Salt Lake City International redevelopment program construction costs rise

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Left: Rendering of the new passenger viewing area at Salt Lake City International. Image courtesy of Salt Lake City International Airport

Salt Lake City Department of Airports, which manages and operates Salt Lake City International, has announced that the budget for the airport’s Terminal Redevelopment Program (TRP) has increased by US$350m. This is primarily because of rising construction and labor costs. Estimated construction costs for the entire redevelopment program, which now includes the North Concourse, are estimated at US$2.9bn as of November 2016.

Salt Lake City and Utah’s robust construction market has resulted in bids for labor and materials coming in higher than originally estimated in the spring of 2015. Typically, construction activity for the Utah market averages US$2.5bn annually; however, construction activity is currently hovering around US$5bn annually, which according to the airport represents an all-time high.

“Utah is enjoying a very strong economy, which is resulting in severe labor constraints and a substantial increase in the cost of materials,” said airport advisory board chair Igor Best-Devereux. “Because of the checks and balances that the Department of Airports has in place, the airport staff was able to identify and validate the cost increases early on in the process. This enabled them to take the measures necessary to move forward and seek the required budget approvals.”

Salt Lake City Council will discuss the budget amendment during a work session and public hearing on December 6. The council is expected to vote on the budget amendment on December 13.

The TRP will replace the airport’s aging passenger terminals, concourses and related facilities. The project is on schedule to meet an opening date in late 2020 for the first phase of the program.

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Helen has worked for UKi Media & Events for nearly a decade. She joined the company as assistant editor on Passenger Terminal World and since progressed to become editor of five publications, covering everything from aviation, logistics and e-commerce to meteorology. She has a love for travel and property and has redeveloped three houses in three years. When she’s not editing magazines, she’s running around after her two boys and their partner in crime, Pete the pug.

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