HomeMy WebLinkAbout10C - Library/Resource Center
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
CITY COUNCIL AGENDA REPORT
July 6, 1998 ~
lOe \
FRANK BOYLES, CITY MANAGE~"<
CONSIDER APPROVAL OF REQUEST FOR PROPOSAL FOR
CONSTRUCTION MANAGER FOR THE LIBRARY/RESOURCE CENTER
CONSTRUCTION PROJECT
Background; At its annual workshop in February, the Council discussed a
pn:sentation it had received on the use of Construction Managers on buildir}.g
projects. Following the discussion, the Council direc;ted staff to more fully
explore the use and function of Construction Managers and to report back to the
Council on using the Construction Management approach in connection with the
Library/Resource Center project.
On June 15, 1998 the staff presented the Council with the results of itS
investi.gation and report concerning the USe of a Constluction Manager verses a
General Contractor for the Library/Resource Center project. Mr. John Bossardt
was at the meeting to answer questions about the Construction Management
approach to building as was Barry Petit, the City's Architect on dIe
Library/Resources Center project.
Based on discussion at the Council Meeting among the Council Members and
representations made by Mr. Bossardt that the City would realize considerable
savings if it employed a Construction Manager (rather than using a General
"Contractor) on the Library/Resources Center project the Council directed Staff
to investigate further the use of a Construction Manager, including preparing an
Request for Proposal ("RFP") so the Council could fUlther evaluate how to
proceed with the construction project.
Current Circumstances: In order to prepare the RFP the staff investigated
further whether, and particularly how, the use of a Construction Manager would
save the City money on the construction of the Library/Resource Center project.
In connection with the actual preparation of the RFP itself, the City started with
a Request for Proposal solicited by Apple Valley for a similar Project. The
Apple Valley RFP was revi~ed to reflect and address some of the issues and
concerns staff heard the Council Members raise at its June 15, 1998 meeting.
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16200 Eagle Creek Ave. S.E., Prior Lake. Minnesota ::J:.JJI L.-l / 14 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
ISSUES:
While investigating further how Construction Management firms approa~h
construction projects and in. preparing the particularized requirements for the
Prior Lake RFP several additional issues, questions and observations arose which
are shared with the Council in this Agenda Report, .
1.
The fee range charged by and quoted to the Council for the services of a
Construction Manager did not include all costs for using a Construction Manager.
In addition to the general percentage fee it is customary in Construction
Management contracts to charge for "other fees and services\ including such
things as a construction superintendent, trailer offices, heating, electricity for
office, testing costs, etc, Attached for Council review is the cost page from the
standardized AlA contract used for Construction Management. General
Contractors generally include these types of other fces and services in the
percent.age fee.
QUESTION: IF THE CITY USES A CONSTRUCTION MANAGER ON THE
LIBRARY /RESOURCE CENTER PROJECT HOW CAN IT ASSURE THAT
FEES WILL NOT ESCALATE BECAUSE OF CHARGES FOR OTHER
SERVICES?
The RFP requires the Construction Manager to provide a cost not to exceed fee
for all services. The contract with the Construction Manager will provide that
no increases will be allowed, There may be some possibility that this safeguard
will dampen interest in responding to the City's RFP.
2. The Library Committee, Park Director Hokencss and Architect Barry Petit
(collectively "Project Team") have been working on the Library/Resource Center
project for months, have completed the concept, design and development stages
of the project and the Architect is preparing detailed plans and specifications for
bidding. Because this project is so far advanced some of the potential savings
claimed by Construction Managers are lost on this project.
QUESTION: CAN THE CITY STILL REALIZE A COST SAVINGS BY
USING A CONSTRUCTION MANAGER RATHER THAN GENERAL
'CONTRACTOR TO CONSTRUCT THE PROJECT'?
A detlnitive and vedtlabk answer to this question is illusive. The greatest
opportunity to use the technique Construction Managers refer tu as "value
engineering" has passed unless the Council were LO direct the Project Team to
go back to the concept development stage of the project. Any savings realized
by utilizing "value engineering" will be offset somewhat by increases in
architectural fees. Furthermore, there is a question whether a "value engineered
project" will receive che support of the Library C~)mmittee since design and
quality may well be sacrificed in. a "value engineered" project.
