ISSUE 7 AUTUMN 2017 A SELLEN PUBLICATION
HEART WALK 2017
Celebrating 14 years of the Heart & Stroke Walk Advanced Equipment Apex Steel, Inc. Applied Professional Services Astor Electric Atlas Construction Specialties Company, Inc. Avidex Bassett Construction Big Sky Insulations Brundage-Bone Concrete Pumping Catalyst Workplace Activation Central Steel & Wire Company Cochran Columbia Fire Columbia Steel Commercial Floor Distributors Deeny Construction DGM Controls Dunn Lumber Evergreen Concrete Cutting, Inc. Evergreen Construction Specialties, Inc. Expert Drywall, Inc. Flow Control Industries Gary Merlino Construction Geopier Gordon Brown Associates Grayhawk Construction H & M Electric Hanset Harris Rebar
Heartland LLC Henderson Masonry, Inc. Herzog Glass Holmes Electric Hudson Bay Insulation Contractors Iris Window Coverings JR Hayes Corporation Kenco Construction, Inc. Koch Holdings Lakeside Industries Long Painting Company MacDonald-Miller Facility Solutions Magnusson Klemencic Associates Matheus Lumber McKinstry Mehrer Drywall Metals Fabrication Company Miles Sand & Gravel Moss Adams Northshore Exteriors, Inc. Northstar Northwest Construction Pacific Earth Works, Inc. Pamela’s Interiors Performance Contracting Group Pinnacle Lumber & Plywood Precision Iron Works, Inc. Pride Electric
Prime Electric PSF Mechanical Purcell Paintings & Coatings Ralph’s Concrete Pumping Inc. Rhine Demolition LLC Salmon Bay Sand & Gravel Seattle’s Finest Secure Pacific Sessler, Inc. SGS Glass SPEC Star Rentals Steel Encounters Stoneway Concrete Supreme Steel Systematic Supply LLC T-bar Construction Hudson Bay Way Foundation Seneca Group Treble Interiors Tube Art Group US Bank Valley Electric Vibetech Specialties Walters & Wolf Washington Glass and Glazing Western States Fire Protection Western Tile & Marble
Thank you, 2017 donors, for supporting the American Heart Association
COVER IMAGE: A unique vantage point of a tower crane, a familiar sight in Seattle. For the second year in a row, Seattle ranks first in the country for number of tower cranes. PHOTO: MATT WAINHOUSE
Contents FEATURES
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6 18 22
Meet Sellen Special Projects Sellen’s team of tenant improvement experts Industry Trends Sellen’s annual outlook for 2018 and beyond The Next Generation of Innovation A sneak peek into Sellen’s technology strategy
DEPARTMENTS
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Letter from Bob McCleskey Creating an organization that’s built to last Noteworthy A round-up of project and company updates Client Spotlight The man behind Pike Place Market’s newest expansion Project Pictorial Inside Amazon’s newest downtown high-rise Building Community How one gift sparked a worldwide research program
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Letter from
Bob McCleskey Building and growing an organization that is “built to last” has been the goal at Sellen from the day John Sellen founded our company in 1944. We have never been a company driven by a need for high volume or by growth for growth’s sake — we have always been about building important projects for great customers with the best people in the business. Yet this is truly a unique time for our region and our industry, and we have found ourselves in the midst of delivering one of the highest annual volumes in the history of our company. With the unprecedented volume of work in our region, our leadership team has been diving deep into what it means for Sellen to be an industry leader and to be a legacy company — one that’s built to last. We’ve been focusing on the long view: challenging ourselves to continually define Sellen’s “sweet spot” for what we do and how we do it. We don’t pretend to have all the answers, but we’re excited about the direction we’re headed, and we are taking this opportunity to highlight a few examples for you in this edition of Craft. On page 6, we are pleased to announce the reinvigoration of Sellen’s Special Projects team, a group solely dedicated to complex tenant improvements and other unique project types. This team has always existed within Sellen, but in the past few years they have grown into a fast and flexible group of experts who play a key role in our current and future growth. On page 22, you will find a sneak peek into Sellen’s technology strategy, which we’ve streamlined to cut down on all the tech noise out there to develop tools that will help us build safer, faster and better. We’ve also included our annual industry trends report from Dave Ratzke, our director of project management and the keeper of our crystal ball. With 2018 on the horizon, Dave and his team are working hard to bring you more and better information this year, including a discussion on the many regulatory changes coming soon. We are moving forward with a fierce resolve to meet the changing needs of our clients, our industry partners, and our Sellen team, and we are doing it the Sellen Way — with teamwork, collaboration and shared sense of purpose. Enjoy!
Bob McCleskey Chairman and Chief Executive Officer Sellen Construction
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ISSUE 7 AUTUMN 2017
PUBLISHER Sellen Construction sellenmarketing@sellen.com PRODUCTION Erin Hobson Amanda Erickson Connor Davis Won Moc Ingrid Ingerson Kate Smith GRAPHIC DESIGN Loretta Grande WITH THANKS TO Amazon EksoWorks Global Alliance to Prevent Prematurity and Stillbirth (GAPPS) JLL JPC Architects LMN Architects Magnusson Klemencic Associates Museum of Flight NBBJ Northwest Boychoir & Vocalpoint! Seattle Pacific Northwest Ballet Pike Place Market Preservation and Development Authority Stoneway Concrete University of Washington SELLEN CONSTRUCTION 227 Westlake Avenue North Seattle, WA 98109 T: 206.682.7770 www.sellen.com -------------------------------------------------------------------------------------PAPER INFORMATION 100% Post Consumer Waste Recycled FSC Certified Green Seal Certified Green-e (Certified Renewable Energy) Acid Free Processed Chlorine Free
Congratulations to the Northwest Boychoir on its newly remodeled facilities!
nwboychoir.org
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In brief: Updates & milestones PHOTO: SEAN AIRHART
Triple Threat Sellen’s team returned to UW Medicine’s Lake Union campus earlier this year to begin work on Phase 3.2, the next great addition to the burgeoning biotech campus. This new building marks the third collaboration for UW Medicine, Sellen and Perkins+Will over the last decade on the same campus. The 168,000-square-foot, eight-story building will integrate UW Medicine’s retina clinic, diabetes institute, urgent care and neighborhood clinic. This combination of office space, research labs and outpatient clinics is a first for UW Medicine. The new facility will support UW Medicine’s mission to improve the health of the public.
