3.3. SR 11-22-2004 - Laserfiche WebLink

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Westbound Update November 22,2004 to do the work. Borson then compiled this information in order to submit a bid to the city for the entire project. One of the benefits of the general contractor approach is that the company can select subs they are comfortable with and which they think can work together. On the other hand, one of the negatives to the general contractor approach is that I think it is more expensive. For example, with the 1993 City Hall project, I believe that Borson marked up the bids of the subcontractors (so that they could make a profit and cover contingencies) when they submit their overall proposal. This is the normal business practice in the construction industry. Also, I think that the general contractor approach is more expensive because we are not dealing with the low subcontractor bid in all cases. Finally, with the general contractor approach we are sometimes at odds with the project manager on- site as their goal is to keep expenses down and their profits up. In this regard it is not always easy to have the general contractor get the subs to do what is necessary in order to have a good quality final end product. With the construction management approach the city hires a CM firm and then goes out for bids for each individual component of the project. The city gets the lowest possible price for the project by selecting the low bid for each component. On the negative side of the issue is the fact that sometimes it is difficult to get these low bidders to work together if they do not have any previous working relationships. Overall, I believe that the construction management approach is cheaper than the general contractor approach. The expenses for the on-site project manager, the on-site trailer, and other reimbursables are identical with the construction management or general management approach. The fee for the CM approach is less than what I think the markup is on the subcontractors with the general management approach. (In this case the proposed fee from Greystone is four percent.) Finally, and probably the most important benefit with the CM approach, is that the project manager on-site is the city representative. This project manager is on-site all day, every day. The construction manager fights for the city and does everything in their power to make sure that the subcontractors are doing everything right and to the city's satisfaction. The easiest construction project we have had as a city was the Northbound project with using the construction management approach. The Public Safety-Utilities-City Hall project was very complex and difficult, but I believe we also got the best possible end product and price for the project by using the construction management approach. Timetable Staff is working with TMA on the construction timetable. Gary Tushie would like to move forward as quickly as practical so that we can be out for bids for the project in February. This is the best bidding month for new building construction. In this regard, as soon as possible in the spring, the project would break ground and approximately eight months later the building would be open for business. It is likely that we will be going through some city approvals (i.e. CUP) while at the same time having the project out for bids. This should not be a problem as the CUP deals mostly with site issues and the bids deal mostly with the building construction. $: \Counci1\Pat\2004 \ Westbounu112204.doc