Coatings Industry News

Main News Page


CO Airport Reveals $170M Phase 2 Plan

Wednesday, December 2, 2020

Comment | More

Officials for the Denver International Airport have released a scaled-down $170 million Phase 2 plan to finish the Great Hall terminal renovation.

Late last month officials asked Denver City Council to advance a contract amendment for the project, which would close out the $770 million renovation.

Project Background

In November 2017, the DIA proposed the addition of 39 gates in an expansion project, up from the airport’s original proposal of 26. At the time, the project was estimated to cost $1.5 billion and would be a P3 headed by Ferrovial Airports. The overall deal was slated to include a $650 million terminal renovation, which would be overseen by Saunders Construction over the course of four years. (Cost estimates for the actual expansion at the time were not yet available, however.)

A couple months later, in January 2018, two subsidiaries of Hochtief, a Germany-based construction company, were announced as the companies to oversee the expansion. The companies, Turner Construction and Flatiron Construction, would be building two new hubs for the airport, with the capacity for three more, as well as 16 new gates and installing additional pavement.

That summer, DIA would announce an official multi-year, multi-phase renovation timeline headed by Great Hall Partners with a budget of $650 million. The P3 also included 30 years of private oversight of expanded terminal concessions. A groundbreaking ceremony followed on July 12, 2018.

ra-photos / Getty Images

Officials for the Denver International Airport have released a scaled-down $170 million Phase 2 plan to finish the Great Hall terminal renovation.

However, first delays struck in February 2019 when concrete on the main floor was found to be weaker than expected. According to officials, early testing of the concrete’s compressive strength was lower than what the project’s plan specified, so the area followed up with intensive testing. The DIA also noted that the testing needed to be complete prior to cranes going onto the main floor to erect steel.

At the time of the discovery, preliminary estimates stated that the project could be delayed by 209 workdays—roughly 10 months total.

In July, GHP reported that the renovation of Jeppesen Terminal wouldn’t be complete until at least 2024, three years behind its 2021 deadline. The companies (Ferrovial Airports, Saunders Construction and JLC Infrastructure) claimed the delay was due to various airport-requested design changes and structural issues found in old concrete initially used for the airport’s construction.

However, Channel 4 CBS Denver claimed that the project’s full completion could extend to 2025—with costs projected to increase by nearly 50%, or $311 million.

Contract Saga

A month later, not long after DIA announced that it would be ending its P3 relationship with GHP for terminal renovations, the contractors released documents showing that the project requires more than $1 billion to complete.

Up $650 million from the original budget, the documents also claimed that various delays have pushed the completion date back to February 2024 as well.

According to a DIA-hired independent consultant, inspections revealed that no safety issues were present in the concrete. However, additional testing was recommended for alkali-silica reaction, known to cause swells, cracks and even weaken concrete. Traces of the ASR were later found in the terminal.

In September, Day presented a revised renovation budget totaling $770 million, which included the original budget and a $120 million contingency.

According to Day, subcommittees and steering groups were working to process the closing of GHP’s contract and settling associated claims so that the contractor could successfully vacate the property by Nov. 12. Although a 34-year concession deal was included in GHP's contract, Day also confirmed that the DIA will run that component themselves after the renovation is complete.

It was also noted that although the new $770 million budget failed to include GHP's termination fees, a report from Moody’s Investors Service shows that the airport has roughly $900 million in liquidity to back up any settlement.

The following month, the DIA announced that it had selected Hensel Phelps to serve as the preferred construction manager and general contractor for Phase 1 of the project previously held by GHP. Canada-based engineering company Stantec has been chosen as the preferred lead design firm for the entire project moving forward.

Andy445 / Getty Images

Late last month officials asked Denver City Council to advance a contract amendment for the project, which would close out the $770 million renovation.

In addition, the DIA also selected Gilmore Construction, Sky Blue Builders and roughly another dozen subcontractors it hopes to take over from GHP to continue to aid in design, engineering, steel placement and electrical work. Those contracts totaled about $136 million.

At the end of March, the DIA announced that it had settled all claims with Great Hall Partners and the Denver Post reported that the two reached a final settlement of $183.6 million.

The agreement, which is dated March 13, details more than $55 million in promised final payments on top of the $128.2 million previously reported.

In May of this year, contract amendments were requested and included:

  • the $700 million contract to the JV of Turner and Flatiron would increase to $940 million;
  • the $655 million contract with Holder and FCI would increase to $920 million;
  • the Jacobs’ design contract and the HNTB’s contract would increase from $65 million to $85 million; and
  • program manager WSP’s contract would increase from $45 million to $60 million.

What Now

The first phase of the project, which includes the central areas of the terminal building, is still underway and is slated to wrap late 2021.

Meanwhile, the changes to Phase 2 mainly involve security checkpoints. The initial plan was to build a second large checkpoint, which would have moved all screening at the airport upstairs. Now, though, the main checkpoints are staying on the first floor, near the north end of the terminal.

Officials say though that this won’t accommodate for the increase they’re expecting at the airport (post-COVID-19), so at some point a new project will have to be created and the funding to match.

This contract amendment, though, would add the $170 million to Hensel Phelps’ contract, and completion is aimed for April 2024.

   

Tagged categories: Airports; Commercial Construction; Contract awards; Contracts; Maintenance + Renovation; NA; North America; Ongoing projects; Renovation

Comment Join the Conversation:

Sign in to our community to add your comments.


Advertisements
 
Axxiom Manufacturing

 
PaintSquare

 
CRW

 
Western Technology Inc.

 
KTA-Tator, Inc. - Corporate Office

 
 
 

Technology Publishing Co., 1501 Reedsdale Street, Suite 2008, Pittsburgh, PA 15233

TEL 1-412-431-8300  • FAX  1-412-431-5428  •  EMAIL webmaster@paintsquare.com


The Technology Publishing Network

PaintSquare the Journal of Protective Coatings & Linings Paint BidTracker

 
EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
MORE:      About PaintSquare.com   |   Privacy Policy   |   Terms & Conditions   |   Support   |   Site Map   |   Search   |   Contact Us