Total construction costs for the new Whitefish High School are sitting at about $267,000 above estimates following approval of the final bid package for the $19 million project.

The Whitefish School Board July 10 approved bid package No. 3 with an overage of $267,000. The package was approved at a total cost of $10.5 million.

The district twice delayed approval of the bid package to complete greater review of subcontractor bids. A last minute design change to retain a foyer adjacent to the gym is expected to save about $244,000.

“We need to allow the team to go ahead with bid package No. 3,” trustee Dave Fern said. “We will wait to hammer out the specifics on bridging the gap and we will determine the most prudent way to do that. We will commit to spending the money to bridge the gap to make it even.”

Previously the district identified several options to address overages if it became necessary and put contingency money back into the project.

One option is to use district tax increment financing funds. The other option is to use a portion of the $900,000 that has been set aside in the budget for furniture and equipment to outfit the new school. The sale of the Whitefish Independent High School, which is expected to bring in about $460,000, could provide funds, as well.

Trustee Ruth Harrison said borrowing from the TIF fund should be done carefully because the money has been set aside for future expenses.

“We need to have it in writing how we’re going to pay that back,” she said.

The board expects to approve a detailed plan for dealing with the overage at its Aug. 13 meeting.

Loren Cantrell, with general contractor Langlas & Associates, noted that while the $267,000 overage seems large, it only represents 1.61 percent of the entire construction budget.

“It’s relatively small compared to what we started with at being $2 million (above estimates),” he said. “This is one-tenth of what it was 10 months ago. We’re not even done yet for looking at ways to save. We’ve come a long way and we’re going to get there.”

During a meeting last week, the school board was presented with two options for approving bid package No. 3. Option A, which includes original plans along with the foyer change, was approved.

The board dismissed Option B that would have left the project at $164,000 under budget. The remodel of the band and choir rooms, the building of a media arts room and construction of the multi-purpose performance space would have become a bid alternate under the second option.

Cantrell recommended against moving the band/choir portion of the project to an alternative.

“Option A allows you to move forward,” he said. “It allows us to work with those subcontractors knowing that some of the work is a year down the road. A lot of this is bid as a package and as you wait the cost goes up (for materials). There will be more value to the district to approve now. If this continues to be delayed I see the potential for the costs to escalate.”

In addition to the overages, the project does not have a contingency fund.

Trustee Shawn Watts asked if the construction team felt confident moving forward.

“Are you accustomed to going into a $10 million component of a project with no contingency,” he asked.

Cantrell said his company is working on a school project now that is nearly complete and hasn’t used any of its contingency. However, he said, “typically the owner does hold some sort of contingency.”

Trustee Shawn Tucker said he felt comfortable moving forward because he is confident in the construction team’s ability to continue to find ways to save money.

“My trust is in the team we’ve put together,” he said. “I feel like these guys have done an unbelievable job. I like where we’re going. We’re going to have everything we need.”

Since beginning review of bid package No. 3, the construction team has reviewed the plans to eliminate any errors or swap materials in an attempt to stay on budget. Those reviews have resulted in $246,000 in savings. Changes made include removing the installation of a new audio visual system for the gymnasium that was inadvertently put in the plan and trading clear light covers for frosted covers for the whole school, which saved $39,000.

The school construction project was broken into three bid packages. The first was the remodel of the gymnasium and athletic facilities. The second included sitework, concrete and utilities. The third is the bulk of the project including new construction and remodel work.

Voters last year approved a $14 million bond with the entire project originally estimated to cost $19 million for the renovation and new construction of the school. The new school is set to open for the 2014-15 school year.