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Kentwood approves $10.8 million guaranteed maximum price, awards construction packages for DPW expansion
Summary
The City Commission authorized a final guaranteed maximum price of $10,758,824.79 and awarded multiple construction subcontracts for the Kentwood Department of Public Works expansion, and set owner contingencies and a utility allowance.
The Kentwood City Commission authorized a guaranteed maximum price (GMP) of $10,758,824.79 for construction of the Department of Public Works expansion and approved awarding subcontracts totaling $8,528,907 to the lowest qualified bidders after a competitive bid process. The commission also approved a $100,000 owner construction contingency and a $100,000 construction utility budget on May 12.
The GMP and subcontract awards were presented by project staff, who said Triangle Associates Inc. performed post-bid interviews and recommended awarding contracts to the lowest qualified bidders. “Triangle competitively bid all the construction categories for the DPW project,” staff said. The commission packet listed awarded contractors and bid numbers and noted strong bidder participation across scopes.
Why it matters: The expansion will add city facilities and is funded from the property and building fund. Staff told commissioners the total construction award came in about $710,000 under the project’s budget projection.
Details: Staff said the GMP includes construction management, general conditions, bonds, insurance and other Triangle contract costs in addition to the subcontracted work. The commission approved authority for Triangle to issue the listed subcontracts and to amend its contract to reflect the final GMP. The commission also approved two $100,000 allocations: one labeled owner construction contingency for owner-directed scope changes and one for anticipated increases in water, gas and electric bills during construction.
Discussion and next steps: Commissioners asked no substantive follow-up questions during the presentation. With the contracts authorized, staff will proceed to execute the GMP amendment and issue the subcontracts so construction can move forward.
