Apple Hires New General Contractor for Apple Campus 2

Rumors of delays could be reason for changing contractors

Apple Campus 2 Construction
Spring 2015 Apple Campus 2 construction. Courtesy of the City of Cupertino

Rumors have been circulating that Apple’s Campus 2 project has been slowing down due to unresolved delays, possibly involving the current contracting duo of DPR Construction and Skanska USA. However, delays can come from many sources, including Apple itself, which has a reputation for making demanding changes in capital projects.

No matter what the reason is, it appears Apple will bring in Rudolph & Sletten, Inc., a very well-regarded Silicon Valley builder, to complete the ring building's interior.​

According to Silicon Valley Business Journal, the spaceship campus was scheduled to have Phase 1, which includes the main ring building, an auditorium, a parking garage, and a few ancillary buildings, to be completed by the end of 2016. Phase 2, which includes the research and development buildings, and additional parking, will be completed at a later date.

Apple’s current estimate on the cost of Campus 2 is $5 billion, but if the rumored delays are more than rumors, then construction costs could balloon to the point where stockholders begin to take notice.

At the moment, Apple is on a record pace, with its lines of iPhones, iPads, and Macs bringing in record profits. But shareholders tend to be skittish when huge capital investments start rising well beyond the anticipated costs.

Let's be clear here. While Apple certainly needs more space for its growing number of employees and bringing more employees onto a single campus has many advantages, Apple Campus 2 isn't just an expansion of corporate offices for Apple.

It's also a monument to Apple, or maybe Steve Jobs; it's sometimes difficult to separate the two. But there's no denying that the spaceship campus is a statement.

As long as profits continue to soar, delays and their associated costs are likely to be manageable at Apple Campus 2. Should the quarterly reports stop meeting stockholder expectations, Campus 2 becomes a liability; finishing the campus is very important to Apple, and may explain why the interior construction work is being farmed out to Rudolph & Sletten.

Currently, the ring building's foundation work is complete, and its circular walls have been going up. Work is continuing on the main underground parking lot, but the main structure of the garage has been completed, and it's believed that construction of most of the Phase 1 outbuildings is on schedule. It would appear that the rumored delays involve the most technically challenging part of the campus: the construction of the ring building itself.

Was this page helpful?