CASE STUDIES
Ben Gurion 2000 Airport Project
The Ben Gurion 2000 Airport project, also known as Terminal 3, was a massive undertaking in Israel. The goal of the project was to build a new international airport terminal that would increase capacity and better serve the needs of travelers. The project was initially estimated to cost $800M, but due to linkage to the United States CPI as well as contractual issues, the final cost came close to $1.2 billion.
During the course of the project, Mark Bodner, the Program Manager, recorded contract violations by contractors. These violations included work that was not completed to the required standards, unnecessary delays, and financial mismanagement. In addition, some contractors put the project at risk by using substandard materials, engaging in unsafe practices, and disregarding local laws and regulations.
To address the issues and mitigate any potential claims, the Program Manager held contractors to the highest standards required by contract. This meant carefully monitoring all contractors’ performance, ensuring compliance with contract requirements, local laws and regulations, and maximizing the use of local labor and domestic materials.The Program Management organization developed stringent procedures for evaluating contractors, requiring detailed documentation of work progress, and immediate communication of any deviations from the contract clauses. The processes were continuously improved and refined using lessons learned and new recommendations.
The project team’s efforts to hold contractors to the highest standards successfully mitigated claims and minimized the impact of the violations on the project’s budget and timeline. The airport is considered a state-of-the-art facility, having received multiple awards as one of the best airports in the world. The team’s unwavering commitment to contract compliance and oversight helped prevent potential safety risks and allowed the project to be completed on time and within budget. In addition, it also established a culture where contractual compliance became the norm and ensured that project teams’ focus on continual improvements, accountability, and discipline raised the bar in the construction sector.
Holding contractors to the highest standards required by contract is essential to achieve successful outcomes in construction projects. The Ben Gurion 2000 Airport project is a testament to the importance of vigilant and careful oversight of contractors’ work, as well as the critical role that project teams play in ensuring that contractual compliance becomes an integral part of a contractor’s work culture. The project’s successful completion demonstrated that compliance can drive better results and serves as a model of good practice for managing complex engineering projects.