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Canutillo ISD bond update: trustees warned tariffs on steel, aluminum could raise construction costs; early bid packages recommended
Summary
District bond program managers told trustees new tariffs on steel and aluminum (effective March 12) may increase construction costs on new school projects and recommended early bid packages and alternative sourcing to limit cost and schedule impact.
District bond program staff briefed the Canutillo ISD board on the status of bond-funded construction projects and warned that newly imposed tariffs on imported steel and aluminum could substantially raise material costs for new builds.
Program leadership presented a program timeline and project-by-project budget snapshots for ten bond projects, including new middle and high school sites and multiple renovation projects. The presentation said committed costs currently make up around 11% of the overall bond budget and that the district is in design-development and construction-document phases for multiple projects.
Officials said new tariffs announced March 12 on steel and aluminum could increase material prices; as a rule of thumb the staff used in the briefing was that steel represents about 25% of a building's cost and aluminum about 5%. Using Northwest Early College High School as an illustrative example, program staff said a 25% rise in steel/aluminum costs could increase that project's construction cost by an estimated $3 million. The presentation emphasized schedule risk (delays increase cost) and recommended several mitigation steps: issuing early bid/procurement packages for long-lead items (especially steel), instructing design teams to identify alternative materials and value-engineering options, and asking the CMAR/general contractor to pursue multiple sourcing strategies.
Bond staff also reviewed land acquisition costs, site utility and traffic-improvement needs that were not fully included in initial schematic budgets. They recommended using realized bond interest to cover some additional project expenses (site utilities, traffic improvements, portable demo) where legally permissible, rather than reducing construction scope, and committed to bring recommended amendments or early procurement requests back to the board for approval.
Trustees asked about contingencies and reserve levels. Program staff said project-level contingencies exist but recommended preserving contingency funds for true unforeseen conditions. Board members discussed options including shifting noncritical line items (furniture, site soft costs) and bringing early GMP (guaranteed maximum price) packages forward for board approval so the CMAR can procure some materials early at known prices.
The board did not vote on a specific tariff-response motion at the meeting; program staff asked for trustee direction and signaled they would return with recommended early procurement/amendment requests once architects and CMARs provided refined cost estimates.