We have also learned that the sales tax. savings originally suggested (1) is not as
significant as was represented to the Council; and (2) achievable whether the City
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uses the Construction Manager or General Contractor approach. At the Council
meeting of June 15th, the Council appeared to understand that the City could save
$65.000.00 because of a recently enacted sales tax exemption for libraries. "Dle
sales tax exemption is not as inclusive as initially bmieved. I have discussed this
issue with the Department of Revenue, and learned that only the materials portion
of the contract is exempt from sales tax and then only if the City contracts
directly with the vendOr for tnateri<\ls procurement. Depending on the amount of
the procurement, competitive bidding requirements will apply. If the City
competitively bid the materials necessary for construction, unanticipated delays
in construction may occur resulting in increased construction costs. This means
that each of the major material contracts (e.g. masonary, sheet rock, metal work,
millwork, carpet, lighting, electrical, plumbing, etc.) will have to be bid
separately. Each bid will be further subdivided into labor (not taxable) and
materials (taxable).
3. A three month timeframe (this being a very optimistic and aggressive timeline)
is required to solicit proposals, allow adequate time for interested Construction
Management firms to prepare proposals, and for the City to receive proposals,
revit:w, evaluate and rank proposals, conduct interviews. verify references and
receive:: City Council approval to award a contract. After Council authorization
to retain a Construction Manager there will an additional delay for. contract
preparation, execution and orientation of the Construction Manager into the
Project Team and for the Construction Manager to prepare the bidding
documents. This pali of the process could be expedited, but would still require
a minjmum of two months. The contract with the Architect will also have to' be
renegotiated to coordinate the activities and responsibilities between the Architect
and Construction Manager.
QUESTION: WHAT IS THE IMPACT OF THE CONSTRUCTION
MAN AGER PROCESS ON THE PROJECT TIMELINE?
The delay will probably set solicitation of bids for the project back at least five
months (three months for the solicitation and execution of a contract with the
Construction Manager and two months for orientation of the Construction
Manager and the time the Construction Manager will require to segregate and
.. organize the bidding documents using the Construction Manager format). Bidding
would then take place in the December ~ January timeframe.
A five to six month delay in bidding the project could in itself cause increases in
construction costs (increases in the cost of materials) which we cannot anticipate
at this time. The lost mome::ntum on the project may impact the Library
Committee which has been working diligently and on an aggressive schedule.
. .
4. The City can never get a true picture as to whether it will realize any savings
using a Construction Manager on the Library/Resource Center project, be::cause
without bidding the contract under the General Contractor method the City will
not have any numbers to compart:. If the City bid the project now, we know the
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CONCLUSION:
AL TERNA TIVES:
1.
2.
3.
RECOMMENDED
MOTION:
design. materials and quality of the project. If the project is constructed uSing
a Construction Manager, the design, materials and quality of the project may
change based on the application of "value engineering" techniques.
QUESTION: WILL THE CITY SA VB MONEY ON THE
LIBRARY/RESOURCE CENTER PROJECT IF IT USES A CONSTRUCTION
MANAGER RATHER THAN A GENERAL CONTRACTOR?
There is no way to quantify any savings (or increases in costs) that might Occur_
Had a Construction Manager been a member of the Pr.oject Team for the
inception of this project, their expertise m.ay have been or benefit and saved costs,
but then only if the other members of the Project Team concurred in the "value
engineered" design and materials.
In light of the foregoing discussion the Council must detennine whether to
proceed with the Construction Manager process. If the Council decides to
proceed with the Construction Manager process it must do two things:
a. Approve the contents of the Request for Proposal provided to the Council
for its consideration; and
b. Authorize solicitation of proposals.
Approve the RFP and authorize Staff to initiate the solicitation process.
Approve an amended RFP and authorize Staff to initiate the solicitalion process.
Take no action and proceed with the authorization of plans and specifications with
anticipation that Staff will seek authorization from the Council to bid the project
at the first Council Meeting in August.
As the Council deems appropriate.
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CITY OF PRIOR LAKE
REQUEST FOR PROPOSALS
FOR
A CONSTRUCTION MANAGER
FOR THE CITY OF PRIOR LAKE
LIBRARY/RESOURCE CENTER
CONSTRUCTION PROJECT
(7/6/98)
SECTION ONE: INTRODUCTION, TIMELINE AND PROJECT TEAM:
Introduction:
In March 1997 Prior Lake voters approved a $7.8 million Park and Library referendum. Ofthis
referendum, $2.5 million was allocated for construction of a Library / Resource Center. The
Library / Resource Center is to be a 20,000 square foot structure. The current estimated
construction cost is $2,029,470.00.
