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Council approves $112,000 construction‑administration contract for police station after debate over percentage fees

New Prague City Council · May 6, 2025
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Summary

Council approved a construction‑administration agreement with the project's designer/engineer (referred to as "Wald" in the packet) to oversee bidding and construction for the new police station. Councilors questioned percentage‑based fees (5% for bidding; 20% for construction administration) and whether the city should solicit other bids for the administration phase.

The City Council approved a contract to formalize construction‑administration and remaining bidding work for the new police station project, authorizing the mayor and city administrator to enter an agreement with the design/engineering firm identified in the packet (referred to there as "Wald"). Staff said the fee was built into the budget and that the contract does not add unforeseen costs to the project but does formalize the firm’s role overseeing construction.

Council members pressed staff on the procurement approach and the fee structure. Council discussion referenced that the design firm prepared the plans and bidding documents (a 5% bidding fee was described as already earned because bidding is complete) and that construction‑administration fees were calculated as a percentage, arriving at a fixed $112,000 contract (staff described that figure as based on an assumed construction cost and prior fee schedule). One council member said the percentage approach "doesn't pass a smell test" and urged exploring whether construction administration could be competitively procured to reduce costs; others noted synergies in having the designer remain for administration because they know the documents.

After discussion the council amended a motion and approved awarding the bidding and construction‑administration portions to the firm in the packet; staff said the contract covers construction management for the anticipated 10‑month build and that reimbursables are limited and explained in the contract.

What's next: Staff will finalize the agreement and administer the contract while the project moves into construction. Council requested that staff check alternative procurement options for future phases and confirmed the project timeline and oversight procedures.