Item 4J
Construction Phase Project Control Services for The Marq Southlake Champions Club & Bicentennial Park Phase 3 Southlake Tennis Center
Item 4J
Good evening Mayor and City Council. This item concerns a contract for control services for the construction of The Marq Southlake Champions Club and Bicentennial Park Phase 3 improvements,
including the Southlake Tennis Center.
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Requested Action
Approve Contract for Construction Phase Project Control Services with Peak Program Value, LLC, for amount not to exceed $255,000
The Marq Southlake Champions Club Project
Bicentennial Park Phase 3 Tennis Center
City Council is being asked to approve a contract with Peak Program Value, LLC for Construction Phase Project Control Services related to construction of The Marq Southlake Champions
Club project and the Bicentennial Park Phase 3 improvements, including the Southlake Tennis Center. Should the contract amount be listed?
On March 24, 2016, staff authorized
a contract for third party Pre-Construction Project Control Services with Peak Program Value (PPV) for The Marq Southlake Phase 2.
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Peak Program Value LLC
Originally contracted for third party Pre-Construction Project Control Services in March 2016
Pre-Construction Scope successfully completed
Served as Project Controls Lead w/CMAR selection
and validation process
Assisted w/CMAR contract negotiations
Provided detailed construction cost estimate and owner’s budget at each estimating phase
Provided cash flow prediction
Validated
CMAR’s initial 20% and 50% CD construction cost estimates
Validated subcontractor pre-qualifications, solicitation, bid analysis & award process
Validated CMAR’s proposed Final GMP to
ensure best value and service
PPV has successfully assisted with the selection of and contract negotiations with Haydon Building Corp (HBC) as Construction Manager at Risk on both projects. PPV has provided construct
cost estimating services, provided cost control services, and has continually validated HBC’s construction cost estimates, subcontractor prequalifications, bid analysis, and proposed
guaranteed maximum price to ensure the best value and service is received for the City and its residents.
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Why Peak Program Value?
Detailed understanding for CMAR’s GMP
Good grasp of CMAR’s extensive cost & schedule control responsibilities within contract
They know market value of concrete, glass, steel, etc.
Experts
at validating scope and “reasonably inferable” requirements of change orders
State of the art budget tracking allows for real time reporting
Having PPV as a third party consultant, looking out for the City’s best interests, will continue to prove very beneficial and provide great value to the City as we move through construction.
It is staff’s recommendation to retain the services of PPV throughout the construction phase of the project.
The packet memo enumerates PPV’s numerous abilities and qualities that
make them the right choice for the project.
- PPV has a very detailed understanding of the CMAR’s guaranteed maximum price, including the allowances, contingencies, and subcontractor
scope included & excluded.
- PPV has a good grasp of the CMAR’s extensive cost & schedule control responsibilities in their contract with the City.
- As PPV is actively receiving current
unit cost pricing from many other CMARS/subcontractors on other projects in DFW, they know today’s market value of concrete, glass, steel, etc.
- PPV’s estimating resources are experts
at validating the scope and “reasonably inferable” requirements of change orders.
- PPV’s state of the art budget tracking extranet allows us the ability to track and quickly predict
the cost at project completion, as well as share this info in real time.
- Most importantly, with a PPV team member in every meeting, change order prevention (rather than just change
order negotiation) becomes a priority.
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PPV SCOPE
The Marq Southlake Champions Club Project
Project Control Services
Project Controls & Information Management Systems Assessment / Web Based Financials Tracking
Ongoing Project Controls
Validation
Bicentennial Park Phase 3 – STC Project
Project Control Services
Pre-Construction Services for Building & Enclosed Courts
Ongoing Project Controls Validation
Also…..
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The Marq Phase 2
Project Controls/Info Management/Financials
$12,865
Review existing processes and tools for tracking budgets against: commitments, proposed change orders, contract
changes, contingency use logs, and payment vs budget
Ensure project reporting and documentation is maintained to industry standards
Implement web-enabled financial system for real-time
data
Also…..
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Ongoing Project Controls Validation
$160,920 (18 Months @ $8,940/month)
Project Exec attends 1 OAC/month & Asst PM attends weekly
Review project status, weekly OAC minutes and status
logs
Report on & provide solutions to current project challenges
Mitigate future project risks
Review Pay Apps for compliance with industry standards; schedule vs amount billed; appropriateness
of contingency reallocations
Maintain and update project budget tracking system
Train City staff on web-enabled access to real-time data
Publish monthly reports (exec summary and detailed
back-up)
Budgets against commitments Proposed change orders
Pending commitments Contract changes
Contingency use log Payments vs budget
Also…..
