The takeaway
Combined with project delays, a change in the originally planned location of the elementary school in 2022, delays in construction and inflationary pressure resulted in the price tag for the school increasing from $30 million to $53 million, said Paul McLarty, chief financial officer for NBISD.
“We've got the capital and contingency fund set up that we can use, and that's what we're asking to do ... and not to exceed $9 million of use of that capital and contingency fund for the purpose of closing out this one,” McLarty said.
Earlier this year, NBISD officials created the capital and contingency fund with a total of $20 million with the intention that it would be used for forecast expenses in remaining bond projects exceeding the budget, according to board documents. The board unanimously approved the funding.
Current situation
Due to weather delays, Legend Point Elementary is also expected to take longer to complete.
In September, contractor Guido Construction wrote a letter to the district requesting an extension of the Nov. 10 deadline for completion of the project. The board granted an extension for completion to Jan. 6, 2025 in an operating amount not to exceed $132,501. That money will be paid for through the project’s construction allowance.
“I think, with any luck, that they're going to push and we're going to get to come back to you and bring a change order taking some of these funds back, but we want to make sure we've got enough in there in case we hit some kind of weather issue over the next several months,” McLarty said.