PHOTO: SEAN AIRHART
A Return to Gates Campus
RENDERINGS: PERKINS+WILL
Retrospect: Celebrating 50+ Years of Partnership
THIS PAGE (CLOCKWISE FROM LEFT): Renderings of the new Phase 3.2; Sellen’s Adam Lorenz and NBBJ’s Matthew Somerton discuss who wears it best; refreshed office space at the Gates campus
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Often milestones come and go with little fanfare, but five decades of life-changing projects demanded notice. Last year marked the 50-year anniversary for Sellen and NBBJ, giving our firms cause to celebrate a successful history and cheers to a promising future together. Throughout our partnership, Sellen and NBBJ have had the opportunity to design and build dozens of significant projects together that have changed the Seattle skyline and tested the norms of project delivery. These have included the Bill & Melinda Gates Foundation Campus; the Seattle Children’s Bellevue Clinic and Surgery Center — the first project in Washington state to use the tri-party Integrated Project Delivery (IPD) method; multiple projects on the Swedish First Hill campus; and the former Washington Mutual
tower in downtown Seattle. We have also teamed together to help reinvigorate and expand key icons in Seattle’s arts and culture scene, working with the Museum of Flight, Seattle Art Museum and Paramount Theatre, among others. Most notably and recently, however, Sellen and NBBJ have partnered together to build Amazon’s three new high-rises in Seattle’s Denny Triangle area. This effort has included the iconic Spheres, one of the most technically astonishing projects in the history of both our firms. “We are proud to have NBBJ as a partner for the past 50 years,” said Scott Redman, Sellen’s president. “Together, we have built some of Seattle’s most iconic projects and new homes for many Northwest companies — we look forward to what the next 50 years of partnership will bring.”
Sellen Special Projects recently completed the South Building Second Floor Refresh at the Bill & Melinda Gates Foundation Campus. NBBJ designed the new space to accommodate the organization’s IT group, providing them with both collaborative and private work areas. Sellen and NBBJ previously worked together to build the campus in 2010. The refresh leverages the building’s unique U-shaped floor plan, with one side designed for collaboration and the other set aside for quiet workspace. Employees have mobile workstations, allowing them to move from one side of the floor to the other. The new space also includes two kitchen remodels, a reflecting room for prayer and meditation, and a large electronic display.
Aviation Pavilion Takes Flight The Aviation Pavilion, the latest addition to the Museum of Flight, was cleared for takeoff last summer. Located on the west side of the campus, the new 135,000-squarefoot pavilion doubles the size of the museum. The pavilion is devoted to large, historic military and commercial aircrafts. All told, the new wing houses 19 planes, including a Boeing 747, a Concorde and a retired Air Force One. The wingspan of the largest plane extends to 195 feet. SRG Partnership designed the Aviation Pavilion to showcase each plane’s unique history, and the new space achieves that goal with flying colors.
“The opening of the Aviation Pavilion marks a milestone for the Museum of Flight and for the entire community. It provides a platform to preserve more of the Northwest’s amazing heritage of aerospace leadership.” – Doug King, President Museum of Flight
THIS PAGE: The new Aviation Pavilion offers visitors an up-close view of the last century’s most iconic aircrafts PHOTO: WON MOC
Meet Sellen Special Projects Introducing Sellen Special Projects: a team of tenant improvement experts with the passion and skill to get the job done right, no matter the size. BY: CONNOR DAVIS
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s one of Seattle’s largest general contractors, Sellen has built a reputation for delivering projects that have transformed the cityscape for nearly 75 years. What you might not know, however, is that through all that time we’ve also been hard at work on an entirely different breed of project: smaller build-outs and renovations. Though smaller than their behemoth brethren, these tenant improvement projects are often just as complex but in fundamentally different ways. Many are located within occupied office buildings and healthcare campuses, requiring a deft touch from field crews to complete their work without disrupting neighboring areas. Aside from their sheer size, the most significant difference is the rapid pace of the work. While most major projects usually require months of careful planning before the first shovel touches the ground, the life cycle of a tenant improvement project is often 12 weeks or less. To excel at these projects, contractors need to be adaptive, creative and responsive.
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That’s where Sellen Special Projects comes in. Sellen has worked on a variety of small projects for decades with a group of project managers, superintendents, engineers and craftspeople that have dedicated their careers to this specialized type of work. Equipped with the independence of a small firm and the resources of the region’s largest, this team is doing great work for longtime partners and new clients alike.
