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ERIC Number: EJ839603
Record Type: Journal
Publication Date: 2009-Mar-1
Pages: 7
Abstractor: ERIC
Reference Count: N/A
ISBN: N/A
ISSN: ISSN-0003-0945
Cost Control
Kennedy, Mike
American School & University, v81 n7 p18-24 Mar 2009
When Fayette County (Kentucky) school officials began putting together estimates for upcoming renovation projects at two elementary schools, they based their projections on their district construction projects from 2007. But by February, when construction bids were opened for the renovations of Cassidy and Russell Cave elementary schools, the building market had become a different place. In this upside-down world, education institutions like Fayette County are saving millions of dollars because the bids for their construction projects are well below estimates. The economic recession that has dragged down the stock market, wiped out savings and put millions out of work has hurt schools and universities as well--resulting in some building projects being mothballed, jobs lost and campuses targeted for closing. The grim financial climate has made it more difficult for many education institutions to acquire the funds needed for facility improvements. However, for those that have funding in place for capital improvements, the combination of declining prices for some materials and the intense competition among contractors for projects has taken the sting out of the sticker shock that often accompanies capital improvement projects. Fayette County is able to move forward with construction because voters in 2007 approved a property tax increase. By the time bids were solicited, the district benefited from price drops for oil and other materials. At the same time, the residential construction market was stagnant, and more companies focused their attention on submitting proposals for school projects. Before the recession altered the construction market, many schools and universities found it difficult to control expenses and prevent climbing costs from jeopardizing projects. But even now, when many education institutions are benefiting from the scarcity of construction work, the author contends that administrators must be vigilant about managing costs and planning thoroughly to avoid budget-busting surprises.
Penton Media Inc. American School & University, P.O. Box 2100, Skokie, IL 60076-7800. Tel: 866-505-7173; Fax: 847-763-9682; e-mail: americanschooluniversity@pbinews.com; Web site: http://asumag.com
Publication Type: Journal Articles; Reports - Descriptive
Education Level: Elementary Education; Elementary Secondary Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Identifiers - Location: Kentucky