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Resident urges village to seek alternative bidders, questions Keller contract approach
Summary
A resident at the Village of Hartland public comment period urged trustees to 'shop around' and consider independent needs analyses rather than relying on Keller, citing lower-cost examples and warning that a cost-plus arrangement can remove incentives to save money.
John Crotty, a Hartland resident, used the meeting’s public comment period on Aug. 25 to urge the Village Board to consider alternatives to the firm identified in recent project discussions and to seek independent needs analysis and competitive bids.
"I sense there is a lot of urgency that we're trying to get to a decision real quickly," Crotty said, identifying himself at 356 Sunshine Drive. He urged trustees not to "fall into almost this commitment with Keller" and recommended looking at other firms and procurement approaches.
Crotty cited an example he handed to trustees from Jackson where an independent firm, Cedar Corporation, provided a needs analysis and a lump-sum bid for a larger public building; he said a similar project there was bid at about $11.6 million. Crotty said using an independent needs analyst avoids a conflict where a single firm both recommends project scope and then seeks the construction contract.
Crotty criticized the cost-plus fee approach described by the contractor, saying a small percentage fee (he cited a 2.5% supervisory fee) gives a contractor little incentive to reduce costs: "When the big box people do a cost plus deal... they'll let the G.C. get 30% of the savings out of the deal. They keep 70%. So you incentivize the G.C. to actually save you some money. ...When a guy's working at 2.5%, he has no incentive." He also noted change orders, soil conditions and weather as drivers of cost increases and offered to help identify alternative builders and procurement approaches.
Crotty said he has residential remodeling experience and a neighbor in commercial construction who provided cost-per-square-foot examples; he suggested trustees consider lump-sum bids and independent owner representatives to reduce the risk of escalating costs. He offered to provide contacts and assistance to village staff.
The village board did not take action in response to the comment during the meeting.
