The Concord-Carlisle High School (CCHS) Building Committee reached a significant project milestone at its July 17th meeting by unanimously voting to approve a $76,134,704 guaranteed maximum price contract (GMP) with Turner Construction. This agreement sets a maximum price the CCHS Building Committee will pay for project construction and maintains the overall project budget approved by voters of $92,578,525 million.
“This is a major achievement for the project and represents tremendous hard work and efforts from members of the Building Committee, the project team, the school administration and our partners at the MSBA,” said CCHS Building Committee Chair Stan Durlacher. “Securing the GMP contract is a key step to delivering the new high school both on schedule and within the approved budget.”
As part of the GMP contract, Turner Construction is compensated for the actual construction costs plus a fixed fee subject to the maximum amount. Turner is responsible for construction cost overruns and any savings are returned to the regional school district.
The GMP includes more than 40 bid trade categories from the various subcontractors. Overall, the project team was pleased with the bids as they were consistent with cost estimates developed by the project consultants. It is not unusual in a project of this size to have bids both higher and lower than estimates as current construction market conditions influence bids. Three of the bids associated with the building curtain wall and dry wall installation were higher than the figures provided by the project’s cost estimators that presented a challenge to finalize the GMP.
The CCHS Building Committee used a three-part of strategy to address the curtain wall and dry wall bids to maintain the overall project budget. The strategy included working with the project team and subcontractors to improve the constructability of certain curtain and dry wall elements to reduce costs. Second, savings achieved from other project elements that came in below budget estimates were used to help off-set increases in these areas. Finally, contingency funds were used to close the remaining budget gap. The project team felt confident that the remaining contingency levels for the project are consistent with industry recognized best practices for the remaining construction.