As the promised end date for Nicollet Mall construction nears, costs for the $50 million downtown Minneapolis project are still climbing.
A City Council committee authorized $2.1 million Tuesday to cover unexpected costs for design changes, extra man hours and more landscaping supplies. The overhaul of the city's signature corridor from Grant Street to Washington Avenue is still under budget.
This isn't the first time city leaders have approved more money for Nicollet Mall. Since May 2016, a series of change orders including contract extensions, design modifications and bigger trees has led to nearly $4.7 million in added expenses. The total cost is now about $41 million, city records show.
Don Elwood, Minneapolis' director of transportation and planning, said he anticipated there would be unexpected costs and planned the project budget accordingly.
"They're the known unknowns," he said. "I knew we were going to have this sort of thing in the budget."
State grants, city funds and property owner assessments are paying for the project. About 15 percent of the $50 million budget — $7.5 million — was set aside to cover unexpected costs, Elwood said.
Five contracts have been amended in the past 15 months for services including design, construction, project management and landscaping. The full council will vote to authorize the additional $2.1 million on Aug. 31.
Robert Sniegowski, a principal at CliftonLarsonAllen who worked in the construction industry for 24 years, said planned contingencies vary from project to project. When contractors have to account for things like soil conditions, multiple utilities and traffic conditions, those costs get bigger.
