Codington County approves $32.7 million guaranteed maximum price for new jail and sheriff’s office

The Codington County Board of Commissioners approved a guaranteed maximum price (GMP) amendment to the construction-manager-at-risk (CMAR) contract for the county jail and sheriff’s office project, setting the construction-only GMP at $32,665,397. The board voted by voice; no dissent was recorded and the motion carried.

The amendment authorizes the CMAR to proceed with construction spending up to the $32,665,397 figure and to include all proposed alternates, including finishing the sheriff’s office and a set of smaller alternates such as upgraded security cameras and more durable flooring. The county’s staff said the GMP covers only hard construction costs and does not include soft costs, such as fees for the CMAR, architect, or other non-construction professional services.

Commissioner Gable, who introduced the amendment, said a favorable bidding environment enabled the inclusion of alternates that were not in the original plan. Commissioner Schwer seconded the motion; after discussion of bond proceeds and reserve dollars, the board approved the amendment by voice vote.

County staff clarified the GMP’s relationship to other funding sources during discussion. The board noted the GMP will be combined with the value of the county bond issuance and a previously allocated $8 million in the county construction budget. Commissioners also referenced about $7.7 million from reserves that had been anticipated as part of earlier budget planning; combined, those elements previously produced an estimated program figure near $37 million. County staff emphasized the $32,665,397 figure applies only to construction costs and that interest and some other costs will be additional.

After the vote, commissioners arranged for required signatures on the contract documents.

The project has been procured as a construction-manager-at-risk delivery; the CMAR selection occurred in the predesign phase, and the GMP formalizes the maximum construction cost the county will allow the CMAR to commit to subcontractors. The board indicated the GMP will allow the county to proceed with the planned alternates and complete the sheriff’s office in one phase rather than staging it over multiple years.

No ordinance or statutory citation was presented during the discussion. The board did not record a roll-call tally in the meeting minutes; the approval was taken by voice vote.