Res 2017-26 Assignment to McGough
RESOLUTION NO. 2017 - 26
A RESOLUTION ALLOWING THE ASSIGNMENT TO MCGOUGH CONSTRUCTION
COMPANY, LLC AS PRIME CONTRACTOR AND ASSIGNMENT OF CONTRACTS
BETWEEN THE CITY OF FRIDLEYAND SPECIFIC INDIVIDUAL CONTRACTORS
TO MCGOUGH AS THE CITY OF FRIDLEY'S CONSTRUCTION MANAGER AT RISK
FOR THE CITY OF FRIDLEY'S CIVIC CAMPUS PROJECT WHICH INCLUDES:
CITY HALL, POLICE, FIRE AND THE PUBLIC WORKS BUILDINGS
WHEREAS,The CityCouncil has contracted with McGough Construction Company, LLC as its
Construction Manager; and
WHEREAS, The City Council has accepted the Guaranteed Maximum Price (GMP) from
McGough Construction Company, LLC, making McGough its Construction Manager At Risk
(CMAR); and
WHEREAS, A formal bid process commenced with bid packets available for 31 contacts began
with packets available on March 25, 2017; and
WHEREAS, respondents to eighteen (18) of the bid categories were evaluated by a lowest
responsible bid process according to bid guidelines; and
WHEREAS, respondents to thirteen (13) of the bid categories were evaluated by a best value bid
process, which included contractor interviews; and
WHEREAS, the processes have resulted in twenty eight (28) of the thirty one (31) categories
being successfully bid and awarded by City Council on Monday, May 22, 2017; and
WHEREAS, based on a re-advertisement for two bid categories that had not received responses
at the bid opening on May 4, 2017; and
WHEREAS, those additional bid contract responses have been received from contractors and a
bid opening for those contracts happened at 10:00am, May 26, 2017; and
WHEREAS, the City is now ready to award contracts for Bid Packet #8, Elevators and Bid
Packet #31, Waterproofing; and
WHEREAS, the City erroneously approved the award of a contract for acoustical tile to a
company rather than the most responsible bid Minnesota Acoustics and this resolutions also
seeks to correct that error; and
WHEREAS, now that those contractors are known and contracts are ready to be signed, it is
most appropriate to have the CMAR manage the contracts; and
Resolution No. 2017 - 26 Page 2
WHEREAS, The Prime Contract Assignment to McGough Construction Company is attached as
Exhibit A; and
WHEREAS, The Standard Assignment Letter to be issued is attached as Exhibit B; and
WHEREAS, The City's Purchasing Agent Assignment Letter can be viewed in Exhibit C; and
WHEREAS, those contracts that include materials and labor will require bond and insurance
submittals prior to award and be awarded once those items have been provided, through a
notification letter attached as Exhibit D; and
WHEREAS, those contract award recipients can be identified as follows: (also attached as
):
EXHIBIT B
1.Elevators - KONE Inc
2.Waterproofing - Technical Waterproofing, LLC
3.Ceiling Tile, Minnesota Acoustics
WHEREAS, All contract award recipients will require bond and insurance information prior to
contract assignments to the CMAR and will receive the latter attached as : and
EXHIBIT D
WHEREAS, signatures by the Mayor and City Manager will be required on the re-assignment
documents and those signature dates may be staggered, and
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Fridley approves the
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 appropriate. 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
TH
26 DAY OF MAY, 2017.
______________________________________
SCOTT J. LUND - MAYOR
ATTEST:
________________________________
DEBRA A. SKOGEN - CITY CLERK
EXHIBIT A
Assignment of Prime Contract
THIS ASSIGNMENT is made and effective this ___ day of ____________, 2017, by the
City of Fridley, a municipal corporation (“Owner”) to McGough Construction Co., LLC, a
Minnesota corporation (“Construction Manager”).
RECITALS
A. Owner and Construction Manager have entered into that certain agreement
entitled Standard Form of Construction Management Agreement between Owner and
Construction Manager as Constructor, A133-2009, dated May 23, 2016, and as amended, March
9, 2017 (“CM Agreement”) regarding the construction project in the City described therein
(“Project”).
B. Construction of the Project facility has been competitively bid pursuant to
Minnesota law and Owner has awarded the bid for the performance of __________________ to
___________________ and entered into a contract with _____________________ describing
the documents included in the contract and setting forth the terms and conditions of the Work.
Specifically, the contract provisions describing all documents forming the contract between
Prime Contractor and Owner hereby assigned include Article 1 and Section 9.1.7 of the AIA
A132 – 2009 together with the AIA A232 -2009 General Conditions of Contract, comprising the
contract documents (“Prime Contract”).
C. Owner has accepted Construction Manager’s Guaranteed Maximum Price
(“GMP”), which is conditioned on Owner assignment of certain rights in the Prime Contract to
the Construction Manager, as well as assignment of rights in other Prime Contracts between
Owner and the Prime Contractors.
D. By this Assignment, Owner is assigning and retaining certain rights under the
Prime Contract and Construction Manager is accepting and assuming those rights and obligations
for the defined Work under the Prime Contract to carry out the Project Work for the GMP.
NOW THEREFORE
, for valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties agrees to the following:
1.The Recitals are made a part of this Assignment.
2.Unless expressly retained, reserved or qualified in paragraph 4 below, Owner
assigns all its rights, duties, and obligations under the Prime Contract to
Construction Manager, which hereby assumes such rights, duties, and obligations.
493296v6 FR655-1
3.By this Assignment, and notwithstanding any language to the apparent contrary in
CM Agreement, Construction Manager assumes direct management and control
over the Prime Contractor in carrying out the Project Work to accomplish timely
completion of the Work in accordance with the Prime Contract.
