A new cost estimate for the Tisbury School renovation and reconstruction project puts the project close to $26 million in the hole, and predicts the final price tag at nearly $82 million without changes to the original plans, according to a report compiled by the owner’s project manager, Daedalus.
“It’s been going up. Now it’s all very clear terms. It is a substantial increase,” town administrator Jay Grande said Wednesday.
The select board was scheduled to discuss the project to set a town meeting date for next month as The Times went to press on Wednesday. “I expect we’re going to be asking voters for an additional $26 million,” Grande said.
The report shows a dramatic increase in prices for a project that was already considered $10 million in the hole. The report, authored by senior project manager Michael Owen, cites inflation exacerbated by the ongoing pandemic and supply chain issues. Steel prices alone have gone up 127 percent between 2020 and 2021, according to the report.
The report notes that the construction manager, architect ,and owner’s project manager have conducted “in-depth value engineering” to consider alternate designs, and settled on one — with the support of town officials — known as Option 3,which reduces the administrative addition and the overall square footage of the building, but still meets the school’s educational needs.
“Finally, as we look into the near future, we see no reverse in the impacts of the current market conditions, and expect the cost to complete the project will continue to rise, and anticipate continuing increases in cost based on market volatility paired with decreases in available labor or bidder interest.”
Grande, who released the report to The Times Wednesday, said earlier in the day he expected that a draft guaranteed maximum price for the project that is due on August 8 will be pretty close to the $82 million price tag detailed in the Daedelus report.
The school building committee got an update on the project earlier this week, but the new prices weren’t yet available.