PIERRE, S.D. (KELO) — The Rhoden administration has negotiated an incentive plan with the contractors to encourage savings on the proposed new men’s prison.
That new incentive was disclosed on Friday afternoon in a conference call that involved more than 40 legislators, Gov. Larry Rhoden, Lt. Gov. Tony Venhuizen and one of the administration’s top aides.
No Travel advisory issued in rural Stanley Co.
During the call, Rhoden and Venhuizen said that contractors JE Dunn and Henry Carlson Construction had committed to a $650 million maximum total price for the project. That amount includes an estimated $595 million for construction.
The incentive calls for the contractors to keep 50 cents for every dollar that the finished project comes in below $650 million. The incentive would be capped at $6 million for the contractors. They would need to reduce costs by $12 million to receive the full $6 million incentive…