SAN BENITO — After about four years, the San Benito school district is overseeing a $40 million bond-funded construction project following its board’s decision to scrap the project manager’s contract.
Earlier this week, board members voted 6-0 to terminate the Brighton Group’s contract with the remaining construction project about halfway completed.
After a 90-minute closed-door session, board members didn’t comment on their decision during a special meeting Thursday.
Terminated without cause
On Friday, Joseph Palacios, president of the Edinburg-based Brighton Group, said board members terminated the contract without cause.
“Obviously, there’s always been a provision in our contract that allows the district to terminate without cause,” he said during an interview. “Obviously, they chose that provision in the contract, and we’re good with that. We want to thank the district for giving us the opportunity.”
Administration, leadership changes
In 2019, the past school board working with former Superintendent Nate Carman awarded the Brighton Group its contract months after 54 percent of voters passed a $40 million bond issue aimed at building a $21.3 million performing arts theater, an $8.8 million aquatics center and a $5.7 million in-door practice field.
Then in 2020, an election shifted the board’s balance of power, with its majority hiring Superintendent Theresa Servellon last year.
“There’s been a change in administration and leadership with that board,” Palacios said, referring to the contract’s termination. “But we stand by the four years of work we’ve done on this project.”
In March 2021, construction was completed on the in-door practice field, he said.
Meanwhile, he said, construction is about halfway completed on the performing arts theater and the aquatics center.
Brighton Group completes 80 percent of contract scope
As part of the contract, the district has paid the Brighton Group a $1.25 million fee to serve as project manager based on estimated $30 million construction costs.
“We have completed more than 80 percent of our scope within the contract,” Palacios said. “Our scope was all the planning, all development of these projects, as well as working through with architects through the design of all the buildings.”
Now, the district is overseeing San Antonia-based contractor Davila Construction, he said.
“To build the buildings is a contract with the contractor,” he said.
Project under fire
Since the past school board proposed the $40 million bond issue in 2018, the project has turned into one of city’s hottest topics, drawing fire from its opponents.
Last month, Servellon held a presentation showing the project’s total costs had climbed from an estimated $40 million to about $44 million while its contractor and subcontractors are requesting change orders totally about $1.47 million.
Meanwhile, Palacios said the school board approved the cost increases while revising the project in 2019 before board attorney Steven Weller negotiated the contracts during July and August 2021.
For months, he’s attributed much of the increased costs to the coronavirus pandemic’s economic slowdown, which sparked the supply chain crisis inflating materials’ costs
“We’ve gone through a lot of challenges in regards to COVID,” he said.
In the district’s report last month, Davila Construction estimated materials’ costs including steel and air conditioning and heating units increased by $1.29 million.
Meanwhile, the district’s report showed the construction company is requesting the performing arts theater’s completion date be pushed from July 21 to Dec. 28 while the aquatics center’s completion date be changed from April 14 to Sept. 19.
