BILSTEIN Cold Rolled Steel Mill Plant & Batch Annealing Expansion

Spearheading steel innovation: BILSTEIN's cold rolled steel mill expansion

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Providing complete project and cost management services for the construction of a 105,000 sqf cold rolling mill in Kentucky.

Gleeds delivered award-winning project and cost management services for BILSTEIN’s Cold Rolled Steel Mill Plant and Batch Annealing Expansion in Bowling Green, Kentucky. Despite challenges such as managing high-cost equipment procurement and overcoming geological and logistical hurdles, we delivered both phases ahead of schedule and within budget. Our project delivery methods and robust risk management ensured the project’s success, earning industry accolades and fostering a strong, ongoing relationship with BILSTEIN.

The project involved constructing a steel structure on drilled pier-type pile foundations with a metal panel skin and TPO roof. Unique site characteristics included a limestone bedrock close to the surface, used for foundation support but presenting challenges for the drilled pier work. Additionally, potential water flow through limestone fissures posed risks of sinkholes, which Gleeds successfully mitigated, completing the project nearly two months ahead of schedule.

Following the success of phase one, BILSTEIN enlisted Gleeds for project management, cost management and schedule management for the 8,200 sqf Batch Annealing Expansion. This phase included a production area and an electrical room expansion, along with production equipment design, installation and commissioning coordination.

Gleeds’ role encompassed facilitating project meetings, recording progress, managing budgets and change orders, delivering monthly reports and performing all project closeout activities.

We encountered various challenges during the project’s lifecycle:

Equipment procurement and cost management: BILSTEIN aimed to release fabrication of the key rolling mill equipment early enough to meet their production schedule but was hesitant to do so without knowing construction costs, which would only be determined through a competitive bid process.

Design and construction timeline: The contract for the rolling mill equipment was agreed upon early, setting a strict timeline for design, manufacture, installation and commissioning. The design required proper control, preventing accelerated timelines that risked compromising quality.

Geological and logistical hurdles: The site’s limestone bedrock and potential sinkhole risks needed carefully managing to avoid delays and achieve structural integrity.

Gleeds developed a hybrid project delivery method to manage the owner's risks for equipment procurement. Contractors bid based on an 85% complete design, supplemented with narrative descriptions for the remaining design, allowing them to account for potential costs in their bids. This method helped us secure a guaranteed maximum price with a split savings arrangement, keeping the project within budget and on schedule for equipment release.

Regular coordination meetings, value engineering and a strict change control process helped us resolve issues in a timely manner and facilitated seamless stakeholder collaboration and improved cost efficiency. By deploying an interactive, customised web-based control system, we managed over 10,000 documents, achieving meticulous project tracking and communication.

Phase one was completed 58 days ahead of schedule. This led to Gleeds securing three Project Achievement Awards for Private New Construction under $50m with the Construction Management Association of America – Program Management, Economic Development and New Construction.

Phase two continued this success. The work was completed on time and within budget, with equipment design, installation and commissioning all well-coordinated.

Gleeds success securing three prestigious awards underlines our strength providing inbound industrialists with a 'soft landing' in the US market. It also positions us well for achieving further positive impact on clients’ projects and for industry expansion as a whole.

105,000

sqf

Phase one

8,200

sqf

Phase two

3

Project Achievement Awards with the Construction Management Association of America

468

day

Schedule for the main building

Over 10,000

Documents managed

110

Jobs created

$160

million

Invested by BILSTEIN since 2013

Gleeds brought exemplary team spirit to the project and had the ability to turn potentially contentious situations into a collaborative and productive environment for all involved. Their fair and impartial treatment of all team members was key to the project’s success. Many obstacles were overcome due to the team’s cohesiveness, tenacity and dedication to their work.

Mr. Thomas C. Ettl
Chief Financial Officer, Bilstein Cold Rolled Steel