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Construction Manager at Risk Reports

April 2021 Bid, Rebid & Value Engineering

  • Where we are:

    • Bids received March 23rd
    • $5.6 Million over the project budget of $92.8 Million
    • Filed Sub Bids $1.1M over budget
      • Major overruns: HVAC ($1.6M), Electrical ($468k), and Miscellaneous Metals ($300k)
    • Non-filed Bids $4.5M over budget
      • Major overruns: Steel, concrete, drywall, millwork, curtainwall, and landscaping 

    Significant value management (VM) across many trades is required to get the project back within budget. The Team has developed a VM list that that will ensure bids do not come in over budget when the project goes back out to bid. Currently, the priced items total approximately $7.1M. 

    • Identified significant Value Engineering items –
      • no significant educational impacts – all changes reviewed with the School
      • building will still be Fossil Fuel Free 
    • Architecture
      • Simplify interior finishes without sacrificing acoustical performance. Reduce wood trim.
      • Simplify geometry without affecting room sizes
      • Remove residual exterior sunshade / trellis
      • Remove canopy at Washington Street entrance
      • Simplify exterior window system
      • Simplify exterior details and materials without affecting performance
      • Simplify project area and break out space geometry
      • Remove balcony at Media Center 
    • Structure
      • Simplify exterior perimeter details
      • Lower floor to floor heights by 8” at upper floors
      • Simplify concrete pours where possible 
    • HVAC
      • Bring scope in line with Ridley, without affecting comfort or air changes per hour
      • Simplify metering and controls
      • Substitute radiant ceiling panels for radiant light shelves
      • Simplify diffuser connection at curved classroom wall 
    • Electrical
      • Bring scope in line with Ridley
      • Simplify metering and controls
      • Remove Audio Visual scope from construction documents and purchase through the Project’s soft cost FF&E/Technology budget
    • Landscape
      • Simplify materials such as railings and site furniture without affecting playgrounds or longevity
      • Reduce size, quantity, and type of boulders
      • Simplify concrete finishes
      • Reduce density of shrub / perennial plantings
      • Remove pergola structure

    How we got here:

    It’s important to understand that this project followed a process that received more cost input than is typical. Below are some of the steps the project took to ensure cost certainty at bid time:

    • Estimates were provided early at 50% DD rather than relying solely on the customary 100% DD estimate
    • Additional estimates were conducted at the 100% DD, 60% CD, and 90% CD milestones
    • The 60% estimate included a 3rd estimator
    • A market study was completed at the end of 2020 to better understand where the market was headed in these unprecedented times
    • When necessary along the way, the project preformed VM studies to bring the project back within budget 

    Potential contributing factors for bids coming in higher than anticipated include:

    • The major inflation spike that the market is currently going through, which was not obvious even 6-8 weeks ago
      • Significant increases in the price of copper, steel, lumber
    • Even with multiple estimators reviewing the same drawings, the estimates don’t seem to have captured the more challenging aspects of the design of the project
      • VM items decrease customization and create more efficiency for manufacturing parts and during installation
    • The bid process included six addenda, which may have complicated the pricing exercise
      • This issue will be resolved in the next round of bidding as JLA will be issuing a conformed set of documents that include the information issued by addenda in the first round of bidding 

    Next steps: 

    To achieve the above and maintain a September 2023 school opening, the team will follow the timeline below: 

    • April 16th – Jonathan Levi Architects (JLA) provided a new set of construction documents
    • April 22nd – Documents became available to bidders
    • May 13th – Bids are due
    • Week of May 24th – Gilbane GMP to be approved by Building Commission, School Committee, Select Board
    • Mid-June – Gilbane mobilizes and begins construction onsite