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Finance committee reviews $265,000 Pepper Construction work order for Lyle Elementary office renovations
Summary
The committee reviewed a work order that assigns trade contracts to Pepper Construction and adds management, temporary site costs, builder's risk insurance and a 10% contingency, bringing the total to about $265,000; administration said using Pepper yields economies of scale while junior high work is already underway.
Mr Wilkinson told the finance committee that the board previously approved a master construction management agreement with Pepper Construction and that an additional work order is needed to have Pepper manage office renovations at Lyle Elementary this summer. Trade contracts previously approved total about $235,000; the work order adds Pepper's staffing cost (about $5,600), temporary site items (dumpsters, fencing), builder's risk insurance and a contingency of roughly 10%, producing an approximate total of $265,000.
He said having Pepper on site for the junior high renovation creates efficiencies and lowers management costs compared with hiring a general contractor separately: "The approximate cost for Pepper services is about 6% of the contract," he said, noting that typical general contractor fees might be about 10%.
Committee members asked why temporary and insurance costs were not included in the initial $235,000 estimate. Staff responded the architect estimates trade costs but site‑specific temporary construction costs and construction management fees are typically handled by the construction manager and are reflected in the work order, which includes a standard contingency to cover unforeseen items.
The administration will prepare the final work order paperwork for the board to approve so Pepper can proceed with the work this summer.
