatient units and outpatient clinics, as Human Resource Generalist Janice Brownlee and a team from well as the pediatric emergency department. The Smart Center is Gilbane’s Sarasota, Florida, office volunteered at the 2016 Venice filled with electronics to provide patients and their families access Challenger Baseball community event, an organization that ensures to technology and other resources as a means for relaxation, every child is able to play ball and get a chance at bat. The players communication and therapy during their hospital stays. include individuals with special needs and range in age from elementary school to adulthood.

17 18 Through relentless application of best practices, visible leadership and employee engagement, Gilbane continues SAFETY LEADER to be a safety leader in the construction industry and strives to ensure all of our operations are incident free. T Gilbane’s new Corporate Safety Director Rebecca A. Gilbane Severson will continue Gilbane’s rigorous safety efforts and help all of our teams, partners and clients learn from onegoiables each other and elevate their best practices. › Safety Brie ng Prior to Any Walk Severson joined the construction industry in 1998 and › 6’ Protection is a graduate of the Milwaukee School of Engineering › Safety Toed Footwear with a bachelor of science in Architectural Engineering. › Safety Glasses (Over Prescription Also) Her most recent role during her 14-year tenure with › Hard Hat Safety Beyond Gilbane was as Regional Safety Manager for our Midwest division. She is a lieutenant colonel in the Air National › Reective Vests (Including Interiors Work) Guard, serving as a bio-environmental engineer focusing › Drug and Alcohol Testing Industry on occupational safety and industrial hygiene programs. › 100% Cut Level #4 Gloves In 2015 she was recognized as the Air National Guard › New Worker Orientation Biomedical Specialist Field Grade Officer of the Year. › SafetyNet Inspection by All Project Team Members Severson is a Safety Trained Supervisor in Construction and PX’s and HAZMAT Operations Technician and also holds Standards › Short-Service Worker Program OSHA 10- and 30-hour certifications. She is an active member of the American Society of Safety Engineers, › Stretch and Flex Daily by All serving as her chapter’s President and Women in Safety › Safety Manager Requirement for Critical Trades Engineering Chair. › Housekeeping – Organization and Identi cation of Materials, Clean-up As You Go Gilbane’s safety journey has brought us well beyond industry standards. Our employees embrace a philosophy of caring that includes looking out for the wellbeing of everyone on our projects and sending them home safely at the end of the day. Our philosophy of caring has helped us gain recognition as one of the industry’s safest builders, including “We need to implement our safety receiving the prestigious first-place 2016 Construction Safety Excellence Award from the Associated General culture even more consistently, Contractors. This award honored Gilbane’s safety culture and performance, innovative safety techniques, find ways to be more efficient, management commitment and employee engagement. offer more advanced training and Rebecca A. Severson “We’ve spent decades building a safety culture that Corporate Safety Director leverage our use of technology puts people first on every job. We go beyond OSHA standards to minimize risk. And we carry our safety with respect to safety.” culture with us as we move into new international markets,” Severson said. Rebecca A. Severson 2016 Corporate Safety Director 2016 But there are opportunities for improvement. SAFETY FIRST X SAFETY FIRST 4 “We need to implement our safety culture even more consistently, find ways to be more efficient, offer more % of our Construction of our advanced training and leverage our use of technology Users % 96 projects with respect to safety,” Severson said. “I look forward to Roundtable 90 projects collaborating with our project teams, safety managers, CISE Safety had ZERO lost time injuries had ZERO recordable injuries clients and leadership to make sure we’re doing Award Winner everything possible to minimize risks and send everyone who comes on a Gilbane job site home safe.”

19 20 A LETTER FROM OUR CHAIRMAN Caring is a Strength When I joined the company in 1970, I learned the six core values We want to be a firm that my father and uncle often talked about as the keys to our success. These values – Integrity, Toughmindedness, Teamwork, that cares about our Dedication to Excellence, Loyalty and Discipline - were passed on to them from their father and presumably to him from his father, employees, everyone who founded the company.

