"Unexpected Layers of Rock Raise Atlanta Airport Runway Costs"

Tuesday, October 8, 2002

Unexpected Layers of Rock Raise Atlanta Airport Runway Costs
The Atlanta (GA) Journal-Constitution


The first major contract in Hartsfield International Airport's $5.4
billion expansion will end up costing the city at least 60 percent more
than the original bid. 

On Monday, the Atlanta City Council approved 13-0 a second increase in
the contract for Thalle Construction/Artis Group, which is building a
deep drainage system at the site of the future fifth runway. 

The contractors requested the $6.5 million increase after discovering
variations in the depth of rock layers at the site. The rock, which will
support concrete and steel pillars holding up drainage culverts, is
nearly four times deeper in one area than a city consultant had
estimated. 

The original bid by Thalle/Artis was $17.8 million. The council had
already approved an additional $3 million, and the firm has exercised a
clause adding another 10 percent. The change approved Monday pushes the
project total to about $29 million. 

"This is not something we'd be interested in seeing happen again," said
council member H. Lamar Willis, who said he reluctantly supported the
increase because "we're not left with many other options."

Work on the drainage system began in April 2001, and the project is
about 85 percent complete. Most subsurface rock layers were found to be
between 15 to 20 feet deep, as predicted by the city's consultant, R & D
Testing and Drilling. However, at a small section the load-bearing rock
was as deep as 82 feet. 

Council member Mary Norwood said she was "dismayed" that tests by R & D
had not discovered the true depth of the section, and that contractors
weren't required to verify the test before bidding. 

R & D, which is in bankruptcy, was owned by Samuel "Ricky" Rowe, a close
confidant of former Mayor Bill Campbell, and had an annual contract to
test construction materials at the airport. 

Twice during the 1990s, airport officials expressed concern that R & D
was not performing properly and asked city auditors to investigate.
Other city officials didn't cooperate with the auditors, who were unable
to finish their work. 

Thalle/Artis' request came up last week before the council's
Transportation Committee. 

Hartsfield General Manager Ben DeCosta cancelled a trip to Japan, where
he was scheduled to speak at an industry conference. DeCosta and project
engineers worked through the weekend preparing a report and answering
council members' questions. 

DeCosta was "kind enough to offer to join my family at dinner last night
to walk me through this," said council member Howard Shook, who declined
the offer. DeCosta said he lobbied so hard for the increase because he's
anxious to keep the fifth runway project on schedule. 

On Monday, DeCosta told the council he will be requesting a third change
next year to cover the contractor's administrative costs in extending
the time for the drainage work. "When we're done, we will have change
orders probably totaling $13 million," he said. 

Thalle/Artis is a joint venure of Thalle Construction of Briarcliff,
N.Y., and Artis Group, of Stone Mountain.


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