The Warren County School Board approved three change orders related to the ongoing construction projects, but the expenses were already budgeted.
At the meeting last month, Director of Schools Dr. Grant Swallows and school maintenance director David Northcutt explained the reason for the change orders. One change order was related to the roofing materials for the Warren County Middle School.
“There was a $20,000 allotment for anything that may have come up. Nothing actually came up in the project except for the material. The contractor came to us and, in the beginning, the engineer told the contactor, or told all of them during the pre-bid, that this bid was to be padded or whatever to allow for any kind of material increases. This happened during the time of the shipment problems with all the COVID,” said Northcutt.
“Remember we gave them the go-ahead in early summer and we didn’t get the materials until February,” added Swallows.
The contractor said the material costs put them out $75,000 and the change order would pay them the $20,000 they allotted for.
“They ordered the material when it was nine months later when we got it. They came to us and told us that they took a hit of $75,000 with material. Now, I know that they can’t ask for any extra money, but the engineer came and talked to me, he sent an email to me and Grant, asking if we could go ahead and give them that $20,000 to sort of help them with that $75,000 hit. That is what I am asking tonight,” said Northcutt.
Swallows says this expense was already budgeted and approved.
“It will be ultimately taking on up to the million 45 that we budgeted for the project and approved already. Ultimately this is just a change order that asks that they be compensated for the astronomical, unprecedented rise in materials,” said Swallows.
“I think that is fully justified. They took a $75,000 hit and we are paying $20,000 toward it and I think we are coming out on the good end of that proposition so I move for approval of that change order,” said School Board member Bill Zechman.
The board approved this change order. The second change order involves the electric conduit that was hit at the Middle School. The conduit was embedded in the concrete and they were unaware of it. Builders Risk Insurance covered some of the costs, but the school system will still have to pay some of it.
“Robin Phillips talked with the contractor and talked them into, I didn’t feel like it was totally our fault because I didn’t know it was in there and they should have been checking beforehand anyways, she talked with them and got an agreement with them to split that $25,000 deductable. The insurance paid $16,000 that contactor is paying $12,500 and what’s left out of the $55,000 or whatever it was, was $26,129.68,” said Northcutt.
This money was in a contingency to cover it, but a change order had to be done and was approved. The final change order that was approved involved wireless access points at Eastside because it was not included in the original bid.