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Behavioral health care center GMP to drop about $4M; county proposes using $500K of contingency credit for furniture
Summary
County staff said bids for the behavioral health care center came in below the bid contingency, reducing the guaranteed maximum price by roughly $4,000,000; staff proposed requesting a full credit from Messer, using about $500,000 to cover a furniture shortfall (original furniture budget $1.2M; pricing returned at $1.7M), and returning remaining funds to construction reserves.
Michael Miller briefed the commissioners that, after formal bids were received for the county’s behavioral health care center, the contractor Messer had bid savings that allow the county to reduce the guaranteed maximum price (GMP) for the project by approximately $4,000,000.
Miller explained how a bid contingency was included in Messer’s early GMP because the contractor had not secured market bids when the GMP was set; that contingency was roughly $3,300,000 originally and later grew to just over $4,000,000 during the bid phase. With all subcontractor bids now in place, Miller said staff does not anticipate needing the entire contingency for construction.
He said staff plans to request a full credit from Messer and to apply about $500,000 of that credit to cover a furniture budget gap: the project had initially budgeted $1,200,000 for furniture and the returned pricing came back at $1,700,000. "So the contract price with Messer will decrease approximately $4,000,000," Miller said, adding that the county could take $500,000 for furniture and allow the remainder to go back into the construction account as unencumbered funds.
Miller noted that owner’s contingencies and construction-manager contingencies already exist within the GMP to cover unforeseen conditions. The presentation was informational and no formal contract change was voted on at the work session; staff indicated they would pursue the credit and return to the board as required by procurement and legal review.
