DENVER (CBS4) – Denver International Airport’s Great Hall project will likely resume construction early next year after the city of Denver terminated the contract with the developer. The developer, Great Hall Partners, has been fired “for convenience” and saying ending the contract is “in the best interest” of the airport.
DIA Chief Executive Officer Kim Day provided information about the termination of the contract in a news conference on Tuesday morning.
“We are very far apart in terms of cost and schedule and our values, prioritizing safety, the passengers' experience, and our airline operations. This termination gives us control of the project going forward – we can now complete the project in a timely manner,” said Day.
Day also discussed the timeline for resuming the project as well as the cost to the city of Denver.
Terminating a contract “for convenience” is a standard clause in government contracts which gives the government — in this case, DIA and the city of Denver — the right to unilaterally end the contract without giving a specific reason. Sources told CBS4 that Denver officials delivered the news to Great Hall Partners via a letter sent overnight.
In July, Denver had threatened to end the contract. This week, the city followed through on that threat. Sources say the termination will take effect in November, giving the current developer three months to wrap up.
The terminal redevelopment — started in 2018 — was supposed to cost $650 million and be completed by 2021. But it has been beset by problems nearly from the start. Concerns about the strength of the concrete in the terminal, coupled with change orders from the airport, led Great Hall Partners to project a $311 million cost overrun and a projected delay of as much as three years.