Right Time, Right Leader
Jeremiah Shakespeare, director of Sellen Special Projects, joined Sellen in 2008 as a senior project engineer and primarily led small (continued on page 8)
CLOCKWISE FROM TOP: An office tenant improvement for Classmates.com at Century Square; Special Projects has built multiple projects for Stoel Rives at One Union Square; a highly complex hybrid operating room at Swedish First Hill
“Even though Sellen is a bigger company than they used to be, they haven’t lost sight of the little guy. They’ve maintained the spirit of a small contractor and everything that comes with it.” — Char Patterson, Principal, JPC Architects
PHOTO: AARON LEITZ
PHOTO: WON MOC
PHOTO: BENJAMIN BENSCHNEIDER
PHOTO: ANDREW POGUE
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Alexis Thompson Post Construction Manager With Sellen Since 2013 Fun Fact: She’s a big believer in yoga and is an instructor in her spare time. When Sellen’s crew is packing up to leave the job site for the last time, Alexis Thompson’s work is only just beginning. As the post construction manager, she’s focused on making sure the spaces Sellen builds operate as efficiently as intended. In other words, if a building was a highpowered sports car, her job is to continuously tune the engine to maximize performance. “We believe that it’s not the building itself that’s most important, but what happens inside,” Thompson said. “My job is to make sure that when we hand our clients the keys, and it’s time to put the pedal to the metal that everything works and we stay on course.” Though the role is new to Sellen and Thompson, it’s an ideal fit for
both. For Sellen, it’s a continuation of a collaborative, transparent closeout process, bridging the gap between the end of construction and the first full year of operations. For Thompson, it’s an opportunity to leverage her skills and passion for sustainability — the founding principal that drives her each day — to reduce the environmental impact of the spaces Sellen creates. The new post-construction program includes periodic check-ins at critical milestones, as well as mobile tools developed specifically to help owners document and report potential issues. With the right set of tools and effective management, Thompson is positioned to provide Sellen’s clients with an additional layer of care and partnership at every turn. “Even on the best project, things aren’t always going to work the way they were designed to. I’m here to make sure they do,” Thompson said. “Our crews might be gone, but we are still right there for you.”
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“Our mission is to dispel the myth that we are strictly a ‘tower crane contractor.’ We want to create a space that exceeds our clients’ expectations and delivers all the things they’ve dreamed about, all in a matter of weeks.” - Jeremiah Shakespeare Director of Sellen Special Projects, Sellen
Barry Strand Sr. Project Manager With Sellen Since 1988 Fun Fact: Barry has only had one job outside of Sellen — bussing tables at Roche Harbor when he was in high school.
Right off the bat, there are a few things you should know about Senior Project Manager Barry Strand: his work ethic is unparalleled, he’s quick to smile, and he has a penchant for brightly colored polo shirts. With 29 years at the company, Strand is a Sellen “lifer” and a core member of Sellen Special Projects, where he leads teams on office and healthcare tenant improvement projects with fast-paced schedules. He started in the field, working as a laborer during summer and winter
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Shakespeare is driven by more than simply executing a project — he’s motivated by cultivating partnerships and relationships that endure for years. This attitude is at the foundation of Special Projects and noticed by clients like McHugh. “The group that Sellen has with Special Projects is truly engaged in making sure that projects are successful and one-on-one relationships are developed,” McHugh said. “The team they recruit and retain demonstrates their desire to live that same mission of long-term relationship development. When we put those pieces together with our goals and desired outcomes as the owner, it takes that team to a new level.”
Building for Today & Tomorrow
Today, under Shakespeare’s leadership, Special Projects continues to work on office and healthcare projects throughout the region. In addition, it is constantly expanding its capabilities, including
“Barry is really good at what he does and finds a way to have fun no matter how busy things are. He’s got a wealth of knowledge and he’s a great teacher.” - Alexis Thompson Post Construction Manager, Sellen
breaks while he was attending Oregon State University. “They didn’t really have internships back then,” Strand said. “I worked as a laborer on some projects at Virginia Mason and experienced firsthand what the construction industry was all about.” This experience proved helpful when he returned as a project engineer, providing added credibility with the field crews that helped show him the ropes as a laborer. He continued to hone his craft for years,
playing a key role on some of Sellen’s most significant projects. Today, the tables have turned, and Strand is in a position to mentor the up-and-coming engineers on the Sellen Special Projects team. “The next wave of engineers are really excited about their work, and it’s fun to find opportunities for them to learn and flourish,” Strand said. And he’s got a lot to offer those young engineers. He works quickly and efficiently, applying his knowledge gained over the years to deliver new spaces in hospitals and office buildings throughout the region, and making plenty of friends along the way. “It’s really rewarding to be able to help our clients and reassure them that they’re going to be taken care of,” Strand said. “In Special Projects, we often work directly with the people that are going to use the space, so it’s powerful to see their reactions when they see the results of our work.”
ALL PHOTOS THIS PAGE: KEITH BROFSKY
projects for CHI Franciscan Health and Swedish Medical Center, two of Sellen’s longest running relationships. He worked closely with both organizations to understand their missions and tailor an approach specific to their needs. “Jeremiah will come to the table and work with me, as a teammate and partner, to help our teams succeed together,” said Kim McHugh, a vice president at JLL who worked with Sellen for many years in her former role as western Washington’s senior construction manager at Providence Health & Services. “Sellen’s knowledge base and technical acumen is a huge advantage.” Two factors propelled Sellen Special Projects into reality: the great success stories that came from Shakespeare’s projects, and a market that was trending increasingly toward interior renovations rather than new buildings. Given the sheer increase in the volume of work and his highly effective approach, Sellen asked him to head up a formal Special Projects group within the firm.
a new post-construction service that supports clients throughout the warranty period to ensure new spaces are operating as designed. Char Patterson, a principal at JPC Architects, has worked with Sellen on many of these projects since she started in the industry more than two decades ago. “Our culture at JPC has always been to do whatever it takes. I see that mentality at Sellen, too,” Patterson said. “The roots haven’t
PHOTO: ANDREW POGUE
really changed, even though it has grown into a big tree.” The success of the team starts and ends with the unique, tight-knit group. Each individual is committed to helping clients create a space that exceeds all goals, regardless of the project’s size. Some have worked at Sellen for nearly four decades, while others have joined the group only recently. No matter the length of their tenure, one common thread runs throughout Special Projects: a steadfast dedication to their clients, their craft and their coworkers. “Sellen treats their small projects the same as their large shell and core projects,” Patterson said. “Even though Sellen is a bigger company than they used to be, they haven’t lost sight of the little guy. They’ve maintained the spirit of a small contractor and everything that comes with it.” With an agile, cohesive team reminiscent of a smaller firm, and the resources and market expertise of Sellen, Special Projects is poised for success, both now and in the future. “We want to build projects that are just as revered and recognized as our large buildings,” Shakespeare said. “When I see our younger project managers and engineers out there working with new clients, I see the pioneers of the next wave of decades-long partnerships.” ■
Oscar Lilienthal Project Manager
With Sellen Since 2014 Fun Fact: Oscar spends most of his free time hiking, skiing and enjoying the outdoors. Ask him to recommend a great hike — you won’t regret it.
