The cost to build the county's new administration building is projected at $2 million higher than original estimates, according to the project manager. The Warren County Commission learned Monday it will need to substantially cut the preliminary design - and possibly even redo much of the work already completed - as the project has taken a huge step backward. Commissioners said they were shocked to see the estimate increase to $8,524,129.16 after being presented with the figure from an official with Septagon, the firm hired as the project manager to oversee construction. That figure was substantially more than the projected cost of $6,880,495 presented by Treanor Architects, the project's design firm, on Nov. 5, 2009. Most of the increase is related to construction costs, specifically relating to the cost of the basement level. Treanor estimated $697,900 to finish the basement space that will house the health department and emergency management operations. An unfinished area, designated mainly for archive space for each of the departments, was projected to cost $172,000. Treanor's cost estimates were $40 per square foot for the unfinished space and $145 per square foot for the finished office space. It estimated the cost of construction for the entire facility at $5,382,779. Meanwhile, Septagon's estimated construction costs were substantially higher. Septagon put the construction cost at $1,356,000, or $150 per square foot, for the finished area and $272,250, or $75 per square foot, for the archived space. Septagon's construction estimate for the entire building is $6,847,021.13. "I think we need to focus on the big picture of the budget, piece by piece," Septagon Operations Manager Nick Smith said. The administration building, to be located on South Highway 47 off Mockingbird Lane, will house all non-court related offices. Included in the project cost was $500,069 spent last year to buy the approximate 3-acre parcel. The commissioners have set aside $6 million from the capital improvement fund for the project and were open to the project increasing about $500,000 more. Even then, they said they don't like the idea of using a loan to cover the increased cost. Both Smith and the commissioners felt that Treanor's design, including interior ideas, could be scaled back in many areas to cut costs. They also were dissatisfied with the proposed mechanical system that was presented to them Monday. A civil engineer spoke of the need for three HVAC units, including one that was going to be 42 feet long. Smith later felt that amore cost-effective option was available. The commissioners also continue to express an interest in a geothermal option that would cost more upfront, but pay for itself in around 25 years. "Face it, it's taxpayers' money," Southern District Commissioner Hubie Kluesner said. "I don't know if some of the flamboyance is justifiable." Septagon and Treanor officials said they were using 2007 construction costs in their estimates due to the economic downturn. Smith, however, stated firmly that his company's projections would be within 5 percent of the finished project. While he anticipates a competitive bidding process, he acknowledged that wouldn't be a $2 million swing. "We need to know the general direction of where we are going," Smith said. The commissioners indicated they were open to modifying the design but were hesitant to reduce the square footage of 40,733. However, Presiding Commissioner Arden Engelage estimated the building would have to be scaled back 13,000 square feet to stay within the original budget. Prior to selecting the design that Treanor has been working on for the past three months, three others were considered before the commission selected the cheapest option. "I think we can use the land more advantageously," Engelage said. The commissioners also expressed an interest in pushing the building farther off Highway 47 in case the road was widened in the future. They had no problem with undergoing another delay after learning last month construction wasn't going to begin until July at the earliest. Planners initially anticipated a start to be in April. "We all agree the schedule isn't as important as a $2 million savings," Kluesner remarked.