Project Update

On August 9, the Owners Project Manager (OPM) presented the JLBC with an updated cost estimate that was based on the schematic design package. Two cost estimates were completed, one by a firm (Fennessy Consulting Services) contracted by the designer and one by a firm (RLB) contracted by Town. The two cost estimates include only ‘hard costs’, which are the building and site construction costs. A reconciliation was performed between the two cost estimates to create a ‘hard cost’ number. The OPM estimated the ‘soft costs’, which include furnishings, professional fees, expenses, and contingencies, and added that to the ‘hard costs’ to create the total projected cost of $49.9M (previously $36.3M). This represents a $10.6M increase in hard costs and a $2M increase in soft costs.

The substantial increase in costs is based on several factors, including the delay in the start of construction and an unfavorable market. (The current projected construction start date is October 2023. March 2022 was the construction start date based on the project proceeding after the Town Council vote in April 2021.)  Due to the continued uncertainty of market conditions, one estimator used an 11% escalation assumption rather than a more typical 4% and continued to escalate costs through the midpoint of construction, rather than through the start of construction.

The OPM and designer discussed possible alternatives with the Massachusetts Board of Library Commissioners (MBLC) to reduce the project costs. The grant process is guided under state regulations, and the library was informed that the MBLC cannot provide additional funding and the library cannot reduce the square footage of the building to reduce costs.

While not desirable or in keeping with the library’s mission to fully serve the community, the necessity of finding cost savings required the OPM and designer to explore the potential of removing certain elements of the library and the square footage associated with those areas (such as the Burnett Art Gallery, Special Collections exhibit space, and ESL spaces that are not funded by the MBLC grant). The MBLC informed the library that these elements could be removed from the library, but the square footage associated with those spaces could not be removed. The size of the building cannot be reduced.

The OPM presented the JLBC with 4 possible paths forward for the project:
- Reduction of hard costs - $4M in potential cuts was proposed
- Increase funding for the project – additional $8M of fundraising was suggested
- Combination of reducing costs and increasing funding
- Back out of MBLC grant

The JLBC requested additional information on the potential cuts and their impact on the project. Any additional fundraising is to be discussed between the Board of the Jones Library and the Town. The JLBC will meet again on August 23rd.

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