Following adoption of the referendum, a Library Building Committee was established by the
Prior Lake City Council. The committee consists of representatives ofthe Friends of the Library,
Parks Advisory Committee, City, and County. The committee interviewed architectural firms for
the project and recommended the firm of Meyer, Scherer, and Rockcastle for this project. On
October 201997, the Prior Lake City Council authorized Meyer, Scherer, and Rockcastle to act
as architect for the project.
Since its appointment, the Architect and Library Committee have completed the design
development phase ofthe project. On June 1, 1998 the City Council authorized the preparation of
plans and specifications by the architectural firm. Because of the amount of work and
collaborative effort that went into the design development phase, plans and specifications are
anticipated to be completed in 2 to 4 weeks.
On June 15, 1998, the City council directed that the staff prepare Requests for Proposal for a
Construction Manager for this project on the basis that the City will save money if a
Construction Manager is employed instead of a General Contractor, without loss of project
quality.
The successful Construction Manager will be expected to specifically identify in their proposal
and commit to by contract the savings the City will receive over the fees it charges for the
services rendered to the City should the City decide to retain a Construction Manager.
Timeline for Selection of Construction Manager
.
City Council Authorizes Solicitation of Proposals:
City Council Approves Request for Proposal (this document):
Requests for Proposal Mailed to Candidate Firms:
June 15, 1998
July 6, 1998
July 10, 1998
.
.
1
· Notice of Request for Proposal Placed in Newspaper: July 11, 1998
· Q.A. Meeting with Potential Construction Managers: 2:00 p.m., July 17, 1998
· Proposal Deadline: Noon, August 3, 1998
· Proposal Opening: 3:00 p.m., August 3, 1998
. Review Proposals to Select Firms for Interview: August 10, 1998
· Conduct Interviews: August 21, 1998
· Select Finalist: August 28, 1998
. Prepare Report and Receive City Council Approval: September 8, 1998
. Negotiate and Execute Contract: September 25, 1998
. Construction Manager Orientation with Library Committee
· and Architect: September 30, 1998
Project Team
The City of Prior Lake City Council has final funding authority over the Library/Resource
Center Project. Staffteam leadership is provided by Paul Hokeness, Prior Lake Park and
Recreation Director. Barry Petit of Meyer, Scherer, and Rockcastle is the lead architect for the
project. The Library Committee consisting of representatives including City staff, County
Representatives, Friends of the Library, Parks Advisory Committee, and a City Council
representative are responsible for advising the Council on this project. The Library Building
Committee, Paul Hokeness and Barry Petit comprise the project team. The Construction
Manager must demonstrate the ability, experience, and willingness to work as an integral part of
the project team.
SECTION TWO: SELECTION CRITERIA
Each proposal received by the City will be reviewed by the project team to determine the finalists
for interview and make a recommendation to the City Council on the selection of a Construction
Manager. Criteria include but are not limited to:
. Responsiveness to this Request for Proposal.
. Demonstrated experience managing a Library/Resource Center project ofthis size in
the M~tropolitan area of the State of Minnesota
. Demonstrated experience with similar complex projects.
. Demonstrated experience delivering projects on time, within budget, and in
accordance with the approved design.
. Experience with construction scheduling, cost containment and value engineering
without sacrificing quality.
. Demonstrated experience selecting contractors, supervising construction and
managing periodic payments, final payments and punch lists.
. Demonstrated ability to complete all responsibilities within the costs originally quoted
to the owner.
. Competitiveness of quoted not to exceed total package fee.
· Willingness to assume responsibility/ liability for project missteps (delays, faulty
materials, workmanship, communication, etc.)
. Other criteria as may be established by the Project Team.
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SECTION THREE: ABBREVIATED SCOPE OF WORK, CONSTRUCTION
MANAGEMENT GOALS AND SCOPE OF WORK
Abbreviated Scope of Work
The Construction Management firm shall serve as an integral member of the project team and
shall:
1. Communicate on a regular basis with the Project Team.
2. Refine project schedule from plans and specification completion through construction
completion.
3. Apply value engineering techniques during bidding phases and make recommendations to the
Project Team Coordinator and Architect regarding project constructability.
4. Review and revise as necessary bidding and contract documents prior to issuance to bidders.
5. Recommend divisions of work to facilitate the multiple bidding process.
6. Review proposed alternates with the Architect and Project Team to determine ifthose being
considered are complete and in the City's best interest.
