The North Royalton Board of Education recently approved the guaranteed maximum price (GMP) for the new elementary school. That, with the previous GMP that was approved earlier this year for the renovation/reconstruction of the Middle School and High School, will now confirm the construction costs for the entire project.
“We are pleased with where the (GMP) numbers came in,” said Gurka. “We are all aware that costs have escalated in school construction since our bond issue was passed. This can be seen in districts all around us. However, this elementary (school) GMP will allow us to continue to stay on budget and on schedule.” Gurka said that the projects remain well within the $95 million overall budget.
A guaranteed maximum price limits the amount the school district will pay to the contractor for the project, regardless of the actual cost that the contractor will pay. Hammond Construction is the contractor for the project. The GMP shifts much of the risk of cost overruns to Hammond, rather to the district. Rather than paying a flat fee to the contractor, the GMP allows for potential money savings, if the project ends up costing less than originally estimated. The GMP for the North Royalton Schools facilities project includes a 1.9% contingency.
The GMP for the new elementary school will be an amount not to exceed $35 million. The GMP for the High School/Middle School project was approved at an amount not to exceed $40 million, plus a $1.1 million change order. School Superintendent Greg Gurka said that on bid day, there were some savings for the high school, so the administration added some items that were on the alternate bid lists. Those items included such things as replacement of windows in renovated areas, removable partitions for the band room, upgraded flooring for better maintenance, and glass partitions for the new media center. There also was an additional cost of $215,000 for unexpected sanitary and storm-water sewers, which were not included in the scope of the original project. The GMP prices only address the construction costs of the project. The remaining amount of the bond will go toward things like equipment, furnishings and other costs, such as architect and other fees.
The project was approved by voters in 2017 upon the passage of a 4.4-mill bond issue and 0.5-mill tax levy that will generate $88,900,000. The plan includes the building of the elementary school to replace the three existing buildings, renovate a portion, demolish and build the new portion of the high school and renovate the Middle School. The total cost of the project will be $94,837,207, with $3.5 million being supplied by the State of Ohio Facilities Construction Commission and $2.6 million being supplied through interest being accrued by the investment. The thirty year bond issue began collection in January, 2017 and is inclusive of the remaining bond issue that was being collected for the Middle School.
The plan for the remaining three elementary school buildings at this time is for the removal of asbestos and demolition. They will then be put up for sale. Gurka said that the district is looking into the possibility that one of the buildings may be utilized as another administration building, but no decision has been made to date. Any profit realized by the district with the sale of the remaining properties will be placed into a capital improvement fund, as specified by law.
By GLORIA PLEVA KACIK
Contributing Writer