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Project manager: SMRT and Pike contract terms prevent construction profit; Wicks Law applies
Summary
SMRT project manager told legislators the consultant contracts are time-and-materials and, under New York's Wicks Law and construction procurement rules, the design team cannot be the construction contractor, limiting conflict-of-interest profit opportunities.
During the project update, Project Manager Lance Lowell (SMRT) clarified the consulting and construction-manager roles and the limits of their fees. In response to a question from Legislator Doug Paddock, Lowell said the SMRT contract is a "time and materials not to exceed," and confirmed, "that's correct" when asked whether the firms would not earn more if the design called for a larger facility.
Lowell further explained procurement constraints: "In New York State Construction Law, specifically Wicks Law, they must avoid any conflict of interest from the design team to those construction teams." Legislators also referenced standard procurement practice that would prevent a designer from acting as the contractor and described phased contracts that pay consultants on a capped basis. Those remarks were offered to address public concerns that design firms might financially benefit from a larger advertised project.
