Approval of Contract Agreement for Phase I of the AC Caplinger Ballfield Renovation Project

Excerpt from Aug. 12, 2024 City Council Meeting | Item # 8.B
Item
Consideration of Approval of a Contract Amendment with Crossland Inc. (Construction Manager) for the Guaranteed Maximum Price (GMP) 1 for Phase I of the AC Caplinger Ballfield Renovation Project to include Demolition, Earthwork, General Conditions, Project Requirements, Insurance, Performance Bond, and Owner's Contingency and Resolution No. 26-24 Appointing Purchasing Agent; $2,052,473.56. (Ward 2)
Background
The first phase of construction for the AC Caplinger Ballfield Renovation is slated to be the demolition of the existing amenities, except the existing restroom and concession, and earthwork. At the January 8th City Council meeting, an agreement was approved for Crossland Construction Company Inc to serve as the Construction Manager at Risk (CMaR) for the AC Caplinger Ballfield renovation - Phase 1. That agreement spelled out the terms of the contractual relationship and the responsibility of both parties. This amendment to that agreement comes after the project was publicly bid and each of the lowest and most responsible subcontractors were vetted by Crossland. The amendment also sets a Guaranteed Maximum Price (GMP) for this scope of work. The GMP, unless altered by the Owner (City), is the not to exceed cost for all of this scope of work which includes but is not limited to demolition, earthwork, and soil mitigation as determined by the environmental consultant (full scope list below). The bid results for these trade packages were favorable compared to the amounts budgeted.
A number of additional items related to the project are also included in this contract amendment. They include items that cover the cost for the entirety of the project, such as general conditions and project requirements. Additionally, the proportion of the overall Construction Manager fee, construction contingency, bonding, and insurance is included in the amendment. All of these costs were anticipated and are within the total project budget of $17.5M which includes design and construction. A brief explanation associated with each is listed below, as well as the accompanying costs.
Recommended Subcontractors (including amount and scope)
2A Demolition (Midwest Wrecking).................................................................................... $91,305
31A Earthwork (Future, Inc.) .............................................................................................$505,552
Unit Prices #1-#7 Earthwork/mitigation of unknown soil conditions (Future, Inc.)… $350,000
$1,002,910.26: General Conditions & Project Requirements. These are the Construction Manager's overhead for the entirety of the project. Items included are Construction Manager's personnel and associated vehicles, equipment, insurance, the field office, permits, construction fencing, site cleanup and safety.
$31,776.88: Insurance and Performance Bond. As with all construction projects, the General Contractor is required to carry insurance and provide a performance bond.
$28,405.71: Construction Contingency. The Construction Manager is recommending that a contractor contingency be carried on this portion of the project. The contractor contingency is intended to cover any unexpected costs that may occur during construction. None of this money would be spent unless agreed to by the owner (City), but given the size and scope of the project, it's best practice to set aside a portion of the total project budget in a contingency.
$42,523.71: Construction Manager Fee. The Agreement approved by the City Council in January 2024 spelled out the Construction Manager Fee for this project at 4% of the total construction budget. The proportionate amount for the overall cost of this amendment is $42,524.
Funds verified by Purchasing.
This item has been reviewed by the City Attorney’s Office as to form and legality.
Time Frame
If the item is approved, it's anticipated demolition and earthwork will begin in the coming weeks.
Issue
Approving an amendment to the contract with Crossland so demolition and earthwork can occur, and other costs can be encumbered.
Recommendations
Staff recommends approval.
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