Opening of Proposals - CMc for Madison Lifestyle New Parking Garage Proj No 123-074 - Garmong

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13City of South Bend - Madison Lifestyle District Phase I Parking Garage CMc Submitted by: Garmong Construction GUARANTEED MAXIMUM PRICE> Garmong’s recommendation would be to establish a Guaranteed Maximum Price on the basis of Cost plus a Fee. When coupled with an “open-book” accounting practice, a Cost plus GMP allows the City to benefit from a fixed cost, scope of work, and schedule while also gaining transparency into how dollars are being spent not available in other contract arrangements. The Cost plus contract requires the CM to only spend project dollars on costs required to complete the building, and then return 100% of the unspent funds to the City at the complete of the work. Garmong believes that the best time to establish the GMP is after bids are received and bidders are entirely “scoped.” At the beginning of the design cycle, there are high contingency rates to mitigate risk due to the lack of detailed design information and unforeseen market conditions affecting construction costs. As time and the design continues (from left to right), the scope becomes more defined, and the required contingency rates can be reduced, affording more of the total budget towards the project scope rather than mitigating risk. If, for example, a Guaranteed Maximum Price was set during the Design Development phase, the amount of contingency included to mitigate design and market risks might result in the need to cut scope from design to stay within budget. On the other hand, once the bids are received, the contingencies are reduced to their lowest rates allowing more project scope to be included in the total budget. The best value for an Owner to set the Guaranteed Maximum Price after bids are received. At this point in the project life cycle, firm proposals have been received for the Project, and there is no longer the need to mitigate the risk of not having the actual costs. GENERAL CONDITIONS> Our approach to managing the general conditions is centered upon clear definitions and transparency. General conditions reimbursements can sometimes be contentious if there isn’t a clear understanding of expectations. Therefore, at the beginning of the project, Garmong will define the reimbursable budget in a detailed manner and share that information with the Owner and their team. We believe that the CM should provide anything that will be used by multiple tier one contractors. This approach avoids “double-buying” and the added expense of contractor markup for items that many different contractors will use. This would include project management software, job site fencing, dumpsters, restroom facilities, progress cleaning, etc. Any items specific to a single tier one contractor would be written into those contracts. Examples include hoisting, tool/ material storage, surveying/layout, scaffolding, etc. We would also handle the procurement of general conditions by securing multiple quotes to provide the Owner with competitive pricing. PROJECT CLOSEOUT> Project closeout is one of the most critical phases of the construction process. Ultimately, how we finish the project is how we will be remembered. The generation of a punch list is no small task. The City of South Bend, the architect, and Garmong will spend a lot of time walking through the building, ensuring the finished product meets expectations. Garmong believes two critical milestones must happen to make the walk- through productive. The building must be ready to punch. This means not forcing a punch list to happen to maintain a schedule. We want this effort to be a good punch list, not a completion list. Garmong must have completed our punch list before the architect’s punch list. We believe this is a critical step to ensure “obvious” deficiencies are corrected before the walk-through, and the number of actual punch list items is limited. PROJECT APPROACH