4.Owner does not hereby assign and expressly reserves the rights, duties and
obligations contained in the following provisions of AIA A232–2009, and in
those sections in AIA A132–2009 and A232 that are a part of or otherwise relate
directly thereto:
a.The right to require that all Work performed during the Project under Owner’s
assigned rights to Construction Manager be procured pursuant to the
requirements of the Uniform Municipal Contracting Law, Minn. Stat.
§ 471.345, including but not limited to section 2.4 of the A232;
b.Rights inuring to the Owner in sections 3.5.1, 3.9.3, 3.11, 3.12.8, 3.16, 3.17,
3.18.1, 4.2.16, 4.13, 4.2.16, Article 9 payment, Article 15 and rights to legal
remedies available under the Prime Contract, and final approval of the Work;
c.Owner’s rights and obligations under sections 2.1, 2.2, 3.3.1, 3.7.4, 3.7.5,
3.12.10, 3.13.3, 4.1, 4.2, 6.1, 6.2, 7.1, 7.2 when involving Owner, 7.3, 9.3,
10.2.8, 10.3, Article 11, 12.2, 13.5.
IN WITNESS WHEREOF, the undersigned parties have executed this Assignment
effective the date first above written.
CITY OF FRIDLEY MCGOUGH CONSTRUCTION CO., LLC
Owner Construction Manager
By: ________________________ By: ________________________
Its: ________________________ Its: ________________________
By:________________________
Its:________________________
4
493296v6 FR655-1
EXHIBIT B
Date
Mr. Greg Hedin
Construction Executive
McGough Construction Co., LLC
2737 Fairview Avenue North
St. Paul, MN 55113
Re: Assignment Letter
Bid Package No. # Bid Scopes – Tax Exempt Materials
Fridley Civic Complex
Fridley, Minnesota
Dear Mr. Hedin:
The City of Fridley, MN (“City”) has received competitive bids from various trade contractors for the tax-
exempt materials portion of the Project. After reviewing those bids, the City has determined that
Purchasing Agent Agreements should be awarded to the successful bidders listed on Exhibit A attached
hereto (the “Successful Bidders”) in the amounts of the accepted bids.
The City has notified the Successful Bidders of the award. In lieu of entering into direct Purchasing
Agent Agreements with the Successful Bidders and then assigning those Purchasing Agent Agreements
to McGough Construction Co., LLC (“McGough”), the City desires to assign its right to enter into binding
Purchasing Agent Agreements with the Successful Bidders to McGough, whereupon McGough will enter
into Purchasing Agent Agreements directly with the Successful Bidders.
Therefore, the City hereby assigns its aforementioned right to enter into binding Purchasing Agent
Agreements with the Successful Bidders to McGough. By signing below, McGough hereby accepts the
assignment and agrees to enter into Purchasing Agent Agreements with the Successful Bidders as
provided herein.
Sincerely,
CITY OF FRIDLEY
______________________________________________________________
Name, Title Date:
______________________________________________________________
nd
Name, Title (If 2 Signature is required) Date:
Approved:
_______________________________________________________________
Greg Hedin Date:
McGough Construction Co., LLC
EXHIBIT A
Fridley Civic Complex
Fridley, MN
Bid Package No. # Awarded Bidders – Tax-Exempt Materials
Bid Scope No. # - Name of Bid Scope
Bid Scope No. # - Name of Bid Scope
Bid Scope No. # - Name of Bid Scope
6
493296v6 FR655-1
EXHIBIT C
Date
Mr. Greg Hedin
Construction Executive
McGough Construction Co., LLC
2737 Fairview Avenue North
St. Paul, MN 55113
Re: Assignment Letter
Bid Package No. # Bid Scopes – Tax Exempt Materials
Fridley Civic Complex
Fridley, Minnesota
Dear Mr. Hedin:
The City of Fridley, MN (“City”) has received competitive bids from various trade contractors for the tax-
exempt materials portion of the Project. After reviewing those bids, the City has determined that
Purchasing Agent Agreements should be awarded to the successful bidders listed on Exhibit A attached
hereto (the “Successful Bidders”) in the amounts of the accepted bids.
The City has notified the Successful Bidders of the award. In lieu of entering into direct Purchasing
Agent Agreements with the Successful Bidders and then assigning those Purchasing Agent Agreements
to McGough Construction Co., LLC (“McGough”), the City desires to assign its right to enter into binding
Purchasing Agent Agreements with the Successful Bidders to McGough, whereupon McGough will enter
into Purchasing Agent Agreements directly with the Successful Bidders.
Therefore, the City hereby assigns its aforementioned right to enter into binding Purchasing Agent
Agreements with the Successful Bidders to McGough. By signing below, McGough hereby accepts the
assignment and agrees to enter into Purchasing Agent Agreements with the Successful Bidders as
provided herein.
Sincerely,
CITY OF FRIDLEY
______________________________________________________________
Name, Title Date:
______________________________________________________________
nd
Name, Title (If 2 Signature is required) Date:
Approved:
_______________________________________________________________
Greg Hedin Date:
McGough Construction Co., LLC
EXHIBIT A
Fridley Civic Complex
Fridley, MN
Bid Package No. # Awarded Bidders – Tax-Exempt Materials
Bid Scope No. #16 - Furnish Doors
Bid Scope No. # 28 - Structural Steel/ Misc. Metals Furnish
EXHIBIT D
Contracts to Be Assigned in Accordance With Attached Resolution
1.Elevators - KONE Inc
2.Waterproofing - Technical Waterproofing, LLC
3.Ceiling Tile - Minnesota Acoustics