‘Saipan’s construction costs have tripled’

Due to the high demand for construction services in the wake of Typhoon Soudelor, construction costs on Saipan have tripled in some cases, according to NMI Settlement Fund trustee Joyce C. H. Tang.

The NMI Settlement Fund Building on Capital Hill sustained some damage from Typhoon Soudelor that devastated the island last Aug. 2 and 3.

In her status report about the Settlement Fund, Tang said the metal sheet flashings, exhaust vent, and gutters on the roof of the Fund building were damaged.

After the typhoon, Tang said, the Fund replaced some air conditioning systems, repaired plumbing in the building’s second and third floors, and replaced several glass windows. The cost of repairs was $4,300, she said, but that additional work is needed to repair roof leaks.

The proposals for repair, she said, is estimated to be between $76,632 and $103,518—amounts that she said are excessive considering the amount of work involved.

Tang believes that the repair and maintenance work can be performed for a fraction of the cost by procuring the materials directly and hiring laborers to perform the work.

Although the Settlement Fund maintains property insurance coverage with the First Net Insurance Company, she said the actual typhoon damage is quite small, and the Settlement Fund is investigating the roof leaks to determine coverage.

Because of a high deductible of $100,000, these repairs will be out-of-pocket expenses for the Fund, Tang said.

She assured, though, that the building is a safe and suitable for use as office space.

After Typhoon Soudelor, the Federal Emergency Management Agency leased the building’s second and third floors for its headquarters for a three-month period at a cost of $17,236.50 a month and an additional $5,745.50 per month for utilities. FEMA recently requested to extend the lease term for an additional one month, to mid-December 2015.

The Commonwealth Office of Transportation Authority also leases 3,175 square feet of space on the second floor of the building for $1.25 per square foot plus an average of $1,500 for utilities per month.

Due to a reduction in federal grant funding, COTA has requested to reduce the office space it occupies from 3,175 square feet to 2,000 square feet.