As we began to reinvent our safety program by joining the who works on our job Incident and Injury Free (IIF) Program almost a decade ago, senior management debated whether we should add safety sites, the communities to the original six core values. We didn’t want to rush this decision and decided to wait until we were fully immersed where we live and in the IIF methodology. work, diversity As we progressed, our whole perspective on safety changed. We left statistics behind and focused on helping everyone we and inclusion, the work with get home to their loved ones at the end of the day. We realized Caring was a more appropriate addition to our sustainability of our core values. environment, and We want to be a firm that cares about our employees, everyone who works on our job sites, the communities where we live more. Caring isn’t and work, diversity and inclusion, the sustainability of our environment, and more. Caring isn’t a weakness; it is a strength. a weakness; it is a When we care about each other and the world we live in, we make a difference in our lives, as well as others'. Our world is a strength. When we care better place when we care about what we do and how we do it.

I am inspired by the caring attitude I see in our corporate office, about each other and the business units, as well as the job sites I visit. Throughout this report, we are delving into how our company is forward the world we live in, leaning and focused on the future. I am very proud of our caring philosophy and the many lives it will save and improve in the we make a difference years ahead. in our lives, as well as Caring is not just an excellent addition to our core values – it sets Gilbane apart. others'. Our world is a better place when we

Thomas F. Gilbane, Jr. care about what we do Chairman and CEO Gilbane, Inc. and how we do it.

Thomas F. Gilbane, Jr. Chairman and CEO Gilbane, Inc.

21 22 Two years ago, Gilbane formally adopted Caring as one of our core Caring About the Communities Where we Work, Because We’re All One Family values. But, individually and as a company, caring has always been Live and Play ... in Mexicali, Mexico GILBANE CARES woven tightly into our culture. In 2016, we were involved in dozens of community and charitable efforts, large and small. Here are a few examples of how we take corporate social responsibility to heart.

Rebuilding Together Chicago Team Supports Horizons for Youth

The Gilbane Alberici Joint Venture team in Mexicali wanted Internal Audit Manager David Lanneville, his wife Meghann and their newborn son Zachary. to do something to help the local community for the holidays and found the perfect way when they donated Gilbane puts our people first with our paid family their efforts to Fundacion Emmanual, a local orphanage. The leave policy. Paid family leave along with our conference room in the office became “Santa’s Workshop”, as enhanced maternity policy allows new mothers Across the nation, Gilbane employees partner many elves donated their time, gifts and money to provide up to 14 weeks away from work. New fathers, with Rebuilding Together to transform the lives holiday cheer to one of Mexicali’s most needy populations. as well as employees caring for ill loved ones, of low-income homeowners by improving the Along with the gifts for 36 children and their caretakers, can take up to four weeks paid time off. Gilbane safety and health of homes and revitalizing the team saw the needs beyond just presents and began provides this and other benefits to our employees our communities. In 2016, Providence so they can prosper at home and at work. The Gilbane team in the Downtown Chicago office partnered delivering extra support by providing food, clothing and team members joined local volunteers and Providing employees time off is part of Gilbane’s with the nonprofit Horizons for Youth. They contributed to toiletries. They were also able to donate $1,000 towards organizations, who gave their time, effort and philosophy of caring and exemplifies why loyalty planning efforts for the organization’s 2016 On Cloud Nine the orphanage’s gas bill – enough to cover it for at least resources to transform a home for someone is one of the company’s core values. gala. The event, held at Revel Fulton Market, drew more than half of 2017. Because of the team’s generosity, the who needed it most – our new friend, Bonnie. 700 guests and pulled in over $250,000. Since its founding orphanage was not forced to choose between heat and Since launching this benefit a year ago, 120 Together, they painted all her rooms, replaced in 1990, Horizons for Youth has enabled children from low- food this winter season. employees have taken advantage of this benefit. her vanity and medicine cabinet, replaced resource areas of Chicago to become the first in their families ›› 20 employees have taken time away to care damaged interior doors, installed a brand-new to graduate from college. Through scholarships, a summer for an ill family member central heating and cooling mechanical system, academic program, one-on-one mentoring, enrichment ›› 35 women have taken maternity leave added exterior lights, repaired her sinking outings, tutoring, counseling, and high school and college Gilbane Pitches in for Meeting Street Kids wheelchair ramp and added mulch and flowers ›› 65 men have taken paternity leave preparation services, students gain access to the resources to her newly landscaped yard. Other teams they need to graduate high school, continue onto college provided their time, effort and project planning “We all work hard and sometimes we and successfully enter the workforce. expertise on projects in Chicago, Houston and struggle to keep everything balanced at New York. home and at work. This benefit helps us all take care of our loved ones when they need us the most. We want employees who are Gilbane Sponsored Golf Events Gilbane sponsored charity golf events in new parents or going through an illness cities across the country in 2016. With with someone in their family to please take the support and assistance of partners, advantage of this benefit. Here at Gilbane, subcontractors and clients, we’ve raised Quite a few members of the Rhode Island team took part more than $800,000 for a wide variety of in the Meeting Street School annual telethon, helping raise we’re all family, and I can’t think of a more nonprofit organizations. more than $1.1 million. Meeting Street School offers children fitting benefit than this one.” of all abilities – including those with physical and mental Some of the cities where Gilbane held challenges – access to a nurturing, high-quality education. Michael E. McKelvy golf fundraisers are Atlanta, Boston, Many Gilbane employees took turns staffing the telethon President and CEO Chicago, Cleveland, Houston, Providence phone bank. Gilbane Building Company and Glastonbury, Connecticut.