7. Conduct negotiations with contractors on behalf of the City.
8. Administer the signing of contracts and the accumulation of required documents for City
Attorney review.
9. Organize, prepare and distribute minutes of weekly Project Team meetings.
10. Review, evaluate, and direct as appropriate the contractors' on-site construction schedule.
11. Establish and administer a construction reporting system for ASI's, PR's, shop drawings, etc.
12. Oversee all progress payment procedures for contractors.
13. Assist the City with any labor relations efforts connected with the project.
14. Administer contract changes and the project's change order procedure in coordination with
the City Attorney.
15. Track costs and administer the City's cost accounting program.
16. Resolve disputes arising from the performance of the contractor or the interpretation ofthe
construction documents.
17. Provide oversight of all trade contractors' safety programs and affirmative action
requirements.
18. Ensure the construction quality ofthe project.
19. Ensure contractors obtain and maintain appropriate bonds and insurance.
20. Ensure contractors comply with Minnesota Statutes regarding prompt payment to
subcontractors.
21. Ensure that all required inspections and testing are performed.
22. Respond to issues from residents and others.
23. Administer punch list completion.
24. Report to Council as requested by Project Team.
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Construction Management Goals:
1. To manage and complete the project within the defined time schedule.
2. To manage and complete the project within the given budget maximizing cost savings (value
engineering and sales tax exemption) without sacrificing quality or design.
3. To manage and complete the project within quality, design and program guidelines as
established by the Project Team.
4. To demonstrate to the City specific cost savings achieved by the Construction Manager in
completing goals 1,2, and 3.
Scope of Work of Construction Manager Shall Be:
1. Scheduling of project from construction documents phase through construction.
2. Application of value engineering during construction documents and bidding phases,
including direction in "construct ability" and "contractibility" decisions.
3. Development and documentation of general conditions to be included in technical
specifications to facilitate the use ofthe Construction Management project delivery system
and format.
4. Organize bidding documents prior to competitive bidding process.
5. Determination of divisions of work to facilitate the multiple bidding process.
6. Pre-qualification of contractors and the identification of owner direct purchase items.
7. Development of bidding competition to generate the most favorable pricing.
8. Communication with bidding contractors to clarify conditions and resolve discrepancies in
bidding documents and to administer the issuance of any addendum to the bidding documents
as may be required.
9. Represent City during the bidding submission process to ensure that the receipt of proposals
is properly conducted, accounted for and evaluated in writing.
10. Review of proposals with the Architect and Project Team to determine ifthose being
considered are complete in the City's best interest.
11. Leadership in negotiations with the prospective contractors on behalf ofthe City.
12. Arranges signing of contracts after review and approval by City Attorney and the
accumulation of required documents.
13. Organize and chair pre-construction/construction meetings with contractors.
14. Development, implementation and conformance to the on-site construction schedule.
15. Coordination of contractors at the site on a full-time basis.
16. Organization and administration of a contractor system for expediting material and
equipment assuring City recognizes all available tax exemption.
17. Establishment and administration of a project reporting system.
18. Institution and coordination ofthe progress payment procedure for contractors.
19. Procurement and control of construction support requirements for the project.
20. Assistance to the City and contractors with respect to any labor relations efforts connected
with the project.
21. Design and implementation ofthe project's quality management program.
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22. Administration of contract changes and the project's change order procedure in coordination
with City Attorney.
23. Cost tracking and the administration of the City's cost accounting program in coordination
with the City Finance Director.
24. Resolution of disputes arising from the performance of the contractors.
25. Assure adequacy of all trade contractors' safety programs.
26. Assures security of site throughout project including vandalism, trespass, etc.
27. Supervise any necessary rebidding and contract award.
28. Prepare call documents, file and supervise process ifperformancelbid bonds are called and
obtain all lien waivers.
29. Assure all necessary tests are conducted and recorded at the appropriate time.
30. Preparation of punchlist and ensure completion of punch list items.
31. Supervision of ground-breaking and grand opening.
32. Provide a full time construction superintendent for the site during the construction phase.
SECTION FOUR - PROPOSAL CONTENT
Written response must be in the order and format presented below. Additional information, if
desired, may be included in item 9.
