A new audit of Denver International Airport's (DIA) $2.1 billion expansion project reveals concerns about cost overruns and potential deficiencies in contractor oversight. The audit, scheduled for presentation in January 2024, follows a 2023 audit that identified ten recommendations, some of which DIA officials rejected.
Denver International Airport travelers encountered walls and construction as a major overhaul, projected to finish within five years, disrupted operations on August 13, 2019. Denver auditor Tim O’Brien plans a new review of a substantial portion of Denver International Airport ’s $2.1 billion expansion, expressing concern. O’Brien stated, “What we are recommending goes beyond just documentation. The whole procurement of contracts and subcontracts needs to be open and fair and competitive.
” While the airport maintains confidence in adequate controls for project oversight, airport officials said in an emailed response to The Denver Post, DIA’s expansion, launched in 2018, was initially budgeted at up to $770 million with a five-year completion timeframe. As 2025 approaches, officials estimate the total cost at $2.1 billion for an expanded project, with reconstruction of the Great Hall expected to be substantially complete by the end of 2027, ahead of the original schedule of mid-summer 2028. O’Brien questioned the project’s timeline and budget, noting, “Is it on time? Is it under budget? If you go with the revised time frame and the revised budget, maybe they can say that. If you start with the original time frame and budget, they cannot say that,” he said. A first audit completed in 2023 offered ten recommendations. DIA officials rejected seven and accepted three. A follow-up audit, scheduled for presentation to city officials on January 16, acknowledges DIA’s improvements but highlights continued concerns. It identified ongoing shortcomings in DIA’s oversight of contractors and the subcontractors they employ. The work relies on a prime contract with Hensel Phelps, which has awarded 380 subcontracts to date, including 163 for the upcoming “phase 3” work, according to DIA information provided to The Denver Post. Airport officials stated that they rigorously scrutinize subcontracting, including evaluations of bid packages and all contract documents
DIA Expansion Audit Cost Overrun Contractor Oversight Denver International Airport
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