Construction contract comes in $2M over target but board locks in pricing amid rising inflation

PORT ALLEN — The West Baton Rouge Parish School Board unanimously approved a $25,069,200 guaranteed maximum price for the Cohn project Tuesday night, despite the cost coming in several million dollars higher than originally hoped.

The approval came after superintendent Dr. Chandler Smith and contractor Womack Construction spent hours in negotiations Monday, successfully reducing the original $25.5 million request by $500,000 through strategic cuts and material substitutions.

Inflation Drives Costs Higher

Smith told board members that tariffs, steel price increases, and general economic conditions forced the district to act quickly to lock in construction costs before they rise further.

"With tariffs and with steel prices and just the economy as it stands, we really wanted to lock in this price because prices are getting higher," Smith explained. "It'll never be as cheap as it is today."

The superintendent noted that comparable school construction projects in Louisiana are now running $400-440 per square foot, while the Cohn project comes in at approximately $340 per square foot—still below current market rates.

Strategic Cost Reductions

The $500,000 savings came through careful negotiation and material changes, including:

• Different window specifications
• Alternative flooring selections
• Modified ceiling baffles
• Different conduit types for electrical work

However, district officials refused to compromise on the HVAC system, insisting on a water chiller system that matches installations at Caneview Elementary and other district facilities. The unified system approach will allow maintenance staff to service equipment across multiple campuses more efficiently.

Local Workforce Benefits

Smith highlighted that Womack Construction committed to significant local participation, with many West Baton Rouge Parish residents expected to work on the project through local subcontractors.

"Womack has a lot of local participation, local subs that are going to be a part of the team," Smith said. "So there's going to be a lot of people in West Baton Rouge working on this project."

Impact on Other Bond Projects

The higher-than-expected Cohn costs will delay other planned bond projects. With the turf fields ($3.7 million), completed renovation projects, and the new Lukeville Elementary estimate ($5 million), the district has committed approximately $35.5 million of available bond funds.

Remaining projects including additional Brusly Upper Elementary improvements, Port Allen Elementary renovations, and the Port Allen High School fieldhouse will now be postponed to fiscal years 2026-27 or 2027-28.

"We're just waiting a year," Smith explained. "I'm not comfortable to put it to the bond. Prices are just coming in higher."

The district plans to use anticipated budget surpluses and potential sales tax increases from new industrial development to fund the delayed projects.

CMAR Process Provides Flexibility

The Construction Manager at Risk (CMAR) process allows continued adjustments during construction. The guaranteed maximum price protects taxpayers from cost overruns while still permitting modifications if the district chooses different finishes or features.

"We can still actually reduce something or change something out and say, hey, I want to go with a different version of this, reduce by $50,000, and maybe put $50,000 for an addition of some sort," Smith noted.

Historical Context

The cost increase reflects broader construction inflation. Smith noted that Brusly High School's recent construction came in at $302 per square foot before COVID-19, meaning the Cohn project represents a jump from $302 to $344 per square foot over five to six years.

Formal Documentation Process

The board reviewed detailed change order documentation during the meeting, with contract terms displayed on screen showing the formal agreements between the district, architect, and contractor. The paperwork demonstrated the comprehensive negotiation process that reduced costs while maintaining project specifications.

The board's unanimous approval allows construction to proceed immediately, with Smith planning to notify contractors Wednesday morning to begin mobilization.

Taxpayer Protections

The guaranteed maximum price ensures the project cannot exceed $25,069,200 regardless of future material cost increases, protecting taxpayers from additional inflation while the project moves through its multi-phase construction timeline.

The CMAR contract structure also includes provisions for change orders only when the district requests modifications, preventing contractors from adding unexpected costs during construction.

The West Baton Rouge Parish School Board meets the second and fourth Wednesday of each month at 5:00 PM.