News-Record.com

GREENSBORO - Higher fuel and materials costs are creating downsized or more expensive construction projects in Guilford County.

Changed plans on a new EMS base in Rock Creek and overruns on a new social services building in High Point show what the county faces as it works on multimillion-dollar projects planned years ahead of time.

Between drawing blueprints and breaking ground in recent years, price increases for nearly all facets of construction create shortfalls when long-planned projects finally start.

The High Point social services building, for example, will cost $1.1 million more than the $5.4 million that the county had planned in 2005.

"It was a good estimate three years ago," said David Grantham, the county's property management director.

The 50,000-square-foot, three-story building will replace the current cramped facility and should go to bid this month.

Robert Williams, director of the county's department of social services, said inconsistent heating and cooling in the current building is a problem, along with unreliable elevators.

Two-thirds bonds, which are government-issued and based on the county's existing debt load, account for the original $5.4 million.

Steel, shipping and other prices have gone up in the past two years, Grantham said.

"Everything goes up, and especially with respect to labor and materials," said Musibau Shofoluwe, a professor of construction management at N.C. A&T.

The difference for the DSS building will be covered by part of a $7 million construction reserve fund, according to Michael Halford, the county's budget director, though the fund is not expected to grow.

"The board has stopped putting money into that," Halford said, referring to the county commissioners.

Bruce Davis, a Democratic High Point commissioner, said that he was sure that the money would be found and that future projects are timed to start so they don't interfere with each other.

"We've got projects that are laid out and will be staggering along the way," he said.

Best guesses play a hand in the county's construction planning. Markets can be tough to predict, and though inflation rates were built into the construction plans, Grantham said, higher prices in recent years were unexpected.

"You look at current construction trends and they take a turn from where typical construction plans are," said Alan Perdue, the county's EMS director.

Perdue saw that turn with a $2.5 million EMS base in Rock Creek intended to respond to the fast-growing eastern section of the county. The base was downsized because of cost increases, he said.

One bay was cut from the plan.

And underground rock, which can require expensive blasting, was found on the site along Rock Creek Dairy Road.

Three ambulance bays will be built instead of four. Ground should be broken by the end of the year.

Although those overruns were handled, some wonder whether there's enough money to tackle unforeseen expenses on the county's biggest project ever, a $115 million jail.

Though the jail size and scope has fluctuated through the years, the expected price has steadily increased. Now, the county has only the money that voters approved in May. The bond total does include a contingency fund for price increases, in addition to a built-in inflation estimate.

In a worst-case scenario, that project could get delayed or downsized, akin to what happened with Guilford County Schools projects in 2007.

Voter-approved bond construction was held up for Jamestown and Guilford middle schools and Ragsdale High School because the money just wasn't there for the full plans.

As for the jail, the current annual construction cost increase is 7 percent, Grantham said.

"If you were to delay that for one year," said Grantham, punching numbers into a calculator, "your project goes up $6.6 million."

Contact Gerald Witt at 373-7008 or gerald.witt@news-record.com