Dec 22, 2024

Hays USD 489 school board approves change orders for Hays High School

Posted Dec 22, 2024 11:01 AM
Conceptual drawing of the new Hays High School. Courtesy image
Conceptual drawing of the new Hays High School. Courtesy image

By CRISTINA JANNEY
Hays Post

The Hays USD 489 school board approved $208,000 in change orders for the new Hays High School at a special meeting on Thursday.

Members of the school board asked representatives of DLR, the district's architectural firm, and Nabholz, construction manager at-risk, to meet with the board to answer questions about the change orders.

The change order cost will be paid from the contingency fund and will not increase the total cost of the Hays High School project.

Ishita Banerjii, DLR Group's lead architect on the project, explained the change orders to the board.

The district's contract states it will establish contingency funds for the Hays High School project. The project has both an owner's contingency and construction contingency funds. 

The Hays High School construction site earlier this year. File photo
The Hays High School construction site earlier this year. File photo

The owner's contingency fund covers items, including

  1. Owner changes and additions to scope​
  2. Errors and omissions in design​
  3. Design clarifications​
  4. Delegated design coordination​
  5. Account for risk in unknown project elements​

The construction contingency is an allowance held within a construction manager's guaranteed maximum price to be used at their discretion for​ items, including

  1. Material shortages and substitutions​
  2. Unforeseen conditions​
  3. Scope gaps​
  4. Expediting​
  5. Schedule errors​
  6. Design coordination​
  7. Subcontractor coordination​
  8. Issues with scope completion​

Banerjii said a perfect building can't be designed. About 50 people worked on the designs for the high school, and the plans constitute thousands of pages.

The American Institute of Architects recommends contingencies because they recognize humans are not perfect, and it is impossible to draw perfect plans, Banerjii said.

"People aren't perfect," she said, "but I'm a professional, and that is why I am able to fix it."

Brett Collins, Nabholz project executive, said, "This is a good project, and we are going to beat the normal by far."

None of the change orders were mistakes made in construction that later had to be fixed. There were errors in design that should have been in the plans in the first place.

The items in the change orders are essential to the structural integrity and longevity of the building, she said.

For example, a roof drain was omitted. Leaving out that drain would cause future damage to the roof, Banerjii said. 

Some of the items in the change order have already been completed, so the project can continue on schedule. None of the change order fees will go to DLR. Most of it will be paid to the subcontractors for the additional work, with a small percentage paid to Nabholz to oversee it.

A standard owner's contingency is 3 to 5%, and the construction contingency is usually another 3 to 5%.

The contingency funds for the Hays High project, which has a $114 million budget, are well below those standards—.95% for the owner's contingency and 1.9% for the construction contingency.

With the approval of the change orders from Thursday and a previous change order on the softball field, $481,590, or 48% of the contingency, has been spent. The project is 59% complete.

The district requested the previous $228,000  worth of change orders approved by the board on Dec. 9 for the softball field. 

"We think this is a fair ask," Banerjii said. "Not everything can be predicted ahead of time."

Board member Jayme Goetz asked what would happen if the project ran over the contingency.

Collins said most of the exterior walls are in place, which will lower the risk from weather.

If the project exhausts both contingency funds, Nabaholz will need to reach out with further change orders for more funds.

However, Collins said he did not anticipate the project exceeding its contingency based on its current status.

Goetz expressed confusion about Nabholz's role in the project and frustration at the cost of the change orders.

"We are paying a butt-ton of money and trusting you not to screw us here," she said. ... "I do know if questions are not asked and things are not followed up on, it is so easy to be taken advantage of."

Board member Ruth Ruder said she experienced change orders on her home when it was built, which was nothing close to the size and scope of Hays High. She said she thought it was unfair to insinuate that Nabholz or DLR were trying to cheat the district.

Collins and Banerjii both emphasized they work for the school district and are bound by contract and ethics to act in their client's best interests.

"Our goal is to save you money so you can do more things with your bond," Collins said.

Board member Allen Park said he thought the board should have a separate representative. He also asked DLR and Nabholz to appear more frequently before the board and to bring change orders more often instead of grouping them into lump sums.

The DLR representatives said they visit the site every two weeks and could be available to answer questions.

The change order was approved by a vote of 5-1, with Park voting against it. Board member Derek Yarmer was absent.

The Hays High School project continues to be on schedule, and the school is set to open in August.