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District reports construction change orders: $31,307 in sales-tax savings and $52,457.36 returned to owner projects
Summary
Superintendent reported a series of construction change orders that saved the district approximately $31,307 in sales tax and returned $52,457.36 in unused project funds to the owner; approvals were made under superintendent authority described in board policy.
District leadership reported multiple construction change orders and final accounting steps at the March 11 board meeting.
Superintendent Diane Gullit said the district used a construction management delivery method with a guaranteed maximum price (GMP) and owner-direct purchases of materials to reduce sales tax. Two change orders were highlighted for the following projects: a deductive change order for interior work at the new elementary school X (amendment no. 3 to GMP for project 24-102) that saves approximately $10,415.87 in sales tax, and a change order for construction of an aviation and diesel/auto mechanic building at Marion Technical College (authorization no. 13, project 24-110) that saves approximately $20,891.61. The total sales-tax savings reported for those two items is $31,307.56.
District staff also reported unused funds on several projects that will be returned to the owner via change orders to close the financial books on those projects. Reported unused amounts were $15,124.20 for primary conduits at new elementary school X (work authorization 9, project 24-102), $31,404.28 for a new fire line at the technical service building (work authorization 38, project 23-129), and $5,928.88 for replacement of a technical service building metal procurement (work authorization 34, project 20-129). The total unspent funds reported were $52,457.36.
Gullit noted the superintendent has authority under board policy (the meeting record cites the superintendent’s approval authority for change orders that increase or decrease contract amounts by $25,000 or less) to approve these change orders; she is required to report approved change orders to the board at the next meeting and have the approvals entered into the official minutes.
Ending: These items were presented as informational; board members were informed that the approved change orders will be reflected in official minutes and that the district continues to use the owner-direct purchase process to pursue sales-tax savings when feasible.
