DOA Great Hall PARTNERS GREAT HALL PROJECT: DECEMBER CONSTRUCTION PROJECT REPORT February 14th, 2019 TABLE OF CONTENTS Section Section Page 1 Project Schedule 1 2 Financials 2 2.1 Key Highlights - Great Hall Monthly Expense Report 2 2.2 Key Indicators 3 Design and Construction Update 4 3.1 Key Highlights – Design 4 3.2 Key Highlights - Construction 5 3.3 Project Change Log 11 3.4 Relief Event 6 – Unknown Structural Conditions 14 3 TABLE OF CONTENTS i 1 PROJECT SCHEDULE Milestone Schedule and Progress to Date Initial Baseline Completion Task Name December Schedule November Schedule Developer Execution Date July 26th, 2017 July 26th, 2017 Effective Date / Commercial Close August 24th, 2017 August 24th, 2017 Financial Close December 21st, 2017 December 21st, 2017 December 21st, 2017 NTP 1 per DA 5.6 - All Administrative Requirements Due December 27th, 2017 December 27th, 2017 December 27th, 2017 NTP 2 per DA 5.7 - All Administrative Requirements Due July 6th, 2018 th Construction Commencement July 11th, 2018 PHASE 1- MOD 2 July 26th, 2017 August 24th, 2017 June 26th, 2018 July 6 , 2018 July 11th,2018 July 30th, 2018 February 27th, 2020 November 19th, 2019 May 1st, 2019 PHASE 2 – MOD 3 November 23rd, 2020 August 18th, 2020 January 30th, 2020 PHASE 3 – MOD 1 August 17th, 2021 May 13th, 2021 October 23rd, 2020 PHASE 4 – MOD 1&3 August 30th,2022 May 24th, 2022 November 3rd, 2021 The current forecasted delay is 209 business days. The projected schedule represents the D&C Contractor’s preliminary estimates and is subject to further review and analysis as well as an investigation of possible mitigation efforts (e.g., sequencing, construction methods). The Owner, Developer, and D&C Contractor are collaborating in good faith to further evaluate the preliminary schedule impact. GREAT HALL PROJECT: DECEMBER CONSTRUCTION PROJECT REPORT 1 5th Floor 6th Floor BUILDING 11,819,519 15,245,963 DEMO HVAC PHASE 2 - ACTUAL PROGRESS AOB Corridor Lvl 4 Receiving 4,917,011 3,831,724 5th Floor 1,528,685 6th Floor 2,769,630 PHASE 3 - ACTUAL PROGRESS AOB Corridor 447,239 5th Floor 6th Floor 1,588,800 2,036,760 PHASE 4 - ACTUAL PROGRESS 5th Floor 1,709,030 6th Floor Lvl 4 Receiving 3,627,282 429,571 TOTAL 49,951,215 318,729 235,145 63,523 84,373 59,960 52,334 5,778 62,226 50,414 66,758 69,609 15,134 1,083,984 3,816,748 3,454,971 977,992 5,995,339 572,579 620,454 88,956 598,605 592,251 650,658 874,276 24,678 18,267,505 1,633,122 CURBSIDE - - - - - - - - - 1,633,122 - CANOPY - 480,220 - - - - 86,239 - - 82,319 - 121,519 - 770,297 TICKET COUNTER - 4,012,289 - - - 851,545 - - - - - - 4,863,834 - - - - - - - - - - - 1,529,649 41,166 41,166 - - 8,737 8,737 - 8,737 8,737 8,737 8,737 - 134,753 123,498 123,498 - - 26,210 26,210 - 26,210 26,210 26,210 26,210 - 1,100,448 1,329,429 - 480,271 165,287 238,743 - 172,800 227,891 187,826 336,410 11,112 4,250,219 CONVEYENCE SYSTEMS 444,486 40,965 - 1,338,547 69,179 7,357 - 72,324 7,022 78,613 10,366 105,090 2,173,949 F,F,& E 492,586 49,650 - - 193,197 193,197 - 193,197 193,197 193,197 193,197 - - - TSA PARTITION WAY FINDING SIGNAGE ELECTRONIC SIGNAGE SECURITY SYSTEMS CUSTOMER EXPERIENCE TOTAL ACTUAL PROGRESS 18,157,179 28.76% 25,013,296 28.76% 5,958,526 28.76% - - 11,730,254 2,623,834 4,854,446 32.39% 6.10% 6.10% 541,973 6.10% 1,529,649 - - 2,722,899 6.10% 1,135,056 - - 4,754,451 4,056,084 6,900,728 6.10% 6.10% 6.10% 585,586 6.10% 404,258 1,701,415 1,135,056 87,899,256 13.52% Great Hall MONTHLY EXPENSE REPORT - NOV 2018 TOTAL TO DATE - PLANNED PROGRESS PHASE 1 - PLANNED PROGRESS ASSET 5th Floor 6th Floor BUILDING 24,174,063 31,742,230 DEMO HVAC PHASE 2 - PLANNED PROGRESS AOB Corridor Lvl 4 Receiving 7,941,314 10,741,940 5th Floor 1,528,685 6th Floor 2,769,630 PHASE 3 -PLANNED PROGRESS AOB Corridor 447,239 5th Floor 1,588,800 6th Floor 2,036,760 PHASE 4 - PLANNED PROGRESS 5th Floor 1,709,030 6th Floor Lvl 4 Receiving 3,627,282 429,571 TOTAL 88,736,545 651,886 489,575 102,594 84,373 