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ITEM 9.3. <br /> <br />ity of <br /> <br />MEMORANDUM <br /> <br />iver <br /> <br />FROM: <br />DATE: <br /> <br />Mayor & City Council <br />~tn uK~~ r~i,C~)d m~at °r <br /> <br />SUBJECT: Northbound Construction Manager <br /> <br />Attached for your review is some material from Gary Tushie, architect for the <br />Northbound Liquor store project, regarding the Greystone Construction <br />Company and his recommendation to hire this firm as the construction <br />manager for the Northbound project. Included with this material is some <br />information from Greystone on the bid estimate for the project and a quote on <br />their fees for construction management services. After extensive discussions <br />and evaluation, staff supports the hiring of Greystone Construction Company <br />as the construction manager for the Northbound project. Please note that <br />the fee has been negotiated down by $6,430 or 18 percent from the first quote <br />a few weeks ago. <br /> <br />In order to help explain the construction management approach to a <br />construction project, I need to relate the concept to the City Hall project. <br />With the City Hall project the city hired Borson Construction as the general <br />contractor for the project as they submitted the low responsible total project <br />bid. With this project, Borson hired all of the subcontractors (mechanical, <br />electrical, plumbing, etc.) based on quotes that they received. It is assumed <br />that Borson had marked up these subcontractors quotes ~n order for Borson <br />to make a profit on the project and this was part of the overall bid that <br />Borson submitted to the city. As the general contractor for the project, <br />Borson had one of their employees act as the superintendent (James) on site <br />to manage the construction project and the subcontractors. The fee for <br />James' services was also part of the overall bid from Borson. Additionally, <br />Borson was responsible and made arrangements for general and special <br />conditions (i.e., SAC & WAC fees, portable toilets, dumpster, project office, <br />temporary utilities, etc.) which again became part of the overall Borson bid. <br /> <br />With the construction management approach, the city hires a firm <br />(Greystone) and one of the Greystone employees becomes the owners rep and <br />supervisor on site to manage all of the subcontractors. This is after the city <br />awards the subcontractors bids. Accordingly the city, and not a general <br />construction company, is managing the project. This is the same supervisor <br /> <br />13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 <br /> <br /> <br />