1. Firm Orf!anization
a) How many years has your firm provided professional construction management
services in the Twin Cities Metropolitan Area? How many involve cities as
owners?
b) What other services does your firm currently provide in addition to construction
management?
c) If your firm provides general contracting, trade contracting and/or architectural /
engineering services, do you provide any or both of these services on projects
where you serve as Construction Manager?
d) Is your firm currently involved in any litigation from past or current projects? If
so, please provide a summary of relevant information.
2. Professional Organization
a) How many people are employed in your Construction Management organization?
b) How many of these are assigned to full time Construction Management activity?
c) Of those listed in B, how many are full time in-house personnel?
d) Ifthis project is awarded to your firm, list the names of staff who would be
assigned to the project, in what capacity they would serve, amount of time each
would commit to the project, the professional qualifications of each staffmember
and the years of experience each staff member has.
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3. Exoerience
a) List your Construction Management experience for Library facilities.
b) List your Construction Management experience for Resource Center facilities.
c) List your annual volume of Construction Management for public projects in the
last five years.
d) List the projects your firm has completed over the original budget and/or over the
originally scheduled completion date and explain reasons for such results.
e) Name and phone numbers for Construction Management team leader and
construction supervisor.
4. Workload
a) What is your present Construction Management workload?
b) Based on your present professional organization, can your firm effectively
manage this project?
c) List your firm's current Construction Management projects stating the following:
Project & Type
Location, Size, and Completion Date
5. References
a) Identify each public entity to which your firm has provided Construction
Management services over the past five years and identify and provide the
address and telephone number of an individual at the public entity that the City
can call for references. Identify the budget for the project and the final total cost to
construct the project, including all fees of the Construction Manager.
6. Scooe of Services
a) Describe the services by phase (Construction Manager's approach to fulfilling the
scope of work including Bid and Award Phase, Construction Phase and Post-
Construction Phase).
7. Construction Manaf!ement Approach
a) Describe your firm's Construction Management Approach. How do you propose
to implement the scope of work set out in Section III ofthis RFP. Be specific and
provide examples.
b) Describe with specificity how utilization of your Firm rather than a General
Contractor will save the City money.
c) Indicate whether your firm will contractually assure a cost savings and if so, how
much. Use $2, 029,470.00 as the project cost.
8. Basis of Cost Not to Exceed Compensation
a) Each proposer shall provide one all inclusive lump sum fee for all Construction
Management Services during the bid, construction and post construction phases
including a full time construction superintendent and any and all costs directly
related or incidental to the work performed including reimbursables. The fee will
include all fees specified in the AlA document B801lCMA- Electronic format as
6
set forth in Article 12 and Article 13 (attached). BE ACCURATE! NO
ADDITIONAL COSTS OR OTHER SERVICES SHALL BE ALLOWED.
9. Additional Pertinent Information
a) Provide any additional pertinent information about your firm.
10. Contract Between Owner and Construction Management Firm
The selected firm will be required to enter into a Non-AlA contract or modified AlA
contract with the City of Prior Lake. This contract will be subject to the review by the
City Attorney and will require approval by the Prior Lake City Council.
11. Certification of Information Provided
Provide a statement that the information provided in your proposal is to be the best of
your knowledge accurate and can be accepted by the City as a true representation of:
Company:
Address:
Title:
Date:
SECTION FIVE: PROPOSAL SUBMISSION
Submit proposal to:
Mr. Paul Hokeness
Director of Parks and Recreation
City of Prior Lake
16200 Eagle Creek Avenue
Prior Lake, MN 55372
Proposals must be submitted to the City by August 3, 1998 at 12:00 p.m. Proposals will be
opened and read aloud at 3:00 p.m., lugust 3, 1998 at the Prior Lake Fire Station, 16776 Fish
Point Road.
Proposals must be limited to 25 pages in length. Fourteen copies ofthe proposal shall be
submitted to the City.
SECTION SIX: THE CITY'S RIGHT TO REJECT ALL PROPOSALS
The City of Prior Lake reserves the right to reject any and all proposals, or portions thereof and
to award proposal to the firm or firms in the City Council's sole judgment that would be in the
best interest of the City of Prior Lake. The City specifically reserves the right to reject all bids
and proceed with the Project using a General Contractor.
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SECTION SEVEN: INFORMATIONAL MEETING
Additional information about the project may be obtained by attending a project information
meeting scheduled for July 17, 1998 at 2:00 p.m. in the Prior Lake Fire Station, 16776 Fish Point
Road, Prior Lake, MN 55372.