59,960 52,334 5,778 62,226 50,414 66,758 69,609 15,134 1,710,641 7,806,265 7,193,280 1,579,525 7,101,930 572,579 620,454 88,956 598,605 592,251 650,658 874,276 24,678 27,703,456 CURBSIDE - - - - - - - - - 1,633,122 - 1,633,122 CANOPY - 999,822 - - - 86,239 - - 82,319 - 121,519 - 1,289,900 TICKET COUNTER - 8,353,620 - - - 851,545 - - - - - - 9,205,166 TSA PARTITION - - - - - - - - - - - 1,529,649 84,195 85,708 - - 8,737 8,737 - 8,737 8,737 8,737 8,737 - 222,324 252,586 257,124 - - 26,210 26,210 - 26,210 26,210 26,210 26,210 - 2,250,710 2,767,883 - 480,271 165,287 238,743 - 172,800 227,891 187,826 336,410 11,112 6,838,935 909,093 85,290 - 1,338,547 69,179 7,357 - 72,324 7,022 78,613 10,366 105,090 2,682,880 1,007,469 103,373 - - 193,197 193,197 - 193,197 193,197 193,197 193,197 - - WAY FINDING SIGNAGE ELECTRONIC SIGNAGE SECURITY SYSTEMS CONVEYENCE SYSTEMS F,F,& E CUSTOMER EXPERIENCE 2 TOTAL PLANNED PROGRESS ACTUAL - PLANNED 37,136,266 58.83% - 52,077,905 59.88% 9,623,433 46.45% (18,979,087) (27,064,609) (3,664,907) - - 19,747,061 2,623,834 4,854,446 54.52% 6.10% 6.10% (8,016,807) - - 541,973 6.10% - 2,722,899 6.10% - 1,529,649 - 1,135,056 - 4,754,451 4,056,084 6,900,728 6.10% 6.10% 6.10% - - - 666,972 - 2,270,021 - 1,135,056 585,586 145,624,666 6.10% 22.40% - (57,725,410) Key Highlights – Great Hall Monthly Expense Report PHASE 1 - ACTUAL PROGRESS ASSET 2 FINANCIALS 2.1 GREAT HALL PROJECT: DECEMBER CONSTRUCTION PROJECT REPORT Great Hall MONTHLY EXPENSE REPORT - NOV 2018 TOTAL to DATE - ACTUAL PROGRESS 2.2 Key Indicators Certified Amounts: The D&C Contractor has certified a total cost of $132,035,315, which includes costs up to the end of November. The invoice for December is currently in progress. The certified amount is divided as follows (find detail of each cost below the breakdown table): Design: - Early Design Work for progress before Financial Close. - Design Amount due at Notice To Proceed 1. It corresponds to 30 % of total design price less - any previous Early Design Work payments. Design Amount FC Payment, which is paid in nine equal monthly statements and add up to 50% of the total Design Amount. Mobilization Payments: Criteria for Mobilization Payments 1, 2, & 3 have been met and the D&C Contractor has waived Mobilization Payment 4. Amortization: It is the amount of Mobilization Payments amortized, calculated at a rate equal to the percentage of Construction Work as compared to the Contract Price. Construction: - Permits: In relation to the demolition, Central Monitoring Facility, structural packages, - architectural, mechanical, electrical, and life & safety. Procurement: structural steel, kiosks & ticketing counters, vertical transportation, floors, ceilings, and MEP. - CMF: Construction of the Central Monitoring Facilities - Phase 1 Construction and Preconstruction works Progress Payments: The amount received from the Owner in payment for design and construction costs is $66,448,613, which includes costs up to the end of November. GREAT HALL PROJECT: DECEMBER CONSTRUCTION PROJECT REPORT 3 3 DESIGN AND CONSTRUCTION UPDATE 3.1 Key Highlights – Design December saw a number of submittals to the Owner and the City for their review. The main submissions are noted below. In Review by the Owner: 3rd December North Terminal 100% Issued For Review1 Submittal 4th December Phase 2 100% Issued For Review Submittal 21st December Phase 3 90%2 Submittal 21st December Phase 4 90% Submittal In Review with the City: 7th December Phase 1 (Updated BHS only) 100% Issued For Construction3 12th December North Terminal Architectural Demo 100% Issued For Construction During December, the Owner further developed their new white box standard – this is their turnover requirements for spaces that are provided by the Developer to the Owner and will later be fit out by the airlines or other tenants. All parties had input into the standard which is intended to be issued by Owner for white box spaces in