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Petro-Chem Years 1987 - Present Cherne was ideally suited for refinery construction with its full service general contractor capabilities and its roots in mechanical construction. Following the 1986 Koch contract Cherne was awarded a second, much larger contract at the Rosemount facility. After successfully completing this second contract, Cherne looked to the southern California region for refinery construction opportunities, an area that had seen only a few union projects for several years. Using its historical productivity data Cherne was able to demonstrate to prospective clients that union construction, even with its higher wage rates, could actually be less costly than non-union construction. In 1989 Texaco awarded Cherne a cost reimbursable contract at Texaco’s Wilmington, California refinery. Under the contract Cherne placed its fee at risk for cost performance creating a contract that had the flexibility of a cost reimbursable format while aligning Cherne and Texaco toward the goal of saving craft hours. The Texaco project proved very successful and was followed by additional contracts with Texaco in California and Kansas. Cherne’s success attracted the attention of other refiners and soon resulted in contracts with companies such as Arco, Shell, Ultramar, Conoco, Chevron, BP Amoco, and Equilon as well as additional work for Koch. In 1990 Cherne committed to an accident free workplace by adopting its Zero Accident Program. This commitment has moved Cherne from industry average safety performance in 1990 to industry leading safety performance today. Today, Cherne Contracting confidently moves into the 21st century under the leadership of CEO Bill Cherne. Guided by our substantial petro-chem, power, and general industrial construction experience, we continue to improve our processes and services to meet the needs of our clients. In 2001, Cherne introduced an Employee Stock Ownership Plan with the goal of achieving one-third employee ownership by 2008.
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