Over the last several weeks, we have been evaluating the costs associated with the two High School design options currently under review (for an overview of the options, click here; please note this is a large file).
This is a critical step in the High School Project and is the preliminary work needed for future discussions with the MSBA. These cost evaluations provide the first review of the multiple factors which must be weighed in the decision process. Below, we have outlined the cost drivers and variables. These will be used to provide more information on the decision between the two options and help frame the decision-making process going forward.
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~The Wellesley SBC
What is Cost Evaluation?
First and foremost, it is important to view cost evaluations in context. Like the "fit tests" that provide information on spatial relationships (not design), the "cost evaluations" provide information in preliminary costs (not specific estimates). The information is drawn from current and projected construction costs, knowledge of the site conditions and phasing, and expertise in project management.
The cost evaluations are comprised of four major parts:
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Hard costs - the costs associated with the physical building of the structure, including materials and labor. |
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Soft Costs - the costs associated with design work, project management, inspections and testing throughout the entire construction period. |
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Contingency - an incremental percentage included to provide for unanticipated conditions or findings, resulting in change orders. The contingency factor for renovations is typically higher than for new construction. |
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Escalation - the annual rate at which the cost of construction goods and services is expected to rise. This rate is applied to the hard costs based on the start of construction and taking into account the duration of construction. |
A description of the cost drivers is below, followed by the summary and detailed cost evaluations. These are preliminary; further analysis will proceed in collaboration with MSBA upon engagement.
Cost Drivers
There are multiple factors which drive the cost of a major municipal building project. These have been considered and quantified for the purposes of these evaluations:
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Local construction market - the state of the local market plays a major role in the pricing of a project, dependent largely on the overall construction economy and how busy is the public work portion of the market. |
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Global impact - commodity prices such as steel, copper, oil and cement all impact on the cost of construction. |
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Site conditions - the question of how difficult or easy is the site to work with. (i.e. A new building out in a field is easier to build than on a site in town.) |
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Design - the shape, height, configuration and features of a building impact cost. |
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Materials/durability - materials are available in a wide spectrum of cost and durability. For a structure to have a 50-year functional life, we will need durable materials that are economical and deliver value. |
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Sustainability/LEED - there is strong advocacy for this school to be Green. There us a wide range of Green strategies which vary in cost. The preliminary costs provide for a design and construction which meet the Mass CHPS level (Massachusetts - Collaborative for High Performance Schools) at a minimum. |
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Start of Construction and Escalation - project costs increase as inflation and local conditi0ons cause price pressure. For projects with long durations, this must be factored in. |
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Duration of Project/Phasing - the duration of a project is dictated by the site constraints, the ongoing use of the building and the number or phases required to complete the work. Phasing involves multiple mobilizations, either deferring purchasing materials or storing of materials for subsequent phases. Increased duration and/or phases ultimately increase project costs. |
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Permitting process - there are multiple permits required for a project of this magnitude. The more time required for obtaining the necessary permits, the more costs will be incurred due to escalation. |
Cost Evaluations
Summary Project Costs
All new construction - $136 to 148 million
Renovation/addition - $141 to 152 million
Detailed Project Costs
For New Construction: 318,000 sq. ft. project duration 42 months, 2010 start cost range of $300 - $325 per square foot
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$300/SF |
$325/SF |
Total Hard Cost
Soft Cost 20%* Contingency 7%* |
$95,400,000
$19,080,000 $6,678,000 |
$103,350,000
$20,670,000 $7,234,000 |
Project Cost Today |
$121,158,000 |
$131,254,000 |
Escalate @ 5%/yr |
$15,037,000 |
$16,290,000 |
Total Project Cost |
$136,195,000 |
$147,544,000 |
For Renovation/Addition: 350,000 sq. ft. project duration 60 months, 2010 start cost ranges - gut renovation (152,000 sq. ft.): $220 - $238 per square foot new (198,000 sq. ft.): $300 - $325 per square foot
Hard Cost Gut Reno $220/SF New $300/SF |
$33,400,000 $59,400,000 |
Gut Reno $238/SF New $325/SF |
$36,176,000 $64,350,000 |
Total Hard Cost Soft Cost 20%* Contingency 10%* |
$92,800,000 $18,560,000 $9,280,000 |
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$100,526,000 $20,105,000 $10,052,000 |
Project Cost Today Escalate @ 5%/yr |
$120,640,000 $19,998,000 |
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$130,683,000 $21,664,000 |
Total Project Cost |
$140,638,000 |
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$152,347,000 |
* These calculations are calculated based on percentage of total Hard Costs.
Next Steps
We will continue to refine the fit tests for both renovation/addition and new construction. Additional major decision points include: modular/temporary classrooms, "green" premium, field reconstruction and parking considerations.
In November 2007, the MSBA is expected to begin a "rolling" process of announcing which communities will begin the next phase of the process. Further action will be dependent on that timing.
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TELEVISED REPLAY of Cost Presentation
The presentation on project costs was videotaped by The Wellesley Channel.
The replay schedule is as follows:
Sat, 10/27 at 10:00 am Thu, 11/1 at 3:30 pm Sat, 11/3 at 10:00 am Mon, 11/5 at 1:30 pm
ADVISORY COMMITTEE REPORT TO STM
Included in the report is the information and support of Article 13, the acquisition of three residential properties on Seaver Street adjacent to the High School property.
Also included in the report is a summary of the High School Project to date prepared by the SBC.
We encourage you to review these important documents.
Reference Articles
Learning from Others, by Cynthia Westerman, Member of the SBC. A summary of the site visits to local high schools which have recently undergone renovation and/or new construction.
For Performance or Sport: The Space Matters, by Suzanne Littlefield, School Committee and SBC Member. A summary of the School Committee decisions regarding design of the Auditorium and Gymnasium spaces to enable the WPS Educational Program.
Enabling Core Values, by the SBC. The key principles (in order of priority) to serve as the foundation for decision-making in the High School Project.
The WHS Project and You, by Katherine L. Babson, Jr., Chair of the SBC. The impact of the High School Project on each and every resident and the commitment to two-way communication.
How Public Education has evolved in Wellesley, by Bella Wong, Superintendent of the Wellesley Public Schools. How the many changes in teaching methods, state and federal mandates to education, and the importance of the extracurricular programs impact the current Educational Program.
WHS Project: The Pieces of the Puzzle, by Bella Wong, Superintendent of the Wellesley Public Schools. A summary of the physical space needed to enable the WPS Educational Program. The resulting "Architectural Educational Program" details what is included and where it is located and as such, becomes the basis for the building design.
WHS Project: The Importance of Site, by Marlene Allen, Member of the School Committee and Chair of the Interboard Land Use Working Group. A summary of the study conducted by the Land Use Working Group to assess the constraints and opportunities afforded by the land parcels adjacent to the current High School site.
SBC Members
Katherine L. Babson, Jr. Selectmen Representative SBC Chairman
Steve Baker Citizen-Architect
John Donahue Facilities Administrator
Tom Goemaat Citizen-Contractor
Steve Gagosian PBC Representative
Rusty Kellogg Advisory Representative
Andrew Keough High School Principal
Hans Larsen Executive Director
Suzy Littlefield School Committee Representative
Kathy Mullaney PBC Projects Administrator
Cynthia Westerman Citizen-Project Manager
Bella Wong Superintendent of Schools
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