Friday, August 20, 2010

Why a Building Project Needs a Contingency Fund

"Change orders" are an unavoidable part of the process.

Dwight Foster Public Library
The original building

Link to August 18 Daily Union article, "Library changes approved".

Excerpt: Two change orders for the Dwight Foster Public Library [link to "Foster Growth" blog] expansion and renovation project were approved by the Fort Atkinson City Council on Tuesday.

The council took that action unanimously during its regular session.

Connie Meyer, library director, outlined the change orders, saying the library project continues to move forward.

"Even though Joe Daniels (Construction) discovered some unexpected existing conditions, we are on time and on budget, as we had budgeted contingency dollars understanding that it was important to plan for such possibilities," Meyer told the council members.

The construction change orders were recommended by the architect and the library construction committee, as well as the library board.

The total cost of change order No. 1 is $43,961.54, while change order No. 2 costs $68,121.64. These two change orders, plus $34,351.11 in non-construction reductions, will reduce the contingency fund balance from $330,000 to $183,566

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