One that has no ties to anything other than integrity! Now that Ehlers has been hand-picked for the financial adviser contract and we are in the midst of volumes of double talk over the excessive contract about to be awarded to the construction manager, it's time focus on the most troubling numbers in the entire project. Pay close attention to lines 415 & 417 on the original Kraus proposal at the bottom of this page.
I guess they went with percentages on these lines so the end number wouldn't look so large? Nevertheless, a 6% inflation contingency comes to $1,369,427. Inflation? What inflation? Where does this money end up and who accounts for it since inflation is negligible?
Soft cost are factored at 25% or $5,706,118. This is where the soft costs are going:
Architectural Fees for Remodel (different than new) 5.5 to 7%
Mechanical and Electrical – 2 to 3% (pending scope)
Permits – 1%
Testing – 1%
Misc Survey – 1% (varies on area)
Bond – (in today public bid economy) 1%
Misc Owner costs (Staff and misc needs during the project can be charged to a project if district chooses) – 2%
Legal Fees – .5%
Insurances - .5% (depends on your policy in place)
Commissioning per the State of MN – 1 %
Plan Reproduction/advertising for Competitive bidding – .5%
Design Contingency – 5% (highly recommend for remodel)
Construction Contingency – 5% (highly recommend for remodel)
I still can't get my head around the fact 10% of this entire project or $2,282,427 is earmarked for Design & Construction Contingencies! I thought Kraus Anderson was the best of the best and we paid $500,000 extra to make them even better? Maybe they are; just not their estimators?
Would love to see a full accounting for the 1% or $228,242 to Ehlers?!
Would love to see a receipt for every paperclip the 2% miscellaneous owner's slush fund buys!
See why we need a project accountant with an online ledger?
Don't forget to fill out the survey on the right side of the page!!!!