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Brentwood City Commission Agenda

Meeting Date:	04/11/2022
Resolution 2022-42 - Amendment to Guaranteed Maximum Price with American Constructors for Construction of Fire Station 5
Submitted by:	Kirk Bednar, Administration
Department:	Administration

Information

Subject

Resolution 2022-42 - Amendment to Guaranteed Maximum Price with American Constructors for Construction of Fire Station 5

Background

At its December 13, 2021 meeting, the Board of Commissioners approved a final guaranteed maximum price (GMP) for construction of Fire Station 5 at $6,949,018. That GMP amount included a $100,000 contingency allowance to be authorized by staff as needed. In hindsight, a $100,000 contingency allowance representing only 1.4% of the total construction cost was overly optimistic in a time of significant supply chain challenges and construction industry inflationary pressures.

Per the attached contingency log, staff has authorized $80,343 in contingency utilization, leaving a balance of $19,657 for the remainder of the project. Some of the larger items authorized to date include:

A revision to provide for a masonry generator enclosure as required by the City for all similar private development projects ($22,505).
A change in the type of interior and exterior insulation product because the originally specified product was not going to be available until calendar year 2023 ($38,830).
Rock removal beyond the original allowance ($9,250). This additional rock was primarily located in the lower area of the property where the stormwater detention pond is located.

Other scope of work changes that will require additional draws on the contingency allowance have been identified. These include lumber cost increases for roof trusses, and a modification to the electric service routing to accommodate Middle Tennessee Electric’s preferred layout for a pad-based transformer, which is more readily available to meet the project’s schedule need for permanent power.

To accommodate these upcoming scope changes and provide additional contingency balance for the remainder of the project, staff is recommending an amendment to the GMP to increase the contingency allowance by $200,000, for a total of $300,000. This would increase the GMP from $6,949,018 to $7,149,018. The additional funding can be accommodated as part of the planned FY 2022 year-end transfer to the Capital Projects Fund.

Staff Recommendation

Staff recommends approval of the attached resolution authorizing a $200,000 increase in the GMP for construction of Fire Station 5. If any questions, please contact the City Manager.

Previous Commission Action

The original GMP of $6,949,018 was approved by the City Commission via Resolution 2021-143 on December 13, 2021.

Fiscal Impact

Amount :	$200,000
Source of Funds:	Capital Projects Fund
Account Number:	311-45200-5018

Fiscal Impact:

This additional funding allowance will be added to the planned FY 2022 year-end transfer of General Fund excess revenue to the Capital Projects Fund.

Attachments
Resolution 2022-42
Change Order Form
Contingency Log To Date
Signed Resolution
Signed Amendment