Board recommends Cedar Corp for construction inspection; members question 10% fee approach

The Board of Public Works on Feb. 24 recommended that the Budget & Finance Committee and Village Board approve a construction inspection and contract‑administration services agreement with Cedar Corp for the 2026 street improvement projects, with a written cap of $350,000 on time-and-materials work.

Jack, Director of Public Works, said Cedar Corp’s scope includes staking, daily on‑site inspection, quantity recording, processing contractor pay requests and change orders, and that Cedar Corp would have an inspector on‑site daily. The proposal was written as a not‑to‑exceed amount tied to a previous project estimate of roughly $3.5 million.

Several members questioned the flat cap after final bids arrived lower than the earlier estimate. One board member proposed instead using a percentage of the final project cost (approximately 10%) to align Cedar Corp’s fee with the actual workload and to allow change orders to be billed through the change‑order process. Jack said he would discuss amending the written proposal with Cedar Corp and noted a verbal assurance that Cedar Corp anticipated not exceeding $330,000, although the packet shows a $350,000 cap.

A motion to recommend approval of the Cedar Corp agreement (written not to exceed $350,000) passed by voice vote with one member recording a nay. The committee agreed staff can follow up with Cedar Corp to explore a revision based on the final project cost before Village Board action.