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Volunteer consultant outlines contingencies, change‑order process for Revere school project
Summary
A volunteer construction consultant reviewed six contingency categories, explained likely uses and approval authorities, and described how MSBA reviews change orders and reimburses eligible costs (capped at 1% of construction value). He said the project has already used about $600,000 of owner soft‑cost contingency.
Joe, a volunteer construction adviser to the Revere City School Building Committee, led a detailed discussion of contingencies and the change‑order process for the school project. He walked the committee through the six contingency types shown in project estimates and described which funds the committee controls and which the construction manager may administer.
Joe framed contingencies as ordinary line items in a project budget meant to cover the unforeseen. He said the committee should expect to use some contingency money but “you won't use all of it.” He recommended regular monitoring of contingency balances and potential exposures as a key indicator of project health.
Key figures and process notes provided to the committee included: an owner hard‑cost contingency listed at about $18,000,000; a construction manager (CM) contingency of $10,000,000 that Consigli carries and administers but which reverts to the owner if unused; and $600,000 already expended from the owner's soft‑cost contingency. Staff explained that MSBA only allows reimbursement of certain change‑order costs and that MSBA reviews change orders quarterly; the MSBA reimbursement program has a cap to participate in up to 1% of the construction value for change orders.
Joe and project staff described common contingency drivers: unforeseen subsurface conditions, coordination issues among complex systems, market volatility (including tariffs), regulatory/inspector requirements, and owner‑directed scope adjustments tied to educational program changes. He emphasized contingencies can also be used to accelerate schedule when needed.
Project staff said Left Field will supply monthly dashboards and a change‑order log showing approved items, pending items, MSBA eligibility status, and remaining contingency. Committee members asked to revisit the topic at the next meeting to review sample dashboards once populated.