23 24 Our customers face many challenges in Salisbury University Patricia R. Guierrieri Commons Building the life cycle of their facilities and long- COMMITMENT TO term impact on the environment. We SUSTAINABILITY are partnering with them on solutions to reduce or eliminate waste, promote sustainable outcomes and advance environmental changes to safeguard the environment. Gilbane Building Company has gone beyond the status quo to reach our sustainability objectives and to reduce environmental impacts on our projects. From material acquisition to transportation to construction use and eventual disuse, Creating an we have continuously worked to make significant strides in sustainable A 2016 U.S. Green Building Council (USGBC) Maryland Wintergreen Award strategies. We’ve invested in developing winner, the Salisbury University Patricia R. Guierrieri Commons Building project leadership teams for our Sustainability is currently pursuing LEED Gold certification. Achievements include: Environmental ›› Waste Recycling – The project team recycled 90 percent of the Council, whose goal is to advance and educate sustainable opportunities and waste created on the project, well exceeding the minimum LEED processes throughout our construction requirements. Legacy operations. We strive to be a catalyst ›› Water Capture – Micro bio-retention basins installed in landscape areas for change in this arena through around the building capture water and return it to the environment. transformative practices. ›› Green Roof – The installation of a green roof on this facility helps In 2016, our corporate Sustainability absorb storm water and reduce run off. Council, which is a central ›› Efficient Systems – Energy savings are generated through air handling clearinghouse for providing support units that have heat recovery wheels, a stand-alone air cooled chiller for and the most up-to-date information archived storage spaces; and an added heat recovery loop to satisfy reheat to our construction professionals, needs during the cooling season. remained committed to environmental We embrace responsibility and advancing Theodore Roosevelt Senior High School in Washington, D.C. sustainable initiatives. Gilbane’s Council state-of-the-art # Green actively interfaces with the U.S. Green This project was the recipient of the 2016 AIA/DC Chapter Design Award for Educational Building Council (USGBC) and Green the Presidential Citation for Sustainable Design and showcased a total of 20 technologies, not Facilities Builder Building Certification Institute to different sustainable features. This team is currently seeking LEED Platinum 1 Engineering News-Record certification. Features include: (ENR) 2016 successfully work toward achieving the just because it necessary construction credits for LEED ›› Waterworks – Rainwater harvested from the roof is stored in certifications three cisterns in the school’s courtyard and reused for flushing toilets is good for the and urinals. In 2016, we assisted our business ›› Electrochromic – The atrium skylight features electrochromic glass, community or 88% Approximately units worldwide with collecting and disseminating the latest technologies, which automatically tints to control the amount of sunlight that gets because it increases policies and actions relating to LEED, filtered through and saves energy. Green Globes and other rating systems. ›› Food Production – The greenhouse and garden serve both the school our productivity. 400 and community as teaching tools for local, sustainable agriculture. In 2016, 789 Gilbane projects LEED-Accredited Professionals Gilbane is a proud partner of the ›› Daylight and Views – Natural light is present in more than 90 percent We embrace them across the nation recycled 88% architects on the following two award- of the classrooms and offices in the school. winning projects in 2016 that reached of project waste for a total of ›› Recycled Content – 20 percent of the building materials including because ultimately impressive heights in sustainability. 148,230 tons of waste diverted windows and doors were made with recycled content that preserved Both projects are currently, going it is about caring from landfills. natural resources. # through the process of LEED for the planet Green certification. ›› Geothermal – This 200-well system, located under the school’s athletic Builder fields, uses the earth’s constant year-round temperature to help heat and cool the building, reducing energy usage. we all share. Engineering6 News-Record (ENR) 2016

