CAP releases $1.8m contingency for Water Education Center finish

CAP releases $1.8m contingency for Water Education Center finishThe Central Arizona Project board has approved a $1.798m transfer from its managed contingency fund to the staff-managed fund for the Water Education Center at CAP headquarters. The action lifts construction-contract spending authority to $53.613m while retaining $501,652 in board contingency.

The board approved the contingency transfer unanimously on 5 October.

The $53.613m potential contract cost comprises $52.513m of identified costs plus $1.1m for forecast future changes.

Known but unexecuted changes total $1.049m, while executed modifications include $1.306m for exhibit redesign and $699,166 in CAP-requested changes.

CAP reported that on-site work is expected to reach substantial completion in February 2027, with final acceptance estimated for June 2027.

The transfer uses existing contingency funds and staff said it has no impact on CAWCD water rates.

Central Arizona Project’s board has unanimously authorised the transfer of $1.798m from its board-managed contingency fund to staff control for the Water Education Center construction contract, giving the project team authority to manage outstanding and anticipated changes as the complex facility moves into its final construction stages. The decision increases contract spending authority to $53.613m. It does not add to the project’s combined potential authority of $54.115m, which includes a $2.5m board contingency fund established in December 2025. Following a previous $199,879 draw for an additional bathroom and associated utility work, and the new transfer, $501,652 will remain under board control. Assistant General Manager Darrin Francom told the board that CAP had paid contractor Mortenson about $27m, with progress payments averaging nearly $2m per month. He described the project as about 60% complete financially. CAP expects substantial completion in February 2027, followed by final acceptance in June. The Water Education Center includes two buildings spanning a canal via a bridge, meeting space, and an exhibit and learning centre. Francom said the project has generated 391 requests for information to date, a figure he characterised as somewhat higher than normal but consistent with the building’s complexity and integration of multiple trades, exhibit components, audiovisual systems and IT. Executed modifications totalled $102,278 for unforeseen site conditions, $699,166 for CAP-requested changes, and $1.306m for exhibit-space redesign. CAP also identified $1.049m of known, unexecuted contract changes, including work associated with water-cycle screen power and data, exhibit building modifications, weather-barrier treatment, HVAC upgrades and door modifications. The newly transferred authority is intended to cover those outstanding changes and provide a further $1.1m for forecast changes through completion. CAP said the resulting potential increase of $4.456m over the $49.157m base contract represented 9.07%. Francom said staff wanted contingency immediately available because delays to changes on the contractor’s critical path could increase costs. Mortenson’s field-office overhead was estimated at $62,500 per week if delays extended the contract. Board members raised questions about the allowance for future changes and the number of requests for information, but ultimately backed the transfer. The agenda materials state that the project remains within the approved 2026-27 capital budget and that the contract continues to be funded through the Extraordinary Cost Reserve, with no impact on CAWCD water rates.