COMMISSION 
AGENDA MEMORANDUM                        Item No.          4c 
ACTION ITEM                            Date of Meeting     February 28, 2017 
DATE:     February 21, 2017 
TO:        Dave Soike, Interim Chief Executive Officer 
FROM:    Ralph Graves, Senior Director, Capital Development 
Janice Zahn, Assistant Engineering Director, Construction Services 
SUBJECT:  South Satellite Interior Renovations Project Phase 2 (CIP #C800549), 
Change Order 22 
Amount of this request:                              $0.00 
Total estimated project cost:                  $6,256,000.00 
ACTION REQUESTED 
Request Commission authorization to execute Change Order 22 to Contract MC-0318407, South
Satellite Interior Renovations (SSIR) Phase 2, extending the contract duration by 66 days. This
Change Order additionally increases the contract by $64,379.85, which will come from existing
project contingency funds. 
EXECUTIVE SUMMARY 
The execution of this Change Order finalizes the additional indirect field office overhead costs 
incurred due to the various Port-caused delays associated with the door portal hardware issues
on the SSIR project with the Contractor, PCL Construction. The Change Order includes the cost
of $64,379.85 and increases the project duration by 66 excusable and compensable calendar
days. 
JUSTIFICATION 
Due to complications with unforeseen conditions, code interpretation(s), and required design
changes associated with the door portal hardware, PCL Construction's work was delayed,
causing the company to incur additional time and indirect field office overhead costs. The
proposed change order is the full and final settlement negotiated with the contractor for the 
Port-caused delays associated with this issue. 
DETAILS 
On April 6, 2016, the Port executed a construction contract with PCL Construction Services, Inc.
for the project in the amount of $3,062,503.00 with an original contract completion date of
November 2, 2016. 

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 4c                                   Page 2 of 3 
Meeting Date: February 28, 2017 
The Contractor's schedule anticipated that two (2) key renovation elements, replacement of
gate casework and upgrades of gate portals, would be performed concurrently. The casework
work scope began in a timely manner and was completed on time in consideration of the
previous access delay issue. The portal work had complications for a variety of issues: specified
hardware that was inconsistent with the design intent, unforeseen physical constraints of the
existing building, and  discrepancies  with design and fire code. These issues resulted in
numerous Requests for Information (RFIs) and subsequent design iterations that created a Port
caused delay. 
Upon review of the Contractor submitted time impact analysis, the Port validated that 66
calendar days were justified for an excusable and compensable extension of the contract 
completion date. The contractor is also entitled to the indirect field office overhead costs
associated with the Port caused delay. 
The construction contract is anticipating completion in early April. Staff are continuing to
evaluate the remaining cost and time issues as the contractor completes the remainder of the
contracted work and expects that any additional change orders will be paid using the existing
project contingency funds. 
Scope of Work 
This project will make interior renovations to the mezzanine and departure levels of the South
Satellite. These improvements include: 
(1)   New podiums and backstands including the additional casework to support additional
narrow body gates. 
(2)   New wall panels in the escalator wells and on the concourse level. 
(3)   New boarding door portals. 
Schedule 
The remaining elements of the project are anticipated to be in use by Q2 2017. 
Cost Breakdown 
Contract Cost Breakdown                               Total 
Original Contract Amount                      $3,062,503.00 
Current Executed Change Order Amount       $74,403.61 
(through CO 21) 
Current Contract Amount                      $3,136,906.61 
Change Order 22 Amount                       $64,379.85 
Revised Contract Amount (through CO 22)       $3,201,286.46 
Estimated Remaining Contract Contingency      $429,240.47 
(through CO 22) 

This version as revised 9/16/2016

COMMISSION AGENDA  Action Item No. 4c                                   Page 3 of 3 
Meeting Date: February 28, 2017 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Do not authorize the issuance of the Change Order, continue further dispute
resolution processes. 
Cost Implications: Additional staff soft costs, potential legal expenses. 
Pros: 
(1)   Further negotiation may reduce the amount of the settlement. 
Cons: 
(1)   Delays project closeout and increases Port costs to continue negotiations. 
(2)   Creates a risk potential for litigation. 
This is not the recommended alternative. 
Alternative 2  Authorize the issuance of the Change Order for the amount of $64,379.85 and
66 calendar days.
Cost Implications: No additional costs (costs are within the project budgeted contingency). 
Pros: 
(1)   Settles dispute with the Contractor in conformance with contract language. 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
There is no additional funding being requested in this memo. The project has adequate
contingency to cover this request. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
1.  March 14, 2016  The Commission authorized award/execution of the major public
works construction contract. 
2.  November 24, 2015  The Commission authorized construction of Phase Two of this
project. 
3.  August 11, 2015  The Commission and Airlines met in a Forum on Seattle-Tacoma
Airport's International Arrivals Facility: Airline Roundtable. 
4.  December 9, 2014  The Commission authorized construction of Phase One of this
project. 
5.  August 5, 2014  The Commission authorized design funds for the South Satellite
Interior Renovations project. 


This version as revised 9/16/2016