Hospital construction bill shoots up $50M Hospital construction bill shoots up $50M (January 14, 2005)

Construction workers in high demand

By Julie O'Shea

Due to escalating materials and labor costs, El Camino Hospital officials announced last week that construction of its new facility is now going to be about $50 million more than first estimated.

Two years ago, the hospital calculated that the project, scheduled to break ground this fall, would cost $288 million. That price is now up to $349 million mainly because of the increased cost of raw materials, such as steel and concrete, said Ken King, the vice president of El Camino's facility services. The news was shared with hospital trustees at last week's board meeting.

In addition, King added, a shortage of manpower has left many hospitals around the state in a lurch. California hospitals are required to meet new state seismic standards by 2008.

Because so many hospitals are scrambling to upgrade their buildings, construction subcontractors have suddenly "got more work than they can handle," King said. "It's caught everyone in the industry a little off guard."

Voters approved a $148 million bond measure in 2003 to pay for about half of the construction project, which will include a new hospital building, dialysis center and parking structure. The rest of the project is going to be paid through private donations and philanthropy, hospital officials said.

King said the voters will not be asked to foot the bill on the increased cost of the project. He said the cost jump may be just a spike on the international market that will go back down before the hospital actually needs to use any of the money.

The hospital will begin preliminary construction plans in the next month or two, King said. The main hospital will likely be completed in 2008.

E-mail Julie O'Shea at joshea@mv-voice.com

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