2019-071 Facilities Construction Bundling and Project Delivery MethodsDate: April 12, 2019 Report No. 2019-071
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Information relating to the City of Denton facilities construction program and alternative project
delivery.
EXECUTIVE SUMMARY:
The City of Denton is initiating a facilities construction program and has engaged a consultant to
assist in realizing cost and timeline efficiencies for each project through project bundling, project
controls, and alternative delivery methods. This report provides additional information on those
services, potential project delivery options for the Police Headquarters and Substation project, and
a timeline for the near future.
BACKGROUND:
The City of Denton is in the initial stages of a facilities construction program that includes the
following city facilities:
Project Type Current Stage
Police Headquarters Renovation Design Procurement
Police Substation New Construction Design Procurement
Fire Station #8 New Construction Design
651 Mayhill Renovation Design
Service Center Renovation Design
Fleet Service Center Renovation/Addition Design
Tennis Center Renovation Design
American Legion Hall Renovation Design
Program Management and Process Control
These facility improvements are critical to maintaining current services levels and to manage the
substantial anticipated growth of the community. In recognition of the volume of projects being
undertaken, the city’s limited experience with using alternative methods that may need to be
employed to deliver projects, and the need to manage this program efficiently and in a manner that
optimizes project schedules and costs, Staff engaged a consultant, Peak Program Value, to assist
the City in developing a facility construction program and project controls to employ for this and
future construction programs.
Staff has found the program management and project control input beneficial toward reducing
costs and creating a streamlined project timeline for the Police Headquarters and Police Substation
projects. As a result, the city will be issuing an Request for Qualification (RFQ) for program
management and project control services to explore the use of similar services to assist the City
through the substantial portions of the facility construction program.
Date: April 12, 2019 Report No. 2019-071
Alternative Delivery Methods
The City is currently evaluating the viability of using alternative delivery methods, particularly the
Construction Manager at Risk (CMAR) method, to deliver the Police Headquarters and Substation
projects. Benefits to alternative delivery methods are that they enable the City to have more control
over the project cost, timelines, and construction process – often resulting in a more efficient
project with lower overall price risk. For instance, the CMAR will work with the architect to value
engineer the design in order minimize costs without substantial design changes. A key aspect of
this delivery method is that the CMAR manages the construction project with the owner’s best
interest in mind, placing himself or herself at risk if the project cost rises above a pre-set
Guaranteed Maximum price.
Along with project bundling, staff feels that the CMAR delivery method could be of great value
in completing the construction of the Police Headquarters and Substation projects within a limited
budget and in an acceptable timeframe. This method will be discussed in a Work Session
presentation on April 23, 2019 to provide general information to the Council and receive feedback.
Timeline
At the April 16 Work Session, staff will provide a presentation and seek Council direction on a
proposed 2019 bond program. Should the Council give direction to prepare for a bond election,
staff would immediately begin work to develop a reliable construction budget for the Police
Headquarters and Substation project to be reflected in the bond program.
Several important dates are summarized below:
April 16 Bond Presentation and Council Direction on Bond Program
April 23 Construction Project Delivery Methods Discussion at Work Session
August 13 Last Day to Call for Bond Election
CONCLUSION:
The City continues to explore options to deliver projects on time and within budget. As a result,
staff seeks to engage a project management and project control consultant to aid the city in
managing an efficient building program and to explore alternative delivery methods. The CMAR
and other project delivery methods will be discussed on April 23 at which point Council can give
further direction.
ATTACHMENT(S):
n/a
STAFF CONTACT:
Ryan Adams
Assistant to the City Manager
(940) 347-8565
Ryan.Adams@cityofdenton.com