HomeMy WebLinkAboutIR 9749 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9749
To the Mayor and Members of the City Council May 19, 2015
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•a SUBJECT: UPDATE TO M&C C-27180 CONSTRUCTION MANAGER AT RISK
rrn AGREEMENT WITH THE FAIN GROUP, INC., FOR GATEWAY PARK EAST
REDEVELOPMENT PROJECT, ESTABLISHMENT OF GUARANTEED MAXIMUM
PRICE
The purpose of this Informal Report is to inform the City Council of the results of negotiations with
the Construction Manager at Risk ("CMAR") for the Gateway Park East Redevelopment Project.
The City Council authorized M&C C-27180 on February 3, 2015, for improvements to Gateway
Park East which included $25,000.00 for pre-construction services and a 6% construction
management fee within the overall construction budget of$2,045,641 .93. At that time, the
Guaranteed Maximum Price ("GMP") had not been established by the CMAR, The Fain Group,
Inc. The project budget was expected to be $1 ,943,359.93 with the City retaining $102,282.00 for
contingencies.
Over the past several weeks, staff and the CMAR have negotiated the GMP. During this process,
additional project features, such as expanded parking and an observation deck, were added to
the project with the funding coming from the City's contingency. As a result, the project budget
allowable to the CMAR increased.
Staff is pleased to present the results of the GMP negotiation. The Fain Group, Inc. will construct
the project for the GMP of$2,020,641 .93. This amount includes a contingency of$40,983.83
which is reserved for the contractor's use only in the event difficult soil conditions are
encountered for the piers related to the added observation deck. Should the CMAR not incur
those types of additional costs, the contingency will revert to the City and be used at the end of
the project, for additional park amenities.
The overall construction budget has been met when the pre-construction fee is added to it. Since
this project is funded by state grant funds, it is imperative to spend as close to the full amount as
is possible. This project is scheduled for completion December 31, 2015.
If you have any questions about this IR, please contact Richard Zavala, Director— Parks and
Community Services Department at (817) 392-5704.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS