Platteville authorizes Kramer Brothers to finalize construction contracts for new fire facility with $12.657M GMP

The Platteville Common Council voted March 25 to authorize Kramer Brothers, the construction manager at risk for the city’s new fire facility, to award subcontract packages to the lowest qualified bidders and to finalize a guaranteed maximum price (GMP) of $12,657,000.

Ryan (city staff) explained the procurement: Kramer Brothers bid multiple subcontract packages and acted as construction manager at risk; their allocated self-performed work is calculated at 42% of the total, below the 50% contractual limit. Staff recommended acceptance of three alternates—concrete parking lots instead of asphalt, epoxy flooring for additional sealed concrete floor spaces, and asphalt for a training area in place of gravel—totaling a net cost of about $70,000 that staff said is absorbed within the construction budget.

On funding and schedule, Ryan said the total construction bids sum to just over $10 million but the full project cost includes soft costs (architect fees, property acquisition, abatement, demolition, FF&E, bonds and insurance), producing the larger $12.657 million GMP. He added that Kramer Brothers identified approximately $150,000 in potential value-engineer savings post-bid and included a $50,000 soil-unsuitability allowance in contingency planning. "Soft costs would be our architect fees," Ryan said in explaining budget components.

Council authorized Kramer Brothers to proceed with award of the subcontract packages and to finalize the construction manager agreement with the stated GMP. Staff reminded the council that USDA approval is required for federal funding review of bid tabulations before final GMP documents are executed and that construction is expected to start closer to May.

Speakers quoted in this article are taken from the transcript and include Ryan and project staff; the motion to authorize the awards and GMP carried on the floor.