Audit: City failed to effectively monitor Sunport renovation

Copyright © 2022 Albuquerque Journal

A image option staged to make a important airport construction challenge glimpse even further along than it essentially was price the metropolis of Albuquerque’s Aviation Section $3,625 in “questionable and unnecessary” fees, according to a not long ago released audit.

But which is just a fraction of the cash auditors say the city could have saved – or recouped – on the Albuquerque Intercontinental Sunport’s terminal advancement undertaking, or Tip.

The Aviation Office paid main contractor Flintco $189,779 far more than it was obligated to pay out, the city’s Office of Internal Audit decided. The office also in no way pursued from Flintco $753,000 in liquidated damages for undertaking delays it could have sought, according to a report that arrived as the metropolis plans its future important Sunport overhaul.

The Aviation Division “over-relied” on its architect advisor, SMPC Architects, and consequently never demanded Flintco to submit for approval a construction routine or official breakdown of product and labor prices, the audit discovered, nor did the department – as it could have – involve Flintco to search for many competitive bids for get the job done it subcontracted.

“The audit uncovered that Aviation did not have the suitable framework in place to efficiently keep an eye on and command project prices and development, resulting in an further $3 million in modify orders and more than two several years of undertaking delays after the original contract completion day,” the report states.

The Idea overhauled the ticketing area, baggage claim and out of doors arrivals sidewalk. It wrapped up in 2020 following 26 agreement modify orders and cost $32.9 million – $3.1 million a lot more than the contracted cost. It took about 3½ years as a substitute of the initially planned 15 months.

Auditors made many recommendations in their report, and an Aviation spokesman explained the office will heed them. That incorporates updating policy with improved challenge control provisions, and assessing no matter if it can seek out $942,779 from Flintco.

“The Aviation Office is now consulting with the City’s Authorized Department about the restoration of funds,” spokesman Jonathan Little said in an emailed response to Journal thoughts.

Flintco, on the other hand, said the town has no grounds to request income from the corporation, stating it fulfilled its obligations and the Aviation Section recognized its work at project’s completion.

“Additionally, all amounts paid to Flintco for its operate and the perform of its trade contractors ended up agreed to and authorized by (Aviation) and the Undertaking architect in progress of payment. There is no foundation for (Aviation) to request restoration of any total it paid to Flintco for its work on the Project,” Flintco president Steve Eikanger claimed in a assertion to the Journal.

The audit claims the town could have demanded Flintco to shell out $1,500 for every working day in damages for delays ensuing from Flintco’s alternative of its electrical subcontractor. Paperwork cited “performance failure of (Flintco’s) electrical subcontractor” for 502 excess times on the job, and that could have been truly worth $753,000 in payments again to the town, the audit located.

The job also price the city $193,404 in “unnecessary” costs, in accordance to the audit, which blamed a “lack of adequate critique of improve orders.” That incorporated $189,779 for Flintco fees that the city was not obligated to pay because it was not component of earlier agreed-upon alter orders, as well as an additional $3,625 to cover the addition, then elimination, of sure ceiling tiles for the sake of a image chance. That tile do the job was “questionable and needless,” in accordance to the report.

“The prior Administration (beneath Mayor Richard Berry) asked for ‘to make the carousel look as entire as doable for a photograph opportunity for Metropolis Administration,’” the audit reported, citing a town administration-requested change get. “As a consequence, the principal contractor instructed a subcontractor to set up ceiling tiles prior to completion of overhead. Once the photo prospect was entire, the most important contractor instructed the similar subcontractor to eliminate the tiles to comprehensive the overhead perform.”

The metropolis quickly will embark on a further big Sunport renovation – this a person to remodel the stability checkpoint and generate a new foods courtroom – and Compact reported it will use a distinctive form of contract than it did for the terminal update. It’s referred to as CMAR, or building supervisor at risk, and Smaller mentioned in a assertion it is used “to empower productive management of challenge charges, enhanced communication, and undertaking administration.”

Jaynes Corp. is the development supervisor for the impending challenge, which will charge an believed $90 million.