GILBANE BUILDING COMPANY 2017 ANNUAL REPORT NEXT PAGE Click to jump to any section. TABLE OF CONTENTS A Letter From Our CEO | 3-4 Expert Knowledge | 5-6 Disaster Response | 7-8 Teamwork | 9-10 Leading-Edge Technology | 11-12 Breathtaking Execution | 13-14 Strategic Partnerships | 15-16 Dedication to Excellence | 17-18 Eliminating Vulnerabilities | 19-20 A Letter From Our Chairman | 21-22 Giving Back | 23-24 Positive Impact on the Environment | 25-26 Adding Value Board of Directors Gilbane teams around the globe work every day to deliver 2017 HIGHLIGHTS outstanding services to our clients. This report is dedicated to telling SALES, PROFIT, REVENUE AND BACKLOG GROW TO their stories and detailing how they continuously bring added value RECORD LEVELS to all our industry partners. NEW RECORD SET FOR REPEAT BUSINESS AT 75% Our Mission Statement We are recognized as a global provider of facility solutions, operating as One Company, GILBANE TEAMS PILOT USE effectively integrating and leveraging all of OF WEARABLE SAFETY Gilbane’s expertise. TECHNOLOGY We embrace the historical family culture and live the core values of Gilbane. Client advocacy and superior execution 14 YEARS ON TRAINING serve as the foundation for exceptional MAGAZINE'S TOP 125 LIST customer satisfaction. Leadership embraces entrepreneurship and fosters a culture of innovation AGC AWARDS GILBANE throughout the company. NATIONAL SAFETY Gilbane is the recognized employer of choice. EXCELLENCE AWARD We consistently achieve sustainable, profitable growth for the benefit of CONSTELLATION BRANDS' all stakeholders. NAVA BREWERY BECOMES THE WORLD'S LARGEST Our Milwaukee team capturing Matterport. Cover Photo: Wes Cotter | Project: Delray Proton To learn more about how we use this tool, visit: Therapy Center, Delray, Florida https://www.youtube.com/watch?v=kAlRDkqtxvM 1 2 A LETTER HARD WORK FROM OUR CEO AND DEDICATION Can you believe that 2017 marked the 144th-year of building type resulting in clinics that truly save lives and continuous operation of Gilbane Building Company? Our impact patients in a way that makes speed to market an sales, profit, revenue and backlog grew to record levels understatement. in 2017, exceeding 2016’s record levels in almost every category. The success achieved is a testament to the hard It is in this spirit of continuous improvement that we work and dedication of our employees. continue to leverage technology and innovation all within the context of Lean. A current example of this is Matterport Gilbane employees make the difference. We say “Building scanning, which is featured on our inside cover. This More Than Buildings” for a reason. Yes, we build projects, technology results in cost-effective scans of existing spaces, but we build communities as well. Our clients see this helping us solve our clients’ problems quicker, avoiding difference in who we are and how we do what we do, rework, achieving better outcomes and quality to ultimately knowing that we are invested along with them in their increase our client satisfaction. Our Virtual Design and success. This is true both domestically and internationally. Construction experts continue to push outcomes above They see that we deliver world-class facilities that are and beyond the year before. We have much to be proud state-of-the-art, incorporating and built with the latest of, but as we do hold ourselves to higher standards, there is technology, efficiency and innovation. It is no wonder our always room for improvement. ratio of repeat business was also at a record level, which can only result from our commitment to client advocacy. Our core value of Caring manifests itself through our Gilbane Cares initiatives. Bringing the thousands of people At Gilbane, we are unique in that we continue to maintain home safely each night from our offices and job sites is our family culture and ownership, no matter how large not only a priority, but a non-negotiable core value that we get or how far we go to serve our clients. This support never changes. We are recognized as an industry leader from the family is the core of our culture and is the ultimate in Incident and Injury Free, but we will not rest, always differentiator in our industry. From the beginning, our working for ways to be safer. In 2017, we implemented our commitment to our Core Values can be seen in all we do. new Kask helmets and our Spot-R wearable monitoring Michael E. McKelvy (center) hears from the team Integrity, Toughmindedness, Teamwork, Dedication to systems. You can expect to see these technologies increase at Twin River Casino and Hotel, Tiverton, RI Excellence, Loyalty, Discipline and Caring are the foundation over the coming months because they help us promote of the company, the cornerstone from which we build the safe behavior in a much broader way than ever before. As company each and every day. we care about each other, we also care about our planet. We continue to strive to be a leader in sustainability. From As we continue our journey through our Vision 2020 monitoring and tracking our reduced carbon footprint “From the