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4. Public Works Facility: Approve Contract for Construction Management CITY OF CHANHASSEN 7700 Market Boulevard PO Box 147 Chanhassen, MN 55317 Administration Phone: 952.227.1100 Fax: 952,227,1110 Building Inspections Phone: 952.227.1180 Fax: 952,227,1190 Engineering Phone: 952,227,1160 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 Coulter Boulevard 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 Lf- -- MEMORANDUM TO: Todd Gerhardt, City Manger rJ Paul Oehme, Director of Public Works/City Engineer ? J FROM: DATE: October 13, 2008 l.')f...v! ;:7 . ~~ SUBJECT: Public Works Facility, Project No. 08-03: Approve Contract for Construction Management Services PROPOSED MOTION "The City Council is recommended to direct staff to enter into a contract for Construction Management Services with RJM Construction in the amount of $442,600." City Council approval requires a simple majority vote of the City Council present. BACKGROUND At the December 10, 2007 work session, staff reviewed with Council a needs report which identified options for public works facility improvements to meet current and future needs of the departments housed at the facility. On July 28,2008, Council authorized staff to move forward with the Park Place option for a new public works facility and solicit proposals for architectural services. On September 8, 2008, Council approved an architectural contract for design of the public works maintenance facility. At the September 8, 2008 work session, Council reviewed the pros!cons for construction management services instead of a typical design bid project with one prime contractor. Council authorized staff to solicited proposals for construction management services. DISCUSSION For the public works facility, staff envisions using a construction manager from schematic design through construction completion. Some of the tasks the construction manager would complete are: . Review plans and suggest cost-saving replacements during schematic design phase through final. . Review of plans for quality assurance. Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow Paul Oehme Public Works Construction Management Services Contract October 13,2008 Page 2 . Prepare cost estimates to ensure adherence to budget. . Divide all required construction site activities into logical steps, budgeting the 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 work is 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 supervIsors. . Oversee the delivery and use of materials, tools, and equipment; worker productivity and safety; and the quality of construction. . Keep job site clean. . 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 Manager are 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 Owner's 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. g:\eng\public\_2008 projects\08-03 chanhassen maintenance (pw) facility\bkgd 101308 approve ern contract.doc Paul Oehme Public Works Construction Management Services Contract October 13, 2008 Page 3 Cost Savings ./' No hidden costs.. . open book. ./' Multiple bids ensure best pricing, i.e. 25 lowest bids instead of 1 low bid. ./' Multiple-contractor approach eliminates overhead, profit, mark-up of subcontracts and double-bonding premiums of the traditional general contractor. ./' Bidding approach ensures that the Owner receives the lowest, responsible bid for every category of the work. ./' Better cash flow projections for Owner through construction phase. ./' Knowledge of the contractor bidding market enables the Owner to obtain the best possible pricing through timely bidding. Local Involvement ./' Potentially more opportunity to use local contractors due to smaller bid packages. ./' Less cost for mobilization. ./' Greater public relations. POTENTIAL DISADVANTAGES 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 companies from submitting a bid. REQUEST FOR PROPOSALS Staff drafted a request for proposal (RFP) for Construction Management Services and sent it to five construction management firms. On September 17, 2008, proposals were received at the City. All firms submitted a proposal which is summarized as follows: Submitted prior to ./ ./ ./ ./ ./ the deadline Pro osal format ./ ./ ./ ./ ./ Transmittal letter submitted with ./ ./ ./ ./ ./ re uired information Members of the team ./ ./ ./ ./ ./ identified Understanding of ./ ./ ./ ./ ./ project g:\eng\public\_2008 projects\08-03 chanbassen maintenance (pw) facility\bkgd 101308 approve cm contract.doc Paul Oehme Public Warks Construction Management Services Contract October 