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Public Utility Board backs $31.9 million GMP for Neighborhood 1B streets and utilities
Summary
The board recommended a construction-phase contract with Sundt Construction for Neighborhood 1B — part of the 2019 bond program — for a guaranteed maximum price not to exceed $31,872,570.02 covering roadway, water, wastewater, sidewalks and lighting.
The City of Denton Public Utility Board on Feb. 24 recommended approval of a construction-phase contract and guaranteed maximum price (GMP) for Neighborhood 1B, a major streets-and-utilities project funded through the 2019 bond program.
Scott Fettig, senior project manager with Capital Projects, told the board the work will occur primarily in the city's northeast quadrant and includes about 25,000 feet of roadway, roughly 10,000 feet of water main replacement and about 17,000 feet of wastewater replacement, plus sidewalk replacements and street lighting. Fettig said the GMP process broke the project into seven work categories that were publicly bid by the construction manager at risk (CMAR).
Fettig said Sundt Construction provided the GMP, which reflects subcontractor bids, general conditions, bonds, insurance, the CMAR contingency and contractor fee. His overview noted roughly $23 million as the total cost of work under subcontract and more than $1.1 million in allowances; unused allowance dollars will revert to the city as savings. Staff recommended approval of a construction contract with Sundt Construction not to exceed $31,872,570.02, including an owner’s contingency of $900,000.
Board members asked about useful life and schedule: Fettig said street life expectancy is generally 30 to 50 years depending on conditions and that underground infrastructure such as PVC water mains typically lasts “the same, if not longer.” He said pre-construction and design services began in July 2023 and described an anticipated construction start in April 2025 with completion in October 2026, pending city council approval on March 4.
A board member framed CMAR delivery as enabling schedule and cost benefits because Sundt performs a large portion of the work directly; Fettig said the city has seen favorable results on other CMAR packages, including cost savings and earlier completion. After questions, the board voted to recommend approval; the board chair announced the motion passed unanimously.
