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CONTRACT K-1920-133: A CONTRACT BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA; THE NORMAN MUNICIPAL AUTHORITY; AND CROSSLAND CONSTRUCTION COMPANY, INC., IN THE AMOUNT OF $32,390 TO PROVIDE PRECONSTRUCTION SERVICES UNDER CONSTRUCTION MANAGEMENT AT RISK SERVICES FOR THE MUNICIPAL COMPLEX RENOVATION PROJECT AND BUDGET TRANSFERS BETWEEN PROJECT ACCOUNTS.
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BACKGROUND: City Council, in its meeting of January 22, 2019, approved Contract K-1819-99, with The McKinney Partnership Architects (McKinney) to provide the initial assessment and schematic design services related to the renovation of the Norman Municipal Complex. Norman voters approved funding for the renovation of the Municipal Complex in a 2008 General Obligation Bond referendum; Council will consider the award of competitive bids for the sale of these General Obligation Bonds in a subsequent meeting.
DISCUSSION: A Request for Qualifications was issued on January 22, 2020, for a Construction Manager at Risk (CMaR) for the Municipal Complex Renovation Project and proposals were received from nine management service companies. All companies were well qualified and five companies were selected for interviews, which were conducted on March 4, 2020. Based on their experience with other similar projects, Crossland Construction Company, Inc., (Crossland) was selected as the company having the best proposal for managing the construction work at the Municipal Complex.
Construction Manager at Risk is a process where the City of Norman (“Owner”) will hire a Construction Manager to handle all of the bidding of the different sections of the work and all the subsequent construction activity for the project for a Guaranteed Maximum Price (GMP). The GMP is subsequently considered as an amendment to the CMaR contract after the most responsible bids are secured through the proper bidding procedures that govern public projects. Project bids are sealed and opened consistent with the City’s bidding policies. This method allows the CMaR to work for the Owner while they gather bids from their best pre-qualified vendors and subcontractors, who have a history of working with the CMaR. This can deliver better bid pricing to a known project manager. Also, the CMaR process often maximizes opportunities to get participation from local, smaller sub-contractors and can result in quicker project delivery without change orders, due to the GMP agreed-on at the time of awarding the construction contract(s) to the CMaR.
The construction will be fully bonded at the time when the construction bids are awarded for the GMP. At that stage, the CMaR contract includes all of the necessary professional liability and insurance and affidavits that come with all professional services contracts. Crossland has used this method on many of their projects in the past with excellent results.
The amount being awarded via this contract is for preconstruction services and once plans and specifications are complete, Crossland will secure all bids and create the GMP that will be awarded by amendment to this contract. The GMP will also include all of Crossland’s profit on the project, which will be itemized in the amendment.
Funding for improvements to Municipal Building 201 (“City Hall”) is currently in several different Capital Project Accounts (funded by the Capital Sales Tax) and will need to be transferred to Municipal Complex Renovation/Expansion, Design (PayGo Project BG0075; account 50196644-46201; $50,000) and Construction (account 50196644- 46101; $717,541.30) from the accounts listed below:
Project BG0247, Carpet Replacement, Construction (50595540-46101; $110,000);
Project EF0169, Painting, Construction (50196677 46101 - $150,000);
Project EF0110, Westwood Pro Shop Roof, Construction (50196677-46101; $1,389);
Project EF1004, Building Lighting, Construction (50595540-46101; $65,000);
Project BG0248, Clerk’s Office Remodel, Design (50193365-46201; $150,000);
Project BG0027, Chambers Audio Video, Construction (50193365-46101; $2,522);
Project BG0069, Security Replacement, Construction (50193365-46101; $274,067.30);
Project BG0041, Demolition 1 West Gray, Construction (50193365-46101; $14,563);
Funding for the 2008 General Obligation Bond-funded portions of the Municipal Complex renovations is available in Project BP0045, Municipal Complex Renovation/Expansion, Design and Construction (accounts 50196644-46101 and 50196644-46201; Project BP0045).
RECOMMENDATION No. 1: It is recommended that City Council approve Contract K-1920-133 with Crossland Construction Company, Inc., in the amount of $32,390 for Construction Management at Risk Services for the Municipal Complex Renovation Project.
RECOMMENDATION No. 2: It is recommended that the City Council approve the transfers outlined above to provide funding for this project.