At Thursday’s Owensboro Board of Education meeting, board members were surprised to hear that the renovation project for the new iMiddle came in $2 million over budget.
The original total project cost was estimated at $11.1 million, but last night the board approved a new project cost of $13.2 million.
Craig Thomas with RBS Design Group addressed the board, saying that costs for the project are higher than anticipated after the March bid. Thomas said the higher price tag has a lot to do with international tariffs, market conditions and changes made to the original plans.
A&K Construction won project with the lowest bid of $9.2 million, they have since increased their cost to over $10 million. Unforeseen costs, like bringing more than 30 percent of the roof covered in wooden decking up to code, are part of the higher bid.
Thomas said the only local contractor with the bonding ability for such a large project was tied up with the expansion project at Swedish Match. Not only did A&K Construction offer the lowest bid, but they are also doing the renovation of OPS’ Gateway Academy.
“We can always take reduce the amount,” Thomas told the board, stating that he could work with A&K to cut some of the details of the project in order to save money.
OPS Director of Maintenance and Facilities Chris Bozarth a lot of the updates beyond those to bring the building up to code were made were for the maintenance and longevity of the building.
“We realized we could do better,” he said, adding that more time during cost estimation will prevent this issue in the future.
The board expressed concern over a $2 million difference, adding that it seems the norm for construction projects to come in over budget. OPS Finance Officer John David Sandefur said that the Newton Parrish renovation was actually well within their contingency and had only two change orders.
“It bothers me a lot because it’s almost a situation were we are in too deep and in a time crunch,” said Board Chairman Jeremy Edge during Thursday’s meeting.
OPS Superintendent Nick Brake answered Edge, stating that a lot of the added costs were out of the control of anyone in the room and more of an international and national issue with market prices and tariffs.
“Most of the cost is in the bones of the building,” he said. “We are going to have to do this no matter the use of the building.”
Ultimately the board agreed, approving the iMiddle renovation budget unanimously.