due course. Development of the Materna ticket counters and self-service kiosks continued with a regular review on Factory Acceptance Test (FAT) outstanding actions, a number of which were closed out during the month. Some small issues still remain but will not hold up manufacturer. Concessionaire design teams continued to receive permits from the City for their spaces, by the end of December 63% of permits have been approved by the City and County of Denver. The Executive Design Review (EDR) process that provides the Owner’s leadership team with an opportunity to provide input into finishes alternatives is progressing. All EDR Items affecting Phase 1 have been agreed with the exception of the Furniture Fixtures and Equipment (FF&E), Wayfinding, and final cost for the ticketing equipment and kiosks. Phase 1 ticketing equipment and kiosks are already being manufactured. Some EDR Items for Phases 2, 3 and 4 are still under review and discussion. 1 IFR = Issued for Review, the IFR submission is submitted to the Owner when the Construction Documents are 100% complete or substantially complete. 2 90% = 90% Progress, the 90% submission is submitted to the Owner following the receipt and integration of Owner comments to previous Construction Documents submittals (e.g. Design Development, Schematic Design Phase) and are deemed to be approximately 90% complete. 3 IFC = Issued for Construction, the IFC submission is submitted to the City and County of Denver Building Department for the purposes of procurement, contracting, and construction, and shall incorporate the final, client-approved solicitation provisions, contract provisions, special provisions, conditions of the contract, and general requirements. GREAT HALL PROJECT: DECEMBER CONSTRUCTION PROJECT REPORT 4 3.2 Key Highlights – Construction Construction activities are continuing in two areas of the terminal, the Central Monitoring Facility (CMF) and Phase 1 – MOD 2. CMF Work in the CMF continued with concentration on the overhead Mechanical, Electrical, and Plumbing (MEP) systems. Priority framing continued in locations throughout the space. CMF framing and overhead MEP installation. (12/19/18) In the electrical/server room, large equipment was brought in and installed including panels and the three-phase transformer. Conduit rough-in to the electrical room is ongoing. In the fan rooms and plenum above the CMF, waterproofing and sealing was completed. GREAT HALL PROJECT: DECEMBER CONSTRUCTION PROJECT REPORT 5 CMF construction site. To the left is the drywall for the electrical/server room. (Looking north, 12/19/18) Phase 1 – MOD 2 L3: The steel for the escalator pits was brought into the crawl space, and prep work took place throughout December. Beams were laid out, bolted, welded, and angle iron was put in place, all in preparation of the pit erection. GREAT HALL PROJECT: DECEMBER CONSTRUCTION PROJECT REPORT 6 L3 Crawl space with steel for escalator pits. (12/19/18) L4: On the AGTS arrivals platforms, surveying and markups continued, along with selective demolition. GREAT HALL PROJECT: DECEMBER CONSTRUCTION PROJECT REPORT 7 L5: Within perimeter work spaces, continued demolition of mechanical rooms, and ceiling Mechanical, Electrical, and Plumbing. Weathertight walls continued on both east and west sides with the closure of new door vestibules. L5 west, perimeter demolition and weathertight wall construction. (Looking south, 12/18/18) GREAT HALL PROJECT: DECEMBER CONSTRUCTION PROJECT REPORT 8 In the plaza, demolition of the terrazzo and topping slab began, and was carried out to roughly 80% completion. Plaza flooring demolition and AGTS glass removal. (Looking south, 12/19/18) Infill of the pit from the former north bridge escalator was completed with the exception of the infill concrete. L5 plaza, north bridge escalator pit infill. (12/13/18) Surrounding the Automated Guideway Transit System (AGTS) arrivals escalators, the glass curtain