Delays and complications have caused America’s Denver International Airport (DEN) to terminate its contract with Great Hall Partners (GHP) to redevelop the Great Hall of Jeppesen Terminal.
The project to upgrade Jeppesen Terminal was approved by Denver City Council in August 2017 while renovation began in July last year.
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GHP is a consortium of Ferrovial Airports, JLC Infrastructure and Saunders Concessions.
According to the original $1.8bn contract, the group provided $650m to modernise the terminal building.
The remaining amount was allocated for the maintenance of the terminal’s commercial areas for a period of 30 years.
Due to several terminal design modifications, renovation costs increased by millions of dollars.
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By GlobalDataAs a result, the contractor was unable to form an agreement with DEN and Denver City to settle the increased cost issues.
Further complications arose when the airport found issues with the terminal design and when GHP failed to secure the required permissions to complete the project by the agreed date of November 2021.
Overall, these delays and inefficiencies led to a cancellation of the terminal modernisation project.
Denver City mayor Michael Hancock said: “We will always prioritise passenger safety and experience and will never compromise those values. In the end, we did not have a partner who shared those values.
“Denver International Airport is a vital asset for our city and state, and we are taking decisive action now to protect both the public and the integrity of our airport.”
After the termination of the contract, GHP will be required to vacate the site within 90 days, during which DEN will appoint a new contractor to conclude the project.
Denver International Airport CEO Kim Day said: “We are disappointed. This is not the outcome we expected but we are fully committed to completing the work as quickly as possible.
“These improvements are necessary to enhance safety and accommodate the rapid growth of our airline partners ensuring the future success of this world-class airport.”