TOP: Crews recently wrapped up work on The Polyclinic’s updated space at Northgate Plaza BOTTOM: Special Projects completed a refresh of a rehearsal space for the Northwest Boychoir in August
PHOTO: WON MOC
PHOTO: WON MOC
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Oscar Lilienthal can trace his interest in the construction industry back to an unusual place: Tijuana, Mexico. “We took a school trip to build a house for a family. It got me immediately hooked on working on projects that impact the community,” Lilienthal said. “The work we do here at Sellen really resonates with me in that respect.” That passion is readily apparent to everyone he meets. As a project manager, Lilienthal works with a wide variety of architects, subcontractors and owners. He relishes the unique opportunities afforded to him by working on the fast-paced projects of Sellen Special Projects. “I can build the estimate, buy out the job, hire all the subcontractors
and manage the job through closeout, all while simultaneously working on another project,” Lilienthal said. In his three years with Sellen, Lilienthal has worked on myriad project types, from replacing a door in a hospital to dazzling exhibit spaces, such as “The Ninety” for the Seattle Sounders. His commitment to a project is unwavering, regardless of its size. “There really is no job too small for the right client,” Lilienthal said. “I treat a $5,000 project with the same level of care as a $5 million project.” Perhaps the most striking thing about him, however, is his role as a powerful stabilizing force within Sellen Special Projects — a truly unique trait for a young project manager. He has an innate ability to project a sense of complete calm to everyone around him, no matter how hectic things are. “Oscar’s always got a plan,” said Jeremiah Shakespeare, director of Sellen Special Projects and one of Oscar’s mentors. “He makes you feel like you can take a deep breath, and it will all be OK.”
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The man behind the Market P A look back with former executive director of the PDA, Ben Franz-Knight, as he leaves to start the next phase of his career. BY: ERIN HOBSON PHOTOGRAPHY: LARA SWIMMER, WON MOC, LORETTA GRANDE
reserving the past through shared connections — that’s how Ben FranzKnight operates. A sculpture major, comic book collector and bike tinkerer, FranzKnight has always been able to make things work by understanding how they come together. The former executive director of the Pike Place Market Preservation and Development Authority (PDA) grew up in Pullman, Wash., the son of a teacher and a WSU professor. After
high school, he traded in his crimson and gray roots for purple and gold. “When I was a freshman I had season tickets to the Huskies and was one of the only ones rooting for the Cougars in the Apple Cup that year,” Franz-Knight said. While at the University of Washington he ran the ASUW bike shop, which operates as a small business inside of a student government — an organizational structure he would become more familiar with throughout his career.
As a sculpture major, he spent most of his days manipulating shapes in the studio and at the bike shop. One night he met a fellow creative, a costume design major destined for Los Angeles. Now his wife, he followed her to California with his collection of bikes in tow and landed a temp job at the Santa Monica Pier as an administrative assistant. It was there that a maintenance manager, Bill Bollinger, took him under his wing by encouraging him to ditch his rash guard and sandals and
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Ben’s Top Picks at the Market
Hanging in Ben Franz-Knight’s office is a Gary Fisherdesigned bike frame from the late ’80s, a model that was only built for a few months. The company stopped making them because they were too hard to replicate. This is just one of many bikes hanging from his office ceiling, including one geared specifically to get him to and from City Hall and the Market, a common trip while the project was underway.
start wearing regular shoes because, “someday,” Bollinger said, “he would run the place.” After several years, the position of acting director opened up. “Bill called me up and said, ‘If there’s one piece of advice you listen to — and I know you haven’t listened to a single piece of advice to date — apply for this job. It’s yours,’” FranzKnight said. The Santa Monica Pier is much like the Pike Place Market; saved by a citizen’s initiative in the 1970s, it comprises many small businesses and is a tremendous point of pride for the community. After eight years as
“I’ll certainly miss … the people in the community. That’s what makes the Market amazing, the diversity of voices — the passion that folks have for this place and the uniqueness of the place itself.” – Ben Franz-Knight Former Executive Director Pike Place PDA
Oriental Mart: A family-owned business started in the ’70s by Mila Apostol, who has an MBA from the University of the Philippines and moved here with her husband, a Boeing engineer. Their daughters, Joy and Leila, now run it. He often goes there for lunch.
Golden Age Collectables: For her birthday, he bought his wife an original X-Men #2.
Beecher’s Cheese: His son frequently asks dad to pick up some mac and cheese for dinner.
