Devon Energy Center

[metro]

Oh geez, here we go again...............

[bluedogok]

True. And the construction companies will be bidding like crazy to get those jobs.

Thx to Devon, thats more jobs in OKC. More taxes locally, further helping the economy floating.

We had a project that was bid last May, then stalled and rebid in November. The original average was about 12 million and the rebid average was around 10 million. It is making a difference.

[BG918]

I work for one of the companies bidding the construction management for the Devon Tower. From what I've heard they have changed their estimates based on the current construction costs and that is why the selection process is taking so long. We should know the CM by early March and then bidding for the work would most likely begin by summer if they have DD drawings complete. I know the parking garage is the first phase, and then they will move onto the atrium and tower.

[OKC74]

BG - I assume you mean that they are changing their estimates because construction costs are LOWER, right? Which is a positive sign that Devon will continue on with their plans. Has anyone checked out their stock today? It's below $50 for the first time in a very long time. Wonder what effects this will have?

[metro]

how many ways are we going to spin the same story? let it die folks until new info comes out.

[danielf1935]

I have a novel idea, if they start construction, we'll know their building it, if they don't start construction, we'll know their not building it.

[Thunder]

I think it should be closed, cuz it is 37 pages and counting. Way too long and long overdued for closure.

[lasomeday]

They should start working on the parking garage in the next month or so! I am getting excited!

[jbrown84]

Perhaps it should be closed and when there is new news, a new thread could begin.

[Pete]

I think what makes the most sense is that when construction actually starts -- or when it is close to starting with definitive plans and time tables -- we can start a new thread then for updates.

[Steve]

That time shouldn't be too far off - I'm hearing the garage work will begin in the next quarter.

[LakeEffect]

Technically, construction has started... the work on the loading dock entrance at Harvey/Galleria and the Norrick Library is prep. work for the tower.

[DaveSkater]

Yup, construction has started

[Stan Silliman]

I work for one of the companies bidding the construction management for the Devon Tower. From what I've heard they have changed their estimates based on the current construction costs and that is why the selection process is taking so long. We should know the CM by early March and then bidding for the work would most likely begin by summer if they have DD drawings complete. I know the parking garage is the first phase, and then they will move onto the atrium and tower.

I hope they don't change design based on today's lower construction estimates. They are lower today but by the time drawings are completed and bidding is done, they could just as easily be back up.

By the way, when construction prices are cheapest is when Devon's stock prices will be lowest. There is a correlation between depressed oil prices and construction demand, at least in this market. If oil starts climbing back over $ 60 a barrell, it affects all material, labor market and transportation costs which, in turn, raises all the construction costs.

If you don't have to borrow and you have plenty of cash the time to build is during a depressed construction market.

[OKCMallen]

I hope they don't change design based on today's lower construction estimates. They are lower today but by the time drawings are completed and bidding is done, they could just as easily be back up.

By the way, when construction prices are cheapest is when Devon's stock prices will be lowest. There is a correlation between depressed oil prices and construction demand, at least in this market. If oil starts climbing back over $ 60 a barrell, it affects all material, labor market and transportation costs which, in turn, raises all the construction costs.

If you don't have to borrow and you have plenty of cash the time to build is during a depressed construction market.

Your post was thought out, informative, and well-reasoned. Are you sure you're on the right board??

[adrian30]

when do they start building the devon tower? i cant waite to see it finished

[warreng88]

http://www.okctalk.com/okc-metro-are...von-tower.html

There is a thread dedicated to that already. I believe it is supposed to start construction in about six months.

[adrian30]

cant wait to see it rises up in the skyline. man its going to be one big building

[Thunder]

One hella skyscaper. Or is is skyscraper? Spell check, anyone?

[metro]

Technically some preliminary work has already begun. Harvey is already closed off right by the library, dirt has been moving and a construction trailer and equipment has been out there for several weeks now. I believe this is preliminary work for the parking garage, utilities and the adjacent conference center building.

[jbrown84]

it scRapes the sky, Thunder.

[Easy180]

Just thinking especially after today the folks building it are really going to get to enjoy some lovely Okie wind

[kevinpate]

> are really going to get to enjoy some lovely Okie wind

I suspect they'll strap up and enjoy it just fine, for it'll smell like money.
Wouldn't mind an opportunity to (very briefly) visit during construction, but I couldn't do what high rise builders do day in and day out

[metro]

http://www.newsok.com/article/3358577

Scrapped skyscrapers benefit Devon
Construction Costs for tower may drop
BY STEVE LACKMEYER
Published: April 3, 2009

Planned skyscraper projects are being scrapped around the world, leaving Devon Energy looking at significant potential cost savings as it proceeds with construction of its 54-story world headquarters.



An artist’s rendering of what Devon Energy Corp.’s new office tower will look like when it’s completed. Provided by Devon Energy Corp.

Klay Kimker, Devon’s corporate services manager, is aware that some local residents worry the economic downturn will claim its tower, as well. But both Kimker and Chief Executive Officer Larry Nichols say the project is still on track.

"We were very hopeful when we started the project that costs might go down,” Kimker said. "There were some indications that some of the pricing was high historically. And obviously any reduction in cost is of benefit to Devon and to the project.”

Devon estimated the tower’s cost at $750 million when project designs were unveiled in August. Kimker said any cost savings won’t be known until after a contractor is hired. Interviews with the top two finalists are ongoing and a choice is expected within weeks.

John Wood, project manager with Hines, the tower developer, thinks speculative skyscraper construction will be a lot less common in the future.

Two years ago, as Devon was preparing to make public its plans for a tower, skyscrapers were being announced across the country in what was a "go-go economy,” Wood said. Lenders, he said, were fueling the construction with aggressive interest rates and terms.

"There has been a fundamental shift in how real estate projects are capitalized,” Wood said. "And there are definitely a lot of people out there who think it’s a permanent shift.”

Wood, however, thinks towers — like the one to be built for Devon Energy — will continue to be built as companies look to modernize their workspaces.


Competition heats up
Just a year ago, Oklahoma contractors were worried about labor shortages and some public works jobs had to be readvertised because of a lack of bids.
That may be changing. Douglas Tapp, executive director of the Oklahoma Association of General Contractors, is already seeing out-of-state companies bidding for local jobs.

"Obviously, there’s not as much work as there was eight months to a year ago,” Tapp said. "We’re still doing OK. Most are feeling fairly comfortable through this year. The problem they (Oklahoma contractors) are running into is there isn’t enough work coming out on the bid board now that will carry them into next year.”

Tapp said the industry is waiting to see how much of the Devon tower project employs local labor. The project, he said, might be timed perfectly with the expected drop in jobs.

"We’re pretty comfortable there will be some of our state players involved,” Tapp said. "I’m not privy to how they’re going to split it up. You would hope that once the big tower gets going and started, it might trigger some other entities to start their work.”


Devon tower schedule:
Site preparation work is already under way for Devon tower, and the company has struck an agreement with the city to buy the west City Center garage for $18 million. Significant demolition and construction are expected to start later this year.

[Richard at Remax]

Its good to hear someone who isn't blaming the economy and actually using it as a springboard.