BC 2006 05 18 RECESSED - Laserfiche WebLink

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May 18, 2006 - Recessed Meeting Page 614 Chairman Carruth reported a Guaranteed Maximum Price had been negotiated with Turner Construction, the Construction Manager at Risk, for the project. John Day, County Manager, briefly reviewed the Construction Manager at Risk delivery method, which he stated is being used by the City of Concord for its new police station and by the State for a number of projects. He explained the delivery method allowed for the selection of a general contractor based on experience, history, and qualities of the company. He said that had been the basis of choice in selecting Turner. Brian Schick, Manager of Business Development with Turner Construction, gave a brief overview of the history of the company, the various types of delivery methods provided to its clients and current projects in the area. He also discussed the County's decision to use the Construction Manager at Risk delivery method and the flexibility provided by that method. Torn Nelson, Chief of Procurement with Turner, explained the procurement process and the method for selecting subcontractors to bring the greatest value and best price to the project. He outlined the criteria used in the pre-qualification of subcontractors and reported the company had focused on contractors from Cabarrus County, with local subcontractors recommended for $1.4 million of the Annex cost. Mr. Nelson reviewed the 18 different scopes of the project, the bidding of those scopes and the selection of the subcontractors. To guarantee prices, he said Turner had issued conditional letter of intent agreements to the selected subcontractors. Mr. Schick reported on efforts by the company to inform businesses in Cabarrus County about the opportunity to participate in the project. This included newspaper advertisements and hiring a consultant to make contact with local companies. Also, he stated the 18 selected subcontractors will be encouraged to purchase needed project items/equipment from businesses in Cabarrus County. Further, Mr. Schick reported the number presented to the Board would be the amount guaranteed for the proj ect. He said the company will make attempts to be lower than that amount and that all savings will come back to the County. Mr. Day reviewed the components of the contract with Turner and referred to the Guaranteed Maximum Price (GMP) , which included the actual direct cost of work for the subcontractors, the construction manager's fees and general conditions and a contingency. He said the County had used the State's model contract in developing the Turner contract, which had been reviewed by the County's construction attorney. Mr. Day discussed the requirement for public notice and the awarding of the bids by Turner Construction. Mr. Schick explained unforeseen conditions that unused contingency will be process for change orders architect. the four percent contingency will be used may arise during construction. He stated returned to the County. He also reviewed that would be initiated by the County or for any the the Mr. Day reported that the Construction Manager at Risk fee would not exceed 15.52 percent of the cost of the work when added to the general conditions cost. He explained this percentage had been determined by reviewing and averaging the fees and general conditions on State contracts. Mr. Schick stated it was Turner's intent to follow as closely as possible the forms and procedures the State had put into place for its construction manager at risk building program. He reviewed the various proj ect cost elements and how they were used in determining the Guaranteed Maximum Price. Kevin Gass, Project Executive with Turner Construction, notebook entitled \\Cabarrus Detention Center & Sheriff's Amendment #1, Early Sitework & Annex Building" and dated May 10, in the notebook included the following: presented a Department, 2006. Items Exhibit A Exhibit B Exhibit C Exhibit D Exhibit E Exhibit F Exhibit G Exhibit H Exhibit I Cover Letter Amendment #1 to Contract Executive Summary Basis of the Estimate Project Summary Clarifications & Assumptions List of Allowances Document List RFI Responses