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Scranton SD awards Monticello East contracts after bids exceed estimates; district faces near-10% construction overrun
Summary
The Scranton School District approved general-contractor and trade contracts for the Monticello East project after bids exceeded the district's 50% design estimates; staff cited an accelerated schedule, added scope and contingency buys that pushed the project about 9.9% over budget.
The Scranton School District on May 4 awarded the principal construction contracts for the Monticello East project but acknowledged the work came in notably above earlier budget estimates.
District staff recommended awarding the general-contractor contract to Panzida Enterprises at $3,590,500 and separate mechanical, electrical and plumbing contracts to Scranton Electric Heating & Cooling Services ($1,094,264 recommended), Urban Electrical Contractors ($1,467,500 recommended) and G. Ritzick & Sons ($449,650 recommended), for a combined contracting total of $6,649,842. The board approved those contract awards by roll call vote.
In presenting the bids, the district's construction manager told the board the 50% design-phase budget estimates were substantially lower: the general-contractor 50% estimate was approximately $2,000,641 and electrical and other trades also showed wide variances. Staff said the project is currently tracking about 9.9% over the total construction budget (roughly $847,772) and that, if contingencies the district has included but not yet spent are counted, the overrun could reach about $1.398 million.
Project leaders attributed the overrun to several factors: an accelerated schedule that compressed design and pre-construction time, added structural steel and slab work incorporated after the 50% estimate, added sensory-room finishes and door-vision specifications, and inclusion of construction contingency amounts inside prime contracts to streamline minor change orders. The construction manager said some line items (mechanical) came in under the 50% estimate while others (general construction, electrical, plumbing) exceeded it.
The board asked about the change-order process. Staff said all contractor claims or change-order requests will be submitted to the construction manager and reviewed with district project staff; depending on the dollar value, change orders will either be handled administratively under the project's contingency or returned to the board for approval, and special meetings can be called if necessary.
Board members pressed staff on procurement and market conditions after several prime trades returned no bids or only one bid despite multiple solicitations. The district's representative said solicitation was conducted via SmartBid and that some firms downloaded drawings but did not bid, possibly because of schedule concerns.
The board approved the contracts and directed staff to continue reporting on contingency use and any change orders. The district also scheduled a May 26 committee meeting with financial advisor PFM to review broader fiscal impacts related to enrollment and capital needs.
Provenance: Topic begins in discussion of operations agenda and procurement at the operations report and continues through contract awards and roll-call votes. Relevant transcript segments include the Monticello East discussion and E5 contract award presentation and vote.
