DIA's lax oversight jeopardizes Great Hall project, city auditor finds

• The future of the project is also likely to shape the legacy of DIA CEO Phil Washington, who took over the problem-ridden project in 2021 and pushed through plans to complete its final phase, doubling the cost.

Driving the news: A follow-up report from Denver Auditor Timothy O'Brien's office flagged ongoing issues despite a scathing 2023 audit that called for significant changes.

• The airport's Special Projects Division ignored seven of the 10 original recommendations, fully implementing just two.
• Key failures include weak subcontractor oversight, misuse of project allowances and unverified billing rates, according to the latest report.

Zoom in: While DIA has made progress in requiring contractors to submit detailed cost documentation, the audit found critical gaps remain, especially in overseeing the multi-layered subcontracting process.

• Without proper checks, the airport can't guarantee contract terms are followed, raising the risk of overpayments.

What they're saying: "It is critical that Denver International Airport manage its construction work costs for a project of this size and scope," O'Brien said in a statement.

The other side: DIA countered in a statement to Axios Denver, saying it "remains confident that it has adequate controls in place to ensure proper oversight of its projects."

What's next: O'Brien hinted more audits could follow if the airport doesn't address the risks, heightening scrutiny over DIA's ability to prove its processes are "fair, reasonable and competitive."

• "Given the importance and public interest in airport renovations, if we see continued risks, we may conduct future audits to ensure the city takes appropriate corrective action," he said.