What we know today about costs...and what we don't
Cost to taxpayers?
is primarily the cost of hiring a contractor, including materials, labor, general conditions and the contractor’s overhead and profit. Most often we think of this as including key building elements, such as:
Excavation and Foundations
Structure (steel or timber)
Envelope enclosure (exterior walls including windows, doors and a roof above)
HVAC, Plumbing & Electrical scope
Walls, Painting, & Hardware
Sitework: paving, pathways & landscaping
Construction costs do not include all items and expenses needed to build a project. Architecture & engineering fees, contingencies for unforeseen issues, legal fees, owner-provided items (such as furniture, fixtures and equipment), testing/inspectional services, builder’s risk insurance, project management costs and moving costs-- to name a few-- are considered Project Costs and can add significantly to the bottom line. It is too soon to determine the project cost for the New Lynch as many key elements have yet to be determined, including the number of stories (two or three?), location on the site, construction logistics and the scope of swing space needed or preferred. A better understanding of project cost will come in March as the project team finalizes the Preferred Schematic Report (PSR) filing for MSBA Board approval. Another driver of project cost is the actual construction delivery method, be it traditional "Design-Bid-Build" (DBB) or "Construction Manager - at Risk" (CM-at-Risk). Although the CM-at-Risk model can be more expensive, it brings the potential for a shorter construction schedule and streamlined logistics. Winchester is experienced with both approaches and the EFPBC will evaluate these options as the PSR package is developed.
Net Project Cost
A detailed Project Funding Agreement (PFA) will be included in the MSBA Board vote in September. The PFA will establish the baseline level of cost reimbursement (or construction grant) for the Lynch project but will also define a number of project incentives for additional reimbursement. At this time we estimate an MSBA reimbursement rate of between 30% to 40% of eligible expenses (similar to our experience with the Vinson-Owen school and Winchester High School). It is important to note that a number of project expenses are ineligible for MSBA reimbursement, including swing space.