Oxford Township officials voted 5-2 to move forward with the construction of a new administrative building last week by announcing their intention to enter into a $1,571,011 contract with the Grand Blanc-based R.L. White Construction & Development Corporation.
‘It’s my feeling that you have yourself a highly competitive price from R.L. White,? said Scott Wheeler, a member of the township’s Building and Site Committee who has 20-plus years experience as a construction professional. ‘I don’t think you’ll ever see this number again.?
‘We have a bid in hand that’s workable,? said Shirley Clancy, Building and Site Committee member and former township trustee. ‘If you lost this opportunity, future prospects for being able to construct this facility at this cost probably just won’t be there for you.?
‘If you don’t move forward on it now, you’re going to lose it,? Clancy warned officials.
Township officials authorized R.L. White Construction to proceed with building a two-level, 14,024-square-foot administrative complex on the northern portion of a 27.9-acre parcel the municipality owns at northeast corner of Seymour Lake and Granger roads.
A completion date of July 6, 2006 has been established for the construction project, according to the Nov. 10 letter of intent between the township and R.L. White.
Officials originally set a $1.3 million spending limit on the construction project, however, factors beyond their control, such as the hurricanes down south, raised the prices of building materials.
‘We’ve experience about a 10 to 15 percent increase in metals. Lumber went up. All petroleum-based products (such as asphalt) went up because of gas increases,? according to Gregory Mason, project manager with the Grand Blanc-based CHMP, Inc., the township architect for this project. ‘So, a lot of the increases were predicated on material increases that have recently been experienced.?
‘It isn’t the ideal amount we looked for,? Clancy said of the $1.571 million construction bid. ‘It was disappointing not just to you, but to us as a committee.?
‘But sometimes you have existing circumstances and you are where you are and you’ve got decisions to make.?
The Building and Site Committee estimated the new township hall will cost between $2.1 and $2.2 million. That includes the above construction cost plus other costs such as architect/engineering fees, inspection and permit costs, water and sewer tap fees and assessments, utility costs, builders risk policy, moving expenses, office furniture, shelving and filing systems, kitchen appliances/vending, exterior furnishings, window treatments and phone system.
Funds totalling more than $2.2 million are available, according to the committee, which primarily includes monies from existing township funds plus $300,000 from the projected sale of the current township hall on W. Burdick Street.
Treasurer Joe Ferrari, who cast one of the two dissenting votes, asked about the ‘advantages and disadvantages? of rebidding the project.
‘Everybody knows what the low bid is,? replied Trustee Charles Kniffen, who chairs the Building and Site Committee. ? Everybody’s going to come in at the same price. You might save maybe a $1,000, if you’re lucky.?
Based on his 20-plus years in the construction business, Wheeler told officials, ‘I cannot recall ever seeing a time when a job has gone out for rebid, without the documents changing, that the number dropped. I’m sure there have been instances of it. I have not been privy to them.?
Wheeler said if officials ‘threw this back on the street for rebid, you won’t be finding anybody chasing this $1.571 million number.? He noted the bids will settle ‘more at the mean or the median,? which he said, based on memory, was ‘probably in the neighborhood of $1.9 million.?
‘Building a building isn’t always the cheapest thing to do initially, but it is the best long-term value, it’s a long-term solution,? Clancy told officials. ‘And it’s one of the best uses of your taxpayers funds because you know you’re going to need the space.?
Supervisor Bill Dunn asked where the township is going to get $300,000 ? the projected sale price of the existing hall on W. Burdick ? if ‘we get a bill for $2 million and we still live in that hall.?
Clancy noted there are other options such as leasing the current building or taking monies from the township’s fund equity.
She told the supervisor the ‘bigger issue here? is ‘if the board doesn’t go for construction at this point, there won’t be the dollar amount present to accomplish the goal? because the cost ‘would be greater.?
‘That’s the concern and the fear.?
Clancy pointed out that if the township hadn’t moved forward with the construction, it would put itself in ‘a position where it knows it’s going to have to lease property elsewhere? and it won’t have control over future lease fees.
‘We can never determine what that cost is because it’s determined by the going rate and availability,? she explained. ‘If there’s limited availability, the price goes sky high.?