Opening of Qualifications - WWTP CSO Tank RFQ Guaranteed Savings Contract Proj No. 121-071-A - Kokosing Ind.

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46SOUTH BEND, INDIANA GSC B. KOKOSING’S GUARANTEED MAXIMUM PRICE Kokosing will offer a Guaranteed Maximum Price (GMP) with the added guarantee of no provider- initiated change orders. Kokosing will have our key staff available begin working with The City of South Bend immediately after we are selected. During this preconstruction phase, our professional estimators and other project staff are prepared to work closely and collaborate with the City's team to develop and finalize design documents, perform value engineering and review constructability issues. We will support finalizing the design work by leading the coordination with key vendors and provide input on the comparative costs between multiple options. All of the work we do during this phase is included in our provider fee. Whether it takes four weeks or four months, you will not see an invoice from Kokosing. When the plans and concepts are comfortably set from an engineering standpoint, our estimators will establish our GMP. At this point, the project team has the information needed to verify the scope against the available budget, conduct any additional rounds of value engineering, and make any additional adjustments to scope. Once we are comfortable with the scope, schedule, and budget, the guaranteed maximum price is finalized. Once the GMP is agreed to, we will move forward with the contract and, after the execution, we will prepare the filing with the state required sixty days after execution. Kokosing’s approach to develop and offer a GMP is as follows: 1. Utilize the best pricing approach outlined in the previous section. Leveraging our size and buying power delivers industry competitive prices to your corner of Indiana. 2. After submitting our GMP, Kokosing will guarantee no provider-led change orders will occur. Our philosophy and culture are to partner with our customers and this is one of the ways we demonstrate our commitment to you. 3. Open dialog on risks, their costs, and consequences will inform you to determine how much risk (activities and dollars) are to be included in the GMP. The section below describes how we approach the inclusion of risks in our GSC contracts. 4. Kokosing is prepared to negotiate and execute the contract as quickly as the design work can be performed. Our resources are at your service. We will meet your timetable to define the scope, finalize the open book pricing, and prepare to execute the GSC contract between American Structurepoint and Kokosing together with any exhibits and attachments. 5. One hundred percent (100%) of the project’s direct cost savings will go back to The City of South Bend using the open-book pricing method. 6. Work not included in the original GSC, such as additional upgrades, can be included in the project at a later time. Any new work that is paid for from project savings will be at cost with no additional overhead and profit added. Once the contract is executed, the project proceeds like any other capital construction project. Changes to the work are estimated, provided to The City of South Bend for evaluation and, if authorized, added to the project. Most clients add work to contracts and most clients pay for it out of realized project savings. During the preconstruction phase, it is likely that the “wish list” activities will be identified, costed and then put on a shelf, to be brought out when savings are realized. Most of our GSC projects end with a change order that returns unused funds and savings to the Owner. The owner has not paid more than the negotiated GMP on any of our GSC contracts. Table 6-1 summarizes the final change orders issues for our completed GSC projects denoting how savings was used.