Office of Financial Management Washington State Major Project Status Report Agency Number Agency

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Office of Financial Management
Washington State Major Project Status Report
June 8th, 2015
Agency Number: 699
Project Number: 30000134
School/Campus: Renton Technical College
Project Title: Automotive Complex Renovation
Bill Reference(s):
Contact name, phone number, email:
Barry Baker, (425) 235-5839
[email protected]
Agency: SBCTC
Project Description:
The Automotive Technologies education and training programs at Renton Technical College are
vital to the success of this important local industry sector. However, the existing 26-year-old
Paul Greco “K” Complex no longer meets current programmatic needs. This project will fully
renovate the existing K1, K2, and K4 buildings and provide a new K3 building replacing the
existing poorly functioning K3 building. The new building to replace K3 will provide additional
shop space and allow expansion of existing shop spaces in K2 and K4. The renovation will
correct building deficiencies, increase energy efficiency, improve life/safety, and improve
program delivery.
Square feet:
Renovation K1, K2, & K4:
New K3 Building:
Total
45,905 sf
17,645 sf
63,550 sf
Scope changes:
There have been no significant scope changes since the Predesign study was completed.
Project Total Cost:
Phase
Predesign & Design
Construction
Other (Approp/Non Approp)
See below*
Total
Biennium
2013-15
2015-17
2015-17
Appropriation
$1,583,000
$16,915,000
$1,949,000
Amount
$1,583,000
$18,446,000
$2,000,000
$20,447,000
$22,029,000
*RTC is planning on obtaining an Equipment Loan from the State Treasurer’s office and will utilize 148 funds to
repay the loan
Budgeted MACC = $12,970,123
Bid MACC (May 28, 2015) = $14,300,000
1
Schedule:
Start Design
Bid Date
Notice to Proceed
Budget
Schedule
October
2013 – Feb
2014
March 2014
May 2015
July 2015
50% Complete
Substantial Completion
Final Acceptance
May 2016
April 2017
June 2017
Predesign Complete
Actual/Forecast
Draft completed Feb
2014. Final report
submitted April 2014
March 2014
May 28, 2015
July 1, 2015 (Depending
on end of Legislative
Session date)
Apr 2016
Feb 2017
April 2017
Variance (wks)
0
0
0
-4 wks
-8 wks
-8 weeks
Project Status and discussion of Critical Path for Construction:
The project was funded for Predesign and Design to be performed in the 2013-15 biennium. At
the end of the Schematic Design phase in May 2014 the MACC scope was estimated at $14.3
mil., which was approximately 10% over the MACC budget. A Value Analysis process was
performed in June, and at the end of the Design Development phase in September the MACC
scope was estimated at $12.9 mil.
In the Value Analysis process, the most significant cost estimate reduction was achieved by the
college committing to temporarily move the automotive programs off campus to a leased facility
during construction. By eliminating the need for sequencing, the anticipated construction
schedule (NTP to SC) was reduced from 22 months to 13 months.
After investigating potential temporary off-campus facilities, the college was unable to find a
viable property to lease. During the Construction Documents phase the college decided to keep
the automotive programs on campus during construction. The anticipated construction schedule
(NTP to SC) was revised to 20 months, including multiple Construction Sequences to allow the
programs to remain operational. However, with help from other Value Engineering measures,
the CD phase MACC cost estimate was under the budgeted MACC of $12,970,000 prior to going
out to bid.
The project recently opened bids on May 28, 2015. There were (3) bidders, and the apparent low
was Construction Enterprises & Contractors (CE&C) at $14,300,000 base bid, which is
$1,330,000 over the budgeted MACC of $12,970,000. The project is currently over budget.
2
In order to complete the overall construction schedule within the 2015-17 biennium and have
programs operational for Fall quarter 2015, it is necessary to perform site & utility work
(Sequences 1A & 1B) within the 10-week period between July 1 – Sept 14, 2015. This requires
Notice to Proceed (NTP) to be issued on July 1, 2015. In order to issue NTP on July 1st, the
Department of Enterprise Services needs funding approval from the college, and the college
needs a 2015-17 biennium capital funding commitment amount from the Legislature by June
15th.
Contract Award History
A/E Agreement
Predesign Agreement
Predesign Amendts
Original Agreement
Amendments
Pending Changes
Total
Current Design
Contingency
Construction Contract (excl. sales tax)
Bid Award Amount $
$ 105,488
$ 48,811
$1,252,519
$ 474,059
$ 140,000
$2,020,877
Bid Award Amount
Change Orders
Pending Changes
Total
Current Construction
Contingency
$43,600
$
$
$___________
$
$
Potential for Project Cost Overruns/Claims
At the end of Predesign in April 2014, the scope of the project was challenged with a total stateappropriation budget of $18,299,000, which is 4% lower than the $18,986,000 total project
estimate performed in the 2007 Project Request Report seven years ago. The notification in
August 2014 of an increased state-appropriation budget of $18,498,000 was good news, but is
still 2.6% lower than the 2007 PRR.
The project is currently facing several potential cost overruns due to construction bid market
escalation, pending legislative budget cuts, and the twice-extended legislative session:

Although the CD phase MACC cost estimate was under the $12,970,000 budgeted
MACC, the estimate did not accurately predict the high level of escalation in the current
bid market. The low base bid came in at $14,300,000, which is 10% over budget.

Although the final Legislative budget has yet to be released, the preliminary Governor’s,
House, and Senate budgets all listed the project’s 2015-17 allotment at a (10%) cut.

Completing the construction phase within the 2015-17 biennium and keeping programs
operational during construction require NTP to be issued on July 1, 2015. If a 2015-17
biennium funding amount from the Legislature is not released by June 15th, the
construction phase could be delayed. Construction start could be postponed by up to a
year, due to the necessity of scheduling site mobilization/prep during Summer quarter and
site/utility work during the 5-week break from mid-Aug to mid-Sept, in order to keep the
automotive programs operational during construction. Any delay over 60 days from the
3
May 28th bid opening would require the project to be re-bid, which would also likely
result in further bid escalation and budget overruns.
Discussion of Project Quality
The buildings will be durable, easy to maintain and cost effective to operate. Finish materials
(i.e., pre-finished metal siding, sealed concrete floors, etc.) will be easy to maintain, with
minimal manpower, and which can withstand the level of use typical at a higher educational
facility without losing their appeal. The new building and renovation of existing buildings are
designed with flexibility as a goal; flexibility in its configuration with open shop bays, and
flexibility in the way it will be used. New classrooms will be located for shared use by the
Automotive programs, industry partners, and other programs by the College.
Project Images
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