NSAT Modernization Budget Increase
Item No.
8c_supp
Date of Meeting March 10, 2020
$411
$672 $672
$712
$0
$100
$200
$300
$400
$500
$600
$700
$800
NSAT Budget
Expended to Date
Authorized by Commission
Revised Budget (Commission
approved)
Forecast
NSAT Budget Increase Request
Budget Growth: $40M
5.9% over previous approval
Expended to Date
Authorized
Forecast
Millions
+5.9%
Commission Approved 2017
Changes in Process
Construction Potential
Risk
Scope Added by Port/Airlines
(Pending)
Added Support Cost
Management
Reserve
$40M
Differing Site Conditions
3
NSAT Budget Increase Request
5.9%
4
Capital (cont’d):
– Reconstructing vertical circulation
core while passengers moving
through area
• Scope Additions
Expense:
• Additional contaminated & unsuitable
soils
• Customer service provision changes
• Incorporating a more rigorous activation
effort
Factors Driving Increase
Capital:
• Design development allowance, now complete
• Code changes
• Differing site conditions discovered during
construction
• Market Conditions / Contractor Availability
– Lack of Subcontractor availability, labor
shortages, lack of qualified labor
– Ability to “pick and choose” projects
• Schedule/Phasing Complexity:
– Maintaining ‘prior to construction’ levels of
operational & customer service
5
Continued Risks Requiring Mitigation
• Contaminated & unsuitable soils
• Maintaining old systems until Phase 2 opening
• Resource availability (labor vs schedule/acceleration)
• Complications related to Art piece “Boundary”
installation
• Gate closure coordination
• Removal of temporary systems after Phase 2 opening
6
Lessons Learned
Design
• Ensure completion stage of design documents and timing of subcontract bids are fully
evaluated and balanced
• Ensure complexities of phased construction are fully vetted
Code Compliance
• Early (Design Development) and ongoing Building and Fire Department engagement
and bi-weekly check-ins continue during construction
Cost
• Thoroughly review project complexity and risks when estimating contingencies
Delivery Method
• Leverage experience and capability of GCCM for maximum control of construction
work; limit work performed by other means and account for risks of doing so
Capital vs Expense
• Increase focus on budgeting for maintaining customer experience during construction