OPPOSITE: The iconic Market sign THIS PAGE (FROM TOP): Ben Franz-Knight with his beloved bike; the new addition makes it easier to traverse the Market’s multiple levels; roll-up “garage” doors allow vendors to adjust their space to the weather
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director of the Pier, Franz-Knight was ready for a new adventure, and the Market was looking for an executive director. “The position was perfect in many ways,” Franz-Knight said. “It was an opportunity to scale up, significantly. It was an opportunity for me to take everything I learned in Santa Monica and apply it.” On his first day at the Market, he attended a meeting to discuss seismic upgrades and piers needed to support the existing building. Following that first $68 million renovation in 2010, Franz-Knight embarked on the recently completed $77 million Pike Place MarketFront project with Sellen. These two projects would introduce him to his next big adventure. Franz-Knight recently announced he would be leaving the Market to take a position with SOJ (Shiels, Obletz, Johnsen), a Northwest firm that specializes in the management of complex urban development projects for public and private clients, including the Pike Place PDA. “Ken Johnsen is an amazing guy, and I have incredible respect for his skills, vision and leadership ability,” Franz-Knight said. “I’m looking forward to joining the firm.” When he took the time to reflect about what he enjoyed most about his former role, it was the projects. He said he enjoyed every phase — from the concept development and construction aspects, to achieving the vision of the new MarketFront. In his role at SOJ, he said he will be taking on more complex civic projects, but he will miss the Market. “I’ll certainly miss … the people in the community,” Franz-Knight said. “That’s what makes the Market amazing, the diversity of voices — the passion that folks have for this place and the uniqueness of the place itself.” ■ FROM TOP: The MarketFront provides striking new sightlines of Seattle’s waterfront; the new expansion includes space for new vendors like Honest Biscuits
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Amazon Day 1 Location: Seattle, WA Square Footage: 1.6 million Architect: NBBJ Opened for Business: November 2016
The newest Amazon high-rise to open in Seattle’s Denny Triangle area, the Day 1 building, is not the first of its name — but it certainly could be the most unique. Similar to other Amazon buildings, Day 1 boasts 32 office floors, a “Center of Energy” with common spaces and cafes, and retail on the ground floor. Atypical is its closeup view of the now-iconic Spheres, with which it shares the city block. Separating the two structures is ample plaza space with a dog park, playing field and banana stand. Inside the building’s dramatic entryway, a two-level “blue wall” features geometric patterns mirroring the Spheres. Just around the corner from the entryway to the east, 10, 5-foot-tall letters spell out “hello world,” greeting outside passersby from the second floor. Past the blue wall is a paludarium, an aquatic and terrestrial vivarium where around 2,000 fish of six different species swim beneath a green wall. Along with its neighbors — Doppler and Block 20 — Day 1 is part of a district energy system. The system captures heat generated from a data center in the adjacent Westin Building and transfers it through underground water pipes to heat the three towers, saving energy.
THIS PAGE: Exterior façade of Day 1, which sits adjacent to the Spheres OPPOSITE PAGE: Public plaza space off of 7th Avenue PHOTOGRAPHY: SEAN AIRHART
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“The successful completion of Doppler, followed by Day 1, has only been possible because of the commitment, collaborative approach and exemplary craftsmanship of the Sellen team. … I can’t wait for the next project we get to do together.” — John Savo Principal, NBBJ
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Day 1 Stats
SIZE OF GRANITE BOULDER UNEARTHED ON SITE
4 tons
PARKING SPACES
1,123
OPPOSITE PAGE: Day 1’s primary entryway on 7th Avenue THIS PAGE, FROM TOP: A neon hallway leads to an open dining area; destination dispatch elevators; Level 2 common areas feature retail food space ELEVATORS SERVICING THE BUILDING
PHOTOGRAPHY: SEAN AIRHART
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CUBIC-YARD MAT POUR, LARGEST IN SEATTLE’S HISTORY
11,700
ON TRACK FOR LEED
Gold
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Industry trends As another busy year for Seattle nears its end, Sellen’s preconstruction and estimating experts Dave Ratzke, Chris Angus and Adam Lorenz explain why they don’t expect this trend to be over anytime soon. CONTRIBUTING AUTHORS: DAVE RATZKE, CHRIS ANGUS, ADAM LORENZ, AMANDA ERICKSON PHOTOGRAPHY: KIP BEELMAN, KEITH BROFSKY
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e are living in the fastest-growing city in the country, and if your lack of sleep this year hasn’t yet proven that, these numbers will. For the second year, Seattle leads the country in tower cranes with 58 cranes up this summer. According to Rider Levett Bucknall, that’s around 60 percent more than any other U.S. city. What’s more, the Downtown Seattle Association (DSA) reports there are around 150 projected projects in the pipeline from SoDo to South Lake Union, with about 50 of those starting in the next year. In this market, Sellen’s current and projected backlog is staying strong, but that doesn’t mean we haven’t been able to take time to reflect and evolve. This past year, our preconstruction team has spent precious time growing and improving in response to the everchanging needs that the market has demanded. We have built a proactive, flexible structure with new tools and technologies to support it. For example, we have a new database that helps our teams mine historical data and track trending costs among projects down to the productivity rate per manhour. We have hired experts who specialize in mechanical systems, document review and modeling.
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One of our most exciting improvements has been growing our virtual design capabilities as we move toward model-based estimating and scheduling standards. This is part of our developing technology strategy that focuses on leveraging data, enhancing visualization, and improving worker safety and productivity. (Learn more on page 22.) And perhaps most importantly, we are staying true to our first and longest-standing commitment: striving to be a true partner to our clients by understanding their businesses. All of this is in an effort to go above and beyond — to ensure predictable outcomes and help our partners be successful. Because, especially in this busy market, when one partner is successful, the rest follow.
Regulatory Changes Progress doesn’t happen without change, and there are some major regulatory changes in Seattle’s future. Here’s a few we’re tracking.
Seattle Energy Code On Jan. 1, 2017, Seattle adopted the 2015 Seattle Energy Code (SEC), one of the most progressive energy codes in the country. While there has been much speculation, there have been few hard facts on how the code will affect future building trends — until now.
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All of this is in an effort to go above and beyond — to ensure predictable outcomes and help our partners be successful. Because, especially in this busy industry, when one partner is successful, the rest follow. Over the past year, Sellen has been working with PAE Engineers and MacDonald-Miller Facility Solutions to evaluate potential mechanical system solutions that meet the 2015 SEC and their associated cost impacts. Led by Sellen’s Preconstruction Sustainability Manager David Walsh and focusing on high-rise office and residential towers, the team used energy modeling to determine what it took to achieve the 2015 SEC when different mechanical systems and glazing percentages were applied. Using two recently completed Seattle buildings as a baseline, they calculated the mechanical cost premium to build the same buildings under the new code with the original percentage of glazing, as well as the cost premium to increase the glazing to 60 percent. While the cost premiums differed as each new variable was introduced, in all cases the 2015 SEC caused mechanical systems costs to increase. The study found that the most significant jump occurred with office tenant improvement mechanical costs: in our modeled scenarios, the tenant improvement mechanical costs almost doubled when meeting the 2015 SEC. Compared to the previous energy code, the new standard will necessitate using different mechanical systems and anticipating increased build-out costs. “Overall, we found that designing a building with glazing at 60 percent or higher is possible under the 2015 SEC, but it comes at a price,” Walsh said. “The new code will challenge developers, engineers and design teams to find a sweet spot among increasing glazing, managing first and operational costs, and ensuring code compliance.” The team published a white paper on the study, which can be found on Sellen’s website, www.sellen.com.
