B. Proposed Public Works Building
CITIOF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Ghanhassen, MN 55317
Administration
Phone: 952.227,1100
Fax: 952,227.1110
Building Inspections
Phone: 952,227.1180
Fax: 952.227,1190
Engineering
Phone: 952,227J160
Fax: 952.227,1170
Finance
Phone: 952.227,1140
Fax: 952,227.1110
Park & Recreation
Phone: 952,227.1120
Fax: 952.227.1110
Recreation Center
2310 CoulterBoulevard
Phone: 952,227.1400
Fax: 952.227,1404
Planning &
Natural Resources
Phone: 952,227.1130
Fax: 952.227,1110
Public Works
1591 Park Road
Phone: 952.227,1300
Fax: 952,227.1310
Senior Center
Phone: 952,227.1125
Fax: 952.227.1110
Web Site
www.ci.chanhassen.mn.us
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MEMORANDUM
TO:
Todd Gerhardt, City Manger
Paul Oehme, Dir. of Public Works/City Engineer frO>
FROM:
DATE:
~
September 8, 2008
SUBJ:'
Proposed Public Works Building, Project No. 08-03: Discussthe
Construction Management Approach
DISCUSSION
Staff would like to consider using a construction management approach for the public
works building rather than the typical designlbid approac.h with one prime contractor.
The construction management approach has been used successfully for years on many
public and private construction projects in the metropolitan area. Construction
managers are used to plan, direct, and coordinate a wide variety of construction
projects, including the building of all types of residential, commercial, and industrial,
schools and hospitals. Construction managers may oversee an entire project or just
part of one. They schedule and coordinate all design and construction processes,
including the selection, hiring, and oversight of-specialty trade contractors, butthey
usually do nordo any actual construction of the structure. These managers coordinate
and supervise the construction process from the conceptual development phase
through final construction completion, making sure that the project gets done on time
and within budget. They work with owners, engineers, architects, and others who are
involved in the construction process.
.
For the public works facility, staff envisions using a construction manager fro
schematic design through construction completion. Some of the tasks the
construction manager would complete are:
.
Review plans and suggest cost-saving replacements.
Review plans for quality ssurance.
Prepare cost estimates to re adherence to budget.
Divide all required construction site activities into logical steps, bu
time required to meet .established deadlines.
Oversee the selection of general contractors and trade contractors to complete
specific pieces of the project which could include everything from structural
metalworking and plumbing to painting and light fixture installation.
Schedule and oversee the performance of all trade contractors and are
responsible for ensuring that all workis completed on schedule.
Determine the best way to get materials to the building site and the most cost-
effective plan and schedule for completing the project. .
Direct and monitor the progress of construction activities through construction
supervlsors.
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.
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Chanhassen is a Community for Ufe . Providing for Todayand Planning for Tomorrow
Todd Gerhardt
September 8, 2008
Page 2
. Oversee the delivery and use of materials, tools, and equipment; worker
productivity and safety; and the quality of construction.
. Review pay and change order requests.
. Be responsible for obtaining all necessary permits and licenses and, depending
upon the contractual arrangements, direct or monitor compliance with
building and safety codes, other regulations, and requirements set by the
project's insurers.
BENEFITS OF CONSTRUCTION MANAGEMENT
Quality Advantages
-/ Involved with architectural design for cost saving ideas at schematic design
phase.
-/ Hard bid major items.
-/ Continuity of management throughout all phases of the project.
-/ Interests of the Architect, Consultants and Construction Managerare
consistent with the Owner's interests.
-/ Interactive team approach provides a "checks and balance" system to assure
the highest level of quality.
-/ Owner-oriented, on-site supervision enforces the requirements of the plans
and specifications by the various contractors.
-/ Superintendent acts as the Owner's eyes and ears on the jobsite.
-/ Construction Management represents owners interests...General Contractors
typically represents theirs.
-/ Quality Management Program provides the process for material sample
approvals, shop drawing approvals, and coordination of testing services
throughout construction.
Cost Savings
-/ No hidden costs.; . open book.
-/ Multiple bids ensure best pricing, i.e. 15 lowest bids instead of 1 low bid.
-/ Multiple-contractorapproach eliminates overhead, profit, mark..:up of
subcontracts and double-bonding premiums of the traditional general
contractor.
-/ Bidding approach ensures that the Owner receives the low, responsible bid for
every category of the work.
-/ More reliable probable construction cost information.
-/ Cash flowprojections enable the Owner to accurately invest project funds and
maximize interest income.
-/ Knowledge of the contractor bidding market enables the Owner to obtain the
best possible pricing through timely bidding.
Time Advantages
-/ Construction Management allows the use of phased construction.
-/ Detailed planning and coordinating of all key schedule events should result in
a smooth-running project.
-/ Coordination and completion of construction with the Owner's move~in
activities results in a smooth transition into the facility.
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Local Involvement
./ Potentially more opportunity to use local contractors due to smaller bid
packages.
./ Less cost for mobilization.
./ Greater public relations.
Todd Gerhardt
September 8, 2008
Page 3
Same Protections
./ All contractors will be bonded.
./ Typically adds additional staff time to project.
./ Requires staff to keep track of multiple contracts.
./ Can add additional risk and liability to City.
./ Project is only as good as ability of Construction Management team.
./ Final price is not established until all bid packages have been received.
./ Typically eliminates prime contractor companie~ from submitting a bid,
Potential Disadvanta2es
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