Sierra Marrero

Senior Project Manager

Brynt Johnson

Director of Engineering and Building Services

Issue Statement: On March 4, 2020, the City Commission approved the rankings for the Construction Manager at Risk (CMAR) request for qualifications that was issued by the City on October 25, 2019, and authorized City Staff to enter into contract negotiations with the recommended firms for bond and other capital improvement projects.  Subsequently, in December 2020 staff engaged and negotiated with State Contracting and Engineering Services (State Contracting) for pre-construction CMAR services related to the L-Shaped Building.  Staff now seeks to enter into  an agreement with State Contracting to provide construction services related to the Park Place (L-Shaped Building) Project.

Recommended Action:  The  City Commission adopt a resolution 1) approving the proposed budget amendment; 2) accepting State Contracting's Guaranteed Maximum Price (GMP) proposal of $463,422, and; 3) authorizing appropriate City Officials to enter into a construction services agreement with State Contracting and Engineering Corp for Construction Manager at Risk (CMAR) Services related to the  Park Place (L-Shaped Building) Project located at 1101 NE 40th Court.

Background: Construction Manager at Risk (CMAR) is a project delivery method distinct from the traditional model of design-bid-build (separate entity awarded design, separate entity awarded construction) and design/build (single entity awarded design and construction).  CMAR is an integrated team approach applying modern management techniques to the planning, design and construction of a project in order to control time and cost, and to assure quality for the project owner. The team consists of the owner (the City), the architect/engineer, and the CMAR. 
 
In this delivery model, the City contracts with both a design firm a CMAR. The CMAR firm  is responsible for providing pre-construction review services during the design phase, such as constructability reviews, cost estimating and scope management.  The CMAR, using the budget of the City, provides suggestions for potential cost saving strategies and other alternatives for design, construction materials, and processes.
 
Near or at the end of the design phase, the CMAR submits a Guaranteed Maximum Price (GMP) for consideration by the City. The CMAR warrants to the owner that the project will be built at a price not-to-exceed the GMP. If the cost is approved by the City, award of the construction phase contract to the CMAR would occur and the CMAR assumes the risk of meeting the GMP. 

On October 25, 2019, a Request for Qualifications for CMAR was released.  Eleven (11) responses were received.  The six (6) top scoring firms were invited to make presentations and answer questions from the selection committee.  The selection committee recommended that the City Commission select the top five firms to be placed on a continuing services list.  On March 4, 2020, the City Commission approved the rankings for the Construction Manager at Risk (CMAR) request for qualifications.
 
In December 2020 the City engaged State Contracting and Engineering Corp. (State Contacting) to provide pre-construction services for the Park Place (L-Shaped Building) Project.

At the completion of the building assessment and with all related engineering reports received, the City engaged State Contracting to provide a GMP for the Project which includes the following elements:
 
• Roof Replacement
• Mold Remediation
• Flood Proofing (related to future parking lot construction)
• Restoration as Required

State Contracting and Engineering Corp's  submitted a complete GMP proposal, which is attached for consideration, along with a construction services agreement.

Approval of the GMP, along with the construction agreement, allows State Contracting to proceed with the improvements as specified in the agreement and as provided for in the construction design documents/plans.

Please note that this is one of two projects related to Park Place; a separate project for parking lot improvements at the site is currently in the design phase.  The parking lot improvements are contemplated for construction award later this year and are funded through the Community Development Block Grant program.

As shown in the attached Construction Services Agreement, the total GMP for CMAR services related to the construction phase of the Park Place (L-Shaped Building) Project is $463,422. Attached is the proposed budget amendment to provide funding for the expenditure by utilizing funding available now available after County reimbursements for CARES Act costs incurred by the City. The proposed expenditure is as follows: