“We have a problem,” Town Manager Tim Pellerin grimly informed town councilors last week before describing unexpected contractor charges that have arisen a second time for the Town Hall renovation.
So far, there are no answers from the contractors.
Contractor Oak Point Associates has more than tripled the cost of a new heating and air conditioning system for Town Hall from $150,000 to $500,000. And Dovetail Consulting, the town’s representative for the Town Hall project, has warned there could be another $143,000 above that in costs for the HVAC system.
“Oak Point Associates cannot explain these charges,” Pellerin told the Town Council on March 24. “They cannot explain how they missed the whole scope” of the HVAC cost.
In addition, said Pellerin, Oak Point has informed him the project is running 10 or 11 weeks behind schedule, which could add to the cost.
“Something is amiss and we need to know what it is,” Pellerin said. “We don’t want to get stuck with additional cost and delays. We should act, call all the parties involved, and ask how this happened.”
Council members reacted to the news with a level of alarm similar to that expressed by Pellerin. Councilor Sam Flinkstrom maintained that, while contractors Oak Point and Charters Brothers have the right to incur additional expenses, “any charges should come out of their contingency funds.”
“The ideal situation,” Flinkstrom added, “is to come to an agreement with no ill will.”
Pellerin agreed, saying, “We don’t want to end up closing the project out by asking taxpayers for more money, and they ask why?”
The Town Council unanimously passed a motion directing Pellerin to contact Oak Point about the $500,000 charges. The council also agreed unanimously not to accept the charges as a general town responsibility until it is determined who is responsible for the HVAC expenses.
The council will meet with the contractors and Dovetail Consulting at 2 p.m. Tuesday, March 31, in the Town Hall auditorium.
In December, voters at a special town meeting approved the use of $750,000 from the town’s undesignated fund to cover $300,000 in overruns reported by contractors in October and others that might occur. The $300,000 overruns were attributed to increased material costs, a delay in getting started and tariffs imposed last year.
Pellerin had recommended $750,000 as backup in a worst cast scenario. “If we run short, we can use the money; if we don’t need it, we won’t spend it,” he said.