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such insurance as will protect the Construction \-tanager from
claims set fonh below which may arise out of or result from
the Construction \1anager's oper.ltions under this Agreement
and for which the Construction Manager may be legally
liable.
.1 claims under workers compensation. disability
benefit and other similar employee benetit acts
which are applicable to the operations to be
perfonned;
.2 claims for damages because of bodily Injury.
occupational sickness or disease. or death vf the
Construction \-fanager's employees;
.3 claims for damages because of bodil: lnJury.
sickness or disease. or death of any person \Jther than
the C0nstruction \-tana~er's employees;
.4 claims for dama~es insured by uSU:lI personal inJur:.
liability coverage which arc sustained (I) by a
person as :l result of .10 offense directly or indirectly
rebted to employment of such person by the
C0nstruction \-tanager. or (2) by :lnother person:
.5 claims for damages. other than to the \Vork itself.
because of injury to or destruction of tangible
propeny. including loss of use resulting therdram:
.6 claims for damages because of bodily injury. death
of a person or propeny damage arising out of
ownership. maintenance or use of a motor vehide.
11.1.2 The insur:lnce required by Subparagr:lph 11.1.1 shall
be written for not less than limits of liability specified in
Anicle 14 or required by law. whichever coverage is greater.
Coverages. whether written on an occurrence or claims-made
basis. shall be maintained without interruption from date of
commencement of operations under this Agreement until date
of final payment and tennination of any coverage required to
be maintained alter final payment.
ARTICLE 12 ~
PA YMENTS TO THE CONSTRUCTION MANAGER
12.1 DIRECT PERSONNEL EXPENSE
12.1.1 Direct Personnel Expense is defined as the direct
salaries of the Construction Manager's personnel engaged on
the Project and the portion of the cost of their mandatory and
customary contributions and benefits related thereto, such as
employment taxes and other statutory employee benefits,
insurance, sick leave, holidays, vacations, pensions and
similar contributions and benetilS.
12.2 REIMBURSABLE EXPENSES
12.2.1 Reimbursable Expense are in addition to
compensation for Basic and Additional Services JJ1d include
c=xpenses incurred by the Construction :\Ianager and
Construction. \-1anager's employees and consultants in the
interest of the Project. as identified in the following Clauses.
12.2.1.1 Expense of transportation in connectlon with rhe
Project expenses in connection with luthorized ,Jut-vf.to\\n
trave!: long-distance communications: and fees paid 101"
sec:lring lpproval of Juthortties haVing jurisdictIOn l)Ver :he
Prolect.
12.2.1.2 Expense or n:pro<.1uctlOns. posta~e. ;,;'\oress
jeiivenes. eiectroOlc t.acslmile transmissions ..mJ :lanJling '.)1
Dra\\ Ings. Specitications and l>ther jocuments.
12.2.1.3 If Juthorized :n ldvance by the Owner. ;,;xpense \]r'
\)Vertlme work requiTIng higher than regular rates.
12.2.1.4 Expense of Jddiuonal insurance coverage ,)1" ! im IlS
requested hy the Owner 10 excess \Jf that nonnal!: .:arneJ ;.,\
the C unstruc:ion \!Jnager.
12.3 PA YMENTS ON ACCOUNT OF BASIC
SERVICES
12.3.1 .-\n initial payment .IS set fonh in PJra~raDh ,~ ! ,~
the minimum payment under thiS Agreement.
12.3.2 Subsequent pay ments for Basic Services shall be
made monthly and. where applicable. shall be in proponion
to services perfonned within each phase of service. on the
basis set fonh in Subparagraph 13.2.1.
12.3.3 If and to the extent that the time initially established
in Subparagr.lph 13.5.1 of th is Agreement is exceeded or
extended through no fault of the Construction ~tanager.
compensation for any services rendered during the additional
period of time shall be computed in the manner set fonh in
Subparagraph 13.3.1.
