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County project faces budget crisis as costs soar

September 20, 2024 | Henry County, Kentucky


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County project faces budget crisis as costs soar
During a recent government meeting, officials discussed a significant change order related to the Angels Lisonbee Sewer project, which has encountered unforeseen challenges since its original design in 2021. The contractor has successfully installed three miles of Sewer Force Main, but complications have arisen due to changes in site conditions, including the paving of previously graveled driveways and the need for additional depth in some directional drilling.

Abby Jones Consulting recommended approval of a change order amounting to $910,295, which is included in the claims list. The project is currently at 80% completion for pipe installation and has begun construction on the lift station. An estimated $40,000 is projected to cover inspection costs for the project's completion.

Originally estimated at $800,000 in 2021, the project's accepted bid price has escalated to $1.8 million, with change orders bringing the total to approximately $1.9 million. The engineering contract, initially set at $145,000, has also seen adjustments, reducing the engineering fee to 9% of the construction cost due to the change order.

Funding for the project is structured through a Memorandum of Understanding (MOU) with Angels Envy, which stipulates that any project overages will be covered by the company. Angels Envy has already provided financial support to assist the county with cash flow, as the project's costs are nearing the county's annual budget. They will be responsible for reimbursing $131,285 for the increased construction and inspection expenses.

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Scribe from Workplace AI
Scribe from Workplace AI