Board hears first reading on guaranteed maximum price for new North Ridgeville high school
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Summary
At the Dec. 2 meeting the board heard a first reading on a guaranteed maximum price amendment for the new high school and a project representative explained the GMP commits the contractor to deliver the project for the stated sum, with subcontractor bid savings returned to the district.
The North Ridgeville City School District board on Dec. 2 received a first reading of a resolution to approve a guaranteed maximum price (GMP) amendment for the new high school, reflecting the finalized building design.
During the presentation, Mr. Sherman (identified on the record at the meeting) explained that the GMP creates a contractual obligation that the contractor will deliver the project for the stated value based on current design information. He said the contract recognizes potential changes during construction but that the contractor assumes the risk if subcontractor bids exceed the GMP. He also said that if subcontractor bids come in under the GMP, the savings would be returned to the district for added value in the facilities.
The item was presented as a first reading; the board will consider the resolution at the December 16 regular meeting.