PRESENTER: Presenter
Garry Ford, Transportation and Capital Improvements Director
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SUBJECT: Title
Approval of a Guaranteed Maximum Price with SpawGlass for civil components of the Zipp Family Sports Complex project.
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DEPARTMENT: Transportation and Capital Improvements
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COUNCIL DISTRICTS IMPACTED: Citywide
BACKGROUND INFORMATION:
Voters approved the Sports Complex project in May 2019 as part of the 2019 Bond Program. City Council approved the Construction Manager at Risk (CMAR) delivery method for the project on December 12, 2022. SpawGlass was approved by City Council as the Construction Manager at Risk (CMAR) contractor on March 27, 2023.
As part of SpawGlass’s preconstruction services, they reviewed the existing 90% plan set and provided the City with a construction cost estimate and a list of value engineering (VE) options. On July 6, 2023, staff presented to City Council and the New Braunfels Economic Development Corporation (NBEDC) an update on the project. The update included the current project funding, VE options staff accepted and VE options for City Council to consider. After receiving direction from Council and additional funding from the NBEDC, the design team led by Norris Design and Walker Partners Engineering began to update the plans.
To move forward with construction, the plan was divided into two packages. Package 1 includes the grading and erosion control components of the project. Package 2 will include the remaining project components including paving, playing fields, irrigation, and other project elements. This allows SpawGlass to begin construction on Package 1 while Package 2 is being finalized.
The Package 1 plan set was submitted by the City’s design team on September 15, 2023. Upon receiving the plan set SpawGlass began to develop a Guaranteed Maximum Price (GMP). The GMP sets the maximum construction cost of the project package and places the risk associated with bidding the project on the CMAR. SpawGlass has also begun the process of soliciting bids from subcontractors for the work. When the bids are received the construction price is reviewed and accepted by the City. If the bids received are higher than the GMP, the contractor is responsible for the overage. If the bids received are lower than the GMP the savings are split between the City and SpawGlass at a 80%/20% split. The subcontractor bids for SpawGlass are due October 10th.
SpawGlass is scheduled to begin construction in early November pending the approval of the GMP for Package 1. The work for Package 1 is scheduled to take two to three months. Package 2, which will include the remainder of the construction scope, is anticipated to be brought to City Council by the end of the year. This will allow SpawGlass to maximize their construction schedule. The contractual project duration is 455 calendar days after Notice to Proceed.
SpawGlass has submitted a Guaranteed Maximum Price (GMP) for Package 1 in the amount of $4,833,226.00. This falls in line with the overall estimated construction budget for SpawGlass. The estimated construction budget is $29,500,000.
ISSUE:
Continue an ongoing program of infrastructure, construction, and maintenance
FISCAL IMPACT:
Funding for the Sports Complex was allocated in the 2019 Bond Program and by the Economic Development Corporation, therefore sufficient funds are available.
Recommendation
RECOMMENDATION:
Authorization for the City Manager to execute a Guaranteed Maximum Price Amendment with SpawGlass for civil components of the Zipp Family Sports Complex project.