Apple Parts Ways With General Contractors on Apple Campus 2
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Posted June 13, 2015 at 11:25pm by iClarified
Apple has reportedly parted ways with DPR Construction and Skanska USA, the general contractors building its iconic spaceship headquarters known as Apple Campus 2.
DPR and Skanska USA "will transition completely off the project in the next several weeks," according to an internal email seen by The Silicon Valley Business Journal.
The email from Skanska USA Chief Executive Richard Cavallaro said that the contractors "and our confidential client were unable to come to an agreement during negotiations for the revised scope of work for its research and development campus in California."
The news comes as Apple has brought on Rudolph & Sletten to complete the interior of the main ring building. Many expected DPR and Skanska to complete this task and to at least finish the main structure; however, that appears to no longer be the case.
It isn't clear why negotiations were unsuccessful as DPR and Skanska reportedly stand to lose $800 million from exiting the project. Please follow iClarified on Twitter, Facebook, or RSS for additional updates as they become available.
Apple is expected to finish its new headquarters by the end of 2016.
More like the contractors were trying to stick it Apple with revised upward costs. Way to go Apple, don't take that from anyone including the Chi-come.
Lol "Apple loves cheap labor"..... Bro hella US companies love cheap labor....thats how business runs these days....macys does it, nordstroms does it, apple does it, walmart does it, half the crap on Amazon is made from cheap labor....hell even taco bell does it....
For all the profit that Apple makes, they bargain with these contractors to the point of them taking a loss. It's not really a secret how Apple contracts Foxconn to the point where they work their laborers to total exhaustion, some committing suicide. Their trying to do the same to these American contractors. This is why Apple loves Chinese labor, because nobody really can tell Apple what to do over their. They have their way. This is why the iPhone and Watch manufacturing can never be brought in the US because Apple loves cheap labor and sell its products as objects of desire. In the meantime, the company is sitting on biliion dollar profits they have no idea what to do with it.
It's well known in the industry that Apple are brutal negotiators and they probably tried to cut this contractors price in half and renegotiate multiple times to squeeze out every single profit possible and in the end they wouldn't budge case closed.