Lenoir County board approves E.B. Frank construction GMP, subject to final legal review

The Lenoir County Board of Education on June 2 approved a guaranteed maximum price (GMP) agreement to begin construction of the new E.B. Frank Middle School, voting to allow the construction manager to start site work while the board ttorney completes a final review.

Metcon, the project's construction manager, told the board the project is "under budget" and recommended proceeding to move dirt and issue subcontractor contracts. Mike Konischka, identified in the meeting materials as the construction team lead, told the board the GMP includes allowances and contingencies the firm described as larger than typical K-12 projects and said the district would not need to reduce scope through value engineering.

Board members were given a line-by-line summary of the GMP during the meeting packet presentation and asked multiple questions about permitting, schedule and upgrade options. Metcon said the GMP includes a nearly $1.8 million owner-added scope allowance for items the board might elect to add later and described an additional $350,000 owner contingency that would sit outside the GMP.

The architect and the district—onstruction manager said an upgraded terrazzo floor option is included as an add-alternative. Metcon representatives told the board choosing terrazzo would likely extend the construction schedule by roughly two months and that accelerating installation to preserve the district—xpectation of a second-semester occupancy would increase cost; Metcon said an estimate for schedule acceleration could be on the order of $500,000, and that the district has contingency and allowances that could be applied to such costs.

Board members asked whether permitting remained a risk. Metcon said they had a conditional acceptance from the North Carolina Department of Transportation for project materials and did not anticipate permitting issues; the firm said the district would be able to pull the building permit once the GMP is signed.

After discussion the board first voted to amend the agenda to move the construction GMP from information to action. The board then voted to approve the GMP agreement and to authorize the district to issue contract awards and start initial site activities, provided Harrington Smith (the district ttorney) completes a final review and recommends execution.

The board and staff discussed schedule tradeoffs: Metcon projected a keys-turned date before Christmas, which would allow the district to plan a mid-year move-in if terrazzo were not selected; selecting terrazzo or other options could push the turnover into the spring. Metcon said most school districts need about 45 days after turnover to fully occupy a new school and that some schedule compression (work on weekends/second shifts) is possible at additional cost.

The motion to amend the agenda passed by a 5-2 vote. The subsequent motion to approve the GMP subject to final review by Harrington Smith carried; the meeting record shows the motion passed and the board authorized staff to proceed.

Board members and the construction team said they will return to the board with contract documents and any final legal counsel recommendations before final execution.

Metcon: "We are under budget and you are going to have a tremendous facility," and later framed the project protections by noting extra allowances and contingencies included in the GMP. (Attribution: Mike Konischka, Metcon.)

The board then moved on to other agenda items and later entered closed session.