On December 10, 2018, the Board of Commissioners approved an agreement with The Parent Company to serve as the construction manager for the Police Department Headquarters project. Under this method of construction, the construction manager is selected during the design phase and serves as the third member of the project team, along with the owner and architect, to successfully complete a complex construction project. The construction manager’s role is divided into two phases – Pre-Construction services and Construction services.
The Pre-Construction services performed by the Construction Manager include the following:
- Work alongside the architect to assess project constructability and identify construction efficiencies and value engineering options to maintain the project budget;
- Prepare preliminary project budget estimates based on schematic design and update the budget throughout the final design and value engineering process;
- Develop construction phasing plans;
- Prepare subcontractor scopes of work and bid packages; and
- Competitively bid all subcontractor work packages.
Once the various subcontractor packages have been bid, the construction manager presents a guaranteed maximum price (GMP) for construction of the project. Once the GMP is accepted by the City, the construction manager then initiates the Construction phase of the project and oversees all aspects of construction to final completion.
It was originally anticipated that the Construction phase of the project would be bid all at the same time and the total GMP would be established prior to any construction being initiated. However, we have since decided to bid the project in phases, with the initial site grading, storm drain installation, utilities installation, and paving work bid as Phase 1. On September 9, 2019, the Board of Commissioners approved an amendment to the agreement with The Parent Company establishing a GMP for this Phase 1 work at $2,378,849. Phase 2 work was bid on October 3, 2019. Phase 2 work included foundation micropiles, building concrete, and structural steel. On October 14, 2019, the Board of Commissioners approved an amendment to the agreement with The Parent Company establishing a GMP for the Phase 2 work at $3,992,623. This second amendment brought the total project GMP at that point to $6,371,472, which includes $300,000 in project contingency.
On December 18, 2019, The Parent Company conducted a third round of bidding for the remaining building components for the project. This set of bids included numerous bid packages for various trades. The list of trades and the recommended subcontractor representing the lowest and best bids received for each bid package is attached for your reference.
In addition to the proposed subcontractors listed above, there were a couple bid packages for which no bids were received or the bids were rejected. These packages include millwork, roofing, and metal wall panels
It is recommended that the City Commission authorize The Parent Company to accept the bids are recommended above and execute appropriate subcontracts. For those items where there were no bids or bids were rejected, The Parent Company is proposing inclusion of a conservative allowance within the proposed final GMP. The Parent Company will rebid these items to determine a proposed subcontractor.
Based on the recommended low bidders and proposed work package allowances, the proposed GMP for this Phase 3 work includes extended duration for General Conditions (overhead) costs for The Parent Company and temporary construction site costs (fencing, parking area maintenance, temporary utilities, etc.), bonds, and The Parent Company fee. The total of these costs plus a $765,000 contingency allowance is $18,610,281. A breakdown of these costs is included in the attached Change Order. Added to the first two change orders for Phases 1 & 2, the final construction GMP will be $24,981,753 (see attached summary of GMP Change Orders).
With this final construction GMP established, staff can now project a total project cost to include design fees, allowances for furniture,fixtures, and equipment to be procured outside the construction contract, and allowances for technology equipment, radio equipment, and other required equipment (fitness, fingerprint machine, door security equipment, etc.) to be procured directly by the City. With all of these items combined, the projected final budget for the project is $29,550,000. This number includes a construction contingency allowance of $1,065,000 and a furniture/equipment contingency allowance of $225,000 ($1,290,000 total contingency). A detailed breakdown of this overall project budget as well as a funding summary is attached for your review.
One significant item discussed with the Commission early on with the project that is not included in the construction costs outlined above is a fueling station. Staff believes the distribution of the City's existing three fueling locations (City Hall, Service Center, and Safety Center) plus the proposed implementation of the Fuel Man fuel card system for police vehicles will provide sufficient fueling capabilities and negate the need to assume the maintenance costs, regulatory compliance obligations, and environmental contamination exposure associated with a fourth fueling site.
Please contact the City Manager if any questions.
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