The Long Beach, Calif., City Council has approved a $21.3-million increase to Phase 2 of terminal area improvements at Long Beach Airport. The extra funds, which will be added to an existing $65-million design-build contract awarded to Swinerton Builders in 2018, reflect multiple updates to the project’s original design concept, as well as rising construction costs and market pressures from other major projects in the Los Angeles area.

Focusing on pre-security facilities, Phase 2 will add a new building for ticketing operations, upgrade baggage inspection systems and facilities, and improve the rental car customer service area. The airport’s historic Art Deco terminal, most recently renovated in 2013, will undergo a seismic retrofit. Construction is set to begin immediately, with all work set to be completed within 26 months, according to airport documents.

Factoring in contingencies and other costs, Swinterton’s design-build contract has a total potential maximum value of $92.1 million, and includes a project labor agreement. Up to $21 million in new airport bonds will cover the contract increase, complementing the original funding formula of local resources and airport facility fees.

In making its recommendations to City Council, airport officials noted that competing major projects in Southern California, including airport and transit initiatives and the new National Football League stadium, had produced “an extremely volatile materials and subcontracting labor market” that has translated into higher costs. Airport staff reported receiving an average of two bids per trade on the Phase 2 projects, compared with original forecasts of six to seven bids.

Those factors contributed to the airport’s decision to defer three other proposed Phase 2 projects—terminal roadway improvements, a rental car ready-return lot and ground transportation center—for at least two years.