HomeMy WebLinkAbout10.E.3. Approve an amended contract with RJM Construction, Inc. General Business 10. E. 3.
SF-EAKO 'F F
TO: Mayor and City Council
FROM: Jamie Polley, Parks & Recreation Director
DATE: 12/15/2015
SUBJECT: Approve an Amended Contract with RJM Construction, Inc. (A, B, C)
Action Sought
Approve the amended contract with RJM Construction.
Background
On August 18, 2015, the City Council awarded a contract to RJM Construction for
construction management services for the amount of$49,457 for the
pre-construction and bidding phase and $933,279.00 for the construction phase of
the ice arena construction and Community Center renovation project.
Discussion
The construction management request for proposals that was utilized to obtain
construction management proposals listed a standard AIA document to be utilized
as the basic contract for construction management services. Utilizing this document
is a Construction Management Agency approach. The RFP also included the option
to utilize a Construction Management At-Risk approach.
The CM At-Risk approach transfers the construction risk from the City to RJM.
The City will enter into an agreement with RJM and award the bid contracts
however each contract will then be assigned to RJM and they will enter into a
contract with each contractor. In this approach RJM will guarantee a project price
maximum.
The At-Risk process that RJM utilizes drives the best possible value by eliminating
scope gaps and costly change orders. It will reduce the contractual risk to the City
as well as administration time for both the City and RJM.
At tonight's City Council meeting the Council may choose to proceed with the
construction of the Community Center and Ice Arena project. If this is the action,
the City Council is asked to enter into the Construction Management At-Risk
contract with RJM Construction. The contract utilized will be an AIA standard form
contract with Construction Managers. The At-Risk approach will require RJM to
submit to the City payment and performance bonds. The cost of the bonds is
$167,870.00 and will be added to the construction phase amount previously
approved of$933,279.00 for a total construction phase amount of$1,101,149.00.
Budget Impact
The fees paid to RJM Construction for pre-construction and construction phases
will be included in the bond amount.
Recommendation
Staff is recommending that the City approve the Construction Management At-Risk
contract with RJM Construction.
Relationship to Vision
A. Keep Shakopee a safe and healthy community where residents can pursue active
and quality lifestyles.
B. Positively manage the challenges and opportunities presented by growth
development and change.
C. Maintain the City's strong financial health.
Requested Action
The City Council, if concur, enter into a Construction Management At-Risk
contract with RJM Construction for construction of the new ice arena and
community center renovations.