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<br />. There are legal concerns with the multi-prime process. Dare County <br />accumulated $200,000 in legal fees on a multi-prime project that used a <br />construction management company. The construction management <br />company was unable to avoid costly legal claims. This liability for the owner is <br />only eliminated when the construction manager is serving at risk. <br />. Serving at risk means that the construction management firm would sign <br />contracts with the subcontractors, enforce those contracts and bear any <br />liability associated with them. If we use one of the construction management <br />companies in the manner they proposed, Cabarrus County would sign all <br />contracts with general and subcontractors, and bear all the liability itself. . <br />. Another potential issue with hiring a construction management firm in an at <br />risk capacity is that the State Building Commission will have to approve the <br />firm to do the project in an at risk capacity. NCGS 143-64.31 states: Public <br />entities that contract with a construction manager at risk must report to the <br />Secretary of Administration (Office of Department of Administration) the <br />following information: (1) A detailed explanation of the reason ~py the <br />particular construction manager at risk was selected. (2)The terms of the <br />contract. (3) A list of all other firms considered but not selected and the <br />amount of their proposed fees for services. (4)A report on the form of bidding <br />utilized by the construction manager at risk. The Secretary of Administration <br />shall adopt rules to implement the provisions of this statute including the <br />frequency and format of reporting. <br />. Neither proposal from the construction management companies interviewed is <br />an at risk proposal. Construction Control Corporation does not have the legal <br />ability to serve at risk, Bovis lend lease does have the capacity to serve at <br />risk. If the Board desires to have a construction manager at risk, staff may <br />have to produce another request for proposals specifying that service. Most <br />of the proposals were not submitted in an at risk format because the architects <br />contract stated that the project was proposed to be bid single prime. <br /> <br />RECOMMENDATION <br /> <br />Staff recommends hiring Ware Bonsall for the on site management of the jail project. <br />Ware Bonsall has a contract to provide many of the services that the construction <br />management services offer, and they will use a separate company to perform the <br />value engineering. Ware Bonsall received excellent recommendations for on site <br />management services from past customers. <br /> <br />Reasons for recommending Ware Bonsall: <br /> <br />. Ware Bonsall has hired an outside company to perform value engineering and <br />has included this costin their current contract. Ware Bonsall has contracted <br />with the same company used in the in the Cumberland County project. The <br /> <br />. Page 3 <br /> <br />£..{ <br />