Is the Current Estimate Final?
Based on the history of the project, the nature of capital improvement projects, and numerous contingencies, the cost could rise further.
In the project’s brief history, the construction estimate has gone from $37,000,000[1] to $40,000,000[2] to $43,017,000[3] to the current $58,968,000.00[4] estimate.
Industry studies have shown 62% of large-scale capital improvement projects end more than 25% over budget and 52% of such projects end more than 50% over budget.[5]
Wade Trim’s proposed contract disclaims the accuracy of its estimate, stating “Engineer assumes no responsibility for the accuracy of any opinions of Total Project Costs.”[6]
The TLCSA admits that the current estimate does not include increases in ongoing monthly fees virtually certain to occur. Consider the following excerpt from the TLCSA’s “Questions from the Public” document:
[1] Three Lakes Collaborative Sewer Initiative, Information and Frequently Asked Questions, March, 2017
[2] Three Lakes Sewer Authority Sanitary Sewage Collection and Transport Project presentation, March 17, 2017
[3] Two Lakes Collaborative Sewer Authority, Preliminary Engineering Report, November, 2019
[4] Two Lakes Collaborative Sewer Authority, Preliminary Engineering Report, February 3, 2023
[5] “Correcting the Course of Capital Projects,” Price Waterhouse Coopers, April 2023
[6] Section 5.03 of proposed Wade Trim contract