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out of business over a weekend. He stated in that example, the construction management office <br />handled the necessary action towards the contractor that closed their business rather than the City <br />having to handle that work because the municipality used the at -risk method. <br />Acting Mayor LeTourneau asked if there is a price difference between agency and at -risk <br />models. <br />Mr. Recker replied that sometimes there is difference between agency and at risk, where an <br />agency project may have a percentage of 2.8 compared to a percentage of 2.35 for an at -risk <br />model. He stated that often RJM charges a lower rate for an at -risk method because they have <br />the experience and overhead to handle those services. <br />Councilmember Kuzma asked at what point it would be helpful for a construction manager to be <br />involved. <br />Mr. Recker replied that it is his understanding that there has already been a feasibility study and <br />project estimate completed and therefore it would be a good time to bring the construction <br />manager on. He stated that the construction manager can review the budget information to <br />ensure that the project is within the right spot before an architect is hired. He stated that if the <br />City were within a year of when they would like to start the project, that would be a good time. <br />Councilmember Kuzma asked how long the estimate would be good for. <br />Mr. Recker stated that when the conceptual estimate is done, the construction manager would <br />look at the estimated time of construction and would review the current prices of similar projects <br />and also build in inflation. He stated that further along in the process they would refine the <br />budget further and the budget would be refined again in the design/development phase where <br />more accurate pricing information in gained from the current market. He stated that once the <br />plans are 95 percent finalized, about two to three months before the plans are ready to be bid, he <br />would again obtain more formal budget estimates. <br />Acting Mayor LeTourneau asked if there is a model that shows the hard cost savings provided by <br />the use of a construction manager. <br />Mr. Recker explained that in a traditional bid a general contractor will obtain bids from all of the <br />subcontractors that they use and add that with the superintendent and the fees that the general <br />contractor will have for their trailer and additional services. He stated that with a construction <br />manager, the fee for using the construction manager would be similar to the fees of the general <br />contractor to oversee the project. He stated that what the City would be losing by not using a <br />construction manager would be the opportunity to obtain cost savings throughout the design <br />process and the ability to stay more on budget. <br />Public Works Superintendent Reimer stated that using a construction manager will provide the <br />City with knowledge. He explained that an architect will tell you certain elements are needed, <br />and the construction manager will be able to provide their input on what elements are actually <br />needed, as City staff does not always have that knowledge. <br />City Council Work Session / March 13, 2018 <br />Page 5 of 7 <br />