13,2008 Page 4 Construction Management and $277,500 $287,600 $388,800 $422,200 $558,720 Field Services Fee General Conditions Costs and On-Site $90,300 $183,254 $53,800 $31,800 $97,671 Reimbursable Ex enses1 Total Contract $367,800 $470,854 $442,600 $454,000 $656,391 Amount lThe total contract fee includes general conditions such as garbage dumpsters, construction trailer, temporary utility expenses, porta-potties, etc. The costs for these items will be billed on an actual incurred basis. A staff selection team reviewed the proposals and rated each firm. Based on the proposals and initial checking of references, three firms were selected for interviews. The firms interviewed were CDS Group, Stahl Construction and RJM Construction. CDS Group had the lowest cost proposal. CDS Group worked with the City on preliminary cost estimates during the project budgeting process. CDS Group was interviewed, however after the interview, has chosen to withdraw their proposal. The withdraw letter is attached. Based on the proposals, the team members the construction management firms were proposing, the interviews, the fee and reference checks, the selection team recommends RJM Construction to be the construction management firm for the public works building. The firm has been recommended by other communities who have worked with them including the Cities of Eden Prairie, Elk River, and Andover. RJM Construction was founded in 1981. In 2008, United Properties Construction Services was integrated into RJ M that brought additional resources to the firm. RJM has diverse construction management experience in Health Care, Educational, Sports/Recreational, Public Sector, Retail, and Restaurant projects. The contract will be based on the AlA B801/CMa Contract format that is typically used for this type of work. The contract will be a time and materials based work not to exceed amount. RJM Construction must submit periodic invoices that staff will review before processing. RJM will be required to submit time sheets verifying the hours worked on the project and expense sheets. Staff will review the invoices and expense sheets for accuracy and conformance to the contract. g:\eng\public\_2008 projects\08-03 chanhassen maintenance (pw) facility\bkgd 101308 approve em contract.doc Paul Oehme Public Works Construction Management Services Contract October 13, 2008 Page 5 SCHEDULE If this project moves forward, staff anticipates the following project schedule: Schematic Design Complete November, 2008 Obtain City Council Site Plan Approval December/January, 2008 Complete Plans and Specifications March, 2009 Obtain Bids April, 2009 Start Construction April, 2009 Substantially Complete February, 2010 Attachment: CIP Pages CDS Group withdraw letter RJM Construction information Request for Proposals g:\eng\public\_2008 projects\08-03 chanhassen maintenance (pw) facility\bkgd 101308 approve em contract.doc Capital Improvement Program City of Chanhassen, MN Project # MB-003 Project Name Public Works Facility Improvements 2009 thru 2013 Contact Paul Oehme Department Municipal Buildings Type Improvement Useful Life Unassigned Category Street Equipment Priority n/a Total Project Cost $8,300,000 Account # 1 Account # 3 Account #2 Description I The existing Public Works facility is over capacity and is in need of major repairs. The City is expected to grow an additional 30% before ultimate build out. The existing facility is located on a 5 acre site which is already cramped for storage and operation space. The City completed a facility needs study in 2007 and completed an exhaustive search to try to make an existing warehouse type building work. It was decided to move the Public Works building because the existing site is too small for expansion and no warehouse type building was economically feasible to remodel. Justification I The Operations and Maintenance Department needs additional space for repairs, meeting facilities, files, locker rooms, storage, supervisory offices and proper equipment storage. In addition, the current facility does not meet many City building codes. Expenditures Construction 2009 8,300,000 8,300,000 2010 2011 2012 2013 Total 8,300,000 8,300,000 Total Funding Sources 2009 2010 2011 2012 2013 Total GO Bonds 7,000,000 7,000,000 Sewer Utility Fund 700,000 700,000 Surface Water Utility Fund 400,000 400,000 Water Utility Fund 200,000 200,000 Total 8,300,000 8,300,000 Operational Impact/Other I This project may increase operational costs. However, the new facility is planned to be very utility efficient compared to the existing facility. Capital Improvement