Res 2017-22 Accepting GMP from McGough Construction
RESOLUTION NO. 2017-22
A RESOLUTION ACCEPTING THE GUARANTEED MAXIMUM PRICE (GMP) FROM
MCGOUGH CONSTRUCTION COMPANY, FRIDLEY'S CONSTRUCTION MANAGER
AT RISK FOR THE CITY OF FRIDLEY'S CIVIC CAMPUS PROJECT WHICH
INCLUDES: CITY HALL, POLICE, FIRE AND PUBLIC WORKS BUILDINGS
WHEREAS,The CityCouncil has contracted with McGough Construction Company, LLC as its
Construction Manager At Risk (CMAR); and
WHEREAS, The City Council has now been presented Guaranteed Maximum Price (GMP) from
McGough Construction Company, LLC, of $43,115,442; and
WHEREAS, A GMP is required to allow McGough Company to be the City's Construction Manager at
Risk CMAR, as opposed to being a Construction Manager Agency (where the City holds the risk of over-
runs in the budget); and
WHEREAS, The CMAR formal bid process commenced with bid packets available for 31 contacts began
with packets available on March 25, 2017; and
WHEREAS, the processes have resulted in twenty eight (28) of the thirty one (31) categories being
successfully bid; and
WHEREAS, the three (3) bid packets to be opened later this week have had safe numbers as placeholders
to represent those values in the CMAR's GMP formula; and
WHEREAS, the GMP's acceptance by the City Council is essential to the advancement of McGough
Construction Company's ability to advance as the City's CMAR, rather than its CMA; and
WHEREAS, it is in the City of Fridley's best interest to have a Construction Manager At Risk,
guaranteeing pricing and performance, rather than a Construction Manager Agency, with the City
holding the risk on a project this large; and
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Fridley approves the GMP
and authorizes assignment of contracts as stated to McGough Construction Company, its CMAR and
authorizes the Mayor and City Manager to sign the Award/assignment documents as directed by staff to
effectuate the agreed upon terms of the CMAR agreement with McGough Construction Company. This
resolution hereby adopted by the City Council of the City of Fridley.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 22ND
DAY OF MAY, 2017.
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ATTEST: SCOTT J. LUND – MAYOR
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DEBRA A. SKOGEN - CITY CLERK