beginning, our commitment to our Core Values can strategy, we focus on the context that it all is for nothing to promoting recycling in our offices and job sites, our without the continued development and nurturing of our Sustainability Council leads the way. be seen in all we do. Integrity, Toughmindedness, Teamwork, 2,800 employees, representing 2,800 families. Through our retooled Gilbane University, our ongoing mission to be the In June of 2018, our executive leadership group began Dedication to Excellence, Loyalty, Discipline and Caring are the industry employer of choice — training and developing planning for Vision 2025! Always looking ahead, around our people to be best in class, keeping our dedication to the corners of our ever-changing industry is necessary for foundation of the company, the cornerstone from which we build diversity and inclusion and placing “people first” — will our continued growth and ultimately opportunities for all ensure our focus is true. our people. This all can happen because of our Gilbane the company each and every day.” employees, always at the core of it all. To all of you we say, More so in 2017 than ever before, our strategy to promote Thank You and Stay Safe … “One Gilbane” helped to enhance internal collaboration and teamwork. One example is our industry-leading expertise and experience in building proton therapy centers. We leverage our collective experience, best practices, lessons learned and key talent across the country. The results Michael E. McKelvy President and CEO are finished facilities, with state-of-the-art shielding, Gilbane Building Company incorporating the intricacies and challenges of this complex 3 4 Jason Martin, Gilbane's project executive, says Gilbane’s expert knowledge of proton therapy equipment allows his team to get important details added to the design EXPERT KNOWLEDGE specifications early on and that makes the build go smoother. Detailed phasing and schedule knowledge provide an opportunity to tighten schedules and get the facility open and treating patients without delays, he says. Gilbane’s expert knowledge in complex, technically- Jay Beranek, vice president of design/construction for Proton International and owner of the Delray facility, The 600,000 square-foot says Gilbane has been able to add tremendous value challenging construction projects, our implementation of Hill Farms State Office building advanced technologies and the ability to vertically stack on the project. Madison, Wisconsin our services allows us to take on seemingly insurmountable “This team provides value by having a tenacious attitude towards making things Stacked Services challenges and deliver for our clients. right. All the guys on this job have a keen interest in looking out for my best interests In Madison, Wisconsin, an ambitious public-private partnership (P3) is allowing the Smith Gilbane joint as the owner,” Beranek says. venture to stack its expertise in development and construction to deliver a total solution for redeveloping The Proton Puzzle the Hill Farms site. On this 21-acre site, Smith Gilbane Gilbane’s technical depth includes industry-leading has built a 600,000-square-foot state office building and expertise building highly complex proton therapy a 1,700-vehicle parking garage on seven acres of the centers. Gilbane has built these centers in many cities property. The team is now preparing to purchase the across the United States and relishes the challenges remaining land and create a mixed-use development that come with embedding miles of conduit in the that will include residential, office, retail and hotel spaces. massive concrete structures that surround and shield Gilbane brings seasoned team members to the project the cyclotrons that are at the heart of the treatment from both Gilbane Development Company and Gilbane process. Before a proton therapy center can start Building Company. treating patients and saving lives, our teams must Russ Broderick, senior vice president of Gilbane use their specialized expertise to manage massive Development Company, says this integrated team was concrete placements with precision. built to maximize the value of the site for the state of Jon Melius, Gilbane's project manager at the Delray Wisconsin and Gilbane’s partnership with CD Smith is Proton Therapy Center project in Delray, FL, says doing just that. these advanced structures are unique because of the “Our vision created the most efficient building high amount of mechanical, electrical and plumbing consolidation possible and unlocked 14 acres for systems throughout the facility, most especially in the development that will allow people to live and work here concrete walls that are between 8 and 13 feet thick. and return the property to the tax rolls. Approaching this “The shielding concrete we are using has a higher as a vertically integrated team has allowed us to deliver pound-per-cubic-foot density, and that increases the the state office building and garage on time, on budget temperature at the core throughout placement and and ahead of schedule." curing,” Melius says.