Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Bond Construction topic
No spam. Unsubscribe anytime.
Contractor: electrical scope and PV tie‑ins drove Phase 3 GMP increase, board told
Summary
At a Jan. 13 Milpitas Unified study session, Black Construction briefed trustees on the guaranteed maximum price (GMP) for Bond Phase 3, saying electrical scope growth—driven by PV (solar) combiner‑box work, trenching and conduit rerouting—pushed several line items higher than earlier estimates.
Black Construction representatives told the Milpitas Unified School District Board of Education at a Jan. 13 study session that the primary drivers of higher costs in the Phase 3 Guaranteed Maximum Price are electrical work and added solar system tie‑ins.
Brad Fannon and Nick Wilcotts, who introduced renderings of the Early Childhood Education Center and the Workforce Development Center, said the difference between their estimate and the GMP stemmed largely from scope added between the 50% construction documents and the 100% bid set. "Our electrical estimate was 3 millionish and it ended up being five somewhere around 5 million when it was bid with five different electricians," Fannon said. He also called out the need to move a combiner box and intercept conduits feeding parking‑lot solar as an unplanned cost that increased trenching and conduit work.
The presenters described the estimate process as inherently uncertain before design completion and said the firm carries a construction contingency (they said 4%) and allowances to manage those risks. They reported soliciting bids across 38 subcontractor packages and inviting roughly 201 subcontractors; they received 133 competitive bids, which the firm said provided adequate market coverage.
Trustees pressed the presenters on coordination with future solar work and battery storage. The firm said there is some battery storage in the electrical design for emergency systems but that its capacity is likely limited; the presenters offered to coordinate procurement and electrical engineering to avoid duplicate work and potential re‑moves later in construction.
Board members and staff also discussed the district’s Project Labor Agreement and union signatory requirements, which the presenters said affected subcontractor eligibility for some trade packages. Presenters described their scope‑statement process—writing explicit "furnish and install" instructions for each trade package—to reduce change‑order disputes during construction.
Superintendent Jordan and trustees thanked the firm for managing phases one and two and asked staff and the construction manager to continue tight contingency control so any unspent contingency would be returned to the district at project closeout. The presenters noted a $500,000 credit already applied to the GMP for prior PG&E work, reducing a noted line item from $28.8 million to about $28.3 million on the attached GMP spreadsheet.
What happens next: trustees and staff said they would continue review of the GMP spreadsheet and can call for follow‑up study sessions. The presenters offered to return with additional detail if the board wants deeper line‑item review.
