The Daviess County Board of Education approved revised construction plans Tuesday for the new Highland Elementary School, moving the $35.76 million project forward after rebidding one portion of the work saved approximately $2 million.
The board previously rejected the original masonry bid package in June after it came in well over budget. District officials said only one masonry bid was received during the initial bidding process, prompting them to separate the work into insulated concrete forms (ICF) and masonry before seeking new bids. Contractors were allowed to submit bids on the individual packages or as a combined project, resulting in multiple competitive bids.
DCPS Director of Finance Sara Harley said the revised project carries a total cost of $35.76 million, which includes construction, architectural and construction management fees, bond issuance costs, furnishings, and equipment. The construction portion totals $29.51 million.
The original construction budget was $28.12 million, leaving the project approximately $1.3 million over budget even after the rebid savings.
Construction officials said the revised bidding process generated strong contractor participation across the project and produced much more competitive pricing than the initial round. Board members praised the decision to rebid the masonry work.
The board also discussed traffic flow at the future school. Superintendent Charley Broughton said Highland’s primary entrance will be off Calumet Trace, separating school traffic from Daviess County Middle School and helping reduce congestion. He compared the layout to other district campuses that share adjoining properties while maintaining separate entrances.
Following discussion, the board unanimously approved the revised BG-1 and construction bids.
The board also approved a resolution authorizing the issuance of general obligation bonds to finance the project. Harley said the Series 2026 bond issue will be adjusted to reflect the revised project cost, with financial advisor Baird estimating an interest rate between 4.3% and 4.5%. The bonds are expected to be sold through a competitive process on Aug. 5.
Harley said the bond issue is solely for the new Highland Elementary project. She added that, following the issuance, the district is expected to retain approximately $115 million in remaining bonding capacity for future construction projects.
