“Mitch Van Aller has been working with the architects, engineers and general contractors to see how we could trim the cost by 1.2 million without sacrificing quality or decreasing the footprint. They have now managed to trim about $900 000 out of the budget and so we are at quarter of a million over budget. So still some work to do.” – School Board Chair Marieze Tarr

South Okanagan Secondary School Project Update: At the September Board of Education meeting district staff advised that costs were higher than projected with a budget shortfall of $2.1 million. In reviewing the Project Identification Report (PIR) against tenders awarded, the following is noted:

– In addition to the re-building of the school, the PIR includes costs for clean-up and restoration, temporary accommodation, and additional staffing required due to the temporary nature of the school site.

– Project shortfalls can be attributed to multiple factors including: – market conditions at the time of the tender such as number of open tenders available for bidding; – the unit rate for the first PIR was higher than the unit rate used for the second PIR although existing conditions and standards and finishes of the first project were continued for the second project; – the same mechanical design had to be continued in the second project as intended for the first project. Mechanical downsizing could not be contemplated based on the footprint of the existing equipment and school design; and – material costs have increased between projects.

– School district staff, consultants and the general contractor are working diligently to bring the project within budget without compromising the design or the intent of the school’s use. As of October 18, 2012, the project budget is within $250,000 of projected costs.

– Based on a budget of $22 million, staff is confident the project will meet the budget and quality targets. In addition, the project will be reviewed continually until completed. Further details will be provided at the regular Board of Education meeting in November.