12.3.4 When compensation is based on a percentage of
Construction Cost and any ponions of the Project are deleted
or otherwise not constructed, compensation for those ponions
of the Project shall be payable to the extent services are
perfonned on those portions. in accordance with
Subparagraph 13.2.1, based on (I) the lowest bona fide bids
or negotiated proposals, or (2) if no such bids or proposals are
received, the latest approved estimate of such portions of the
AlA DOCUMENT B801/CMa - OWNER-CONSTRUCTION MANAGER AGREEMENT. 1992 EDITION. AlA - COPYRIGHT 1992 . THE AMERICAN
INSTITUTE OF ARCHITECTS. 1735 NEW YORK AVENUE. N.W. WASHI~GTON. D.C.. 20006-5292. Unlicensed photocopying violates U.S. copyright laws
and is subj.:ct to legal prosecution. This document was electronically produced with permission of the AlA and can b.: reproduced without violation until the date of
expiration as noted b.:low.
Electronic Fonnat B80 lICMa-1992
User Document: 8801CMA.CON -- 4/16/1998. AlA License Number 106417, which expires on 9/30/1998 - Page #11
.. . "
Project.
.....
12.4
, .
PAYMENTS ON ACCOUNT OF ADr-JITIONAL
SERVICES AND REIMBURSABLE
EXPENSES
\
12.4.1 Payments on account of the COO\tT,uction Manager's
Additional Services and for Reimbursable Expenses shall be
made monthly upon presentation of the Construction
Manager's statement of services rendered or expenses
incurred.
12.5 PAYMENTS WITHHELD
12.5.1 No dcductions shall be made from the Cmstruction
Manager's compensation on account of pcnalty. Iiquidatcd
damages or other sums withheld from payments to
Contractors, or on account of the cost of changes in Work
other than those for which the Construction Manager has
been found to be liable.
I
12.6 CONSTRUCTION MANAGER'S
ACCOUNTING RECORDS
12.6.1 Records of Reimbursable Expenses and expenses
pertaining to Additional Services and services performed on
the basis of a multiple of Direct Personnel Expense shall be
available to the Owner or the Owner's authorized
representative at mutually convenient times.
ARTICLE 13 /
BASIS OF COMPENSATION
Thc Owncr shall compensate the Construction Manager as follows:
13.1 AN INITIAL PAYMENT of Dollars (S ) shall be made upon execution of this Agrcement and credited to the Owncr's .
account at final payment.
13.2 BASIC COMPENSATION
13.2.1 FOR BASIC SERVICES. as described in Article 2. and any other services included in Article \4 as part of Basic Services.
Basic Compensation shall be computed as follows:
For Prc-Construction Phasc Scrvices:
(Insert hustS vf COIIII"!/ISlJt/on. inclllding sf1plllutc!ci slims. IIIl1ltip!.:s or perc.:m<1<;':.u
For Construction Phase Services:
([mat basis of compc!nsativn. inclllding s/lplllat.:d slims. mlll/lp!es or paC':11IUl!,es.1
13.3 COMPENSATION FOR ADDITIONAL SERVICES
13.3.1 FOR ADDITIONAL SERVICES OF THE CONSTRUCTION MANAGER. as described in Article 3. and any other services
included in Article 14 as Additional Services. compensation shall be computed as follows:
(/nsat busis of compensation. inclllding rUles und/or mlllliples of Direcl Personnel Expense for Principals and employees. and idenriJj' Pnncipals ilnd c1assiJj'
employees. if reqllired. IdenliJj' specific services la which parlicular methods of compensalion apply. if necessary.)
13.4 REIMBURSABLE EXPENSES
13.4.1 FOR REIMBURSABLE EXPENSES, as described in Paragraph 12.2, and any other items included in Article 14 as
Reimbursable Expenses, a multiple of () times the expenses incurred by the Construction Manager and the Construction
Manager's employees and consultants in the interest of the Project.
13.5 ADDITIONAL PROVISIONS
13.5.1 IF THE BASIC SERVICES covered by this Agreement have not been completed within () months of the date hereof,
through no fault of the Construction Manager, extension of the Construction Manager's services beyond that time shall be
compensated as provided in Subparagraphs 12.3.3 and 13.3.1.
AlA DOCUMENT B801/CMa - OWNER-CONSTRUCTION MANAGER AGREEMENT - 1992 EDITION - AlA - COPYRIGHT 1992 - THE AMERICAN
INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVENUE. N.W.. WASHINGTON. D.C., 20006-5292. Unlicensed photocopying violates U.S. copyright laws
and is subject to legal prosecution. This document was electronically produced with permission of the AlA and can be reproduced without violation until the date of
expiration as noted below.
Electronic Format B80 I1CMa-1992
User Document: B801CMA.CON -- 4/16/1998. AlA License Number 106417, which expires on 9/30/1998 - Page #12