School construction projects see cost savings

Lori Conrad of the Marion County Public School Board speaks during a groundbreaking ceremony for a new elementary school that will be built at Winding Oaks Farm off Southwest 49th Avenue Road in southwest Ocala, Fla. on Thursday, March 21, 2024. The new school, which is not yet named, is expected to be completed in 2025. [Bruce Ackerman/Ocala Gazette] 2024.
The Marion County school district has amended contracts for construction managers on three school construction projects, resulting in over $14.2 million in savings on materials and labor costs.
At its Jan. 14 meeting, the school board approved three separate change orders for cost deductions on the Liberty Middle School addition, new Elementary School X and new High School CCC.
In December, the “Gazette” reported that the High School CCC project was more than $29 million over budget and that school district leaders were looking to save money in other places to offset the higher costs.
Liberty Middle School addition
The original contract for the construction manager was $9,269,197, to cover labor and materials costs for the construction of the 16-classroom wing at Liberty Middle.
At the meeting, the board approved a change order that reduced costs by $495,039, resulting in a new contract amount of $8,774,158.
This action will save the district approximately $28,162 in sales tax.
Elementary School X
The original contract for the construction manager’s contract was $30,729,187, to cover labor and materials for the interior construction of the new elementary school.
Since the original agreement, there have been seven cost reductions and additional change orders resulting in a total savings of $2,662,429.
These change orders lowered costs by $652,707, resulting in a new contract amount of $27,414,51. This action will save the district approximately $37,040 in sales tax.
High School CCC
The construction manager’s contract was originally $65,624,563, to complete early equipment procurement, building foundations, shell and site work for the new high school.
The board approved a change order that lowered the cost by $13,125,000, resulting in a new contract amount of $52,499,563.
This action will save the district approximately $743,255 in sales tax.
Across all three projects, the school district is saving over $800,000 in sales tax funds with these new agreements.
Voters approved the school district’s half-cent sales tax measure during the general election in 2024, in addition to approving an extension of the county’s penny sales tax to fund infrastructure and public safety.
The school half-cent sales tax has been a revenue generator for the district in the past, from January 2005 through December 2009. Levying the tax generated over $111 million in revenue and helped to fund the construction of four schools: Horizon Academy at Marion Oaks, Legacy Elementary School, Liberty Middle School and Marion Oaks Elementary School, according to MCPS.
The school district has a $330 million certificate of participation loan to pay for two new elementary schools, the new high school, the new Lake Weir Middle School, a wing at Liberty Middle School, a wing at Hammett Bowen Elementary, a wing at Marion Oaks Elementary, a wing at Horizon Academy, and the replacement of the Osceola gym. The debt service will be paid by the capital outlay budget, which is now being supplemented by school impact fees and the half-cent sales tax.
The savings from the recent change orders will help offset the rising costs of the new high school project, which was projected to have gone over $29 million over budget in December.
The total anticipated costs for High School “CCC” racked up to $164,777,011, $153,930,244 of which consists of construction costs, said Ivonne Bumbach, interim director of facilities for Marion County Public Schools.
The available funds for the project are $135,585,439, leaving the district over $29 million short after changes to the school’s design, delays in starting construction, and cost escalations.
The school was originally planned to be smaller, but now has increased by 35,000 square feet for a total 310,000 square feet with the intention of housing more students. Adding square footage to the school cost a price increase of $14 million.
In addition to adding square footage to the school, cost increases are being attributed to the need to relocate gopher tortoises—a protected species in Florida–that live on the property, the accelerated timeline for opening, the construction of a shelter and projected regional and national material cost escalation.
The delay in choosing contractor for the high school caused a cost escalation of about $5 million. The accelerated timeline for opening the school, considering subcontractor overtime, costs about $9.3 million. The construction of a shelter at the school is estimated to cost about $2 million.
In an effort to save costs, school district staff suggested that the third floor of the new high school be constructed but not built out. This gives the district the option to save money now, while having the option to expand the school to house more students later.
The new high school is anticipated to open in August 2026 with a capacity of 2,011 students but could eventually house 2,711 students once the third floor is completed.
The school will house 61 classrooms, 20 labs, three building complexes, enhanced security features and minimal entry points, an administrative building, first-floor office areas, a second-story media center, a full-service cafeteria, art and music suites, a performing arts auditorium, 867 parking spaces, a gymnasium, an athletic stadium for football and track and field; and playing fields for baseball, basketball, beach volleyball, soccer, softball, and tennis.