What if the project goes over budget?  Will there be a cost overrun?  The project budget includes escalation factors for price increases, and a 5.5% owner’s contingency for unforeseen conditions and other unexpected items.  Architects cannot prepare perfect bid documents, so there is always an allowance for construction change orders.  The construction professionals involved with the project feel this is conservative and have had success completing similar projects within budget.  Even if the bids come in over budget beyond the contingency, the HSBC will seek opportunities for scope reductions to reduce costs.  If for some reason there were a compelling reason to seek funds beyond the budget, these funds would be subject to Town Meeting approval.

What if the bids come in under budget?  Other communities have experienced this recently.  The state has committed to granting 40% of eligible costs, up to $25 million.  If bids came in lower on eligible cost items, the grant would be reduced accordingly and the state and Wayland would share in the savings.  If bids came in lower on non-eligible cost items the entire savings would be Wayland’s.  However, if the bids came in over budget, even for eligible costs, the grant would not be increased and Wayland would bear the full cost. 

What is the cost of borrowing?  The Finance Committee has included the cost of borrowing in their tax impact analysis, available by clicking here.  Chairperson Sam Peper estimated the total cost of borrowing over the 25 years to be about $25 million.

Will the new school have higher operating costs? The new facility will meet very stringent national standards for “green” school design, and so will be much more energy efficient than today.  However the new facility will be larger, which will add to the operating cost.  Also energy rates could increase.  More detailed energy modeling and cost estimates will be done during detail design in the next phase.

How much have we spent on the project to date?  Out of a total project budget of $70.8 million, $1.1 million was spent on the Feasibility and Schematic Design Phase just completed.  There were prior study projects as well.  Click here for details and figures.

In the 2004 study, the HSBC asked voters to approve a project budget of $57.3 million, with 234,000 total square feet.  Today's proposal is for a budget of $70.8 million, with 194,000 total square feet.  Why does today's project cost 24% more, but the size is 17% less?  There has not been a detailed comparison or reconciliation between the two proposals, but there are a number of important differences that would affect the cost estimates.

- Construction costs rose nearly 40% from the time the 2004 project was estimated until the time the 2009 project was estimated.  Since the beginning of 2009 they have begun to rise again.  (Source:  Turner Construction Index)

- As a result of this volatility, and the fact that now the MSBA won't increase its grant even if costs rise, there is more contingency in the 2009 project budget (4.4% in 2004 vs. 5.5% in 2009).

- The additional square footage in the 2004 project represents space that is less expensive to construct, such as truck bays, storage, cafeteria space, a gymnasium, auditorium seating, offices and media center space.  The 2009 project includes a greater proportion of more expensive spaces, such as science labs and other instructional areas.

- Building codes, MSBA regulations and standards have changed since 2004.

Wayland's cost estimates were carefully reviewed by the MSBA and their cost estimators, who compared them to other recent projects.  The MSBA approved Wayland's budget.

Will we spend any more money on the existing facility?  The School Committee has emergency repairs funds available from an earlier Town Meeting appropriation, in case they are needed before the new facility is ready. 

Do the Finance Committee’s figures include the CPA surcharge?  The Finance Committee’s tax impact figures do not include the CPA surcharge, according to chairperson Sam Peper.

What is included in “site work” and “miscellaneous” costs in the Project Budget, and why are these costs excluded from the MSBA grant?  The MSBA limits their participation in site work costs to 8% of building construction costs, regardless of the environmental sensitivity or other requirements of the site.  Miscellaneous costs are completely excluded from the MSBA grant program. The site work includes all of the following: general site preparation and demolition, such as site clearing, removal of existing underground utilities, install of new utilities (water, waste water treatment plant piping, sanitary, storm, fire prevention, gas and electrical), site earthwork such as removal of the existing leaching field, replacement of new material, silt fence and erosion control.  It also includes site improvements such as new roadways, parking lots, curbing, sidewalks, pavers at the courtyard, benches, fencing, landscaping and plantings.  Miscellaneous costs are legal fees, miscellaneous fees for permitting, moving and storage costs, and utility back charges.

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