MIA South Terminal

Structural Steel Sub Went Bankrupt but Stayed Ahead of Schedule

by Natalie Keith

The construction team at Miami International Airport celebrated a project milestone recently when Havens Steel Co. of Kansas City, Mo., completed the connection of the new South Terminal and Concourse J on budget and 21 days ahead of schedule.

The achievement was particularly noteworthy because Havens Steel filed for bankruptcy earlier in the year as a result of rising steel prices.

Gilberto Neves, Odebrecht Construction executive vice president and construction manager of Parsons-Odebrecht Joint Venture, praised Havens' work. Parsons-Odebrecht has a $658 million construction-manager-at-risk contract for the airport project.

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"What Havens accomplished was impressive," Neves said. "We have a great team in place but we've got a long way to go to complete the entire project."

By mid-September, the company had completed 90 percent of the work at both the South Terminal and Concourse J. The remaining 10 percent of the work is miscellaneous metal work, Neves said.

Despite having steel shipped from plants across the country and China, Neves said, "the materials arrived like clockwork."

Havens Steel - which has steel fabrication plants in Kansas City; Ottawa, Kan.; and Guangzhou, China - was awarded two contracts totaling approximately $42 million. At a topping-out ceremony held at the construction site Aug. 30, the final piece of steel joining the South Terminal to Concourse J was put into place.

Approximately 20,000 tons of steel, 45,000 individual steel pieces, nearly 2 million sq. ft. of metal deck and more than 300,000 bolts were used to construct the South Terminal and Concourse J. At its peak, Havens employed more than 200 ironworkers, all members of the International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers Local Miami 272.

Havens filed for bankruptcy midway through the job. Robert Dunn, president and CEO of Havens Steel, said when the cost of steel began rising last summer, it didn't cause much concern for the company. But with surcharges driving up the cost of steel further, the company began experiencing liquidity problems in January.

Havens was able to fend off difficulty for a period of time thanks, in part, to Parsons-Odebrecht's ability to accelerate payments for completed work on the job. However, in March when a bank prevented Havens from using cash or inventory as collateral to obtain financing for the job, the company was forced to file for bankruptcy.

"It was quite nerve-racking," Dunn said. "The judge gave us two weeks to file a reorganization plan."

In the meanwhile, workers redoubled their efforts and focused on getting the job done. Dunn praised workers for enduring difficult circumstances such as payroll sometimes being a few days late. At one point, the site was shut down for a week, Dunn said.

"People hung in there with us and never gave up on us," Dunn said.

The Parsons-Odebrecht-led construction team broke ground on the project in January 2002 and the job is expected to be completed in March 2006.

While officials applauded the rapid completion of the steel work, they stressed that much work still needs to be done before the airport work is complete.

Among work that is progressing are two contracts held by Hensel Phelps Construction Co. of Orlando.

Hensel Phelps began working in August 2003 on a $169 million multitrade contract for the airport's South Terminal that covers the general construction of the new five-story building and renovations in an adjacent existing Concourse H building at the southern end of the airport.

It is a two-phase project with the final phase being the renovations of the existing terminal, according to Kirk Hazen, project manager for Hensel Phelps.

The company also began working in April 2003 on a $73 million contract for a new 14-gate Concourse J, which will handle both domestic and international passengers.

The scope of the work consists of the completion of the South Terminal, excluding foundations, underground utilities, structural steel, curtain wall and baggage-handling systems, which were awarded as separate trade contracts.

Hensel Phelps' responsibilities include all mechanical, electrical, communications, plumbing, HVAC, fire protection, elevators, escalators, power walks, concrete, roofing, interior finishes and new bus station.

The architectural design and selection of materials are intended to convey the exciting and tranquil feeling of flight, Hazen said. The facility features a glass-enclosed skywalk that transverses the building. Significant architectural features include a standing-seam barrel roof, glass curtain wall, stainless steel metal walls and ceilings, artistic terrazzo, artist wall and a variety of dramatic building shapes and transitions.

The architects on the job are from a Miami joint venture of Borelli & Associates Architects, Planners; Mateu Carreno Rizo & Partners; and Rodriquez and Quiroga Architects Chartered.

The 353,000-sq-ft. building is 900 ft. long by 120 ft. wide. It has a 145-ft.-tall concrete gate control tower at the north end.

There are 33 elevators, 18 power walks and 29 escalators in both projects. Aircraft ground support equipment includes ethylene glycol preconditioned air and 400 hertz power systems, Hazen said.

The Concourse J project and the first phase of the South Terminal project is expected to be completed in the first quarter of 2006. The second phase of the South Terminal project is expected to be completed in 2007.

As of June, Hensel Phelps had completed 10 percent of the South Terminal project and 21 percent of the Concourse J project, according to Neves with Parsons-Odebrecht.

Hazen said the South Florida market is new for Hensel Phelps.

"Along with entering new territory, come the challenges involved with the hiring of new craft employees," he added. "We have hired over 250 craftspeople and have placed over 80,000 cu. yds. of concrete and built the Concourse J gate control tower."

Hensel Phelps also had to coordinate the prime contractors working on the job.

"Due to the size, constant changes and complexity of the projects, coordination between all trade contractors is critical," Hazen said. "This constant coordination and communication is the only way to facilitate schedule, quality and safety issues that may impact the overall completion of the project."

When finished, the South Terminal will measure 1.7 million sq. ft. and includes eight design projects consisting of baggage-claim areas, a baggage sorting system, security screening system, a cruise and tour bus depot, 142 ticketing positions, approximately 50,000 sq. ft. of concession area and a federal inspection services facility.

By mid-September, 35 percent of the project had been completed, "but we've got a long way to go," Neves said.

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