Executive Review
Panel Report 
Port of Seattle International Arrivals Facility 
September 11, 2018

ERP Assignment 
Review budget and cost growth 
Evaluate the GMP process, the proposed GMP, and
identify if further review is necessary 
Review schedule timelines, including schedule
growth and reliability, and identify appropriate
actions to be taken 
Provide recommendations on project management
and processes 
Evaluate lessons learned for use of Progressive
Design-Build model on future projects 
2

Approach 
Primary focus: 
Status of project 
Guaranteed Maximum Price (including cost, schedule,
terms of contract) 
Recommendations for future improvement 
Reviewed appropriate documents. 
Conducted Interviews with identified Port staff,
Program Management consultants, Contractor,
Architect, Port Commission, and Partnering
Consultant.
Provided early management observations to
facilitate completion of the GMP and improve
overall effectiveness. 
3

Fundamental Assumptions 
Regional need for the project is critical and
unquestioned. 
Economic benefits are and will be substantial. 
The partnership between the Port and the current
contractor is integral to the success of the project. 


4

IAF is a Program of Large
Projects 
Sterile
Corridors 
20% 
IAF Building 
50% 
Pedestrian
Walkway 
20% 

Airside &
Landside 
10% 
5

GMP Concepts 
1.   Progressive Design-Builder (PDB)  prepares
design which is then issued to trade contractors
for bidding 
2.    "Open Book" contracting: Reimbursable costs
(subject to audit) and lump-sum bids from trade
contractors 
3. "Progressive" design provides opportunities for
scope development and stakeholder input 
4.   Guaranteed Maximum Price (GMP) can be
negotiated before the design is complete 
5.   Construction overlaps design 
6

ERP Assessment of
GMP Cost 

7

Key Considerations 
Independent cost estimate completed for direct
costs 
Project fully underway 
Design complete 
Trade subcontractors bought out 
GMP price tied to schedule 
Substantial scope added 
Seattle is a super-charged market 

8

Final GMP 



9

GMP Cost Conclusions 
GMP price is reasonable 
GMP must fully replace "mini-GMPs" 
Need for firm control of future scope changes 


10

ERP Assessment of
GMP Schedule 

11

Technical Schedule Review 
Clark      Achievable per
Activity 
Schedule  Independent Analysis 
Substantial Completion          May 30,

South Satellite Sterile Corridor     2020 
Substantial Completion          May 30,

Pedestrian Walkway              2020 
May 30,
Substantial Completion  IAF                          
2020 
November
Pod D Phase 2                                         
10, 2020 
NOTE: The ERP's schedule review focused on construction activities; the
activation period was not considered.                                                12

GMP Schedule Conclusions 
Schedule is achievable but aggressive 
Urgency is imperative 



13

Panel
Recommendations 

14

Strengthen Port Program
Management 
Assign Dave Soike as Port Executive to lead the
program 
Designate Aviation Division executive with decision-
making authority to partner with Dave Soike 
Organize staff and contractor teams around the large
projects in the IAF program 
Clarify Port program management authority, decision-
making and structure 
Port staff should be augmented appropriately:  program
management deputy, construction manager and other
staff to support accelerated construction schedule 
Develop workplan and accountability mechanism for the
implementation of improvement recommendations           15

Contract Management 
Expedited Delivery - Owner, Contractor, Designer,
Stakeholders 
Extreme sense of urgency- only 21 months remaining
to accomplish $485 million of construction 
Expedited Decision Making 
Full time POS Delivery Executive 
Commensurate Delegations of Authority 
Aviation Division and Delivery Organization
Alignment 
Organization Aligned with Major Projects in the
Program 
Teams adequately staffed for project scale and speed 
16

Continue to Improve 
Owner  Contractor Relationship 
Build on successful completion of GMP negotiation 
Manage the relationship 
Promote one-team mentality 
Continue facilitated partnership sessions 
Implement regular Dispute Resolution Board
meetings 
Establish formal, clear change management
process 

17

GMP Schedule
Recommendations 
Develop strategy for Pedestrian Bridge Element
including: 
Necessary taxiway closure 
Center span installation 
Regular meetings to discuss potential impacts to operations 
Detailed shut-down work plan 
Contingency planning 
Finalize schedule impact for pending change orders 
Determine who controls/owns remaining schedule float 
Declare "pencils down" on further design changes 

18

Increase Stakeholder Engagement 
Greater
Partner         Aviation        Airlines &
Community        Tenants 
Agencies 
General public,        Airline partners &
Agencies with
passengers, and         concessionaires 
jurisdiction 
neighboring
communities 


ACTIVE ENGAGEMENT | TRANSPARENCY | ORGANIZED & OFTEN

ACTIVE ENGAGEMENT                19

Increase Project Visibility 
Create reporting vehicles for various audiences 
Establish a biweekly dashboard report for the
Commissioners with Key Performance Indicators
(KPIs) that are tracked and measured 
Schedule regular Commission updates on project
status 
Enhance project page on Port website to show
project status versus plan 

20

Sample
Commission
Dashboard 



21

Future Use of Progressive
Design-Build (PDB) 
Good business reasons why the Port chose PDB for
this program 
Port should carefully and independently evaluate
all project delivery methods for future projects
Each has benefits and risks depending on project
complexity, business considerations, and
organizational capacity and readiness 

22

Questions 

23