Item No.        10c_supp
Date of Meeting      May 10, 2022
Concourse A Building Expansion for Lounges
Budget Increase Request

Requesting Commission Authorization For:
Budget increase for project $26.5M
Reimbursement increase to Delta for construction under the
Tenant Reimbursement Agreement by approximately $24M


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Background
Expansion of lounges will support increased passenger levels with the
opening of the International Arrivals Facility (IAF)
Shared lounge volumes have increased significantly since 2015
(compared to 2019)
a total of 390% in shared use lounges
899% in Concourse A lounge alone
The Club at SEA lounge today is undersized to meet growing demand
On average 861 passengers per month were turned away pre-pandemic
Delta Air Lines constructing an expansion of Concourse A using a TRA
Design of base building approved by Commission on April 27, 2021 and updated
based on the 60% design on December 14, 2021.
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Concourse A Building Expansion for Lounges



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Concourse A Building Expansion for Lounges



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PLB  Maintenance Shop
Rel ocation to 188M Site


N
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Cost Escalation Categories:
Scope Addition
known and indicated scope additions between 60% and 100% design. Includes the design
development for the Passenger Loading Bridge (PLB) Maintenance shop.
Market Conditions / Global Supply Chain
application of average material and anticipated labor cost escalation; costs reflective of the
challenging bid environment.
Buyout Contingency
additional contingency the contractor has applied to the proposal identifying cost risk until all
trade partners are under contract
Delta & Port Soft Costs
costs associated with design development, design support during construction, and risk
contingencies managed by the Port.

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Areas of cost increase from 60% Design
Development to Final Design
Increase                   Variance                 Reason for Increase
Maintenance shop replacement, added sitework,
Scope Additions                              $8,000,000     HVAC and electrical scope additions, added
contractor markups
Material price increases, delayed construction
Market Conditions / Global Supply Chain       $8,500,000      start, increased construction schedule, added
contractor markups
Buyout Contingency / Risk Contingency         $5,600,000     Potential risks due to volatile construction market
Increased design fee for scope adds, Delta PM
Delta Soft Costs                                   $800,000
increase
Port Costs                                      $3,600,000      Increased Port management, Port contingency
TOTAL                                  $26,500,000

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Risks
If design and permitting of the new 188M PLB Maintenance
shop takes longer than anticipated, construction of the
Concourse A expansion could be further delayed.
A longer construction duration within the adjacent Club at SEA
will increase the period for the temporary alternate
accommodation of passenger lounge users.


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Budget and Schedule
Current Budget        $78,500,000
Requested Budget   $105,000,000
Schedule:
Construction Start         2022 Q3
Construction Finish        2024 Q1

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Questions?

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