News

Design fees double for joint med-ed building

By Bill Moss, Published: October 13, 2014

Along with the size and construction price, the Joint Medical Education Center going up in design fees, too.

The Henderson County Board of Commissioners learned last week that the design and engineering fee had doubled — from $1.25 million, to $2.53 million — based on the increased size and scope of the project and additional site work and parking lot design.
Led by Commissioner Grady Hawkins, the commissioners cocked an eyebrow at the 100 percent increase but let it go based on an explanation from County Manager Steve Wyatt and Business Development Director John Mitchell, who is serving as project manager for the county.
"The building has gone from 60,000 to 95,000 square feet and changed from a medical office building to a medical office building plus a cancer center on the first floor," Mitchell told the board. "Additionally there is some site prep and (design of) the new parking lot" not spelled out in the original agreement.
Architect Chad Roberson, managing principal of the Clark, Nexsen firm of Asheville, sent a letter to Mitchell on Sept. 24 with the amended price based on the increased "scope and complexity" of the job since the original contract last April. Specifically, the firm charged $930,000 for the 60 percent jump in square footage and $350,000 for the ground-floor change from a medical offices to a cancer center for Pardee. The changes require "reworking the parking lot to accommodate the size of the building," Roberson said.
It's expected that Pardee Hospital will pay part of the increased fee.
"I have spoken with Jay Kirby, the CEO of Pardee Hospital, and assured him we will be entering into negotiations about what the hospital's portion (of the higher design fee) will be," Mitchell said.
The product of an unprecedented five-party agreement announced in April, the joint health education building will house the Pardee cancer center on the ground floor and classrooms, labs and offices for Wingate University and Blue Ridge Community College on two upper floors. The city bought an acre of land for the project, the county is borrowing $28 million for construction and Pardee is pitching in $4.73 million up front and giving two acres of land.
The doubling of the design fee had been on the consent agenda — for routine noncontroversial items that don't need discussion or elaboration — until Hawkins requested that it be pulled. Wyatt said there was some urgency to the change order because of upcoming design meetings. The board authorized the new price without further discussion.