Board approves amended contract pricing after value engineering reduces fleet garage GMP by $391,463
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Summary
The board approved an amended resolution accepting $391,463 in value-engineering reductions to Leopardo Construction's guaranteed maximum price for the adaptive reuse of 3504 Commercial Avenue as a fleet maintenance garage; staff said the reductions do not compromise operational efficiency.
Public Works presented a recommended amendment to the master construction-manager agreement with Leopardo Construction for adaptive reuse of 3504 Commercial Avenue as the village's new fleet maintenance garage. Staff reported the initial GMP came in roughly $1.8 million higher than the design-development estimate. Since then, Leopardo and staff identified value-engineering items to lower the cost without compromising the building's operational goals.
Staff said they have identified $391,463 in reductions and presented an amended resolution reflecting that reduction to the GMP. The board voted to approve the amended resolution on roll call.
Why it matters: The action reduces the village's near-term construction exposure and reflects active cost-management practices on a capital project. Staff said additional value-engineering work will continue as the project proceeds, including consideration of reducing the number of geothermal well drills to further lower costs if appropriate.
Next steps: Staff and Leopardo will continue to pursue additional value-engineering items, finalize construction documents and begin work consistent with the approved GMP and any subsequent adjustments.