Governor going to deliver new Hot Springs VA Home at budget

After the project was looking delayed, if not endangered by higher than anticipated cost estimates, Governor Daugaard’s staff announced yesterday that work is proceeding ahead on a new VA home at the original budget:

Gov. Dennis Daugaard had said earlier a new plan for the Veterans Home might be presented to the Legislature when it holds it regular 2014 session in January.

But Eric Matt, a member of the governor’s staff, told a legislative committee Wednesday that state officials have been working with an architect and construction company to redesign the facility to bring its cost back below the $41.3 million authorized price. Scull Construction of Rapid City, which submitted the low bid last spring, will manage the project and provide a guaranteed maximum price.

Scull Construction will present its initial cost estimates to state officials next week, but officials are confident the redesigned Veterans Home can be built for less than $41.3 million, Matt said.

Officials do not expect to ask the Legislature for any additional money for the project, which could be completed by November 2015, Matt said.

“We’ve been digging into this, and we’ve made some changes. We’re in the preliminary stages, but we feel good about things and things are on track,” Matt told the Legislature’s Government Operations and Audit Committee.

Read it all here.

2 Replies to “Governor going to deliver new Hot Springs VA Home at budget”

  1. Anonymous

    The big win here is the “guaranteed maximum price” clause in the new contract, something that was lacking before.