Why is There a $7,000 Gap in Savings Plans for Ankeny Middle School Project?

As it stands, the numbers don’t seem to add up.

consisting of $115,000 worth of savings to construction plans for phase two of Southview Middle School.

Compared to the $659,000 it will cost the to pay the construction management firm that helped provide the recommendation, it seemed district officials weren’t saving anything.

But according to Story Construction’s Pat Geary, chief operating officer of the firm hired by the school board to trim costs from the $14.6 million project, the district is still saving close to $108,000.

“Going by the construction management method, there always should be savings,” Geary said. “The value also goes beyond dollars and cents, which is the most significant thing in our way of doing things.”

In attempt to clear up misconceptions regarding the cost-to-savings ratio, Geary laid it all out to the board and members of the public Monday night.

A large sum of savings also will be found in the board choosing to hire Story instead of a general contractor.

Here’s a breakdown of the numbers presented by Geary:

$659,000

• This is the total amount it will cost the district for Story Construction’s services.

Subtract $115,700

• This is the total amount of cost reduction items presented and accepted by the school board two weeks ago.

Subtract $328,712

• Since board members accepted the recommendations presented to them by Story and project architect DLR Group, the savings will reduce the overall project cost, therefore reducing the amount of fees paid to DLR, Geary said. This will equal a savings of $94,250.

• These also are savings associated with project cost shifts, Geary said, mainly due to the lack of general contractor during construction. The district won’t have to hire a project superintendent or engineer or pay other related fees, which equal $234,192.

Subtract $322,750

• One of the biggest advantages to hiring a construction management firm over a general contractor, Geary said, is the fee is much less. While a general contractor would charge the district close to 5 percent, Story’s fee is only 2 percent of the total project cost.

TOTAL SAVINGS: $107,892