MLC chapel project costs rise
Filed Under: chapel, Ministerial Education, MLC
The final bids for the chapel project at Martin Luther College (MLC), New Ulm, Minn., have been received from the contractors. Due to a steep increase in the cost of steel and oil, the final bids in the $7.5 million project came in at approximately $800,000 over the amount previously approved by the Synodical Council (SC).
The Board for Ministerial Education submitted a request to the Executive Committee of the SC, asking that MLC be permitted to use some of its own funds already on hand to cover the difference. The project budget already included a contingency amount of $300,000; if these funds go unused, MLC would use them and about $500,000 of its own funds to complete the project. Approval of this plan means that the chapel project will progress without the use of additional synodical funding.
The Executive Committee was told with steel prices set to rise another 10 percent on Aug. 1, a quick decision was needed and that a delay in a decision would like jeopardize the entire project. With that information, the Executive Committee approved the request for MLC to use its own funds to cover the increased costs. The final contracts were scheduled to be signed late last week, with "not to exceed" provisions ensuring that the final cost will not increase.
Construction is still on target for a completion date of fall 2009.
