The Building Modification Task Force and the Music Wing Renovation Task Force jointly recommend to the congregation approval of a contract with Julian Barry General Contractors in the amount of $6,188,845.
This contract has been negotiated as a Guaranteed Maximum Price, meaning it is the maximum amount to be charged for the work to be done, apart from changes to the design or specifications. Any cost savings experienced within the Guaranteed Maximum Price will be shared by the church and the contractor.
Of the total contract, $3,297,494 relates to the renovation of Fellowship Hall and $2,891,351 relates to renovation and expansion of the music wing.
The recommendation to approve this contract will be presented in a called church conference Wednesday, March 26.
Q. Does the $6.1 million contract with Julian Barry represent the total cost of the renovations and expansion to be done?
A. No. In addition to the work of the general contractor, the church will be responsible for an estimated $1,393,900 in owner expenses. These expenses include architect fees, city permit fees, furnishings, food service equipment, landscaping, fund raising and a project contingency fund, as well as all expenses related to expansion of the north parking lot.
Q. So what is the total cost of the work to be done?
A. The Guaranteed Maximum Price of the contract with Julian Barry ($6,188,845) plus the projected cost of owner-related expenses ($1,393,900) comes to $7,582,745.
Q. Isn’t that more than we have raised in gifts and pledges to the Measure by Measure campaign?
A. Yes. Measure by Measure has raised gifts and pledges totaling $6,620,350. The proposed expenses exceed those pledges by $962,395.
Q. How will the church fund the difference?
A. The Finance Committee will manage any balance from this project using an existing line of credit and other financial instruments as deemed prudent. Due to the success of the previous capital campaign, Steps of Faith, the church currently carries no other debt.
Q. Has the church ever incurred debt on a building project before?
A. Yes. Unfunded portions of previous building projects have been financed and paid off over time. The church has an excellent credit history and has remained financially sound through the years.
Q. We raised a record amount of money through the Measure by Measure campaign. Why will it cost more than this to complete the promised renovations?
A. Initial cost estimates for these renovation projects were significantly lower than what the final total has come to be. While neither of the church’s building task forces made firm statements about what the costs would be, early estimates had pointed toward a range of $5 million to $6 million for the work to be done. These estimates were based on standard formulas that apply a dollar amount per square foot of construction, plus allowances for known variations.
The increased costs we now face are due to several factors, including the rising cost of steel and other construction materials, as well as more complex engineering requirements than were apparent on first examination. For example, more than $200,000 of additional expenses is due to required shoring of the existing building during renovation to maintain the integrity of the structure during excavation and expansion.
A clear example of this may be seen on the back wall of McIver Chapel. The large crack in that wall has been caused by the need for additional foundation support underneath the chapel, which was not required at initial construction but has become a need since a later renovation created what has been Choral Hall. This must be corrected before new music space can be constructed above the back end of the chapel.
Likewise, excavating along both sides of the Sanctuary in order to solve drainage problems and create new grand entrances to the Fellowship Hall space will require shoring of the building.
Q. What steps have been taken to re-examine the scope of work and find ways to reduce costs?
A. The reason this called church conference has been delayed several weeks is that the first Guaranteed Maximum Price presented to the joint task force was about $900,000 more than what is now proposed. The joint building task forces have worked with the contractor and the architects to value engineer the plans and find many areas of cost savings.
Q. Will these cost savings decisions impact the quality or scope of the work to be done?
A. No. The majority of the cost-saving measures adopted involve making more efficient choices, such as in types of lighting, types of finishes and shifting from a more expensive supplier to a less expensive supplier of a similar product. The full project as outlined to the church in the Measure by Measure campaign will be done.
Q. Are there additional cost savings the task forces could have found?
A. After working through the project line by line for several weeks, the joint task force determined that any further cuts would impact the scope of the project and would be short-sighted. The joint task force determined unanimously that it is prudent to proceed with the project, even though it will require some long-term funding.
Q. What is the process by which Julian Barry has been selected as general contractor?
A. A conference committee of the two building task forces received initial bids from five general contractors. These bids were based on the contractor’s proposed fees for the project and proposed general conditions for doing the work. Of these five contractors, three were interviewed in person by the committee and references were checked. While the committee believed any of the three finalists could have done the work well, Julian Barry was chosen because of the company’s history, recent projects of similar kind and price structure.
Q. What experience does Julian Barry bring to Wilshire?
A. This is a family-owned company that built Wilshire’s first Sanctuary. The company specializes in church construction. Recent clients include Highland Park United Methodist Church, Highland Park Presbyterian Church, Park Cities Presbyterian Church and Episcopal Church of the Incarnation.
Q. When will construction start?
A. If the contract is approved by the congregation March 26, work will begin March 27. The church already has received a building permit from the city, and pre-construction work has been completed in the music wing and currently is under way in Fellowship Hall.
Q. How long will construction take?
A. Work on Fellowship Hall could be completed by the end of 2008. Work on the music wing should be completed in spring 2009.
Q. Who serves on the two task forces that have led this project?
A. The Building Modification Task Force is chaired by Steve Conner, who is a general contractor and former chairman of the Building and Grounds Committee. Serving with him are Brian Moore, Kevin Cabaniss, Clemmie Waters and Carolyn Murray. The Music Wing Renovation Task Force, which has operated as a sub group of the Building Modification Task Force, has been chaired by Kevin Cabaniss and includes Linda Bryant, Allan Stafford, Rhonda Newman, Mark Davis and Bob Coleman. Paul Johnson and Mark Wingfield serve as staff liaisons to both groups.
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