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CONTRACT K-2021-115: A CONTRACT BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND CROSSLAND CONSTRUCTION COMPANY, INC., IN THE AMOUNT OF $26,320 TO PROVIDE CONSTRUCTION MANAGEMENT AT RISK SERVICES FOR THE NORMAN FORWARD SENIOR WELLNESS CENTER PROJECT.
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BACKGROUND: On 13 October 2015, Norman citizens passed the NORMAN FORWARD Initiative, funding various quality of life projects through a ½% sales tax increase over 15 years. Included in the NORMAN FORWARD Initiative was a project to construct a new Senior Wellness Center.
The Senior Wellness Center is to be located on City-owned land on the southeast corner of Norman Regional Health System’s (NRHS) Porter Campus, off of North Findlay Avenue. The new Senior Wellness Center will include a pool with lap swimming, water walking, and hydrotherapy seating. An indoor walking track, multi-use gymnasium and training space, fitness classroom area, lounge and game rooms, both wet and dry craft areas, small prep and demonstration kitchen and multipurpose rooms that could be used for eating, events, classes, theatrical plays, games and much more. Oklahoma City architectural and engineering (A/E) firm Frankfurt, Short, Bruza (FSB) was selected as the A/E consultant for this Project in March 2018. FSB has completed the project's schematic design phase, is proceeding with design development and construction documents, and will assist with construction administration through the project completion.
The City’s NORMAN FORWARD Project Management Consultants from ADG have participated throughout the entire schematic design process and agree that this project would be an excellent opportunity to utilize the Construction Manager at Risk (CMaR) delivery method. We have successfully used the CMaR method on several previous NORMAN FORWARD projects.
DISCUSSION: CMaR service proposals from seven management service companies were received in January. Three companies were short-listed for interviews, which were conducted on March 24, 2021. Based on their experience with other similar projects, Crossland Construction Company, Inc. was chosen as the company with the best proposal to manage the construction work for the Senior Wellness Center.
Construction Manager at Risk is a process where the City (“Owner”) will hire the Construction Manager to handle all of the biddings 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 governing public projects. Project bids are sealed and opened consistent with the City’s bidding policies. The GMP will also include all of the CMaR’s profit on the project, which will be itemized in the amendment.
This project delivery method allows the CMaR to work for the Owner while gathering bids from their best pre-qualified vendors and subcontractors, who have a history of working with the CMaR. Also, the CMaR process often maximizes opportunities to get participation from local, smaller sub-contractors.
For this project, since the design development stage has not begun, the pre-construction services provided by Crossland Construction throughout the rest of the design process will help the design team identify ways to keep overall pricing down on the project.
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 service contracts.
The amount being awarded to Crossland Construction Company Inc. in this first contract will cover the monthly expenses associated with doing the business of the CMaR for the anticipated duration of the project.
Adequate funds are available for this contract in the Norman Forward Capital Fund, Senior Wellness Center project; Construction (account 51793365- 46101; project NFP108).
RECOMMENDATION: It is recommended that the City approve Contract K-2021-115 with Crossland Construction Company, Inc., in the amount of $26,320 for Construction Management at Risk Services for the Senior Wellness Center Project for the Parks and Recreation Department.