Cost overruns put projects over contracts

By RON LARSEN

Journal Staff Writer

NEW ULM--With the three sales tax referendum projects nearly completed, cost overruns resulting from change orders have put the projects over their contracts by $271,352.

The three projects were contracted to cost $9,726,600. The change orders raised that figure to $9,997,952, an increase of 2.79 percent.

The City Council was asked to approve a total of 12 change orders over the past 16 construction months. The council's approval was a mere formality anyway because, in order to keep construction moving, the changes already had been made by the time they got to the council.

The largest overrun, a 5.44 percent increase, occurred with construction of the New Ulm Community Center (formerly Senior Center). The original contract called for spending $2,077,455 building the "Cafetorium" addition.

However, the existing soil where the parking lot was to be built needed to be replaced, resulting in a nearly $40,000 change order. The 11 change orders totaling $113,074 raised the center's cost to $2,190,529.

Twelve change orders during construction of the New Ulm Civic Center raised the original contract price of $7,184,319 to $7,337,312, a difference of $152,993 or 2.13 percent.

The Vogel Arena remodeling for its post-ice rink era isn't finished. However, two change orders (one a decrease of $125) have raised the $464,826 contract price 1.14 percent to $470,111.

Because the civic center is completed and open and the council has received a certificate of "substantial completion" for the community center, any more change orders should only involve Vogel Arena.

Among the items listed in the last change order was an add of $206 to change the name from Fairgrounds Community Center to Civic Center.

In presenting the change order, City Manager Brian Gramentz told the council the contractor didn't have enough letters to make the change.

"I guess we changed the name one too many times," Council President Dan Beranek replied.

Not all the changes added to the price, however. There were deletions, too.

When it was decided to delete the vinyl colored tile flooring for the art studios and art storage room on the Community Center's lower level in favor of sealed concrete in all three rooms, the city saved $3,552.

By the time the change orders reached nine or 10, councilors started to groan, "Not another change order." However, Gramentz explained that most change orders resulted from unforeseen situations developing during construction.