1. What is the Guaranteed Maximum Price (GMP)?
The Guaranteed Maximum Price, or the GMP as it’s often referred to, is the contractors maximum price for the construction work defined in the drawings and specifications. It does not include the non-construction items (see below for a list of the non-construction items) nor does it include errors/omissions in the drawings and specifications, unforeseen conditions/discoveries or added work requested by the owner.
2. When will the work be completed?
The Phase One portion of the project will start in early January 2015 and be complete by the beginning of May 2015. We anticipate the Phase Two work and the St. Francis Garden work will start in early May 2015 and be completed by the end of October 2015.
3. What is included in the Construction Associated costs?
The costs in this category include permits, independent testing and inspection (required by the building code) and builder’s risk insurance (the insurance the owner buys to pay for replacement for the new construction in case of fire, earthquake, vandalism, flood and theft).
4. What is included in the Consultants costs?
The costs in this category include the architect fees as well as all of the architect’s consultants (I.e. acoustical engineer, structural engineer, lighting consultant, etc.). Also included in the category is a budget for cost estimating reviews and assistance with owner’s representative services during the construction.
5. What is included in the Organ costs?
The costs in this category include the cost of the new organ, removal of the existing organ, creating a 3-D model of the new organ, and the tuning of both organs.
6. What is included in the Furniture, Furnishings and Equipment costs?
The costs in this category include the chapel chairs, much of the new furniture in the parish hall, Audio-Visual work if needed, new baptismal font, new cross, new carts under the stage and an upgrade to the Wi-Fi system throughout the campus.
7. What is included in the Impact on Operating Budget costs?
The costs in this category include the debt service to borrow from the church to bridge the time between now and when all of the pledges are received and the loss of rental revenue from Epiphany School. The project will not borrow from the parish until it is absolutely necessary.
8. What is included in the Moving costs?
The costs in this category include the moving, storage and return of any items needing relocation during the construction project.
9. Is there any chance the project can cost more than the currently projected budget? If so, how will the overages be paid?
There are three ways cost overages could occur. First, if the owner adds scope to the project. Second, if the assigned Construction Contingency is not adequate for covering errors/omissions in the drawings and specifications, and/or the unforeseen conditions/discoveries. Third, if the Non-Construction Contingency is not adequate for covering non-construction costs. A number of safeguards have been and will be in place to avoid such an occurrence. They include: a) generous industry standard contingencies have been used for this project; b) significant investigation has been done prior to the development of the GMP; c) the Rector and construction team have committed to not changing scope whatsoever after the construction contract has been signed; and d) an outside consultant is employed to insure all non-construction costs were included in the total project cost, and that construction and non-construction costs are accounted for during the life of the project.
10. For what kind of items is the Construction Contingency used?
The Construction Contingency is used for errors/omissions in the drawings and specifications and unforeseen conditions/discoveries. It does not include added work requested by the owner.
11. For what kind of items is the Non-Construction Contingency used?
Answers to questions 3 – 8 state what is included in the Non-Construction Items. The Non-Construction Contingency is used to cover additional costs if any of these items cost more than initially budgeted.
12. Does the Contractor carry a contingency in addition to the Construction and Non-Construction Contingencies?
Yes. The Contractor carries a contingency, called the Contractor Contingency, to cover their errors. These errors may include gaps in their bid packages, labor over-runs, subcontractor or supplier default or additional staffing, if required. This contingency is included in the GMP and the use of this contingency must be approved by the owner.
13. What will be the impact on the church’s budget/revenue due to the project?
We have included the loss of revenue from room rental and the cost of debt service in our project budget. It is possible that plate receipts may decline if attendance falls during the project; by the same token, pledges and plate may increase after the project is complete. Otherwise, the project should have no effect on the church’s budget or revenue.
14. Why does the church have to pay Washington State Sales Tax?
All construction projects in Washington, regardless of their ownership or use, are required to pay Washington State Sales Tax. This includes non-profit owners, religious institutions, schools, hospitals and even State of Washington projects.
15. Does the current project meet or exceed what was told to the parish community?
We believe the current project scope is consistent with our conversations with the parish community. We have involved parishioners in developing the current scope at key points, maintained an open meeting environment, and provided weekly updates to the parish.
16. How will the construction impact the school?
Parish staff have worked closely with Epiphany School (ES) and Epiphany Early Learning Pre-school (EELP) as the project has evolved. ES has chosen to move out of the classrooms in the Parish Hall for the 2014-2015 school year, while EELP will move out of the Parish Hall temporarily. Perhaps the greatest impact on ES will be that graduation is unlikely to occur in the church. We will work closely with ES and EELP during construction to ensure the safety of the children, faculty, staff, and school communities.