25 26 Gilbane’s Board of Directors presently consists of 11 members – four internal and seven external directors. Full biographies on each director can be found on the company’s website at www.gilbaneco.com/inc.

FRANZ F. COLLOREDO-MANSFELD FRANK T. MACINNIS Board Member Board Member and Chair Chief executive officer and co-founder of Compensation and of Cabot Properties Governance Committee Former chairman and chief BOARD OF DIRECTORS JOHN P. FOWLER executive officer of Connecticut- Board Member and Compensation based EMCOR Group, Inc. and Governance Committee Co-founder and executive managing J. BONNIE NEWMAN director at Holiday Fenoglio Fowler LP Board Member, Compensation and HFF Inc. and Governance Committee and Audit Committee JOHN GALVIN Chancellor emeritus of the Board Member and Chair of Audit Community College System of and Ethics Committee New Hampshire Executive vice president of AAA Northeast and former chief financial RONALD L. SKATES officer for Collette Vacations Board Member and Compensation and ROBERT V. GILBANE Governance Committee Board Member Private investor and former Chairman and chief executive officer president and chief executive of Gilbane Development Company officer of Data General and vice president of Gilbane, Inc. Corporation

THOMAS F. GILBANE, JR. PAUL J. CHOQUETTE, JR. Board Chair Director Emeritus Chairman and chief executive officer Vice chairman of Gilbane, Inc. of Gilbane, Inc. and chairman of and past chairman and chief Gilbane Building Company executive officer of Gilbane Building Company THOMAS F. GILBANE III Board Member and GILBANE ANNUAL REPORT Audit Committee STEERING COMMITTEE Managing member of Dennis Cornick Rockport Group LLC Wes Cotter Jennifer Twining Diane Rutledge WILLIAM J. GILBANE, JR. Timothy Grace Board Member Michele Callahan Vice chairman of Gilbane Daniel Gilbane Building Company and vice president Pierre LaPerriere of Gilbane, Inc. Daniel Reynolds

Pictured above – from left to right: First Row: Thomas F. Gilbane III, J. Bonnie Newman, Ronald L. Skates Middle Row: William J. Gilbane, Jr., Thomas F. Gilbane, Jr., Paul J. Choquette, Jr., Robert V. Gilbane Back Row: Frank T. MacInnis, John Galvin, Franz F. Colloredo-Mansfeld, John P. Fowler www.gilbaneco.com