I read the article dated 8/24/17 titled “Lowering Lake Peachtree begins Aug. 28” and felt that the article could have been more complete had it identified some of the actual project cost information.
This first SPLOST project is projected to be $965,850 over the original budget identified in the SPLOST package.
The city had budgeted $3,950,000 for the construction project. The lowest bidder came in at $4,387,000 or $437,000 over budget (11 percent) with no contingencies. Please also note that the city in its bid procurement documents provided a drop-dead completion date and penalty clause in the construction documents, which can account for some of these additional costs.
City Council then also approved the construction management contract in the amount of $358,000 that was another $128,850 (55 percent) over the original budget of $230,000.
Finally, the city took out a loan because they want to get this completed before the SPLOST money was in hand. While the loan had some favorable terms (if they get approved at the rates identified), $400,000 are to cover for any contingencies and or undocumented scope during construction.
Peachtree City, Ga.