Agenda 09-03-19 Item 6-b - Acceptance of Guaranteed Maximum Price (GMP) for the Orange County Northern Campus

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3 Construction Manager Contingency $625,399 Unknown Construction Costs Early Completion Bonus 1% of Cost of Work $1,628,966 Construction Manager Fee 3.75% of Cost of Work Bonds and Insurance 1.2% of Cost of Work $431,076 TOTAL GUARANTEED MAXIMUM PRICE $36,354,082 At the end of the construction project, any unspent owner contingency funds or allowances are retained by the County. If any amount of the Construction Manager contingency is unspent, seventy percent (70%) is retained by the County, and thirty percent (30%) is shared with the construction manager as an incentive to avoid unnecessary construction costs. The GMP is one of the required elements to seek approval from the Local Government Commission (LGC) to borrow money for the project. LGC approval is scheduled for October 1, and approximately $10 million of the total project costs are recommended for financing in the Fall financing package based on cash flow needs. Bordeaux Construction has requested a notice to proceed on the initial site work and long lead time materials immediately following acceptance of the GMP in order to avoid winter site conditions and remain on schedule for project delivery. As a result, the proposed GMP is recommended in two parts. The first part (GMP #1) is $10,019,850 million would be allowed to proceed prior to formal approval by the LGC on October 1. This strategy has precedent and poses minimal risk to the County. The notice to proceed for the balance of the project (GMP #2) totaling $26,334,232 would occur following formal approval by the LGC as the construction schedule dictates. FINANCIAL IMPACT: The Board of Commissioners authorized a total project budget of $40.2 million. Given a GMP of $36.4 million, projected professional fees of approximately $3.3 million, and a furniture, fixtures, and equipment budget of $625,000, the project is expected to be on budget assuming that contingency funds and other allowances are not entirely exhausted during construction. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goals are applicable to this item: • GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION AND INEQUITY The fair treatment and meaningful involvement of all people regardless of race or color; religious or philosophical beliefs; sex, gender or sexual orientation; national origin or ethnic background; age; military service; disability; and familial, residential or economic status.