John Vidari, managing principal of Vidari Management Group, told the Waxahachie City Council on Monday that the City Hall redevelopment project’s guaranteed maximum price had risen from the originally budgeted $12.2 million to about $16 million–$16.9 million, creating a multi‑million‑dollar shortfall. “I am surprised,” Vidari said, adding that he has worked in project management for 42 years.

The council heard that Turner Construction’s estimates progressed from about $12.2 million in January 2024 to a final 100% construction GMP submitted May 30 that came in at about $16.9 million — roughly $4.7 million over the original construction budget. City staff and the project manager said some of that increase reflects duplicate scope carried by both Turner and the city; after accounting for the duplicate items the presenters characterized the total overrun as about $4.0 million.

Why it matters: the council must decide whether to absorb the increase, reduce scope, or pause and renegotiate contracts. That decision affects work already underway, long‑lead items and supplier commitments, and whether the city can recover costs from subcontractor restocking or cancellation fees.

Vidari and city staff walked the council through specific drivers of the increase. They said roughly $1.4–$1.7 million of the overrun is tied to unforeseen site conditions discovered during demolition and excavation, including an unexpected foundation configuration and contaminated soil that required a Phase II environmental assessment and a roughly $56,000 remediation line item. Vidari said other upward pressure came from market conditions and supply issues reported by contractors, including escalation in materials and subcontractor pricing.

Dustin Diehl, director of administrative services, introduced the update and the project team. Vidari described steps the team had taken to contain costs, saying, “We’ve so far implemented about $270,000 of cost‑saving measures,” including value‑engineering options such as alternate metal panels and stair design changes.

Council members pressed for specifics. Councilman Atkins said he was “extremely frustrated” and that the lack of information and the size of the overrun “goes against everything I stand for.” Councilman Wright and Councilman Smith said they were concerned about the appearance of scope growth and urged caution on approving additional funds. Mayor Proteus Souter said the council’s approach has been to “be good stewards of money.”

The project manager said about $4.5 million has already been approved and contracted to the construction manager and early release subcontractors for underground utilities, demolition and initial foundation work. He told the council that early release packages and some long‑lead items—elevator, switchgear, structural steel—are either in fabrication or have been procured, and that despooling (pausing and unwinding contracts) would require a month to two months of closeout work to determine restock fees and recoverable amounts.

Vidari said the GMP includes supplier bids that were current as of July 21 and cautioned that if the council delays approval the subs and general contractor may no longer hold those prices. Council members noted that rebidding or pausing could change prices and that some subcontractor proposals now include tariff escalation clauses.

No formal budget action was taken at the meeting. Council directed staff and the project team to return with detailed options and financial consequences, including a cost‑recovery estimate if the city pauses the project and revised scopes that could fit within remaining funds.

Council members requested the project scope and interior specifications be re‑circulated; Vidari and staff said they would provide additional documentation to the council the following day and were available to meet before a possible special work session.

If staff returns with a recommendation, the council may be asked to vote on whether to proceed, reduce scope, or despool the contract. For now, work on some early release packages remains complete and some materials are in process; the council said it will weigh those sunk and portfolio risks against the cost to complete the full design as planned.

Ending: Council members signaled they will call follow‑up meetings to examine options and directed staff to provide a clear accounting of committed costs, likely recoveries, and rescoping scenarios before any additional money is approved.