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Board approves $167.35 million amendment for 24‑MGD Peace River water plant
Summary
The authority approved Amendment 4 to the progressive design‑build agreement with Wharton Smith, establishing a guaranteed maximum price for construction, start‑up and testing of the 24 MGD water treatment plant and carrying contingency for design and subcontractor risk.
The Peace River Manasota Regional Water Supply Authority voted unanimously Dec. 3 to approve Amendment 4 to its progressive design‑build agreement with Wharton Smith Inc., establishing the guaranteed maximum price (GMP) for construction, start‑up and testing of the planned 24 million‑gallon‑per‑day water treatment plant.
Mike Knowles, presenting the regular agenda item, said the GMP hard cost was about $128.5 million and staff recommended carrying approximately $38.8 million in contingency, resulting in a staff figure presented as roughly $167.4 million for the amendment. "The final GMP hard cost came in at about $128,500,000," Knowles said, adding that contingency reflects unsettled subcontractor pricing and design advancement risks.
Commissioner Cutsinger questioned the size of the contingency (about 30 percent), and Knowles explained that a large portion reflects the risk register tied to advancing design from 60% to 90% and the fact that many subcontract contracts have not been finalized. "A big chunk of that contingency is the potential for a cost increase because of a design change going from 60 to 90%." Knowles said.
A motion to authorize the executive director to execute Amendment 4 with Wharton Smith in a not‑to‑exceed amount of $167,349,601 was made and seconded and passed unanimously.
Staff told the board that, if approved, the water plant's substantial completion target would be March 2028. No member opposed the amendment.
