Council approves bid package and GMP amendment for Civic Campus as cost estimate rises to $45.3M

Rogers city council voted to accept bids for the Civic Campus bid package 2 and approved an amendment to the guaranteed maximum price that combines bid packages 1 and 2, after staff reported the total estimated project cost had risen to $45,300,000.

A staff member told the council the change reflected several factors: low bidders in multiple trades withdrew after the initial opening, triggering higher replacement prices; updated quotes for technology and inspections; allowances for soil remediation and private utility relocations; and other design and contingency changes. "The total estimated project costs, including general conditions, insurance, bonds, the construction manager at risk fee, contingency, engineering, administration, legal, furnishings, technology, and the utility relocations is now $45,300,000," a city staff member said.

Staff outlined several specific drivers of the overrun: about $700,000 from withdrawn carpentry/doors/glass/security low bidders; a $150,000 allowance to redesign the council chamber ceiling; a $20,000 elevator allowance; $670,000 for earthwork and soil remediation allowances; $100,000 for a response action plan engineering quote; $250,000 for private utility relocations; and a $480,000 increase in technology estimates (from $320,000 to $800,000). Additional items included moving expenses, special-inspection increases, a $20,000 peer review and increased fees tied to the construction manager’s contingency and bonds.

Representatives from Terra Construction — introduced in the meeting as Anya Beck, senior project manager, and Jake Dahlheimer, project manager — told the council that the construction-manager-at-risk delivery and basis-of-design approach affect how subcontractor bids are handled and why some subcontractors later withdrew. "There were other approved manufacturers for the metal panel," Anya Beck said, describing how basis-of-design products and approved alternates are managed during bidding.

Council members discussed financing. Director Brusca told the council the city expects to bond for just under $40 million, amortized over 20 years, and use current reserves and designated lease revenues to reduce the principal; staff said the current bond run shows an interest rate a little over 4 percent with a 0.5 percent cushion. Several council members emphasized that, despite cost growth, delaying the project further would likely increase future costs.

After discussion, the council voted to accept bid package 2 (including the alternate for lightning protection at $75,000) and to approve Guaranteed Maximum Price amendment number 2 to combine bid packages 1 and 2. The motions passed by voice vote. Next steps are contract execution with the qualified low bidders vetted by the construction manager at risk and finalizing financing details for the bond.