School board hears high school closeout update; change orders and final payments remain pending

Jamie Lynch, who presented the high school project update, told the Lower Moreland Township School District Board of School Directors on Jan. 7 that most construction and roadway work tied to the new high school is complete and the project is now moving toward financial closeout.

Lynch said remaining steps include final PennDOT verification of the intersection work, submission of as-built drawings and closing the district's permit so the district can make final payments to contractors. "PennDOT still has to do their dirty work of verifying the final punch list," Lynch said.

Why it matters: The district has been holding contingency and retainage tied to unresolved punch-list items and third-party utility work. Board members pressed Lynch and staff for clarity on change-order amounts, what remains unpaid, and whether the district should pursue reimbursement from PECO for costs tied to trench and paving repairs.

Lynch summarized the outstanding financials: the district is holding roughly $40,000 on Morrissey (the general contractor), and about $60,000 against Burrow (another general contractor) for remaining punch-list and warranty items. He also reported recommended change orders on the agenda: a roughly $39,800 net set of changes for Burrow and a $54,659.66 change order tied to intersection repairs and temporary striping for Morrissey.

Lynch described why the district paid for additional paving work after PECO replaced underground gas lines along Red Lion Road. "PECO comes in and says, no. It's great that you did it to PECO standards, but it needs to be done to our standards," Lynch said, explaining that PennDOT required a mill-and-overlay to meet its roadway standards. Lynch said the district paid the additional paving work to meet PennDOT requirements and that recouping that cost from PECO would be an "uphill battle," though he offered to assist if the board wanted to pursue reimbursement.

Contract closeout and retained amounts: Lynch reported that the mechanical and electrical contracts on the high school are essentially closed and eligible for final payment. The district is holding retainage and a small punch-list balance for the general contractor, including millwork replacement, ladder installation in a water-meter vault and warranty items. Lynch said elevators have been functioning for close to two months, and that most warranty items are being addressed.

Budget status: Lynch said the overall project remains under budget. "Project is about a half $1,000,000 under total budget," he said, noting credits and unused allowances on trade contracts. He and board members discussed applying DCED grant funds and bond interest to cover intersection costs. Financial staff confirmed some funds have been moved to the Capital Projects Fund and that the district is awaiting a $60,000 DCED reimbursement and possible state budget inclusion to recoup about $110,000 paid to PECO.

Board follow-up: Board members asked about potential legal or insurer remedies related to permit delays and utility repairs. Lynch recommended engaging the board solicitor if the board wants to pursue liability or reimbursement questions tied to the conservation district permit delay and PECO work. He offered the design team's help in drafting correspondence to PECO.

Items on the agenda tied to this update included proposed change orders and credits described by Lynch. The transcript records discussion and explanation of the sums cited above; it does not record final roll-call votes approving or rejecting the listed change orders within the meeting text provided.

Ending: Lynch thanked the board and staff and said the team would be available to help with any further follow-up, including potential correspondence to PECO and work needed to obtain final PennDOT sign-off so final contractor payments can be released.