Skanska USA breaks ground on $349M NJ Inspira hospital

Dive Brief:

Skanska USA broke ground Wednesday on a $349 million New Jersey hospital for the Inspira Health Network, according to the Philadelphia Inquirer.
The 467,000-square-foot Inspira Medical Center Mullica Hill, on 100 acres in Harrison Township, NJ, will provide 204 beds, an emergency unit, outpatient services and an administrative and billing department, NJ.com reported.
The facility will replace the system's hospital in Woodbury, NJ. Inspira will come out of pocket for a portion of project costs but will borrow $260 million through municipal bond issues to help pay for the rest.

Dive Insight:

Inspira awarded Skanska USA a $200 million contract to build the project, which will employ 1,400 people, in March. At that time, Skanska said it would use the integrated project delivery (IPD) method and that engineering (Leach Wallace Associates) and architecture (Array Architects) services would also be included in the contract. Skanska officials said the hospital is its largest North American IPD project to date.

The growing trend of IPD projects typically sees the architect, engineer, owner and lead contractor enter into a single contract, but sometimes large subcontractors or other significant stakeholders will also be a part of the legal arrangement. Together, all parties to the contract establish project goals, assume risk and responsibilities, and enjoy any profits.

Skanska recently announced that it would also take on two other significant U.S. hospital projects — the new Women and Children's Health Building ($178 million) for Christiana Care Health System in Newark, DE, and a 538,000-square-foot Duke Lifepoint Healthcare facility in Marquette, MI. The contractor will take on the Marquette project as part of a $206 million joint venture with Closner Construction.

Just this week, Skanska USA initiated an executive shakeup. The company announced that current President and CEO Richard Cavallaro would return to his former position as head of Skanska USA Civil. Skanska Executive Vice President Anders Danielsson, who currently leads the company's infrastructure and U.K. divisions, will replace Cavallaro as president and CEO of Skanska USA.