February 2023 FAQs

The estimate completed at the end of Schematic Design is $21 million over the appropriated amount at the referendum. $17.2 million is construction cost and $3.8 million is other soft costs. These numbers continued to be reviewed by the town, architect and building committee and cost reductions opportunities have been identified and will continue to be studied.

Please review this visual which highlights the drivers of the increases and potential reduction opportunities.

The Building Committee was told at its Jan. 18, 2023 meeting that the first step of the estimate was complete and it was higher than anticipated. A tactical pause was called by the Chairperson so she could work to understand the issue. The full schematic design estimate was provided to the committee at its Feb. 1 meeting. Both meetings are available for viewing on the committee’s YouTube channel.

At this time the project is not over budget. All expenses encumbered by the project are within the allocated amounts in the project budget. This includes the costs paid to the Architect and Project Manager as well as the contract costs for the Construction Manager and Commissioning Agent. 

The estimate indicates that the project is currently at risk to go over the total construction budget if all current assumptions and risks come to fruition.  Since these risks are very likely, it is prudent to review all project options and meet with the Town Council and Board of Finance to determine the next steps.

The committee’s chairperson initiated meetings with the architect to identify cost saving opportunities. The team immediately identified ways to bring down the total size of the building and cost savings associated with abatement. The architect then identified other design changes that will reduce the overall cost, which will be incorporated in the next design phase. These identified changes represent a cost savings opportunity of approximately $4.6 million. 

The sub-committee working with the architect is also gathering more information and studying further cost reduction opportunities such as a different HVAC system or readjusting the site to not move Herbert Porter Road.

No.  Last month the details of the schematic design were provided to two different estimators who provided their estimates. The estimates were extremely close to one another, but more than the project's budget approved at referendum. There will be two more estimates completed before construction begins after design development and construction documentation. The town and committee will not know the final construction numbers until the project goes out to bid and has actual numbers instead of estimates.

No.  The State of Connecticut advised that the town resubmit our grant application to the Office of School Construction Grants after all construction bids are received and the true final cost of the project is known. Once that information is submitted, the town’s reimbursement rate (which is 39.4%; less ineligibles) will apply to the final total, not the original anticipated budget. This scenario would require additional appropriation through the town’s processes.

Yes, a school could be built within the budget approved by referendum in June 2022.  That version of a school, however, would not be built to the educational specifications set by the Board of Education and would  likely not include things like sports fields, an auditorium, or improvements to parking. 

No, this problem is not unique to Cromwell.  All other school building projects at the same point in their project are also facing the same situation. In fact, this problem is not limited to schools as even commercial and real estate projects are burdened by inflation.

Yes.  The standard contingency for inflation in a school building project is 3%. The Building Committee increased that to 6% in the budget appropriated at referendum.

If the project is delayed by a year, the grant application process with the State of Connecticut would start over again.  This impacts: 

1. The reimbursement rate assigned for next year is lower than this year. This means Cromwell would not receive as much money back from the state to fund the project.  

2. The construction market could remain volatile, and there is no guarantee that any of the costs that are driving the estimate will come down or stabilize. 

3. Budgets would need to be adjusted to prepare for maintenance and repairs to the existing school which will need to be maintained for an extra year. Costs that will not be recouped.

Changing the scope of the project to a ‘renovate’ or a ‘renovate like new’ will mean starting at the beginning of the process including going back to the state with the grant application.  This would delay the project and include the same challenges as delaying for a year. In addition, a ‘renovate’ or a ‘renovate like new’ is a longer, multi-staged project and each stage is bid out separately after completion of the previous stage.  Extending the total project timeline increases the project’s risk to the volatile construction market. 

In addition, a ‘renovate’ would not meet the education specifications set by the Board of Education and fundamental issues such as security and parking would not be resolved. Students will also be impacted as they learn in a school surrounded by construction for an estimated 3 years for a ‘renovate like new’ project or estimated 4 to 5 years for a ‘renovate’ project. 

The Town Council will hold a special meeting Wednesday, February 8 at 5:30 p.m. to discuss the next steps of the project. The Town Manager has also been meeting with the town’s bond counsel and attorney and will provide more information Wednesday. 

• Recording of the Jan. 18, 2023 meeting 

• Recording of the Feb. 1, 2023 meeting 

• Presentations for meetings

• All agendas and minutes for meetings

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