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Board approves $568.8 million partial GMPs for two new MISD high schools
Summary
Trustees approved partial guaranteed maximum prices (GMPs) totaling $568,787,856 to secure major site and building trades for the two new high schools in the 2023 bond program; administration and program managers said the partial GMPs reduce escalation risk and accelerate schedule.
The Midland ISD Board of Trustees approved partial guaranteed maximum prices (GMP 1) totaling $568,787,856 for two new high schools in the district's 2023 bond program.
The partial GMP covers major building trades and site work, including earthwork, concrete, masonry, metals, roofing, finishes, elevators, fire suppression, plumbing, electrical and site utilities. The recommended amounts were $282,316,585 for New Legacy High School and $286,471,271 for New Midland High School, staff said.
Administration and the district's program manager said the partial-GMP approach secures current subcontractor pricing, reduces market escalation exposure, and brings subcontractor expertise into final design. "When we sign up people early with real numbers, we take away that volatility," the program manager said, adding that roughly 280 subcontractor bids were reviewed and interviewed for these packages.
Trustees asked about escalation factors, per-diem and supply-chain risk; construction managers said some escalation contingency remains for later GMP phases and that certain divisions (for example steel and electrical) produced favorable numbers in the early bids. Board members requested a breakdown of the cost-escalation factors and a contingency plan covering supply-chain disruptions and alternatives; staff agreed to provide that analysis.
Board members also asked about local contractor participation; staff said many local firms bid but that several subcontractors lacked the bonding capacity or workforce required for projects of this scale and that the broader bond program includes smaller packages structured to allow local participation.
The motion to approve the partial GMPs passed by unanimous vote. Staff said subsequent GMPs (GMP 2 and GMP 3) will be brought forward as reconciliation completes and that the district remains committed to meeting the package budget target.
The board approved the partial GMPs as presented.
