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Bae Denver Airport

In: Business and Management

Submitted By pmmp
Words 2198
Pages 9
Executive Summary
In November of 1989, the City of Denver began the construction phase of its new airport with the expected completion in Fall of 1993. This project was received with political and public support and promised to aid in preventing an economic free fall. The city used as many Denver area contractors and services as possible to keep their promise of increasing the economic benefits of the new airport.

Due to construction beginning later that scheduled, the design-build approach was used, which led to a number of circumstances where partially constructed, or constructed areas had to be changed causing duplication of work, increased costs and delays. Due to lack of proper planning, and that the assumption that airlines would build their own baggage system, an airport wide baggage system was not included in the final plan for the airport. BAE, after already been contracted by United to build their baggage system, was approached and agreed to build an airport wide baggage system based on negotiated conditions. At this point the scheduling and construction of the project and baggage system was out of control. As BAE worked on building and installing the baggage system, the negotiated conditions were not met, leading to further delays. The city took action to filed a lawsuit against BAE penalizing them $12,000 a day for not finishing the baggage system, possibly BAE’s reputation around the world.

I recommend that BAE propose a plan for this point in the project to organize and schedule the remainder of the project to minimize delays and further cost overruns. BAE has expertise working on similar projects and could play a leadership role to build a baggage system for the city of Denver. This will also solidify BAE’s reputation as a quality builder of material handling system and can manage a project efficiently.

BAE will assess the

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