International Building Code The 2018 International Building Code (IBC) approved a significant change to the seismic requirements that will affect the structural design of projects in the Puget Sound area, especially those found on softer soils. The new code requirements will be adopted by Washington state in 2020. Two years ago, the American Society of Civil Engineers issued new requirements for the seismic design of buildings. Magnusson Klemencic Associates (MKA), a Seattle structural and civil engineering firm, began studying the new requirements and comparing them to current code provisions. MKA determined that current designs were underestimating the effects of earthquake ground shaking on buildings susceptible to “long-period motions” (earthquake ground movement longer than 1 second), which have a pronounced effect on softer soils. “We need to continue to keep earthquake designs with the performance we want to achieve,” said John Hooper, director of earthquake engineering at MKA. “If our understanding of how the ground shakes is changing, then our designs need to change with that.” MKA said the new codes may potentially affect buildings that are 75 feet or taller, and that most buildings taller than 160 feet will be affected. The premiums to meet the new code requirements could add $4 to $6 or more per square foot to a project. MKA recommends doing a site-specific geotechnical study to determine the specific soil quality of a site, which could help save half that cost or more. “The truth is, we don’t yet fully understand the implications, both in cost and scale, of the new code requirements, but they shouldn’t be discounted when planning future projects,” Hooper said.
Living Building Pilot Program The City of Seattle recently renewed its Living Building Pilot program. The Living Building Challenge is a green building certification program based around the idea that buildings can give more to the environment than they take. Within the pilot program, developers can elect to achieve a partial or full certification. In both instances, owners can request departures from the Seattle Land Use Code, receiving height and floor area incentives. Called the “Petal Recognition certification,” the partial certification requires teams to achieve at least three of seven sustainability categories, or “petals,” with at least one being energy, water, or materials. The other four petals are place, health and happiness, equity, and beauty. To achieve the energy petal, a building must reduce its total energy usage by 25 percent or more. For the water petal, they must use only non-potable water. The materials petal requirement is complex but attainable. For this petal, building materials cannot contain any chemicals listed in the Red List™, which has been a major focus of research for Sellen over the past few years. Led by Sustainability Program Manager Jennifer Frey and Post Construction Manager Alexis Thompson, Sellen has coordinated with hundreds of manufacturers to obtain statements of products’ compliance with the Red List™ so designers can make more informed product selections that achieve the materials petal. Our research continues to collect other environmental declarations to round out our focus on delivering healthy spaces, while also positioning clients to achieve credits in other sustainability certification programs, including LEED version 4. Beauty Beauty + spirit Inspiration + education
Place Limits growth Urban agriculture Habitat exchange Human-powered living Water Net positive water
Materials Embodied carbon footprint Responsible industry LIVING BUILDING CHALLENGE
Equity Human scale + human places Universal access to nature and place Equitable investment Just organizations
Market Trends
According to the DSA, around 70 major projects are under construction from South Lake Union to SoDo. Among them, we’ve seen some major trends. Mid-Century Upgrades If you’re wondering how Seattle is fitting all this new construction within
Energy Net positive energy
Health & Happiness Civilized environment Healthy interior environment Biophilic environment
our geographic constraints, here’s the simple answer: we aren’t. One of the strongest trends has been the upgrading of office and public spaces in existing buildings. Owners in the central business district are recognizing the need for office space and responding to it by modernizing the public spaces in their mid-century
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Material Costs on the Rise in 2018 On average, material prices have gone up approximately 4 percent over the past year, with major spikes seen in lumber and copper. Owners can expect material costs to make up around 40 percent of overall job costs.
5%
Copper
3%
Insulation
10%
Lumber
3%
Roofing Products
3%
Glass
3%
Structural Steel
4 - 6%
Concrete
3%
Aluminum
2%
Diesel Fuel
5%
Rebar
5 - 7%
GWB/Metal Studs
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buildings. For example, Sellen Special Projects recently completed a lobby renovation in the 901 5th Avenue tower for Schnitzer West. This modernization has allowed the building to remain competitive with new construction, both in regards to cost and aesthetics.
to accommodate tech office needs. We’re helping owners plan for these changes upfront so their projects are more marketable and more prepared to house Seattle’s growing tech tenants.
Close Construction Quarters The city’s window of buildable space is getting smaller and smaller. Building on sites that have a multitude of challenges has become the new normal — whether it’s contaminated soils, a tight footprint, or lack of crane swing and tieback easements. At the Stratus residential tower for GID Development, for example, a lack of a tieback or crane swing easement required that our team install internal bracing and use a luffer crane. As sites get tighter and tougher, they almost always come with a higher price to develop.
