Title/Name/Summary
LaGrange Road Enhancements - Construction Contract Delivery Method
History
The Village of Orland Park is currently finalizing its landscape enhancements of the LaGrange Road corridor from 167th to 131st. The project includes brick paver sidewalks, irrigation, monuments, columns, decorative fencing, various plantings and decorative median walls. The Village continues to coordinate the design and approval of this work with IDOT. The enhancements were not included in IDOT’s contract and will be contracted independently through the Village. This in itself is a major project challenge; the risk of having another contractor performing work within IDOT’s work zone. There is standard language in the project specifications that IDOT’s contractor needs to coordinate and cooperate with Village contractors. As we know IDOT’s main goal is to complete LaGrange Road; and if for some reason the Village’s contractor is not in a position to perform work when IDOT allows, there is potential for delays and claims.
The Village recently contracted with V3 Companies to administer the independent enhancements contract. This includes coordinating with IDOT, inspecting the contractors work, answering requests for information and recommending payment for the contractor. As part of V3’s company structure, they do provide alternate construction delivery methods. The At-Risk Construction Management (CM) delivery system combines Construction Management with General Contracting. The CM acts as the Owner’s Agent during all pre-construction activities including program development, cost estimating, scheduling and bid solicitation. Depending on the contract payment structure (Lump Sum, GMP, Cost-Plus Fee); the CM’s fiduciary responsibility may shift at the start of construction. However, if the construction contract is defined as a cost of construction plus a CM fee, the CM remains as an agent for the owner while simultaneously being responsible for directing the work on site.
V3 will provide work outlined in their current contract plus provide cost-estimating, bid solicitation and potential project scheduling for the construction of the enhancement work. Once the fees and construction pricing is established for the enhancements work, the original construction management contract will be terminated and a new contract will be established with V3 as the Construction Manager and General Contractor, subject to Board approval.
The LaGrange Road corridor project is a high profile local and regional project. The Village has invested significant resources to deliver a project that is above and beyond the typical IDOT bricks and mortar project. The ability to coordinate and construct the enhancements within the same time frame as IDOT’s project schedule with the quality the Village expects is critical to the success of this project. The Cost-Plus fee delivery method has the ability to deliver this project with these expectations and is the recommended delivery method.
Attached is a summary of the benefits to this delivery method, comparison of various contract delivery methods and a matrix of benefits with the At-Risk Construction Management Cost-Plus delivery method compared to the traditional low-bid method.
Financial Impact
No impact at this time. Enhancements funds are proposed to be budgeted in the FY 2014 Village Budget.
Recommended Action/Motion
This item is intended for discussion only with the intent to proceed with V3 to establish an At-Risk Construction Management - Cost Plus delivery method contract which will be brought to the Committee at a future meeting.