How are bond construction costs determined?
Cost estimates were part of the Bond Advisory Committee process. An architect and estimator based estimated costs on current and projected cost standards for the industry.
Hard construction costs for public school projects bid in 2015 have averaged $329 per sq. ft. Hard construction costs include all labor and material required to complete the structure.
Thirty five percent is added to hard construction costs to account for the full cost of completing the project. Those are soft costs, which cover fees for architectural/engineering services, furniture and equipment, project management, permits and system development charges, frontage improvements and a small contingency fund.
The full cost of construction (hard construction cost plus soft costs) in 2015 dollars is estimated to be $444 per square foot. To determine full cost of construction in 2020, the mid-year of bond projects, an inflation factor of 4% per year must be factored to the 2015 full cost amount ($444). This brings the estimated cost per square foot for new construction to $540 per square foot in 2020.
How much will the bond cost taxpayers?
The $433 million bond is estimated to continue the current taxpayer rate of $2.37, subject to variation, per $1,000 of assessed property value.