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Reclaim/backwash tank bids come under GMP; Rice Lake authorized to proceed
Summary
Bids for Brainerd's reclaim/backwash tank came in under the previously approved $5.3 million GMP, producing an owner contingency; the construction manager Rice Lake was authorized to move into construction.
The Brainerd Public Utilities Commission heard that competitive bids for the Reclaim Backwash Tank project came in under the previously authorized guaranteed maximum price (GMP) of $5.3 million, and staff told commissioners the construction manager-at-risk (Rice Lake Construction) may move into construction.
Staff said the pre-set contractor contingency of $225,000 remains in place, and the competitive-bid results generated an additional $196,640 of owner-generated contingency. That produces a total contingency position of $421,640; if owner-directed contingency isn't used it would be returned to the utility. Staff also reminded the commission that $5 million in state funding is allocated for the project.
The GMP remains $5.3 million; the commission received the bid results as information and Rice Lake was authorized to proceed into construction. Staff said future owner-directed changes would be brought back to the commission through formal change orders.
Why it matters: successful bids below the GMP reduce expected capital outlay and provide contingency flex for owner-directed changes without increasing the contract ceiling. The commission's oversight role includes reviewing contingency use and approving owner-directed change orders.
