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Item 1.E.
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| City Council Regular | |
| Date: | 12/11/2023 |
| Title: | W.O. 19-12: West End Reservoir Project, GC/CM Construction Services Contract |
| Presented by: | Debi Meling |
| Department: | Public Works |
| Presentation: | No |
| Legal Review: | Yes |
| Project Number: | N/A |
RECOMMENDATION
| Staff recommends that the City Council approve the Standard Agreement and General Conditions Between Owner and General Contractor/Construction Manager (Construction Contract) with Dick Anderson Construction, Inc. (DAC) for W.O. 19-12: West End Reservoir (WER) Project. The contract amount presented at this time is an early Guaranteed Maximum Price (GMP) of $153,211.35 for procurement of dewatering pumping equipment. Amendment(s) to the Contract for GMPs of either additional portions of the work or the entire project will be presented to City Council in the future. |
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
| On February 8, 2021, Council approved Resolution 21-10925 allowing the use of an alternative project delivery method as authorized by MCA 18-2-502 for construction of water system projects on Billings' West End, including the West End Reservoir under current consideration. The City elected to move forward with the General Contractor / Construction Manager (GC/CM) contract format since the contracting structure is more conducive to ensuring integral City staff involvement in project direction and decisions as developed by the project Team to consist of City staff, HDR Engineering, and DAC. Some major benefits of GC/CM contracts are that they bring the contractor, procured through an open public process, onto the project team as early as possible in order to take advantage of the expert contributions the contractor can bring to the project design and early cost development. GC/CM contractors are often able to identify opportunities to reduce overall project costs by introducing concepts for the team that are potentially more cost-effective to build. Information is gained quickly about actual construction means, methods and materials, which leads to improved design accuracy and completeness. During the preconstruction phase, the GC/CM contractor brings a level of cost certainty to the project before the design is complete, which informs overall budgets and the scope of current and future projects. On December 12, 2022, City Council approved a Preconstruction Services Contract with DAC in the amount of $278,400 for the West End Reservoir. On February 16, 2023, Amendment No. 1 in the amount of $75,041.96 and on September 5, 2023, Amendment No. 2 in the amount of $61,950.00 were approved by the City Administrator to perform field work in support of the preconstruction phase reservoir embankment design and the site dewatering effort, respectively. Under the Preconstruction Services Contract, the project Team is continuing to work through the Preliminary Project design. With early site dewatering being critical to Spring ’24 project construction, the Project Team recommends that temporary pumping equipment be rented and that permanent dewatering equipment be purchased for ongoing use on the project for an initial GMP of $153,211.35. Under an agreement with NorthWestern Energy, electrical service has been provided to the north reservoir site, so the pumping equipment will be put to immediate use. If Council does not approve this initial GMP or subsequent GMPs, the current preconstruction contract allows for the City's relationship with Dick Anderson Construction to be terminated, and the City can proceed with other options to construct the project. |
ALTERNATIVES
City Council may:
- Approve the Standard Agreement and General Conditions Between Owner and General Contractor/Construction Manager (Construction Contract) with Dick Anderson Construction, Inc., or,
- Not approve the Construction Contract. If this project is not completed, the City will be unable to proceed with the most cost effective means of dewatering the project site ahead of the project construction.
FISCAL EFFECTS
The W.O. 19-12: West End Reservoir (WER) Project was budgeted in FY24 using water funds. There are adequate funds to award this contract.