Middle‑school project update: award amount higher than original budget; several change orders to be charged to contingency
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Summary
District staff reported the middle‑school contract award of about $35.6 million (originally budgeted ~ $34 million), allowances of roughly $1.4 million and expected change orders (including a $353,000 geothermal drilling item) to be charged to contingency; the project is about 55% expended and the administration will seek board approval if allowances are exhausted.
At the Jan. 28 finance committee meeting Springfield Township SD staff gave a detailed financial update on the middle‑school construction and the district’s broader capital priorities.
The presenter said the original project budget was about $34 million while the contract award totaled about $35.6 million; that award includes allowances (about $1.4 million) and a soft‑cost contingency of about $1,000,000. Several pending change orders were described: nearly $16,000 attributable to relocating a flagpole (contractor and electrician allowances) and a $353,000 change order tied to drilling for the geothermal system (JBM Mechanical). The presenter confirmed the drill arrived over winter break and drilling will resume.
Staff explained that anticipated change orders will be absorbed first from allowances and contingency; if allowances and contingency are exhausted, change orders that exceed those balances will be brought to the board for approval. “If we believe that we are going to drain our allowances or go over that, those are true change orders because that means that we are above and beyond the cost of the project. We would have to come to the board,” the presenter said.
The committee was told the project is approximately 55% expended to date, and payment certifications have been completed for prime contractors through Dec. 31 (plumbing pay apps were recently submitted). The presentation also covered capital‑plan priorities and staged projects: classroom painting is roughly 95% complete; some furniture refresh work was deferred because of uncertainty in the state and federal budgets; the district is reviewing long‑lead vehicle/equipment replacement (utility pickup lead time ~16–18 months) and bus‑replacement options including staggered purchases, leasing and evaluation of propane or electric alternatives.
Staff also reported only one response to the district’s RFP for construction management/retainer services and recommended re‑soliciting and benchmarking before awarding; they proposed a resubmission deadline ahead of the Feb. 17 board meeting so the administration can bring a fully vetted contract forward.
Next steps: staff will continue to monitor allowances and contingency, bring any required change‑order approvals to the board, re‑solicit construction‑management proposals, and report further updates at the next property and finance committee meetings.