Miami International Airport Expansion

POJV vs Miami-Dade project

Miami International Airport Expansion
Parsons-Odebrecht Joint Venture v. Miami-Dade Airport

The Miami International Airport’s South Terminal Expansion Program involved new concourse construction and terminal expansion, as well as remodeling, utility, and pavement projects. The airport entered into a contract for construction management with Parsons-Odebrecht Joint Venture (POJV), which in turn issued contracts to numerous general contractors and subcontractors.

POJV submitted a claim alleging airport delays and disruption. Its claim exceeded $70 million for direct costs, subcontractor costs, and markups, $40 million of which was for the prime contractor and its subcontractors. Portions of the claim attributable to delay included three daily overhead rates for the prime contractor and individual rates for approximately 20 subcontractors. Other portions of the claim used total cost claim and modified total cost claim approaches.Cotton & Company provided analyses and interim reports to assist the owner with successful settlement negotiations. Analyses involved reviewing POJV’s direct costs and general contractor and subcontractor costs, which included individual daily overhead rates. Work was performed at POJV, general contractor, and many subcontractor sites. Our analyses identified potentially unallowable and unallocable project costs.

Cotton & Company provided analyses and interim reports to assist the owner with successful settlement negotiations. Analyses involved reviewing POJV’s direct costs and general contractor and subcontractor costs, which included individual daily overhead rates. Work was performed at POJV, general contractor, and many subcontractor sites. Our analyses identified potentially unallowable and unallocable project costs.