wall demolition was completed in anticipation of the netting installation. Netting and all the necessary hardware was staged on site. GREAT HALL PROJECT: DECEMBER CONSTRUCTION PROJECT REPORT 9 L6: Temporary relocation cables for the clerestory cables have been hung, but are not tensioned yet. Structural steel demolition is on hold pending the cable relocation. On both east and west sides, McCain walls were erected around the large mechanical shafts, and the architectural demo of those areas was completed. L6 clerestory cable relocation tie-ins hung. (Looking north, 12/19/18) Along the perimeter of the west side, railing was constructed in preparation of the curtain wall demo scheduled to begin in January. L6 west mechanical shaft architectural demolition. (12/19/18) GREAT HALL PROJECT: DECEMBER CONSTRUCTION PROJECT REPORT 10 3.3 Project Change Log4 Ongoing Change Events Status Date Received Type Description Proposed course of action Change Directive Change Directive 005 DEN Restroom Design Revisions Ongoing 27-Feb-18 Preliminary Change Estimate provided to the Owner, Change Order is expected. Change Directive Change Directive 006 Developer concessions office relocation Ongoing 26-Mar-18 Preliminary Change Estimate provided to the Owner, Change Order is expected. Change Directive Change Directive 007 Level 6 AOB corridor program revisions Ongoing 26-Mar-18 Proceed with change directive, determine impacts and mitigation analysis. Change Directive Change Directive 008 Revised Technical Spec 087100-Door Hardware Ongoing 28-Mar-18 Proceed with change directive, determine impacts and mitigation analysis. Change Directive Change Directive 009 Proceed with change directive, Revs to the TSA Spaces on Ongoing 22-May-18 determine impacts and mitigation the 6th level analysis. Change Directive Change Directive 010 oversized lifts, and Ongoing 11-May-18 restrooms in airline pods Preliminary Change Estimate provided to the Owner, Change Order is expected. Change Directive Change Directive 012 Owner to Modify Out of Scope Lifts Preliminary Change Estimate provided to the Owner, Change Order is expected. Change Directive Change Directive 013 Removal of the Hydronic Ongoing 19-Sep-18 Pumps Preliminary Change Estimate provided to the Owner, Change Order is expected. Change Directive Change Directive 014 Security Camera Design Ongoing Phases 2-4 Preliminary Change Estimate provided to the Owner, Change Order is expected. Ongoing 5-Oct-18 5-Oct-18 4 Items in the change log that have been withdrawn are not included in the tables provided in this section. GREAT HALL PROJECT: DECEMBER CONSTRUCTION PROJECT REPORT 11 Relief Event Relief Event 6 – Unknown Ongoing 02-Nov-18 Structural Condition Proceed with relief event, determine impacts and mitigation analysis. Change Directive Change Directive 21 – Restroom Upgrades Ongoing 5-Dec-18 Proceed with change directive, determine impacts and mitigation analysis. Change Directive Change Directive 16 – Level 5 Concession Tenant Swaps Ongoing 28-Dec-18 Proceed with change directive, determine impacts and mitigation analysis. Change Directive Change Directive 17 – Design Guidelines for Airlines in Phase 1 Ongoing 28-Dec-18 Proceed with change directive, determine impacts and mitigation analysis. Change Directive Change Directive 18 – Level 6 TSA PET Shop Ongoing 28-Dec-18 Proceed with change directive, determine impacts and mitigation analysis. Change Directive Change Directive 20 – Locations of Artwork Ongoing 28-Dec-18 Proceed with change directive, determine impacts and mitigation analysis. GREAT HALL PROJECT: DECEMBER CONSTRUCTION PROJECT REPORT 12 Closed Change Events Type Description Status Date Received Proposed course of action Change Request Change Request 001 Closed 20-Jan-18 Change Order received, no delay to the project. Closed 09-Feb-18 Change Order received, no delay associated with change. Change Directive 003 Removal of the AntiClosed Backtrack doors