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<br /> 1 offices. The proposed site of the development at South Greensboro Street is located on an
<br /> 2 existing Carrboro municipal parking lot near the center of the town. At that meeting, the Board
<br /> 3 approved a construction budget of $11,777,000 for the Orange County portion of the project.
<br /> 4 The total approved construction budget, including Carrboro's portion, was $22,282,000
<br /> 5 (Attachment 1).
<br /> 6
<br /> 7 This project is being performed through a Construction Manager at Risk (CMAR) delivery
<br /> 8 method. This delivery method entails a commitment by the Construction Manager (CM) to
<br /> 9 deliver the project within a Guaranteed Maximum Price (GMP) which is based on the
<br /> 10 construction documents and specifications at the time of the GMP plus any reasonably inferred
<br /> 11 items or tasks. The project architect selected for the project is Perkins & Will and the
<br /> 12 Construction Manager is the Barnhill Contracting Company.
<br /> 13
<br /> 14 The design process began shortly after the approval of the project with the start of Schematic
<br /> 15 Design (SD) development. At the completion of the Schematic Design phase in November
<br /> 16 2020, a construction estimate derived from the design showed that the project was significantly
<br /> 17 over budget. A Value Engineering (VE) effort immediately ensued and scope modifications
<br /> 18 were made to bring the project costs down. After the completion of Value Engineering, the
<br /> 19 project was still over budget, and at the March 2, 2021 BOCC Business meeting, the Board
<br /> 20 approved additional funding through a combination of capital funding reallocation and a minor
<br /> 21 scope reduction to close the budget gap of $1,807,160. Including the CMAR fee of $723,520,
<br /> 22 Orange County's portion of the construction budget totaled $14,232,856. The total construction
<br /> 23 budget, including Carrboro's portion, grew from $22,282,000 to $25,306,336. The cost overrun
<br /> 24 was attributed the escalating costs associated with the parking deck. The Town of Carrboro did
<br /> 25 not incur a cost overrun at that point in time. See the Chart#1, below for further detail:
<br /> 26
<br /> 27 Chart#1
<br /> 203 Project
<br /> Original Construction Budget Town Orange County Total
<br /> Construction 10,505,000 11,777,000 $22,282,000.00
<br /> CMAR Fee 568,480 723,520 $1,292,000.00
<br /> Total Const 11,073,480 12,500,520 $23,574,000.00
<br /> BOCC Schematic Budget Adjustment $1,807,160 $1,807,160.00
<br /> 14,307,680 $25,381,160.00
<br /> Scope Adjustment(Part of BOCC Change) -74,824 -$74,824.00
<br /> 28 Revised Construction Budget(March 2021) $11,073,480 $14,232,856 $25,306,336.00
<br /> 29
<br /> 30 The project next proceeded into the Design Development (DD) phase of project design. Upon
<br /> 31 completion of Design Development in May 2021, a new construction estimate was prepared,
<br /> 32 and the project was once again found to be significantly over budget. Another round of Value
<br /> 33 Engineering (VE) ensued, additional modifications were made, and the project cost was brought
<br /> 34 down within budget.
<br /> 35
<br /> 36 On February 4, 2022, a memorandum was sent to the BOCC and Carrboro Town Council
<br /> 37 (Attachment 2) that provided a project bidding, approval, and financing schedule. Per the
<br /> 38 schedule, thirty-two bid packages were released for bidding on January 17, 2022 with received
<br /> 39 bids opened on February 9, 2022. Unfortunately, several bid packages could not be opened on
<br /> 40 that date due to insufficient bidding by members of the construction community.
<br /> 41
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