McCarthy tapped for $310M Phoenix airport expansion

Dive Brief:

The Phoenix City Council and McCarthy Building Cos. have entered into agreements worth up to nearly $240 million that will see McCarthy provide construction manager at risk services for a new $310 million Southwest Airlines concourse at Phoenix Sky Harbor International Airport.
McCarthy’s services will include subcontractor procurement, construction, scheduling, quality control and closeout for an eighth concourse for Southwest.
The new concourse will feature eight boarding gates, two connector bridges, support facilities, ticketing areas, security checkpoint upgrades and modifications, as well as a baggage system and baggage claim area. Construction is expected to begin this year, according to the Phoenix Business Journal, and wrap up in early 2022.

Dive Insight:

McCarthy’s original contract was for up to roughly $236 million, but the city amended that to include an extra allowance of up to $3.3 million. According to city documents, the contract reflects a guaranteed maximum price proposal from McCarthy.

The St. Louis-based general contractor is responsible for establishing and meeting a Small Business Enterprise goal for the Southwest project. Although McCarthy might self-perform some of the work, it must use prequalified subcontractors in the bidding process and follow the city’s subcontractor selection process in making its procurement decisions.

Like several other large general contractors, McCarthy has carved out a space in the aviation segment of the U.S. construction industry. Other airport projects include a portion of the Sky Train and a pedestrian bridge at Sky Harbor; a new cargo facility at San Francisco International Airport, which included infrastructure improvements, civil engineering and mechanical systems, as well as construction of the superstructure; and a new 282,000-square-foot terminal at John Wayne Airport in Santa Ana, California. That project also included adding a basement to an existing 448,000-square-foot terminal, renovation to other terminals, reconfiguration of three gates and remodeling of airline offices.

As far as 2017 airport facilities construction revenue is concerned, Hensel Phelps led the sector, according to Building Design + Construction, with a total of $1.1 billion. Just last month, the Hillsborough County Aviation Authority awarded the Colorado-based general contractor a $66 million contract to start building and developing the SkyCenter at Tampa International Airport. The Florida project will eventually include an atrium, pedestrian bridge, hotel, retail and at least one office building.

Hensel Phelps was followed in the rankings by Skanska USA ($751.3 million); Turner Construction ($556.6 million); AECOM ($546.8 million); Austin Commercial ($414.8 million); The Walsh Group ($353.1 million); and PCL Construction Enterprises ($319.8 million). McCarthy was ranked No. 13 on the list with $148.5 million of airport facility revenue in 2017.