Program 2009 thru 2013 Contact Paul Oehme City of Chanhassen, MN Department Major Equipment Project # EQ-087 Type Equipment Useful Life Project Name Public Works Facility Equipment Category Public Works Account # 1 Account # 3 Priority n/a Account #2 Total Project Cost $500,000 Description I Provides the eqiupment for the Public Works facility. This equipment includes the vehicle lifts, computer system, fiber optic connection, security system, fuel system and office equipment. Justification I Necessary for the operation of the Public Works facility. Expenditures 2009 2010 2011 2012 2013 Total Equipment 500,000 500,000 Total 500,000 500,000 Funding Sources 2009 2010 2011 2012 2013 Total Capital Replacement Fund 500,000 500,000 Total 500,000 500,000 Operational Impact/Other I aDS Group, LLC October 3, 2008 Hard CODY sent by Certified Mail Mr. Paul Oehme Director of Public Works/City Engineer City of Chanhassen 7700 Market Blvd PO Box 147 Chanhassen, MN 55317 Dear Paul, Thanks for taking the time to meet with me this afternoon regarding the proposal CDS Group LLC submitted for Construction Management Services. I have given careful and considered thought to our conversation, and especially to the concerns which you voiced in reference to the depth of our ability to Project Manage the new proposed Public Works Facility should the contract be awarded to us. You are correct, our discussion to have me personally represent CDS Group, LLC on site and as Project Manager is singular and we have no one on staff to replace me should there be any reason to do so at either level. After further consideration I am unable, at this time to alter our submitted proposal, and make the personal commitment of serving in the function of on site superintendent as discussed. As you so succinctly pointed out, it greatly restricts the amount of time available to me for other responsibilities. Additionally, and for the same reasons as stated above, we have been turned down by a number of underwriters to provide the required coverage stated in your request for Insurance. Where as the Selection Committee has not made their choice as of this time, and Where as there has been no offer made to award of contract to CDS Group, LLC at time of this writing, I respectfully withdraw our proposal to participate in this project. Thank your for your time and consideration. Sincerely, at~~D-.--~ Chuck Dennis Principal, CDS Group LLC CITY OF CHANHASSEN IFJ~~~DW~IQ) OCT 0 6 Z008 ENGINEERING DEPT. PROJECT OVERVIEW 1 1 J 1 1 '] J J I J RJM Construction is pleased to be among the firms being considered for the City of Chanhassen's new Public Works Facility project. We understand the City of Chanhassen is seek- ing a Construction Manager to join their project team to provide preconstruction and construc- tion phase services. This would include cost estimating, constructability review, schedule management. bidding strategy/administration, and lead the construction process to deliver the team's project goals. The schematic design phase of the 83,000 sf project located at 7901 Park Place in Chanhassen, will be starting soon, and RJM has the staff and resources ready to prepare preliminary cost estimates and a proj- ect schedule for the City, should we be awarded the contract. To RJM Construction, building a structure is not merely a succession of steps; a formula or a continuum of tasks resulting in a box. An on time, on budget box. We think differently. We believe that "a building is not just a place to be. It is a way to be." In delivering that belief we look beyond the expressed wants and needs of the City of Chanhassen. We visualize your desire. We think about the bigger picture. How the project impacts your services, and is it strategically aligned with your long term goals. With efficient competence we let our thinking anticipate, resolve, create, enhance, and do whatever it takes to deliver on the vision not represented on the blueprint. i J I i i .j We believe we can best meet the City of Chanhassen's goals/needS because of the fol- lowing: . We have proposed a construction team' that is both highly experienced and compe- tent in the construction of public projects. . We embrace collaboration with the project team from concept to completion in order to define the final project parameters. . Our ability to contribute to the identification of design and construction solutions that consider both short and long term life cycle costs is highly valued by our clients who operate similar facilities. . RJM, as a company, has the resources as well as a demonstrated commitment to deliver