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St. John's Expansion to Move Forward Next Week
A project to renovate and expand St. John's Medical Center facilities for cancer, surgery and obstetrical services (SPET project) has been given the green light to move forward next week. The Trustees voted to approve the guaranteed maximum price (GMP) of $20,000,322 presented by construction manager JE Dunn at a special public board meeting on July 5. “This project will have tremendous benefits for our patients and I'm pleased that we are moving forward with an appropriate scope and budget," said St. John's CEO Lou Hochheiser, MD. "This facilities expansion will help ensure that patients can receive care close to home, when possible, by modernizing and expanding important clinical areas that have become outdated and unable to accommodate growing demand.”
The Trustees also approved a GMP of $5,944,501 for the construction of a new central energy plant to supplement the hospital's current energy infrastructure. The energy plant is not part of the SPET project, but will support the new facilities and other needs of the hospital.
Based upon the final competitive bids received, the total combined projected cost of the SPET and energy projects (including an appropriate contingency fund) exceeds the target budget by approximately $750,000, or 1.5%. "With careful management of our project costs and our contingency fund, we are hopeful we can bring the project in at or near our initial target budget, barring unforeseen issues,” said Hochheiser. “In order to deliver the best possible project to the community at the best price possible we’ll be intensely focusing on non-construction costs. These include medical equipment, furnishings and fixtures.”
JE Dunn will now begin notifying the subcontractors that have been awarded contracts through the competitive bid process. "Due to Wyoming statute, it appears we'll even be able to award contracts to local companies that were not the lowest bidder but fell within the allowable 5% differential," said Chief Operating Officer Gary Trauner. "While it bumps up our costs, we recognize that it's an investment in the community."