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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 />