Lendlease-Turner JV wins $1.5B NYC Javits Center expansion contract

Dive Brief:

The New York Convention Center Development Corporation has selected a Lendlease and Turner Construction-led joint venture to build the $1.5 billion expansion of Manhattan's Jacob K. Javits Convention Center, according to the Commercial Observer.
The 1.2-million-square-foot addition will include 90,000 square feet of additional exhibition space, 45,000 square feet of meeting facilities and a 55,000-square-foot ballroom, as well as a green roof that can accommodate up to 1,500 people. The project will seek LEED Silver certification.
The Lendlease-Turner JV beat out another group led by Skanska USA with a bid $26 million lower than Skanska's. Actual construction costs should be $1.2 billion, with a $350 million allowance for additional costs. The project is expected to generate 6,000 permanent jobs and be a $393 million annual economic boon to the city.

Dive Insight:

The Javits Center is one of very few projects in New York City that has been authorized to use design-build, despite reports from city officials themselves that the delivery method reduces costs and saves schedule time.

New York City Mayor Bill de Blasio is expected to again propose design-build legislation for the city, which experts predict will be defeated by a strong upstate lobby of construction groups and state employee unions, which hold the position that if developers take over project design, it will eliminate the need for some public employees. Gov. Andrew Cuomo, like de Blasio, is a proponent of design-build and has proposed state-level legislation that allows for its wider use.

Convention center additions seem to be popping up all over the country, as metros compete for larger shares of the profitable convention and event market. Orlando is planning a $1.3 billion expansion of its convention facility, and Chicago has a comparable $1.1 billion project underway as well. Seattle's attempts at a massive $1.4 billion renovation of the Washington State Convention Center was mired in a brief legal battle with a terminated joint venture contracting team led by Skanska but is now back on track. Las Vegas is the latest entry in the convention center race with plans for a $1.4 billion expansion of its existing space.