Amid construction delays, Denver International Airport will terminate a
$1.8 billion deal with the company that had been contracted to renovate its
main Jeppesen terminal.
"Clearly we are disappointed. This is not the outcome
we anticipated," airport CEO Kim Day said in a press conference Tuesday.
The move followed failed mediation efforts. The
redevelopment has been underway since last summer and much of the airport's
main terminal is a construction zone, closed off to the public. In a June
report, the contractor, Great Hall Partners, said the project would be delayed
931 calendar days from the originally scheduled completion date of November 2021
due to weakness in the airport's concrete, which was originally poured in 1991.
Great Hall now has up to 90 days to vacate the airport, Day
said. The company was working with the city-owned airport in a public-private
partnership under which it was to design and construct the terminal renovation
and then assume operations and maintenance of portions of the airport for 30
years. Day said the airport would now take full control of the project and will
hire a new contractor with hopes of having that company mobilized by early next
She did not give a new completion timeline but said the
scope of the project could be curtailed in order to stay within the original
budget. The airport is not yet sure how much the contract termination will cost,
but the amount will include Great Hall Partners' 25% investment in the
$650-$770 million design and construction project as well as contract breakage
In a statement, Great Hall said it was "disappointed with DEN's decision and strongly
disagrees with their characterizations of how we have arrived at this
"We categorically reject their allegations around safety and change
directives. ... Indeed, the concerns we
raised over concrete that was weaker than initially represented by DEN were an
important part of our safety analysis. ... The reality is that the
project's time and cost overruns are a direct result of the discovery of weak
concrete in some areas of the terminal, which DEN did not disclose to GHP at
the outset of the project, and more than 20 large-scale, badly
timed and unnecessary change directives issued by DEN to the design they had
Under the Great Hall contract, the renovation was to include
consolidating ticket lobbies, relocating security screening, a new
post-security retail concession area and new meet-and-greet areas.
This report was updated Tuesday with Great Hall Partners' statement.