from LVL 6 to 5 22-Feb-18 Change Order received, no delay associated with change. Change Directive Change Directive Change Directive 002 DEN airline assignment update Change Directive Change Directive 004 – Changes to the BMS system Closed 27-Feb-18 Change Order received, no delay associated with change. Change Directive Change Directive 011 Arriving Passengers Redesign Closed 5-Oct-18 Change Order received, no delay associated with change. Relief Event Relief Event 3 – Black Mold Discovered in West Tenant Spaces Closed 27-Sep-18 Change Order received, no delay associated with change. Relief Event Relief Event 4 - Black Mold Discovered in East Tenant Spaces Closed Change Order received, no delay associated with change. 28-Sep-18 GREAT HALL PROJECT: DECEMBER CONSTRUCTION PROJECT REPORT 13 3.4 Relief Event 6 – Unknown Structural Conditions On November 2, 2018, D&C Contractor and Developer provided the Owner with a notice of relief event indicating that preliminary test results of concrete samples taken from Phase 1 – MOD 2 yielded compressive strength results lower than what was specified in the Baseline Structural Conditions specified in the DA. The D&C Contractor has continued to conduct additional testing of concrete strength and composition in the Phase I – MOD 2 area. This testing includes the identification of core locations, extraction of cores, testing of cores, petrographic analysis, and engineering evaluation to determine the concrete strength and composition of areas within the Project. Approximately, half of the cores from Phase 1 - MOD 2 were extracted by the end of December 2018. The test results of some of these cores have also shown compressive strength results lower than what was specified in the Baseline Structural Conditions specified in the DA. Most of the planned Project cores (94%) have been extracted by time of issuing this report. The Owner provided a report, dated January 14, 2019, from an independently engaged materials testing firm (the “Report”), which, in addition to confirming that some core samples tested displayed lower than the compressive strength specified in the Baseline Structural Documents, indicated that for certain drilling samples, “quartz grains in granitic aggregates show strain effects with varying degree (strained quartz is alkali silica reactive).” An addendum, dated January 28, 2019, to the Report included the following: “It is mentioned in the report that quartz grains in granitic aggregates show strain effects with varying degree. Strained quartz is alkali silica reactive depending on the degree of strain effects and contents. Certain strain quartz may leads [sic] to ASR provided the strain effects is adequate and texture is favorable. Its [sic] not possible to predict this just based on petrographic information without conducting any ASR testing. The presence of fly ash is detected in both the samples. It is well established that the use of fly is very effective to control ASR if the fly ash content and quality is adequate. This is 25 years [sic] old concrete and no ASR features have been observed in both the samples. Therefore, it looks like the use of fly ash was adequate to make this concrete ASR resistant even though some strained quartz was detected.” The Owner, Developer, and D&C Contractor will assess the results after all the cores have been taken, tested, and analyzed and are collaborating in good faith to make progress with this Unknown Structural Condition and with the activities of the Project not affected. It is too early to anticipate specific and final impacts into the Project. Preliminary schedule deviations provided by the D&C Contractor are reflected in the Project Schedule. While construction activities not impacted by the relief event continued, this relief event has caused a reduction in construction activities impacts by this event, e.g. steel erection. GREAT HALL PROJECT: DECEMBER CONSTRUCTION PROJECT REPORT 14