A new “lessons learned” report on Denver International Airport’s failed Great Hall partnership deal — and how it fell apart three years ago — heaps blame both on DIA leaders and on the contracting team they fired, but it particularly highlights how the airport’s inexperience with such a long-term contract helped doom it.
DIA pulled the plug in August 2019, about one year into construction of its major terminal renovation, by terminating the $1.8 billion, 34-year deal with Great Hall Partners, led by Madrid-based Ferrovial Airports and Centennial-based Saunders Construction.
In that short time, disputes over design changes and other problems had resulted in Great Hall projecting $288 million in cost overruns and project delays exceeding two years.
That deal was a public-private partnership (known as a P3) that served as a cost-sharing arrangement for the renovation work, including the relocation of security screening and overhauls of airline check-in areas to accommodate continuing growth. It was also a money-making venture: The partners envisioned lucrative shops and restaurants in new post-security terminal spaces that Ferrovial would oversee for three decades, with DIA sharing in the revenue. The renovation itself was pegged at $650 million.
The P3 arrangement was a controversial choice at the time — and the contract breakdown marked one of the most significant project failures during Denver Mayor Michael Hancock’s tenure. Project work later resumed under a new lead contractor, but not without big financial consequences.