Supervisors approve construction change orders but face $1.87 million shortfall on jail project

Osceola County supervisors on Feb. 19 approved multiple construction change orders that reduce contract costs but were told the jail project remains over budget by $1,871,794.51. The board directed staff to produce line-item figures for proposed deletions and possible funding sources at a follow-up meeting.

John (project manager) reviewed several recommended change orders and recommended approval. Among the items the board approved were: - Change order 1-1 for Steffes Companies: a net deduct of $135,799.09, reflecting multiple revisions including a 3-foot reduction in precast height ($32,823 deduct), a color change in precast ($7,245 deduct), elimination of sidewalk/paving at the monument and deletion of a tree removal, and other items. John recommended the board accept the change order as it would not alter the project's core scope. - Change order to the plumbing contract (Contract #3, Change Order 1): a net deduct of $22,040 covering items such as switching a specified PVI water heater to two conventional water heaters ($6,800 deduct), omitting an underground lint interceptor ($3,880 deduct), use of ProPress and MegaPress fittings in lieu of other fittings ($4,660 and $2,300 deducts), and substituting PVC for ductile iron piping ($4,400 deduct).

John told the board the change orders are intended to keep the project on the critical path and to capture immediate savings. “That deduct was $32,823 to reduce the height and precast,” he said during his review of the Steffes change order. He described other deducts and noted a total of $135,799.09 in reductions for that contractor.

Despite the approved deducts, Rochelle (county financial staff) reported the county's current project accounting shows the total project cost remains $1,871,794.51 over the previously authorized $6,457,000 total (this figure includes bond issuance and other project costs). Rochelle said the figure does include amounts already spent. The board then discussed options to cut scope — items mentioned for potential removal included demolition of the old jail, some renovation work in the existing building and the covered walkway/tunnel between buildings — and asked staff to compile specific dollar figures for each option.

John and supervisors also reviewed routine construction pay request and vendor invoices. Staff presented invoices dated Feb. 1, 2025, totaling $13,861.00 for various consultants and reproduction fees; later, a payout request of $13,008.61 was shown for approval. The board approved payment of the presented amounts.

Why it matters: The approved change orders reduce contract costs but do not eliminate the project budget gap. Supervisors must decide whether to scale back portions of the work, identify additional local funding (including internal transfers or reserves), or seek other financing to complete the full scope.

Next steps: Staff will assemble a prioritized list of contract items that could be removed or deferred, provide updated cost estimates for those deletions and present those figures at a special meeting scheduled for Monday, Feb. 24, to help the board decide how to close the budget gap.