This Project Modification contains the following items:

Item #1 - Benoist Farms Elementary School Pre-K

• Change Order Proposal Request (COPR) #5 in the credit amount of $274,333.10.
• Description:  Final contract reconciliation
• Unused Contingency ($8,218.89)
• Final DPM Deduct ($266,114.21)  

Item #2 - Cholee Lake Elementary School Pre-K

• COPR #4 in the credit amount of $124,517.54.
• Description:  Final contract reconciliation
• Unused Contingency ($340.13)
• Final DPM Deduct ($124,177.41)

Items #3 - Indian Pines Elementary School Pre-K

• COPR #4 in the credit amount of $144,752.21.
• Description:  Final contract reconciliation
• Final DPM Deduct ($144,752.21)
• Cause:  School District Requested.

• Justification:  The Construction Manager (CM) Agreement is a cost plus fixed fee with a Guaranteed Maximum Price (GMP) contract.  The fixed fees are General Conditions, Construction Phase Fee (CM staff) and Construction Manager Fee (OH&P).  All other costs are billed at actual cost as long as the GMP is not exceeded.  The difference between the GMP and the actual cost is returned to the School District prior to or at project completion.  There were unused contingency funds on these projects.  In addition, the Direct Material Purchase cost and the associated Sales Tax Savings above the Guaranteed Sales Tax Savings are deducted from the CM Agreement.  The Guaranteed Sales Tax Savings were deducted from the CM Agreement when the GMP was approved.

I recommend the School Board approve Project Modifications in the credit amount of $543,602.85 to Royal Concrete Concepts, Inc. for Benoist Farms, Cholee Lake, and Indian Pines Elementary Schools, Pre-K Projects #2751-8384, 2761-8384, and 1861 8384, and authorize the Chairman and Superintendent to finalize and execute all related contract documents.

The financial impact to the Royal Concrete Concepts, Inc. Agreement is a decrease of $543,602.85.  The contingency savings of $8,559.02 are a savings to the project budget.  The DPM deduct is not a project savings as the funds are used for the School District to purchase the materials and/or equipment.

The contingency savings will be returned to Restricted Reserve.