Soaring Materials Prices Could Push Construction Costs up 15%

CHEYENNE, Wyo.-Thanks to escalating costs of such basic construction materials as wood and steel, state legislators are girding themselves for a request to increase the allowance for school construction costs by 10 percent to 15 percent.

James “Bubba” Shivler, director of Wyoming’s School Facilities Commission, announced recently that Gov. Dave Freudenthal will recommend an increase in response to a disturbing trend in bids for projects coming in at rates substantially higher than anticipated.

Shivler mentioned three bids for schools in the Afton area of western Wyoming that came in at $200 per square foot, 67 percent higher than the $120-per-square-foot figure given by the architects.

The highest per-square-foot cost allowed by state law is $165.

What has caught the state in a bind is a massive court-mandated school construction program worth $1.1 billion. With only a limited number of contractors statewide who can handle school-sized projects, and all of them in competition for limited building materials that are already escalating in price nationwide, the School Facilities Commission has little room for maneuver.

Among steps the commission might take to improve the situation is increasing its 3-percent-per-year inflation “fudge” factor for school construction costs. Shivler said the commission may also join with contractors to become involved with projects at the design stage, well before final plans are approved.