Institute expansion should absorb extra costs
Published 10:13 am Wednesday, September 24, 2014
The Hormel Institute’s expansion may have got off to a late start, but project officials are confident any additional costs will fall within the expansion’s budget.
Project Manager Jon Erichson told the Austin Port Authority Tuesday that the late start could mean more costs in some areas of construction, such as concrete that needs to be warmed while it’s put down in the winter.
Yet Erichson said the additional costs should likely fall within budget and within the project’s contingency fund.
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“We don’t think that they’re going to be excessive,” Erichson told the port authority. “I’m very confident we’re going to be within our budget.”
The port authority met in a special session Tuesday to approve bids for several parts of the expansion project, from flooring to mechanical services.
The expansion kicked off earlier this month. It was scheduled to start in June, but funding issues with the state held the project up. Officials hope to complete the expansion by October 2015.