Bids for site work at the new high school came in $3.5 million
lower than expected, reducing the overall budget of the project and
possibly cutting the facilities deficit by as much as 23
percent.
Gilroy – Bids for site work at the new high school came in $3.5 million lower than expected, reducing the overall budget of the project and possibly cutting the facilities deficit by as much as 23 percent.
The Gilroy Unified School District unanimously awarded a $7.6 million Christopher High School site-work contract to general contractor Gilbane Inc., which in turn will pay contractor DeSilva Gates Construction $6.6 million to subcontract out the work. The district also approved $300,000, included in the overall high school budget, to begin site work prior to final approval of an agreement with Gilbane, scheduled for Oct. 4. Even with the early expenditure, the bids were 31 percent lower than recent site work estimates of $11.1 million and could augur savings in future construction phases, staff said.
“It’s a good sign,” assistant superintendent Steve Brinkman said at a Sept. 20 board meeting. “It’s a heck of a lot better than being at or above budget, but remember we’ve got the biggest part of the project yet to bid so let’s not get overly optimistic.”
However, the site works savings will not necessarily translate into $3.5 million off the final price tag of $114 million, he said. As the state is funding the project in part based on how much the district contributes, the district could see some state funding disappear, he said.
The district is also carrying a $15 million facilities deficit. Whatever eventual savings are realized through these low site work bids will decrease the facilities deficit.
Trustees, who have seen the high school’s price tag nearly triple, were pleased at the presentation.
“This is a significant step towards building Christopher High School and it’s always good to hear even with some cautionary language because we owe it to the public and our taxpayers that we are making sure that their tax money is being spent wisely,” trustee Javier Aguirre said.
The district has been working with Gilbane for about a year, since it began planning preconstruction for the new high school. Gilbane was responsible for garnering site work bids and received nine applicants, seven of whom submitted bids. DeSilva Gates submitted the lowest bid and is scheduled to start site work next month.
Due to the alternative building process the district used, known as lease-leaseback, the district is guaranteed that the contractor cannot charge more than $7.6 million for the site work unless there are unforeseen problems, such as an underground hazard, or the district wants to make changes to the plan. Traditional building methods allow for contractors to bill districts if construction prices rise or amount to higher than expected levels during the project.
In addition, if the site work costs less than $7.6 million, Gilbane and the district will split the savings.
While the low bids have not changed district estimates for the building portion of the project – slated to accommodate 900 students by fall 2009 – they set a good tone, said district architect Paul Bunton of Bunton Clifford Associates. Staff will present construction bids at a Nov. 15 board meeting.
“We’re very optimistic that when we go into the building bids, that we’re going to continue to see savings,” he said.
