Office of Financial Management Washington State Major Project Status Report June 8th, 2015
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1 Office of Financial Management Washington State Major Project Status Report June 8th, 2015 Agency Number: 699 Project Number: School/Campus: Renton Technical College Project Title: Automotive Complex Renovation Bill Reference(s): Contact name, phone number, Barry Baker, (425) Agency: SBCTC Project Description: The Automotive Technologies education and training programs at Renton Technical College are vital to the success of this important local industry sector. However, the existing 26-year-old Paul Greco K Complex no longer meets current programmatic needs. This project will fully renovate the existing K1, K2, and K4 buildings and provide a new K3 building replacing the existing poorly functioning K3 building. The new building to replace K3 will provide additional shop space and allow expansion of existing shop spaces in K2 and K4. The renovation will correct building deficiencies, increase energy efficiency, improve life/safety, and improve program delivery. Square feet: Renovation K1, K2, & K4: New K3 Building: Total 45,905 sf 17,645 sf 63,550 sf Scope changes: There have been no significant scope changes since the Predesign study was completed. Project Total Cost: Phase Biennium Appropriation Amount Predesign & Design $1,583,000 $1,583,000 Construction $16,915,000 $18,446,000 Other (Approp/Non Approp) $1,949,000 $2,000,000 See below* Total $20,447,000 $22,029,000 *RTC is planning on obtaining an Equipment Loan from the State Treasurer s office and will utilize 148 funds to repay the loan Budgeted MACC = $12,970,123 Bid MACC (May 28, 2015) = $14,300,000 1
2 Schedule: Budget Schedule Actual/Forecast Variance (wks) Predesign Complete October 2013 Feb 2014 Draft completed Feb Final report submitted April 2014 Start Design March 2014 March Bid Date May 2015 May 28, Notice to Proceed July 2015 July 1, 2015 (Depending 0 on end of Legislative Session date) 50% Complete May 2016 Apr wks Substantial Completion April 2017 Feb wks Final Acceptance June 2017 April weeks Project Status and discussion of Critical Path for Construction: The project was funded for Predesign and Design to be performed in the biennium. At the end of the Schematic Design phase in May 2014 the MACC scope was estimated at $14.3 mil., which was approximately 10% over the MACC budget. A Value Analysis process was performed in June, and at the end of the Design Development phase in September the MACC scope was estimated at $12.9 mil. In the Value Analysis process, the most significant cost estimate reduction was achieved by the college committing to temporarily move the automotive programs off campus to a leased facility during construction. By eliminating the need for sequencing, the anticipated construction schedule (NTP to SC) was reduced from 22 months to 13 months. After investigating potential temporary off-campus facilities, the college was unable to find a viable property to lease. During the Construction Documents phase the college decided to keep the automotive programs on campus during construction. The anticipated construction schedule (NTP to SC) was revised to 20 months, including multiple Construction Sequences to allow the programs to remain operational. However, with help from other Value Engineering measures, the CD phase MACC cost estimate was under the budgeted MACC of $12,970,000 prior to going out to bid. The project recently opened bids on May 28, There were (3) bidders, and the apparent low was Construction Enterprises & Contractors (CE&C) at $14,300,000 base bid, which is $1,330,000 over the budgeted MACC of $12,970,000. The project is currently over budget. 2
3 In order to complete the overall construction schedule within the biennium and have programs operational for Fall quarter 2015, it is necessary to perform site & utility work (Sequences 1A & 1B) within the 10-week period between July 1 Sept 14, This requires Notice to Proceed (NTP) to be issued on July 1, In order to issue NTP on July 1 st, the Department of Enterprise Services needs funding approval from the college, and the college needs a biennium capital funding commitment amount from the Legislature by June 15 th. Contract Award History A/E Agreement Construction Contract (excl. sales tax) Predesign Agreement $ 105,488 Bid Award Amount $ Predesign Amendts $ 48,811 Original Agreement $1,252,519 Bid Award Amount $ Amendments $ 474,059 Change Orders $ Pending Changes $ 140,000 Pending Changes $ Total $2,020,877 Total $ Current Design Current Construction Contingency $43,600 Contingency $ Potential for Project Cost Overruns/Claims At the end of Predesign in April 2014, the scope of the project was challenged with a total stateappropriation budget of $18,299,000, which is 4% lower than the $18,986,000 total project estimate performed in the 2007 Project Request Report seven years ago. The notification in August 2014 of an increased state-appropriation budget of $18,498,000 was good news, but is still 2.6% lower than the 2007 PRR. The project is currently facing several potential cost overruns due to construction bid market escalation, pending legislative budget cuts, and the twice-extended legislative session: Although the CD phase MACC cost estimate was under the $12,970,000 budgeted MACC, the estimate did not accurately predict the high level of escalation in the current bid market. The low base bid came in at $14,300,000, which is 10% over budget. Although the final Legislative budget has yet to be released, the preliminary Governor s, House, and Senate budgets all listed the project s allotment at a (10%) cut. Completing the construction phase within the biennium and keeping programs operational during construction require NTP to be issued on July 1, If a biennium funding amount from the Legislature is not released by June 15 th, the construction phase could be delayed. Construction start could be postponed by up to a year, due to the necessity of scheduling site mobilization/prep during Summer quarter and site/utility work during the 5-week break from mid-aug to mid-sept, in order to keep the automotive programs operational during construction. Any delay over 60 days from the 3
4 May 28 th bid opening would require the project to be re-bid, which would also likely result in further bid escalation and budget overruns. Discussion of Project Quality The buildings will be durable, easy to maintain and cost effective to operate. Finish materials (i.e., pre-finished metal siding, sealed concrete floors, etc.) will be easy to maintain, with minimal manpower, and which can withstand the level of use typical at a higher educational facility without losing their appeal. The new building and renovation of existing buildings are designed with flexibility as a goal; flexibility in its configuration with open shop bays, and flexibility in the way it will be used. New classrooms will be located for shared use by the Automotive programs, industry partners, and other programs by the College. Project Images 4
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