Case Study: Denver Eagle P3 Commuter Rail Project – Delivery Method Coordination and Risk Management Failures (2016)
Project Overview
• Name: Denver Eagle P3 Commuter Rail Project
• Location: Denver, Colorado
• Year: 2016
• Project Size: $2.2 billion
• Scope: Construction of commuter rail lines using a Public-Private Partnership (P3) delivery model
• Lead Agencies/Contractors: Regional Transportation District (RTD), Private Consortium
Category of the Issue, Problem, or Challenge
• Project Delivery Method
• Public-Private Partnership (P3)
Summary of the Issue, Problem, or Challenge
Construction faced delays and cost increases stemming from poor coordination among design, construction, and operations teams under the P3 delivery structure. Inadequate risk-sharing and unclear roles led to disputes during unforeseen site conditions.
Root Cause Analysis
- Ambiguous risk allocation in contract terms.
- Fragmented communication between public and private teams.
- Insufficient joint contingency planning for site uncertainties.
- Lack of integrated project controls system.
Impacts Due to the Issue, Problem, or Challenge
• Schedule delays of 6 months.
• Cost overruns approximately $50 million.
• Increased tension between public agency and private partner.
Corrective Actions Taken
- Revised contract language for clearer risk sharing.
- Established joint communication and coordination protocols.
- Implemented integrated project controls and reporting systems.
- Conducted joint contingency planning workshops.
Lessons Learned
- Clear and equitable risk allocation reduces conflicts.
- Strong, integrated communication is vital in P3 projects.
- Contingency planning with all stakeholders improves resilience.
- Unified project controls support transparency.
Audit & Prevention: Project Control Questions to Ask on Future Projects to Help Control the Situation
- Is risk allocation clearly defined and equitable?
- Are communication protocols integrated and enforced?
- Is joint contingency planning conducted?
- Is there a unified project controls system?