3. SR 05-25-1995 - Laserfiche WebLink

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of Item 3. River MEMORANDUM TO: Mayor & City Council FROM: Pat Klaers, City Administrator DATE: April 25, 1995 ~u~~ SUBJECT: Ice Arena Update Consider Hiring Construction Manager The last City Council action on the ice arena project was to authorize the architects to complete the construction documents. No significant activity has taken place on this assignment by the architects and, as the council has been advised, the Ice Arena Task Force is pursuing the hiring of a construction manager along with modifying the existing contract with Mr. Brad Lemberg of I.C.E., Inc. Overall, not much has changed with the finances for the project. We are still about 10-15 percent short of being able to finance a bare bones facility and we are probably 30 percent short of being able to finance the ultimate facility. The goal of the task force is to get a "bare bones" facility constructed as soon as possible and it is believed by the architect and the task force that the hiring of a construction manager will help us achieve this goal. It is believed by the Task Force and the architect that the total project will cost less if we use the construction management approach. Typically, like with the City Hall project, the City would bid out the project and would receive bids for the total project from a few general contractors. The general contractors would have gotten quotes bids from subcontractors and then adjusted the subcontractors figures to cover themselves and to receive a profit on their activities. By going to a construction manager approach the City will be having the construction manager obtain approximately 3 - 5 bids directly from the subcontractors on 15 or more different sections or components of the project. Essentially, we are cutting out the profit the general contractor receives by coordinating and taking the risk on the subcontractors. This approach is only one of the financial benefits for the City in going to the construction management approach for this project. 13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425