After the Storm

After Hurricane Katrina swept through New Orleans in 2005, Chevron U.S.A. Inc. decided to move their Gulf of Mexico Business Unit’s headquarters to a less vulnerable location, while remaining in the area. They decided to build a new complex at the NorthPark Corporate Campus Covington, La., just north of Lake Pontchartrain.

Chevron’s requirements were stringent — the new headquarters needed to withstand a hurricane, be sustainably designed and constructed and welcoming enough to attract the level of staff that the company required. Due to its virtual connection to offshore drilling platforms in the Gulf of Mexico, the complex required mission critical operations with a data center and control space that could maintain continuous, uninterrupted operation to these facilities. All these requirements were to be met in the aftermath of a major natural disaster and on an extremely short deadline despite shortages of both labor and materials. They also demanded that the project be built safely; aside from the dangers found on any construction site, the heat and humidity of southern Louisiana added an additional challenge.

Chevron turned to Koll Development Company (KDC) to help manage the development process. KDC brought national development experience and began the search for a design-builder with proven fast-track capabilities. They’d worked with Clayco Inc. on a number of fast-track design-build projects, so the firm was a known quantity with an established track record. KDC worked with Chevron on the quality-based selection, which resulted in Clayco being awarded the contract.

In November 2006, KDC and Clayco began the process of determining Chevron’s needs. Acting at top speed, Clayco developed preliminary schematic documents and a complete construction estimate in a few days. The estimate would become the established guaranteed maximum price with established allowances within the GMP to allow for Chevron’s choice of interior finish. To accomplish the work on schedule and within cost parameters, Clayco developed a phased procurement strategy to select suppliers and subcontractors with preliminary design information and performance criteria. They solicited competitive proposals from multiple subcontractors and selected partners based on quality and cost. Specific contingencies and design allowance were used to eliminate change orders.

Construction took a little more than a year, including more than 60 days lost due to wet weather. Clayco turned to national suppliers to fill their labor and material needs and used innovative methods to speed up delivery and workflow. The work activity was sequenced to allow a flow of work from one area of the project to another. At one time there were more than five crews assembling the steel structure. Prefabrication also played an important part. The tilt-up construction was one element, having all mechanical system piping prefabricated and test fit off-site was another. Factory testing was performed on large mechanical equipment to make sure that there would be no quality issues to slow down construction.

Critical electrical and mechanical systems were completed early to allow Chevron to begin occupying their data and supervisory control and data acquisition (SCADA) areas first. Due to the need for reliable energy and climate control in those areas, Clayco essentially built a box within a box in that building so they could be occupied while the exterior features of that building were completed.

Construction began on February 6, 2007, and was completed on April 26, 2008. There was no litigation, arbitration or claims on the project and no days lost due to accidents.

Constant meetings among the entire team, including the owner, not only helped ensure satisfaction, but prevented delays and additional costs due to rework. Chevron was very pleased with the final project, which has achieved LEED® NC Gold certification. Due to its success in every possible way, the project won a 2009 Design-Build Merit Award in the Private Sector Building Over $25 Million category.