Audit: City failed to effectively monitor Sunport renovation

Copyright © 2022 Albuquerque Journal

A picture prospect staged to make a key airport design project appear further more along than it basically was charge the town of Albuquerque’s Aviation Office $3,625 in “questionable and unnecessary” fees, in accordance to a not long ago launched audit.

But that’s just a fraction of the funds auditors say the town could have saved – or recouped – on the Albuquerque Intercontinental Sunport’s terminal advancement venture, or Tip.

The Aviation Office paid main contractor Flintco $189,779 additional than it was obligated to pay out, the city’s Office environment of Interior Audit identified. The department also in no way pursued from Flintco $753,000 in liquidated damages for venture delays it could have sought, in accordance to a report that arrived as the city options its following important Sunport overhaul.

The Aviation Division “over-relied” on its architect marketing consultant, SMPC Architects, and for that reason in no way needed Flintco to submit for acceptance a development schedule or official breakdown of substance and labor fees, the audit discovered, nor did the department – as it could have – demand Flintco to search for several competitive bids for function it subcontracted.

“The audit uncovered that Aviation did not have the correct framework in spot to proficiently keep an eye on and command challenge expenses and development, resulting in an added $3 million in change orders and more than two several years of venture delays after the unique deal completion day,” the report states.

The Idea overhauled the ticketing spot, baggage assert and outdoor arrivals sidewalk. It wrapped up in 2020 immediately after 26 agreement change orders and cost $32.9 million – $3.1 million much more than the contracted rate. It took about 3½ decades rather of the initially prepared 15 months.

Auditors made numerous suggestions in their report, and an Aviation spokesman said the department will heed them. That consists of updating policy with greater job regulate provisions, and examining regardless of whether it can seek out $942,779 from Flintco.

“The Aviation Division is at present consulting with the City’s Authorized Department concerning the recovery of funds,” spokesman Jonathan Smaller reported in an emailed response to Journal concerns.

Flintco, nevertheless, explained the town has no grounds to search for income from the business, indicating it fulfilled its obligations and the Aviation Office acknowledged its perform at project’s completion.

“Additionally, all quantities paid to Flintco for its function and the work of its trade contractors were agreed to and permitted by (Aviation) and the Job architect in progress of payment. There is no basis for (Aviation) to look for recovery of any total it paid to Flintco for its function on the Task,” Flintco president Steve Eikanger explained in a statement to the Journal.

The audit claims the town could have required Flintco to spend $1,500 for every day in damages for delays resulting from Flintco’s alternative of its electrical subcontractor. Paperwork cited “performance failure of (Flintco’s) electrical subcontractor” for 502 added times on the undertaking, and that could have been really worth $753,000 in payments again to the city, the audit observed.

The job also charge the city $193,404 in “unnecessary” fees, according to the audit, which blamed a “lack of enough evaluation of modify orders.” That bundled $189,779 for Flintco bills that the city was not obligated to pay since it was not section of earlier agreed-on improve orders, furthermore an additional $3,625 to cover the addition, then removing, of sure ceiling tiles for the sake of a photograph chance. That tile work was “questionable and pointless,” according to the report.

“The prior Administration (less than Mayor Richard Berry) requested ‘to make the carousel glance as total as probable for a photograph prospect for City Administration,’” the audit claimed, citing a city administration-requested transform buy. “As a consequence, the main contractor instructed a subcontractor to install ceiling tiles prior to completion of overhead. The moment the photograph chance was entire, the major contractor instructed the similar subcontractor to remove the tiles to entire the overhead get the job done.”

The city quickly will embark on yet another major Sunport renovation – this just one to remodel the safety checkpoint and generate a new meals court docket – and Tiny mentioned it will use a different variety of contract than it did for the terminal update. It’s identified as CMAR, or construction manager at danger, and Smaller stated in a assertion it is utilized “to enable successful management of challenge charges, improved interaction, and undertaking management.”

Jaynes Corp. is the design supervisor for the impending job, which will charge an estimated $90 million.