projects on time, and on budget. Our passion goes beyond the box, which makes us more than a construction compa- ny. RJM prides itself on thinking outside the structure. Through smart, sophisticat- ed, strategic thinking, we will complete your project and deliver a rewarding construction experience that will stand the test of time. + CITY OF CHANHASSEN PUBLIC WORKS FACILITY ~I I I I EDEN PRAIRIE COMMUNITY CENTER ~ CONSTRUCTION I Eden Prairie, Minnesota I The Eden Prairie Community Center renovation features a new inviting front entrance with an open solarium and a concession area. The facility contains racquetball courts, group fitness studios, new locker rooms and community meeting rooms. The project also included a third ice arena, a baseball stadium, state of the art baseball field and renovations. to Lake. Park. I RJM Construction I 5455 Hwy 169 I Plymouth, Minnesota I 55442 763/383-7600 I fax 763/383-7601 I bid fax 763/553-9670 For more information on this or any of our other projects, visit: www.rjmconstruction.com I I I I I I I I I I I I I ST. MICHAEL PUBLIC WORKS FACILITY AND CENTRAL FIRE STATION ~ CON STRUCTION St. Michael, Minnesota This two-phase project consisted of the construction of a new public works facility and the relocation of temporary city offices and. fire station to this new building. A newcentral fire station was then constructed on the site. Both buildings are constructed of pr~-cast exterior wallpanels" steel roof structures and unique mechanical systems capable()f handling vehicle emissions. " RJM Construction I 5455 Hwy 169 I Plymouth, Minnesota I 55442 763/383-7600 I fax 763/383-7601 I bid fax 763/553-9670 For more information on this or any of our other projects, visit: www.rjmconstruction.com ::-J 'j ,1 ! ~ ;1 :j I I I I I SPECIAL AWARDS AlA Minnesota seeks to encourage, stimulate and recognize exceptional contributions that go above and beyond what others in their profession are doing to successfully collaborate with architects and/or make a significant contribution to the built environment. Architecture is a collaborative effort and relies on the talents and commitment of many individuals ~orking together to achieve a common goal. AlA Minnesota is pleased to present Special Awards tb these individuals and organizations. CONSTRUCTION RJM CONSTRUCTION RJM Construction is recognized as one of the leading firms in their ability to work as a team member with architects. They view the architect's work and drawings as the key to starting a successful project. As contractors for award-winning projects,RJM continually looks for opportunities to maintain high quality in their work. RJM Construction sets the highest standard for a construction firm, as well as the standard for other contractors ~ I I I RECORD OF PERFORMANCE I We believe our clients deserve to have a constructor who will meet their goals for time, quality and budget. RJM has never failed to deliver a project that meets or exceeds these basic goals. We take pride in ownership of every project, and continue to monitor the facility's performance for years after completion. Our commitment is not simply to the structure, but also to the client. This dedication is reflected in our nearly 100% retention rate, which is a testament to our professionalism, reliability and management expertise. I I I I , At right is a simple table of some major projects detailing our ability to deliver on budget. All projects were completed on or ahead of schedule. PROJECTS INVER GROVE HEIGHTS COMMUNITY CENTER.............. RED WING ICE ARENA..,.,.................................... PHOENIX COYOTES .....,... ..>i...........<i.i.. ICE DEN ............,......................................$8,732,727........................$8,464,333 ICE MIDWESL......................"".........$(j,309,869 ...,...:.......:......$6,058,323 MN STATE CAPITOL ..' ...... ........< .. ... NORTH PROJECTS ......................$1,481,63~i ..........:.............$1,388,714., BUffALO.IC.EARENA ...:...........$3. ,.0... 01.,. 6......9.6..........:.......'.....::............$3,.0....0.6,5.. 02 ~ .. .. .... .. . ... ... .>"'-"" . ,-', .".',' PNHS HEART ..' .....,.. .... &.VASCULAR CLINIC. ................$36,000.000 .........:........$34,000,000 PNHS.. '. .' ........<> . '" ...... .' .... CHANHASSEN CLINIC ...:........$13,000,000....................$12,000.000 AVERA ST. LUKES ........................$10,000,000:..................