Commission approves $26.9M guaranteed maximum price, $16.2M in subcontracts for Kentwood Community Center

The Kentwood City Commission on Feb. 18 authorized Triangle Associates Inc. to issue subcontracts for bid package No. 2 of the Kentwood Community Center and amended the city’s contract with Triangle to set a guaranteed maximum price (GMP) of $26,888,759.

Project manager Susan Arnold told commissioners subcontracts in bid package 2 total $16,201,581; when combined with previously authorized amounts, the GMP equals $26,888,759. Arnold said Triangle competitively vetted bidders, conducted post-bid interviews and withdrew bids that failed to fully cover scope; Triangle recommended awarding to the lowest qualified bidders who met the full scope. The GMP includes preconstruction services, construction management, general conditions, bonds, insurance, overhead and profit, and a $1,000,000 construction contingency plus $750,000 set aside for potential tariffs on imported materials.

Arnold said the project remains under the original $31 million target and that the commission will consider a bond in the spring (staff indicated roughly $9 million in bonds expected) to cover remaining costs; other funding sources cited include Parks & Rec millage proceeds, property and building funds, special assessments, revolving funds, bond proceeds and private donations. Commissioner Tyson moved to approve the contract amendment and subcontract issuance; Commissioner Moseley supported the motion, which passed by voice vote.

Commissioners asked about the tariff contingency and whether using U.S.-based suppliers would mitigate tariff exposure; staff said tariffs are an uncertain external risk and the contingency is precautionary. Arnold said Triangle will issue subcontracts on the city’s behalf upon commission authorization.