Construction of Chicago Hospital Becomes Major Economic Engine

While the construction industry grapples with the economic downturn, Children’s Memorial’s new hospital project is helping 40 Illinois-based construction subcontractor companies remain strong. The new hospital, called Ann & Robert H. Lurie Children’s Hospital of Chicago, opens in 2012 and to date, 75 percent of its construction contracts and subcontracts have been awarded to Illinois companies. With the construction project just over 50 percent complete, this translates to $373 million in economic impact to Illinois.

In addition, more than 600 workers are on-site each day, from sheet metal workers and pipefitters to electricians and painters. In total, the new hospital will directly generate approximately 3,000 new construction-related jobs.

“It is important to provide opportunities to local businesses on a project of this size and we are fortunate to have experience working with a significant number of talented local subcontractors right here in our backyard,” said Robert Gallo, senior vice-president of Power Construction. The construction of Lurie Children’s is being managed by a joint venture between Mortenson Construction and Power Construction, both leaders in healthcare construction.

The impact of this project on these local subcontractors has been significant as well. Floyd Page, vice president of Lombard Architectural Precast Products Co., noted that having the contract to fabricate and install the architectural wall panels on the Children’s project allowed LAPPCO to employ 45 local residents who worked an aggregate of nearly 60,000 man-hours over a period of eight months in LAPPCO’s union fabricating facility in Alsip, Ill. This is in addition to the erectors, caulkers and truckers that were employed at the site. “This contract obviously made a major impact on LAPPCO’s business, as well as the livelihood of its employees — all of whom spend their money locally,” he said.