The labor market supply doesn’t match the high volume of work we continue to see in our region, and labor is tight in all trades. Tradespeople have been selective on which projects they choose to work, and they will continue to do so. This year, the ironworkers; low voltage, sound and communication electricians; and concrete teamsters were up for negotiations, but they have all reached agreements. The trades that will be up for labor negotiations in 2018 will be: • Carpenters/piledrivers • Cement masons • Electricians • Insulation and asbestos • Laborers • Operating engineers (King and Pierce counties) • Plumbers and pipefitters (Tacoma, Everett and Bremerton) • Sheet metal workers • Teamsters • Operators – concrete suppliers
Building Tech-Savvy More and more tech companies are moving to Seattle, bringing with them a need for bright, open offices. We are seeing unique design trends in these spaces, such as an increased amenity program and higher densities. At Sellen, we’ve seen the changes that a spec shell and core building requires
Labor Trends
Sub Trends
Labor and subcontractors will be the primary project cost drivers in 2018. This spring, Sellen sent a workload survey to many of our subcontractor and vendor contacts and received responses from approximately 250 firms. All responses trended in the same direction: the market is hot. Here’s some specifics: • 82 percent reported workloads that were busier than average • 73 percent reported a projected backlog that is higher than usual, with the majority claiming it was 10 to 20 percent higher • 84 percent project that prices will rise next year, with the majority expecting them to rise by 3 to 5 percent
The Big Picture
Taking everything within the state of the market into account, we next look to annual escalation, which we estimate to be at a rate of 4 to 5 percent. There are many factors that
can influence escalation, and right now these include natural disasters such as the recent hurricanes and fires, as well as labor negotiations and the local market. As we’ve mentioned, the local labor market is tight and a number of labor contracts expire in 2018. Overall, we can expect to see labor increases in the range of 2.5 to 3.5 percent per year. Material costs have not been a major factor this past year; however, with the recent hurricanes and fires there will be a demand to rebuild, and materials will increase in the range of 3 to 6 percent. Additionally, the local subcontractor market remains extremely busy. We expect to see subcontractor increases by 4 to 6 percent. Overall, we should plan for an annual escalation rate of 4 to 5 percent. As we prepare for another busy year, Sellen continues to remain committed to the ever-changing needs of our clients and community by building a sustainable business and staying true to our values. ■
Yearly Escalation Chart Next year, the primary drivers for escalation will be a tight labor market and subcontractor costs.
6% 5%
4 - 5%
Steel Erection
6 - 8%
Earthwork
4 - 5%
MEP Trades
4 - 6%
Elevators
4 - 5%
Metal Siding
6 - 8%
Finishing Trades
5 - 8%
Windows/Curtainwall
6 - 8%
Concrete Formwork
Talking LEED v4 with David Walsh
5%
5%
4%
‘15
Subcontractor Prices Rising in 2018
‘16
4%
4% 3.5%
‘17
‘18
Craft: What does it mean that LEED version 4 (v4) is now the only LEED version available? Walsh: Both LEED and the AEC community are at an inflection point — the new version will demand more from designers, contractors and owners as they work through the learning curve. What in v4 is the most far-reaching change? One of Sellen’s biggest focal points has been the new disclosure requirements for the materials credits. For designers, this will necessitate more product research in design development, as well as
a retooling of specifications. During procurement, contractors will need to more carefully vet submittals and substitution requests. Has the demand for LEEDcertified work changed since v4 took effect? It will take awhile for long-term patterns to emerge. Sellen has several v4 projects underway, and the demand stems mostly from a desire to remain an industry leader and to align new projects with commitments to healthier spaces, as well as the need for new buildings to be on par with existing portfolios.
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The next generation of innovation Recent advancements in technology have boosted worker productivity, safety and quality in our industry — here’s how Sellen is approaching it. BY: WON MOC ILLUSTRATIONS: EKSO BIONICS, LORETTA GRANDE
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magine if you were asked to perform your daily job duties on a mainframe computer from 50 years ago. The concept alone seems unfathomable, much less achievable. This is the reality construction workers face every day; the industry still uses the same technology and techniques as 50 years ago to pour concrete, build walls, and tie rebar, among other activities. While other industries have embraced and leveraged new technology, the construction industry has remained largely unchanged. But the last decade has brought significant advances, and the
construction industry has been flooded with new innovations. Instead of blindly jumping into the vast world of new and ever-changing technology, however, Sellen has developed a strategic approach to our tech development. “We didn’t want to simply purchase new tools; we wanted to partner with the developers creating those tools,” said Bob McCleskey, Sellen’s CEO. “We wanted to help make impactful improvements that will not only benefit Sellen but also the industry overall.” Through early research and strategic partnerships, it soon became clear that our tech
explorations would fall into three categories of innovation: enhanced visualization, leveraged data, and increased worker safety and productivity. To this end, Sellen has fostered partnerships with multiple technology-focused firms — from unknown start-ups to the usual suspects — as well as long-standing architect and owner partners, to help explore and develop new tools and processes to improve our shared industries. While we still have multiple projects in the works, here’s a sneak peek into a few of the successes and explorations we’ve recently undertaken.
Exo-Skeleton Vest Neck Roll: Provides gentle support for head and neck when tilting head backward to complete overhead work Links: Transfers the force of the lift assistance into the device while allowing operator full range of motion Actuator: Spring-powered mechanism provides lift assistance for operator’s arms Torso Tubes: Transfers forces to the hips and allows for height adjustment to fit different-sized operators Hip Plate: Primary point of load support and attachment point for hip belt
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1. Increasing Worker Safety & Productivity: Introducing the Next Ironman Partner Ekso Bionics Description Sellen is the first contractor in the nation to partner with Ekso Bionics, the creator of a prototype exo-skeleton vest. With the use of gas springs, the vest is designed to lessen arm fatigue and strain for workers who spend a lot of time with their hands at chest level or higher. As part of our partnership, we provided a real-world testing environment and asked workers at the Stratus residential tower project to wear the vest and provide feedback. During the testing period, the workers stripped formwork, which required them to use their arms overhead 90 percent of the time. In addition to validating the vest in a construction setting, the Sellen-Ekso team identified refinements for the second prototype. The vest became much lighter and was created with more breathable materials. Ekso Bionics is also exploring swappable springs with different levels of strengths to match the diverse requirements of construction work. Benefit Using the exo-skeleton vest lessens arm fatigue in workers, reducing potential injuries and increasing worker efficiency. Status The exo-skeleton vest will be commercially available by the end of the year. Ekso Bionics and Sellen are continuing to partner together to improve the product and will soon begin a long-term usage study of the new vest.
