Case Study: LaGuardia Airport AirTrain – Change Order Impacts from Agency Scope Shifts (2020)
Project Overview
• Name: LaGuardia AirTrain Project
• Location: Queens, New York
• Year: 2020
• Project Size: $2.1 billion
• Scope: Automated people mover to connect airport to transit hubs
• Lead Agencies/Contractors: Port Authority of NY & NJ /
Category of the Issue, Problem, or Challenge
• Contract Change Order
• Owner Scope Changes
Summary of the Issue, Problem, or Challenge
After initial construction began, the owner issued multiple scope changes related to routing, terminal interfaces, and environmental mitigation following political and public opposition. These changes required major redesigns and construction resequencing, leading to significant change orders and added costs.
Root Cause Analysis
- Project lacked a stable scope and alignment at NTP
- Political pressure drove rapid scope changes without full cost analysis
- Early-phase permitting and public consultation were inadequate
- Contractor carried cost and schedule risks for shifting owner needs
Impacts Due to the Issue, Problem, or Challenge
• $310 million in change orders over 18 months
• Major design and constructability conflicts
• Increased scrutiny from federal transit and oversight bodies
Corrective Actions Taken
- Strengthened stakeholder engagement before scope finalization
- Added clause requiring impact assessment before owner scope changes
- Developed design freeze milestones with financial penalties for late changes
- Required design coordination workshops between agency and contractor
Lessons Learned
- Public infrastructure projects must stabilize scope before construction
- Political changes can destabilize project delivery if not contractually managed
- Design freeze and change governance should be embedded in contracts
- Stakeholder feedback must be addressed before bid stage
Audit & Prevention: Project Control Questions to Ask on Future Projects to Help Control the Situation
- Is there a contractual process for evaluating owner-initiated changes?
- Are change impacts analyzed before issuing field directives?
- Are stakeholders and regulators engaged before finalizing design?
- Are contractor risk allocations appropriate for owner-initiated changes?