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Board conditionally approves design and construction management agreements with Keller Inc.; requires fee split clarifications
Summary
The Village approved design and construction-management agreements with Keller Inc. for a new administrative/police facility and a fire station, contingent on Keller adjusting specified travel and per-diem line items to reflect 50/50 splits when the same staff serve both projects.
The Village Board moved and seconded to approve design and construction-management agreements with Keller Inc. for two municipal projects — an administrative/police facility and a fire station — with a stipulation that several itemized travel and per-diem line items be adjusted to reflect 50/50 splits where the same Keller personnel will serve both projects.
What staff proposed: A Keller representative (Devin) presented the contracts' structure: design-phase percentages, construction-phase construction management fee (2.5% of construction cost), and line-item general conditions and monthly recurring costs tied to estimated project durations (an estimated 15 months for construction). The proposal listed project-executive and project-manager roles, field superintendents, and related per-diem and travel allowances.
Board concerns and staff clarifications: Trustees raised concern that some project roles and travel/per-diem charges appeared duplicated across the two simultaneous projects, potentially inflating costs if the same personnel would cover both buildings. Trustee Tom specifically asked whether the same project manager would cover both projects and whether travel/per-diem and other recurring costs could be split 50/50 when appropriate. Keller staff agreed that certain items (project executive travel/per diem, project manager travel/per diem, and superintendent travel/per diem) should be adjusted to 50/50 where the same person would be serving both projects and said they would revise the contract language and provide updated figures.
Outcome: The board voted to approve the agreements for design and construction management of both facilities with the stipulation that Keller Inc. adjust the listed travel and per-diem items to reflect 50/50 splitting where appropriate; trustees also requested the corrected itemized contract be delivered promptly for review and signature. The motion carried.
Next steps and limitations: Keller will provide an updated itemized contract reflecting the 50/50 adjustments; one trustee said he would not sign the contract until he verified the corrected numbers, but staff indicated they could obtain an updated contract quickly for review and execution. The board emphasized that if the projects are delayed for village-caused reasons, additional costs tied to schedule extension would be discussed and billed accordingly to preserve fairness.
