A&M System saves $8.1 million in construction-related fees
September 24, 2009
Savings apply to fiscal years 2010 and 2011
COLLEGE STATION, Texas – The Texas A&M University System’s Office of Facilities Planning and Construction announced today that efficiencies in managing a peak volume of systemwide construction projects will produce a combined savings of $8.1 million for system members in fiscal years 2010 and 2011.
The savings will total $4.6 million in FY 2010 and $3.5 million in FY 2011, said Vergel Gay, associate vice chancellor for facilities planning and construction.
Among the projected savings: $1.9 million at Texas A&M University; $668,000 for the Texas A&M Health Science Center; $354,000 for Texas A&M University-Corpus Christi; and $254,000 for Texas A&M University-Texarkana.
Gay said the savings will be achieved by reducing the fee the A&M System assesses for management of major construction projects from 3.75 percent to 2.65 percent.
“Currently we have an unprecedented amount of project work that is ongoing across the state. Due to the hard work and efficiency of our staff we have been able to keep our project costs low,” said Gay. Capital projects for fiscal year 2010 will total a record $387 million, he said.
“We have been asking everyone in the A&M System to work hard to keep our budgets lean without impairing quality in these challenging economic times,” said Chancellor Michael D. McKinney, M.D. “I appreciate the system FP&C office helping lead the way in sharing services and taking advantage of every opportunity to cut costs and save taxpayer money.”
About the A&M System
The A&M System is one of the largest systems of higher education in the nation, with a budget of $3.2 billion. Through a statewide network of 11 universities, seven state agencies and a comprehensive health science center, the A&M System educates more than 109,000 students and makes more than 15 million additional educational contacts through service and outreach programs each year. Externally funded research expenditures exceed more than $676 million and help drive the state’s economy.
