July-August 2022 - 9

AIRPORT IMPROVEMENTS
have been complications in just getting back to where
we were before the pandemic. For more than two years
now, the construction industry has been buffeted by an
unprecedented increase in material costs, supply chain
disruptions and a tight labor market caused by shuttered
manufacturers and suppliers.
As materials have been harder to find, their costs have
skyrocketed. From May 2020 to May 2022, diesel fuel
prices rose by more than $3 per gallon, from $2.39 to $5.57.
As a result, now almost everything has a fuel surcharge
added to the cost of the product.
In that same period, steel rose by 113 percent before
beginning to ease this year. Wholesale prices for plywood
jumped $400 to $1,500 per 1,000 square feet. Copper and
aluminum prices doubled. Plastic and resin producer prices
climbed by 33 percent and gypsum jumped 25 percent.
Our traditional bid escalation factors cannot insulate a
project from these types of price increases. Pricing aside,
from a materials point of view, we are now seeing exceptionally
long lead times for electrical transformers, switchgear,
paint, insulation, windows and roofing.
In addition, many subcontractor bids are only good
for 10 days. Even when awarded, the situation can change
enough that many suppliers and subcontractors are forced
to tear up their bids because cost and delivery have changed
enough to no longer provide the contracted product at the
quoted price.
Labor Pressures Increase
As difficult as the supply chain is to manage, available labor
is causing a similar crunch. Construction companies are
far short of the workers they are looking for. Since May
2021, construction job openings have climbed 20 percent.
As a result, many companies are resorting to more
overtime, which means higher costs and the potential for
burnout. To retain and attract the workers they need, construction
companies raise wages, which gets passed on to
the projects they are working on.
Moving Forward in Spite of Challenges
Once the AIG and ATP funds are obligated or granted,
the sponsor has a four-year POP to complete design and
construction. When you think about design time and the
current supply chain issues, any significant project could
feel pressured by a four-year POP.
With the AEC industry currently having more backlog
than staffing to produce the work, in an economic environment
that is less than conducive to schedule and cost
certainty, how does this economic infrastructure windfall
get done within the regulator's expectations?
What can we do, as an industry, to deliver on the BIL
and create the infrastructure upgrades that BIL is expecting?
Let the airports be the bank. Until AIG and ATP
grants are obligated, the money can be " banked " by the
airport. As consultants, we need to know the law inside and
Nationwide Impact
Airports in 50 states and five territories are the
beneficiaries of this first round of BIL funding. Some of
the funding at airports include:
f San Diego International, CA: $24.2M
f Denver International, CO: $59.1M
f Great Falls International, MT: $1.89M
f Asheville Regional, NC: $4.3M
f Yeager Airport, WV: $2.1M
f Unalaska Airport, AK: $1 M
f Luis Munoz Marin International, San Juan: $11.2M
Source: FAA
out and advise our clients well. If a complete project, both
design and build, is to be done with the grants, then take
a phased approach and a partial grant to fund the design
first, leaving the construction portion in the bank. As a
result, the four-year POP is not yet started for construction
when you begin to design.
The POP can be extended for the right reasons.
Supply chain issues should be easy to document, and the
FAA has the authority to approve an extension of the fouryear
POP. While the FAA generally tries to minimize POP
extensions, the effects of COVID and the current supply
chain and inflation issues are creating more exceptions. If
you have a particular project that you believe warrants an
extension, the airport should submit an extension request,
including their justification for it, to their servicing ADO.
The extension request needs to be submitted well in advance
of the POP end date.
We are in a time of disruption that challenges many of
our standard operating procedures, a time that requires
us to look at things differently and quite possibly deploy
a new standard to move forward. To move forward successfully,
we cannot draw our inspiration from 2019 as we
look toward 2025.
For many of us, this is a new normal. But even in the
face of all these challenges, we as an industry have a great
opportunity. 
ABOUT THE AUTHOR
RODDY BOGGUS
Roddy Boggus, AIA, NCARB, is a vice president of
aviation at RS&H. A 30-year aviation professional,
he excels in airline- and airport-based practices.
Roddy is a former Board Chair for the Airport
Consultants Council and Airports Council
International and has served the International
Association of Airport Executives. He can be
reached at Roddy.Boggus@rsandh.com.
JULY/AUGUST 2022 \ AVIATIONPROS.COM / 9
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July-August 2022

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