Voters will decide Nov. 2 whether to increase a countywide sales tax by 1⁄4 of a cent to go toward a new Allen County Hospital.
Members of the Allen County Healthcare Committee address questions about the issue.
Q: In constructing buildings like hospitals, Kansas law limits counties to three different approaches. What are the approaches and how would each approach im-pact cost control, use of local contractors and local labor, etc.?
A: Part 1 of Methods for Building the Hospital — The Design-Bid-Build System for delivering a hospital building project. Kansas law for counties and for awarding construction contracts, Kansas Statutes Annotated (K.S.A.) 19-214 covers the well-known method of delivering projects known as “design-bid-build.”
The process begins when an owner (Allen County Hospital Board of Trustees), after determining the need for built space, enters into a contract with a designer to produce de-scriptive drawings and written specifications of the proposed building. Upon completion by the designer, these documents are distributed to contractors, who then submit bids to perform the work.
The expectation is that the lowest bidder will be selected to enter into a construction contract with the owner; such contract limiting the cost of construction to the lump sum that was proposed. Increased costs beyond that lump sum are allowed only through formal amendments (change orders) agreed upon by owner and contractor.
The design-bid-build lump sum project delivery system is traditional, relatively simple, and widely understood. If, however, all the construction bids come in higher than budgeted, the owner has to reject them all and start over with the designer to reduce costs in the design. Then the project is rebid.
In this approach the designer usually is expected to monitor completed work of the builder before payments are made to the builder. Also, the use of local contractors and labor depends on which builder gets the bid. Some builders may include local sub-contractors and labor while other builders may not. Low bid is the primary determinant in this approach, although all bidders must meet the requirements of the law for performance bonding.
Only five days remain before the election. If you would like to help our voter information effort contact the Thrive Allen County office at 365-8128.
