Legal Aspects of Airport Programs. Topic 06-02. Contract Risk Management for Airport Agreements

Airports enter into a variety of agreements with numerous vendors and tenants, such as airline signatory agreements, fixed based operator leases and other agreements that provide access to the airfield, concession agreements, ground transportation agreements, construction contracts, professional services, software, and repair and maintenance agreements. All of these agreements generate varying degrees of risk. The risk generated by airport agreements should be addressed through risk sharing and shifting or insurance. The management of risk can also be addressed by drafting airport agreements that include explicit statements of legal obligations that are defensible when a claim is made during an administrative or judicial proceeding. Certain state statutes prohibit some types of risk shifting. Airports would be assisted greatly by research that identifies contract provisions that have generated liabilities and those that have limited or foreclosed claims. The objectives of this research are to (1) identify risk issues associated with specific types of airport agreements and develop a checklist and suggested contract provisions that serve to limit and assign risk for each such risk type; (2) address how insurance provisions interface with contractual risk allocation terms; and (3) provide a comprehensive survey of commercial contractual provisions, which would be useful to airports in achieving their intended purpose of limiting or allocating risk. The report should include references to ACRP 33: Guidebook for Developing and Managing Airport Contracts, Report 36: Airport/Airline Agreements ---Practices and Characteristics, Report 47: Guidebook for Developing and Leasing Airport Property, Report 87: Procuring and Managing Professional Services at Airports and Synthesis 30 Airport Insurance Coverage and Risk Management.

• Record URL:
  http://apps.trb.org/cmsfeed/TRBNetProjectDisplay.asp?ProjectID=3774

Language

• English

Project

• Status: Completed
• Funding: $65000
• Contract Numbers:

  Project 11-01, Topic 06-02

• Sponsor Organizations:

  Federal Aviation Administration

  800 Independence Avenue, SW
  Washington, DC  United States  20591

  Airport Cooperative Research Program

  Transportation Research Board
  500 Fifth Street, NW
  Washington, DC    20001
• Project Managers:

  Greenberger, Marci

• Start Date: 20150115
• Expected Completion Date: 0
• Actual Completion Date: 20160528
• Source Data: RiP Project 37626

Subject/Index Terms

• TRT Terms: Airport operations; Contracts; Leasing; Liabilities; Risk management
• Subject Areas: Aviation; Planning and Forecasting;

Filing Info

• Accession Number: 01543460
• Record Type: Research project
• Source Agency: Transportation Research Board
• Contract Numbers: Project 11-01, Topic 06-02
• Files: TRB, RIP
• Created Date: Nov 15 2014 1:00AM