Vice Mayor Atwater raised concerns at the May 22 Town Council meeting about a guaranteed maximum price award for a water-reclamation facility being undertaken by the City of Vero Beach, telling colleagues the contract documents show a large contingency and shifting escalation figures that make it unclear whether the GMP truly caps town costs.

Atwater described the GMP contract type for the project and read language into the record: "A guaranteed maximum price, GMP, is a construction manager at risk delivery contract means the highest amount an owner will be required to pay a contractor for a project regardless [of] the actual cost incurred during construction. Essentially, it sets a ceiling price beyond which the contractor absorbs any additional cost, effectively transferring the risk of cost overruns to [the] construction manager." He said his chief concern was that the documents also include a contingency line that "will be reevaluated at different milestones of the project and adjusted accordingly," which, he said, undermines the concept of a firm ceiling.

Atwater read figures from the materials he reviewed, stating that the project had been discussed at around $52,000,000 when first proposed in 02/2021 but that recent materials referenced amounts expressed as "$1.77" and later "approximately $1.64," as well as approximately $38,000,000 in grants and "a total of a hundred and $26,000,000." He said he believes the project is now "probably gonna be well north of a hundred and $63,000,000." Atwater also pointed to a contingency amount listed in the documents as $11,400,000 and noted an earlier escalator figure of $5,500,000 that had been zeroed in the most recent materials.

Town Attorney Sweeney commented on the legal framework, calling the area "very sophisticated" and saying project contracts and bonding attempts try to limit municipal exposure but that exceptions and risks remain: "You could write a thousand page contract, and there's always gonna be an exception. So the reality is this is the best it sounds like they can do."

Mayor Foley echoed concerns about the town's exposure as a ratepayer and recommended watching the utilities commission meeting where the contract will be considered and seeking clarifications from Vero Beach staff. Council members did not take formal action at the meeting, but several said they intended to follow the utilities commission process and ask detailed questions about contingency use, bonding and what happens if a contractor becomes insolvent during construction.

No vote or formal direction to staff was recorded; the discussion was presented as a cautionary review of the contract documents and an intent to seek additional information at the utilities commission prior to any town-level commitments.