Laserfiche WebLink
<br /> <br />Jmnes~.Strornrnen <br />470 US Bank Plaza <br />200 South Sixth Street <br />Minneapolis MN 55402 <br /> <br />& <br /> <br /> <br />(612) 337-9233 telephone <br />(612) 337-9310 fax <br />jstronunen@kermedy-graven.com <br /> <br />CHARTERED <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />Lori Johnson, City Manager <br /> <br />FROM: <br /> <br />Jim Strommen, Legal Counsel <br /> <br />DATE: <br /> <br />May 16, 2007 <br /> <br />RE: <br /> <br />Construction Contracts with RIM Construction <br /> <br />INTRODUCTION <br /> <br />This is a short memorandum highlighting certain elements of the Construction Manager Agreement <br />and General Conditions we reviewed for the YMCA-City construction of a recreation center. <br /> <br />The RIM-City Agreement contemplates a newly-developing type of contractual relationship <br />between cities and construction managers ("CM"). It incorporates public bidding followed by <br />assignment of owner-prime contractor contracts to the CM and a guaranteed maximum price <br />("GMP") committed to by the CM. In order to effectuate this type of relationship and benefits to <br />the City, competitive bidding law requirements must be met. <br /> <br />CONTRACT ELEMENTS <br /> <br />This proposed agreement with RIM as construction manager ("CM") is not the traditional City-CM <br />agreement for public improvement projects. It shifts the risk of the cost of the project to the CM by <br />a GMP commitment and by allowing the CM to work directly with the prime contractors. This is a <br />common method used in the private sector. The private sector, however, is not subject to the <br />competitive bidding laws governing city public improvement projects. To address that issue, the <br />City-CM contract and the general conditions governing the work by the contractors includes, among <br />other things, as follows: <br /> <br />311328vl JMS ELl 85-6 <br />