Hospital update reveals two-phase plan


  Optimistic of the status of the new hospital project, principals of the design and building firms gave a project update to the Plumas District Hospital board of directors Feb 5.

  “Things are looking very good for this project,” said Mike Geney of Geney Gassiot, Inc., construction contractors, who with lead architect Rick DeSouza of HDR summarized an integrated two-phase development plan.


  The report included a timeline, probable costs and a behind-the-scenes look at organizational and financial strategies of the project.

  Geney described a two-phase plan, designed to provide early, coordinated information between design and construction teams, while overlapping with buildout schedules and a buyout strategy.

  Phase 1 of the 20-month project includes the bid, contract award and construction for the shell package. The bid and award process is expected to take approximately 56 days, in February 2010 to May 2010. Construction on the weather-tight shell project is slated to begin May 2010 and end by March 2011.

  Phase 2 is the main building contract award and interior construction. Bid and contract awards will run from November 2010 to January 2011. Interior construction will begin March 2011 and end November 2011.

  Projected occupancy of the new hospital is December 2011.

  The buyout component of the integrated plan entailed a partial lock-in of contracts for materials and services. Project design and entitlements would be provided for each phase by the contractor, who then “buys out” one-third of the overall costs for the project.

  Locking in only the services needed to meet each project phase, the plan would save at least a third of the project from a double tier of escalation said Geney.

  Given the economic crisis and drop in labor and materials, Geney said the project’s timing was “incredibly crucial.” “The sooner we can buyout this project in the open market, the more value we can put back into the finished product.” 

  Probable costs for the project are based on today’s market numbers and calculated in quantities of weights and measures (tonnages of steel, yardages of concrete, etc.) versus cost per square foot. 

  Geney told the board this method limits a runaway budget with a better understanding of how much “brick and mortar” are going into the project, and provides a better baseline for designers, who design up to those limits.   

  Based on conceptual designs, total development costs are $21.7 million to date. The project is reported to be on budget and on schedule.

  PDH Chief Executive Officer Richard Hathaway said he’s delighted with the new hospital’s status, a 15-year work-in-progress. “It feels like the train has left the station.”


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