NSAT Modernization Budget Increase       Item No.  8c_supp
Date of Meeting       March 10, 2020

NSAT Budget Increase Request
$800
Budget Growth: $40M
$700
$712         5.9% over previous approval
$672  $672     +5.9%
$600                                                         Expended to Date
$500
Millions
Authorized by Commission
$411
$400                                                         Revised Budget (Commission
approved)
$300
$200
$100          Expended to Date      Authorized      Commission Approved 2017                   Forecast                Forecast
$0
NSAT Budget

NSAT Budget Increase Request
5.9%
$40M     Construction Potential
Risk                 Scope Added by Port/Airlines
(Pending)
Changes in Process

Added Support Cost


Management
Reserve
Differing Site Conditions

3

Factors Driving Increase
Capital:                                              Capital (cont'd):
Design development allowance, now complete        Reconstructing vertical circulation
Code changes                                   core while passengers moving
Differing site conditions discovered during               through area
construction                                     Scope Additions
Market Conditions / Contractor Availability
Lack of Subcontractor availability, labor        Expense:
shortages, lack of qualified labor                Additional contaminated & unsuitable
Ability to "pick and choose" projects             soils
Customer service provision changes
Schedule/Phasing Complexity:
Incorporating a more rigorous activation
Maintaining 'prior to construction' levels of      effort
operational & customer service
4

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

5

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
6