New Albany-Plain Local officials say new elementary school is over budget, plan to seek GMP approval Dec. 8

District administrators told the New Albany-Plain Local Board of Education on Nov. 10 that the planned new elementary school is currently over budget despite multiple rounds of value engineering and that the construction manager at risk will present a guaranteed maximum price (GMP) recommendation on Dec. 8.

Mike Mancini, preconstruction manager for Resili, described GMP 1.1 as an early-site package that covers earthwork, underground retention, demolition and early electrical procurement (generators, switchgear and panels) to protect the schedule. Mancini said the early site portion in the GMP 1.1 column is approximately $3.5 million and that the combined site and building column will show the full all-in cost when the final GMP is presented.

Administrators said the design has been through multiple ARB (Architectural Review Board) and deed-restriction-driven changes that increased scope and that the board will be asked to approve a maximum guaranteed price at the Dec. 8 meeting to lock current pricing ahead of expected cost escalations in early 2026. The administration said it has included design contingency and an escalation contingency (each carried at roughly 1.5% in the draft estimate) and maintains allowances for items such as emergency responder radio systems and potential unsuitable soils.

Becky (finance staff) and the superintendent explained how the district—s permanent improvement (PI) fund and transfers from the general fund have been used historically to support capital work. They reported a PI fund balance of about $20.7 million as of the presentation, noting that some amounts are already set aside for turf, scoreboard and track replacement and that another $8.5 million was transferred into a separate Fund 070 to address a 40% cash carryover cap; Fund 070 can be rescinded and returned to the general fund if the board chooses within the fund—s allowable uses.

The board and construction staff emphasized that market escalation, tariffs and electrical trade supply challenges are outside local control and that subcontractor interest in the program is high. Mancini said the construction schedule is roughly 20 months once construction begins. Administration said the district can afford the program based on current PI balances and planned transfers but that the GMP decision should be made in December to limit exposure to next-year price increases.

Next step: Administration will finalize the GMP draft with counsel and present a resolution and final GMP figure on the Dec. 8 board meeting agenda for approval.