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Pearland council approves $126.6 million guaranteed maximum price for Berry Rose wastewater plant work
Summary
The Pearland City Council on Monday approved an amendment to the city’s construction manager-at-risk contract that establishes Guaranteed Maximum Price (GMP) No. 2 for the Berry Rose wastewater reclamation plant and the Longwood lift station.
The Pearland City Council on Monday approved an amendment to the city’s construction manager-at-risk contract that establishes Guaranteed Maximum Price (GMP) No. 2 for the Berry Rose wastewater reclamation plant and the Longwood lift station.
City staff recommended awarding the GMP No. 2 amendment to McCarthy Building Companies in the amount of $126,643,050; the city said that will put the total CMAR contract (design services plus GMPs 1 and 2) at about $193,200,000. The council voted 7-0 to approve the amendment.
City staff said GMP No. 2 covers the balance of the new plant construction at Berry Rose and the Longwood lift station; site and underground work included in GMP No. 1 began in July 2024. Staff said GMP No. 3 — which has not yet been presented for council action — will include the force main between Longwood and Berry Rose and decommissioning of the existing plants, and is scheduled for award later this year.
During the discussion, council members asked how the city evaluates work that the CMAR proposes to self-perform and how savings or value engineering are handled. City staff said subcontracted packages were bid publicly, that a self-performing contractor submits its own pricing along with other bidders, and that the city and its owner’s representative review those bids for price and best value. Staff also said contingency/savings allowances are set aside in each GMP and, if there are savings, those can be shared under the contract terms.
Jake Stones, a McCarthy representative, told the council that McCarthy competitively bids packages it proposes to self-perform and does not receive other subcontractors’ bids. “We submitted a bid like Lorenzo stated, and bid the package competitively and recommended for award the ones with which we were the best value to the city,” Stones said.
The motion to approve GMP No. 2 was presented by Member Chavarria and seconded (second not named on the record). The roll-call vote recorded Yeas from Member Chavarria; Member Byram; Member Cade; Member Toobin; Member Patel; Mayor Pro Tem Carbone; and Member Coza. The motion passed 7-0.
City staff said construction costs are tracking to the city’s estimate and budget; staff recommended returning when GMP No. 3 is ready so council can review remaining work and budget alignment.
