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Officials warn 2016 public health bond will not cover planned projects as bids come in far over estimates
Summary
DPH and project partners told the Health Commission that bid results for multiple Building 5 and clinic projects came in significantly above 2016 budget estimates—about a 39% delta on a recent package—citing COVID-era material and labor cost escalation, code changes and complex hospital logistics; philanthropic and other alternative financing is being pursued.
Department of Public Health and project teams told the Health Commission on June 15 that the citywill need additional financing beyond the 2016 public health and safety bond to complete planned Zuckerberg Building 5 and clinic projects.
Mark Primo and Terry Sauls presented the DPH portion of the 2016 bond program and explained that recent bids for three projects (a seismic upgrade, dialysis relocation and the public health laboratory) totaled approximately $57 million in construction costs versus about $41 million budgeted from bond proceeds — a delta of roughly 39%.
Terry Sauls attributed…
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