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Review and validate CMAR’s proposed change requests
Validate project closeout and turnover procedures are followed, punch list created, and addressed per contract requirements
Reimbursable
Expenses
$16,200
Return
Also…..
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Bicentennial Park Phase 3 STC Project
Preconstruction Services (Building & Enclosed Courts)
$22,475
Provide schedule and cost control services
Prepare RFQ and RFQ for CMAR services;
analyze & validate submittals rec’d; negotiate CMAR agreement; value engineering
Prepare and update a final independent cost estimate to validate CMAR’s GMP
Validate updated project
schedule
Assist CMAR with subcontractor procurement process, packaging alternates and other owner-friendly approached during bid solicitation process
Provide technical assistance with
bid analysis and award recommendation
Also…..
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Ongoing Project Controls Validation
$32,220 (12 Months @ $2,685/month)
Same as Marq Phase 2
Reimbursable Expenses
$7,920
Return
Also…..
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THE MARQ SOUTHLAKE CHAMPIONS CLUB PROJECT
$37,400,000 approved in FY 2017 CEDC CIP
Contract for Construction Phase Project Control Services for Champions Club $189,985 (0.5% overall
budget)
Project within budget
Financial Considerations
Funding in the amount of $37,400,000 is approved in the FY 2017 CEDC CIP. The proposed contract fee for third party Construction Phase Project Control Services for The Marq Southlake
Champions Club project is $189,985 (0.5% of the overall budget). The project remains within budget and on track for a June 2018 grand opening.
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BICENTENNIAL PARK PHASE 3 SOUTHLAKE TENNIS CENTER PROJECT
$7,002,000 approved in FY 2017 SPDC CIP
Contract for Construction Phase Project Control Services for Southlake
Tennis Center $62,615 (0.7% of overall budget)
Project within budget
Financial Considerations
Funding in the amount of $7,002,000 is approved in the FY 2017 SPDC CIP. The proposed contract fee for third party Construction Phase Project Control Services for Bicentennial Park
Phase 3 improvements, including Southlake Tennis Center is $____________ (0.)% of the overall budget).
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Project Timelines
Early 2018 Anticipated STC Opening
Summer 2018 Anticipated Champions Club Opening
Update?
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City of Southlake Strategy Map
The City of Southlake provides municipal services that support the highest quality of life for our residents, businesses, and visitors. We do this by being an exemplary model of balancing
efficiency, fiscal responsibility, transparency, and sustainability.
C1 Achieve the highest standards of safety & security
C2 Provide travel convenience within City & region
C3 Provide attractive & unique spaces for enjoyment of personal interests
C4 Attract & keep top-tier businesses to drive a dynamic & sustainable economic environment
C5 Promote opportunities for partnerships & volunteer involvement
Serve our Customers
Manage the Business
B1 Achieve best-in-class status in all City disciplines
B2 Collaborate with select partners to implement service solutions
B3 Enhance resident quality of life & business vitality through tourism
B4 Provide high quality services through sustainable business practices
B5 Enhance service delivery through continual process improvement
B6 Optimize use of technology
Provide Financial Stewardship
Promote Learning and Growth
F1 Adhere to financial management principles & budget
F2 Invest to provide & maintain high quality public assets
F3 Achieve fiscal wellness standards
F4 Establish & maintain effective internal controls
L1 Ensure our people understand the strategy & how they contribute to it
L2 Enhance leadership capabilities to deliver results
L3 Attract, develop & retain a skilled workforce
L4 Recognize & reward high performers
L5 Empower informed decision-making at all levels in the organization
C6 Enhance the sense of
community by providing excellent customer service and citizen engagement opportunities
L6 Foster positive employee engagement
Deliver on Our Focus Areas
Approval of the contract for Construction Phase Project Control Services with Program Peak Value is linked to the City’s Strategy Map related to the focus areas of Infrastructure and
Quality Development and meets the corporate objectives to Invest to Provide and Maintain High Quality Public Assets, and to Adhere to Financial Management Principles & Budget.
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Board / Citizen Review
Jan 24, 2017 CEDC recommended (6-0) approval of agreement for Champions Club
Feb 7, 2017 SPDC consideration of agreement for Bic Park Phase 3, Tennis Center
Feb 7, 2017 CC consideration
Board Review: CEDC recommended approval of PPV Agr for Champ Club January 24, 2017
SPDC recommendation on PPV Agr for Bic Park Ph 3, Tennis Center Feb 7, 2017
City Council
consideration February 7, 2017
Legal Review: City Attorney to review the contract.
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Questions?
This concludes the presentation. Please contact me at 817.748.8021 if any questions.
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