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Thu, Dec. 12

Airport terminal cost comes in: about $14 million
‘Guaranteed maximum price’ is now under review by FAA

Members of the Fann Contracting team met with Airport Director Robin Sobotta in mid-August to review the plans for construction of the new airport terminal. (Cindy Barks/Courier file)

Members of the Fann Contracting team met with Airport Director Robin Sobotta in mid-August to review the plans for construction of the new airport terminal. (Cindy Barks/Courier file)

At just under $14 million, the price of Prescott’s new airport terminal has now been set.

And, barring any unforeseen circumstances, that price will not be allowed to increase during the course of construction.

Airport Management Analyst Kristi Miller reported this past week that the contractor for the terminal project submitted a “guaranteed maximum price” of $13,894,531 for the new terminal that is scheduled to get under construction in early October.

Miller said that price was “in alignment” with the amount the city had been anticipating. She noted that the design process had included a number of value-engineering efforts, such as changes in materials, which brought down the cost somewhat.

Overall, the terminal will consist of 17,859 square feet of interior space, as well as some covered outdoor courtyard areas.

The design for the project has been underway for much of the past year, and the city had been working with an estimated total cost of about $16 million for the terminal and new road system, Airport Director Robin Sobotta said earlier this summer.

In mid-August, the Prescott City Council approved a $58,400 contract for demolition of three T-shade and T-hangar structures at the airport to make way for the construction of the new terminal and surrounding roadway improvements.

At that time, Sobotta also announced that the terminal groundbreaking had been set for Oct. 4.

CMAR PROCESS

As the design was wrapping up, city has been awaiting the guaranteed maximum price from the construction-manager-at-risk contractor, Willmeng Construction/Fann Contracting.

The CMAR process differs from the traditional design-bid-build process in that it allows the chosen construction contractor to get involved early in the design phase.

The CMAR process also requires a guaranteed maximum price that is not allowed to change during construction.

Miller explained that the guaranteed price cannot increase (through change orders) unless the city were to change the scope of the project, or if there were an “extreme unforeseen circumstance” discovered at the site.

FAA REVIEW

Still to come is a review of the guaranteed maximum price by the Federal Aviation Administration (FAA), as well as a vote on the official go-ahead for the project by the City Council.

Miller said the city submitted the guaranteed maximum price to the FAA earlier this week and is now awaiting word back from the federal agency.

Along with approval of the guaranteed maximum price, the city is also waiting to hear the total grant amount that the FAA will award to the project.

Already, the city has received a commitment for $1 million from the state to go toward the cost of the terminal, and the City Council approved putting in $3.5 million of city money as well.

Miller said the city hopes to hear back from the FAA within the next week. The official city go-ahead is tentatively on the City Council’s agenda for Sept. 24, but Miller said that could to be postponed, depending on the timing of the FAA’s response.

Meanwhile, the groundbreaking is also set to move forward on Oct. 4.

While the city waits for the next steps, the T-shade and T-hangar structures have yet to be removed. Miller said the demolition company has indicated that the project could be done in 14 days, so the city is waiting until nearer the start of terminal construction to proceed.

Follow Cindy Barks on Twitter @Cindy_Barks. Reach her at 928-445-3333, ext. 2034, or cbarks@prescottaz.com.

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