$9.000,000 CITY OF CHANHASSEN PUBLIC WORKS FACILITY ~I REQUEST FOR PROPOSALS CONSTRUCTION MANGEMENT SERVICES CITY OF CHANHASSEN PUBLIC WORKS FACILITY City Project #08-03 Submission Date: September 17, 2008, 2:00 p.m. Submit to: Paul Oehme, P.E. Public Works Director/City Engineer 7700 Market Boulevard P.O. Box 147 Chanhassen, MN 55317 G:\ENG\PUBLIC\_2008 Proiects\08M03 Chanhassen Maintenance (PW) Facility\RFP construction management rev1.doc The City of Chanhassen invites you to respond to a request for preconstruction and construction services for the proposed new Public Works Facility to be located at 7901 Park Place. The overall construction budget for the Project is $8,800,000. This project will start the schematic design phase soon and the City will need preliminary cost estimates from the selected construction manager within two (2) weeks of the construction management services contract approval. The anticipated award of the construction management services contract is October 13, 2008. The anticipated award of the architectural services contract is September 8, 2008. PROJECT DESCRIPTION The City of Chanhassen staff had drafted a facility study that identified operational and maintenance space needs for public works. It has been determined the existing public works site is too small a parcel for expansion of the public works building. The City has also looked at purchasing property or purchasing a warehouse type facility and remodeling it to accommodate public works. Based on a cost benefit analysis, the City has decided to build a new facility on land currently owned by the City. This property is large enough to accommodate the ultimate facility needs of public works. The new facility is anticipated to be approximately 83,000 square feet as identified in the Public Works Facility Program Study - Park Place Option. City crews are planning to make soils correction on the site and rough grade the property this year. FACILITY NEEDS General overview of the new facility needs is as follows: A. Administration . Public access and adequate reception and waiting area. . Meeting/conference space. . Filing and record storage. . Supervisory office space. . Plan storage and layout area. . Building security and site access control. . Energy efficient heating, ventilation, and lighting system. . Use of as much natural lighting as possible. . Fiber Optic communication system connection. B. Fleet Maintenance . Efficient/cost effective layout. . Adequate overhead lift height. . Drive-thru service bays. . Centralized parts and equipment area. . Proper ventilation and heating. . Vehicle exhaust system. . Workbench space. G:\ENG\PUBLIC\_2008 Projects\08-03 Chanhassen Maintenance (PW) Facility\RFP construction management revl.doc . Vehicle/truck hoist. . Vehicle wash facility. . Fuel island facility. . Vehicle welding facility. . Parts reception area. . Adequate work/repair space. . Use of as much natural lighting as possible. C. Employee Support Area . Adequate lunch/kitchen facilities and eating space. This area will also be used as a polling location for elections. . Mens and ladies locker room facilities with adequate locker space. . Adequate training/meeting room. . Use of as much natural lighting as possible. . The project shall also have a design included as an add an alternate bid item for ground source heat pump (geothermal heating and cooling) for the general office building area. D. Vehicle Storage Building . Adequate storage space. . Energy efficient heating, ventilation, and lighting system. . Wash down capacity at parking stalls. . Use of as much natural lighting as possible. . Cold Storage (salt/sand) building will be moved to the new site by City forces. CONSTRUCTION MANAGEMENT INFORMATION FOR PROPOSAL A. Firm Qualifications 1. History and background of the firm. 2. Years in business. 3. Number of professionals in the firm by work description and available support staff. 4. Statement of the firm's focus, values and strategic goals. 5. List any subcontracted professionals that will be used on this project if any. B. Similar Project History 1. Describe your three most recent experiences working as a Construction Manager on Public Works facilities or similar government projects. 2. List three similar Public Works or government facilities recently completed by your firm. 3. Include the date of completion, the total square footage, original construction budget, final construction cost, project duration, and project designer. 4. List both the design reference and the owner reference. G:\ENG\PUBLIC\_2008 Projects\08-03 Chal1hassen Maintenance (PW) Facility\RFP construction management revl.doc C. Proposed Project Team Members 1. Include the Project Principal, Project Manager, and On-Site Project Superintendent that will work on the project. 