Guam – What is the reason behind the estimated 9 month delay of the 3rd floor, international arrivals corridor project, that forces the Guam International Airport Authority to fork up thousands of dollars daily?
Almost 8 years have passed since the proposed capital improvement plans were laid out adding an International Arrivals Corridor to the airport. But a myriad of set backs continue to cost the airport ten thousand dollars each day – making the cost of the project far more expensive than the 54 million dollars initially estimated. The price tag is now at 110 million dollars, and GIAA’s General Manager Tom Ada shares why.
“I think the delays mostly was just the amount of time it takes from the time that the request for information is submitted by the contractor, the time that it may take for the designer of record to be able to come back with a solution, and it may just take time to complete the redesign. So that’s where the delays are coming from.”
But why all the back and forth between designer, contractor and construction manager? Ada says the project’s blueprint was based on an outdated and inconsistent ’90s floor plan.
As Ada adds, “So when the designers were actually working on the architectural drawing they weren’t allowed to go in there and start knocking down walls to see what was actually behind there. They had to make certain assumptions. So there was a most recent example where a brace had to be installed and according to the drawings there was nothing, no infrastructure in that area that would be an obstacle. But when they in fact opened the ceilings they found that there was data cables, pipes and what not, so those have to be relocated, so that of course takes time and takes man hours to do that.”
Now under new management, former Senator turned Airport General Manager Tom Ada is beginning to tighten ship, in hopes of closing the gap between the initial anticipated date of completion, which was initially set for September 13th and the extended deadline of July 9th, 2020.
According to Ada, “A lot of that is really to just ensure that we have weekly meetings, coordination meetings amongst all the stakeholders, the contractor, the construction manager and just keeping tabs everyday. You know, what is the status of inquiries and if it seems like its being bogged down to actually go there and find out.”
“Our soul purpose in life is to get this corridor built to give that sense of urgency to the project. Because for every day of delay it was estimated I think, a rule of thumb is something like 10 thousand dollars a day for administrative overhead.”
Meanwhile, in lieu of the extended construction time frame, GIAA is considering rent deductions for concessionaires at the airport, many of whom may realize a negative impact on their revenue streams once the corridor construction project closes in on their designated area of the airport.
Ada explains, “So actually, we’ve had what we call the mitigation term sheet and at that, in that sheet there, there’s actually a formula that is used to determine how much of decrease in rent will be given, how long a time will he taken to amortize that decrease and so all that has actually been worked out at an earlier meeting that was held.”
Ada could not provide a dollar amount to the decrease in rent that each vendor within the airport may soon realize.