Estacada council reviews guaranteed-maximum-price for new wastewater plant; directs staff to draft contract amendment

Estacada City Council on Monday reviewed a guaranteed-maximum-price proposal for the city's new wastewater treatment plant and voted to direct staff to prepare a contract amendment with the construction manager, Sladen Constructors Inc.

The council workshop, led by the project team from Sladen and engineering firm Kennedy Jenks, presented a construction GMP of about $57.26 million for Sladen's scope and an estimated $2.4 million for Kennedy Jenks' construction-phase services, putting the project's projected construction and construction-support cost near $59.66 million.

The project team said the GMP is based on the city's 90% design documents and includes several defined allowances and contingencies intended to limit the need for formal change orders. Major budget items discussed included a 2.5% design-evolution allowance (about $1.14 million), a 5% construction contingency carried in the CMGC contract, and a $500,000 tariff allowance to address fluctuating import duties on materials. The team also carried a $350,000 allowance for structured demolition of the existing plant after construction of the new facility.

Why this matters: the GMP locks the city's construction exposure for the core build while…