2. Provide a brief biographical history and project experience for each team member. 3. Provide a list of current and anticipated workload and an indication of how you can complete the project within the time frame indicated. D. Client References - Only clients from the most recent five years: 1. Furnish at least three client references from projects completed within the last five years. 2. Provide the references name, title, and contact phone number. E. Preliminary Project Schedule - State a brief understanding of the proposed schedule and identify any potential scheduling concerns. F. Projected General Conditions Costs and On-Site Reimbursable Expenses for the Project. 1. Provide a detailed breakdown of anticipated General Condition Costs for the entire Project. These costs may include dumpsters, site fence installation and maintenance, and installation and maintenance of temporary building access, sanitation units, etc. 2. Provide a separate, detailed cost of all on site direct reimbursable expenses such as the project superintendent, job site office, temporary utilities service, and any other expenses to be paid directly to your firm. 3. Use your preliminary schedule as a base for the construction period. 4. Include labor and material costs. 5. Parking area, access drive and erosion control measurs will be required to be kept clean (including snow removal), open or maintained during construction by the construction manager. G. Project Fee 1. Your fee shall include all home/office expenses, including any personnel costs (project manager) and incidental expenses that would be incurred during the completion of this Project. 2. Your fee should also include any monies you require for overhead and profit for this Project. 3. There will be no additional fee or overhead expense allowed for reimbursable or general conditions expenses. 4. Provide a separate fee for pre-construction services and construction services as described by the proposed contract format. H. Scope of Services 1. Provide a cost estimate for the project within 10 calendar days of selection. 2. Provide an estimate for the project at 60% Construction Documents and prior to advertisements for bids. G:\ENG\PUBLIC\_2008 Proiects\OS-03 Chanhassen Maintenance (PW) Facility\RFP construction management rev1.doc 3. Provide plan review at 30% design and recommendation cost saving ideas or material substitutes. 4. Perform technical review of the drawings prior to issuance for bidding. 5. Provide monthly contract and budget updates throughout construction phase. 6. Facilitate weekly progress meetings and issue meeting minutes. 7. Maintain updated schedule during the project. 8. Manage pay requests and draft and review change order requests for City approval. 9. Provide all service described by the AlA Contract B1411CMa - 1992. I. Contract 1. The contract to be used for this project will be the current edition - AlA B1411CMa - 1992 with amendments 2. The Construction Manager will be required to furnish a Guaranteed Maximum Price for construction management services including reimbursibles prior to the start of construction. 3. The current edition of AlA A201/Cma - 1992 General Conditions for Construction with amendments will be used in addition to the City of Chanhassen General Conditions. 4. This project will be a Plan & Specification project. 5. The owner reserves the right to terminate the contract at the end of the preconstruction phase of services. The contractor will have no reimbursement for expenses beyond the designated fee for preconstruction services. J. Additional Information- Include other items that you feel the City should review or consider during their review of your firm's qualifications. INTERVIEW AND SELECTION 1. The City may interview the team or teams which it determines best meets requirements of the request for proposal the week of September 15, 2008. 2. The City reserves the right to award the contract for services to the team, in its sole discretion and will best benefit the City of Chanhassen. 3. There shall be no reimbursement for any expenses with responding to this Request for Proposal. SCHEDULE The City is anticipating an accelerated consultant selection process. The anticipated project schedule is as follows: RFP Back to City Construction Management lnterview(s) Anticipated A ward of CM Contract Construction Start Substantial Completion September 17, 2008 Week of September 22, 2008 October 13, 2008 April, 2009 Early 2010 G:\ENGIPUBLlCI_2008 Proiectsl08-03 Chanhassen Maintenance (PW) FacilityIRFP construction management rev1.doc