WHS project moves ahead despite budget overages

Higher than expected contractor bids in the second phase for the remodel of Whitefish High School has the project sitting above cost estimates. However, the school board approved the bid package, along with a plan to deal with the issue if savings aren’t found in the final phase of the project.

The cost for bid package No. 2 was $300,000 more than previous estimates. The bid package had been estimated at $2.3 million, but was awarded for $2.62 million. The second bid package includes the sitework, structural steel, underground electrical, excavation and concrete work.

The school board April 9 unanimously approved the bid package in an effort to keep the project moving forward.

“I think we should proceed knowing that we have to address the budget issues,” trustee Shawn Watts said. “We have a plan to get where we need to be.”

Subcontractor bids for sitework came in at about $210,000 more than previously budgeted. The cost for the concrete foundation came in at almost $100,000 more than estimated.

Loren Cantrell with Langlas & Associates, the general contractor for the project, said the increase in cost came as a result of a more detailed soils report that found more work was required than was part of previous estimates.

“Most of the items came in as expected, but the largest overage was for the sitework,” he said. “That’s mainly attributed to the soils on the site, as well as new grading and over excavating. The design of the concrete mirrors what’s going on with the soils.”

A few items did come in under estimates by about $100,000, but items that came in higher than expected used up any savings.

The district’s consultant Bayard Dominick said review of the bid package was undertaken by the design team to make sure all of the value engineering changes were part of the building designs.

“If we proceed today we will be on schedule to occupy the building in 2014,” Dominick told the school board. “We think any significant delays will ultimately cost us more than the risk of moving forward.”

Dominick and Cantrell recommended approval of the bid to avoid costs associated with a delay, including increases in material costs.

“There’s also a risk that if we don’t move forward that we won’t move into the new school on schedule,” Cantrell said.

Significant activity at the school began this week with crews stripping the site.

Dominick said the numbers continue to change as Langlas and the architect DLR Group continue to refine the designs through value engineering.

“We spent the last three weeks testing bid package No. 2 to make sure that bid package No. 3 doesn’t come in with any surprises like that,” Dominick said. “We want to make sure we can move forward.”

Budget estimates for the entire $19 million redevelopment project are sitting with an overage of about $450,000.

“We believe we are within striking distance and there is a high probability that we will get within our budget, but we still need a plan to cover that if we don’t.” Dominick said. “I believe there are several ways we can make up the difference.”

The district budget and oversight committee last week discussed a plan that would provide options to fund the estimated overage and put contingency money back into the project.

The design team continues to conduct value engineering to identify additional savings and expects savings on bid package No. 3. Beyond that there are also several options to address the shortfall, if necessary.

One is to use district tax increment funds to make up the difference. Second would be to use additional money from interest the district will earn on the bond funds.

Another possible source of funds is from the sale of the independent high school building. The property has been estimated to sell at $450,000.

There is also the potential to use a portion of the $900,000 that has been set aside in the budget for furniture and equipment.

“I think we’re going to have to keep the board engaged, if it comes down to having to use a couple of options,” trustee Dave Fern said. “My hope is that we don’t have to use any of them.”

The district is expected to release documents for bid package No. 3 on May 7 and bids are due June 7.