Cost quadruples to nearly $3 billion for SFO terminal remodel

"Maintaining its appeal as one of the most beautiful airports in the world comes with a price, but at San Francisco International Airport, that cost can unexpectedly balloon into the billions. The stifling price tag for the airport's ongoing Terminal 3 West Modernization Project came to light during a presentation to the city's Budget and Finance Committee on Wednesday. SFO officials requested approval for an extension and increase of at least $76 million to a crucial contract,"

"As outlined during the meeting, the cost for redeveloping Terminal 3 has more than quadrupled over the past eight years. "And so basically the project was $627 million in 2017, but to date, it has increased to $2.8 billion," Supervisor Connie Chan said during the meeting. The billion dollar total is a result of a few major factors. Not only have labor and construction costs risen from pre-pandemic rates, but the success and adoration for Harvey Milk Terminal 1 played a role, too."

""A lot of it is about guest experience," airport spokesperson Doug Yakel told SFGATE on Thursday. "Every time we complete a terminal, it becomes a bar that other terminals are held to. You want to top what you've recently done." The Terminal 3 renovation, originally slated for 2020, was postponed due to the pandemic and didn't begin until August 2024. In that time, Yakel noted, wages for workers increased, as well as costs for materials like steel."

The Terminal 3 West Modernization Project at San Francisco International Airport increased in cost from $627 million in 2017 to $2.8 billion by 2025. Officials requested at least $76 million in contract extensions and increases to continue work. The renovation was planned for 2020 but was postponed by the pandemic and restarted in August 2024, during which labor wages and material prices rose. Project scope expanded to enhance guest experience, adding more lounge space, swing gates, a larger security checkpoint, a new curbside facade and a courtyard connector to the International Terminal. One lounge could reach about 30,000 square feet.

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