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2. Leveraging Data: Watching Concrete Cure Step 1 Install data sensor When connected to the rebar, it turns on
Step 2 Pour concrete
Partners Stoneway Concrete; Giatec Scientific Description Sellen and Stoneway Concrete are partnering to collect concrete maturation data in real time using sensors that are attached to the rebar prior to pouring the concrete. Sensors will then transmit temperature and moisture data to smartphones via Bluetooth technology. Benefit If proven accurate, having instant, real-time access to the concrete maturation data allows the project
team to be more proactive in decision-making and has the potential to decrease the schedule. For example, concrete formwork removal and post-tensioning activities can be performed earlier than traditionally, when teams have to wait for the field concrete samples to cure and then break them to check their strength before starting other activities. Status Currently, project teams are working together to validate the data collected from the sensors to ensure its accuracy and evaluate potential future uses.
3. Enhanced Visualization: Virtual Reality
Step 3 Collect temperature and maturity data as concrete sets
Description For many in our industry virtual reality, or VR, is still widely recognized as a “gadget” rather than a trustworthy tool. With this in mind, Sellen, UW, LMN and MKA set out on a joint research effort to prove that VR can be used as a credible tool rather than just a toy. The goal of the study is to measure the visual accuracy of a virtual environment versus the physical environment. The team built two spaces: a physical mockup of a hotel room and an identical virtual space, which LMN created using the existing 3-D building model. Study participants will “walk through” and experience both rooms. Afterward,
participants will be asked a set of questions to measure the closeness of their visual perception between the virtual space and physical mock-up. Benefit If we discover that the VR environment can be trusted as an accurate spatial experimental tool, it allows people from different backgrounds to collaborate on, identify, discuss, and solve design and construction problems faster and more conveniently through the use of VR technology. Status The team is preparing for the focus group study, which is planned for this fall. ■ BELOW: Rendered virtual mock-up of hotel space for users to virtually “walk” through
RENDERING: LMN ARCHITECTS
Partners University of Washington (UW); LMN Architects; Magnusson Klemencic Associates (MKA)
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Igniting research with philanthropy Ten years ago, one gift sparked a worldwide research program. BY: INGRID INGERSON PHOTO: COURTESY OF GAPPS
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n 2006, a group of scientists in a small research lab in the corner of Seattle Children’s Hospital asked Sellen’s leadership team to take a chance on them. Now, 10 years later, that “chance” has grown into a local and globally focused organization that leads the way in research of preterm births and stillbirths, which are the leading causes of death and disability for children under age 5. GAPPS, the Global Alliance to Prevent Prematurity and Stillbirth, was officially founded in 2007 with major funding from Sellen and the mission to reduce childhood death and disability by preventing prematurity and stillbirth. Having just marked its 10-year anniversary, its goals have remained the same: to research the causes of prematurity and stillbirth, assess the best interventions for preventing and providing care for early births, and raise awareness of these critical issues. Prematurity and stillbirth are often not discussed, despite their significant impact and cost to families and communities. In turn, this prevents the understanding of maternal and infant mortality issues, and hampers the ability to improve and save lives. From its inception, GAPPS has worked with groups such as Stillborn Still Loved, a Seattle Children’s hospital guild, to overcome the stigma and increase awareness of this issue, family
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by family. Several of its ongoing programs have also contributed to opening up discussion of this important topic. “We know so little about this fundamental mother and baby relationship. We are learning that small changes, even on a molecular level, can have an effect on whether a woman carries her pregnancy to term,” said Dr. Craig Rubens, co-founder of the GAPPS program. “It is a broad field that has global implications in terms of the ability to save lives. Collecting data, taking a systems biology approach, and providing comfort for families all contribute to raising awareness.”
Growing a Partnership
Dr. Rubens, a leader in the field for more than 30 years, originally met with Sellen leadership in 2006 to discuss this new research project. An executive team toured the research lab to learn more. Sellen decided to fund the program, pledging a five-year, unrestricted gift to support ongoing development. “We liked the mission of the program and were very impressed with the folks running it,” said Scott Redman, Sellen’s president. “We appreciated the value this work would bring to the community, as well as the proposed collaborative approach to growth.” GAPPS founders chose to take an innovative and integrated approach to their work. By placing collaboration at the center of the program’s mission, they have been able to share resources and extend their reach, gathering vital research from around the world. Dr. Rubens also credits the unrestricted Sellen
support that came early in the program. “We were essentially a startup with Seattle Children’s,” Dr. Rubens said. “Many people don’t realize the impact these kinds of gifts can have both locally and globally — philanthropy can serve as the seed for new science and attracting new scientists to the field.” Since Sellen’s initial investment, the program has received substantial support from Dr. Tom Hansen, former Seattle Children’s CEO; Seattle Children’s Hospital; Bill & Melinda Gates Foundation; USAID; March of Dimes; and other collaborative partnerships. It has grown from a small research team to a leading global health pioneer.
What’s Next?
GAPPS became an independent non-profit organization this summer. With continued support from Seattle Children’s, the founding board is working on groundbreaking worldwide projects, such as the GAPPS Repository, Every Preemie and Preventing Preterm Birth, while it continues to build dynamic partnerships that will increase the resources needed to save the lives of more women and children worldwide. This year also marks the launch of Healthy Pregnancy 2030, a multi-organization initiative that aims to cut the number of preterm births globally in half by 2030. “Thanks in part to Sellen’s strong, early support, we are thrilled to be celebrating a decade of helping improve and save lives on a global scale,” said Dr. Jim Litch, acting executive director of GAPPS. “There is so much more work to do. Please join us.” ■
GAPPS collaborates worldwide with leading researchers and stakeholders to accelerate progress in maternal, newborn and child health gapps.org