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Contractor outlines phased approach, contingencies and up to $400K of value engineering savings
Summary
Landmark Constructors reviewed phase 1, 2 and 3 line items, contingency assumptions (3% escalation, 8% design, 10% construction) and a list of value‑engineering options capable of reducing costs roughly $400,000 (largest saving from opting for lightweight concrete tiles vs clay tiles).
Ellen Kelton, the project manager for Landmark Constructors, reviewed how subcontractor pricing was gathered, the line items included in phase 1 (foundation/concrete, new structural steel/columns, electrical) and the contingency allowances included in the GMP estimate: a 3% escalation, 8% design contingency and a 10% construction contingency typical for modernization projects.
Kelton said the team has identified a value engineering list that, if implemented across multiple items, could yield about $400,000 in savings; the largest single VE option discussed was replacing historic clay roof tiles with a lighter material that preserves character while saving an estimated $260,000. "Total, if we were to take everything on this list, the potential max savings is about $400,000," the contractor said. The board asked for a more detailed breakout of large line items (electrical and roofing) so members can evaluate specific alternates.
Staff emphasized that phase sequencing affects cost (remobilization and general condition costs) and that the team prefers to roll phases together when feasible to save a few hundred thousand dollars, but acknowledged that HVAC and other large items may need to be moved between phases depending on funding.
