Agenda - 12-14-2004-9a - Laserfiche WebLink

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5 Architectural Group, PA. November 17, 2004 Ms, Pam Jones Purchasing Director County of Orange Hillsborough, North Carolina Re: Southern Orange County Senior Center -Budget and Schedule Dear Ms, Jones As per your request, I am attaching the preliminary cost estimate for the Southern Orange Senior Center as well as the design and construction schedule. I am also attaching letters for your review from many of the area material suppliers documenting their rising costs. These documents are for your use in discussing these issues with the Orange County Board of Commissioners and in reaching a determination of an appropriate budget for the building The cost estimate for the project is based on similar buildings under construction today. There has been considerable movement in the construction sector this year, starting in late February 2004 with the sharp rise in steel costs followed by rises in concrete and fuel. The steel costs have since filtered down to product supply so that not just the structural billet steel is affected, but other steel components - HVAC duct, conduit, fixturing, etc. -are also affected. Steel costs rose approximately 45% in the first three months of the year.. Concrete rises have also affected building costs, particularly institutional construction that utilizes more elements of fire resistive construction for building slabs and footings, Finally, the rise in fuel costs has been passed along by suppliers in the form of transportation surcharges added on to almost every item delivered to the site. The net affect of these cost increases is that municipal and institutional projects that were costing in the range of $120-$140 per square foot as recently as last January are now coming in with low bids in the $150 to $170 range for the same materials and scope. The second item of import for this project is the schedule. During the initial weeks of the design process, we developed a design and construction schedule. The major components of the schedule that provided fixed dates were the Chapel Hill Special Use Permit process, the Orange County bidding process, the schedule for construction of the project, and the move out date for the existing Senior Center in the Galleria shopping center. We coordinated our design process around accommodating those fixed requirements to enable the Senior Center to continue operation making a smooth transition from the existing facility to a completed construction project. We are currently adhering to that schedule with the understanding that the budget issue will be defined within the timeframe that will allow us to continue working on the project. We cannot do forward with the design of the building without a clear understanding of the project budget, If the budget is not defined within the month of December, 2004, the schedule will necessarily slip. 5310 South Alston Avenue, Suite 220 Durham, North Carolina 27713 919A89 9000 tcl 919A938937 fax ~^nvv/. yurlitza rch itects,com