A Message from
the Superintendent
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Costs of construction have been on an unprecedented rise across the United States since late 2003. A significant increase in the volume of construction worldwide has put great demands on construction materials, causing average rises in material prices from 20% to 70%. In addition, interest rates, the value of the dollar, skilled labor availability, equipment availability, oil prices and other factors have generated construction cost increases. From 1999 to 2003, yearly increases in average construction costs were in the 2% to 4% range, but since the beginning of 2004, costs have increased from 20% to 50% in certain markets across the U.S. While this upward trend seems to have stabilized in many parts of the country, it has continued in South Florida. In this region, there are continued demands on a limited resource supply and a high volume of construction work triggered by the continuing influx of new residents and investors. The recent string of hurricanes further amplified the situation.
There is speculation by many experts in the industry that the costs of insurance and bonding will increase significantly and that shortages of certain materials and skilled labor will continue. Due to the uncertainty of all these factors, contractors are passing their risks on to property owners by increasing what they charge for construction projects.
There are a limited number of qualified contractors and subcontractors in the local market who are capable of constructing schools in South Florida to the established Educational Requirements. The result is that many local contractors and sub-contractors have high volumes of work and have changed their bidding strategies to a lower risk-higher profit approach. This has further contributed to a continuing increase in costs. Educational facilities construction costs in South Florida have increased an estimated 40-60% over the past 2 years, putting an additional burden on the school building programs needed to meet the demands of growth and class-size initiatives.
As a result of the situation I have described, it may be necessary to make modifications to current or proposed building and remodeling projects in the District, either to the scope of the projects themselves or to the time frames designated for their completion. However, I can assure you that the safety, security and educational needs of students will remain important considerations should modifications be necessary.
MAGNET PROGRAMS
The Magnet Program is now collecting applications for the 2006-2007 school year. The deadline to apply is March 21, 2006. For more information, log on to
(
www.browardschoolsmagnetprograms.com) or call 754-321-2380.