(a) Definitions.
(1) "Construction manager at risk" means a person with substantial discretion and authority to plan, coordinate, manage, direct, and construct all phases of a project for the construction, demolition, alteration, repair, or reconstruction of a municipal building, structure, or other improvement and who provides a guaranteed maximum price as determined in subsection (d) hereof.
As used in this section:
(2) "Construct" includes performing construction, demolition, alteration, repair, or reconstruction or subcontracting for the performance thereof.
(3) "Manage" includes qualifying and approving bidders and awarding subcontracts to perform construction, demolition, alteration, repair, or reconstruction projects and subcontracts to furnish material for the projects.
(4) "Construction management contract" means a contract between the City of Chardon and another person obligating the person to provide construction management services.
(5) "Construction management services" or "management services" means the range of services that a construction manager at risk may provide.
(6) "Qualified" means having the following qualifications:
A. The personnel of the construction manager at risk have the technical training, education and experience to competently perform the required management services with emphasis upon the technical training, education, and experience of the employees assigned to perform the services;
B. The availability of qualified personnel, equipment, and facilities to allow the construction manager at risk to manage the workload and perform the required management services competently and expeditiously;
C. Experience as demonstrated by past performance; the Manager may request previous clients to evaluate the ability of the construction manager at risk to control costs, quality of work, and meet deadlines;
D. Financial responsibility as evidenced by the capability to provide a letter of credit pursuant to Chapter 1305 of the Ohio Revised Code, a surety bond, certified check, or cashier's check in an amount equal to the value of the construction management contract, or by other means approved by the Law Director.
E. Other similar factors.
(7) "Open book pricing method" means a method in which the construction manager at risk provides, upon the Manager's request, all books, records, documents, and other data pertaining to the bidding, pricing, or performance of the construction management contract awarded to the construction manager at risk.
(b) Contract with Construction Manager at Risk as Exception to Competitive Bidding. A contract which must otherwise be competitively bid (the contract price exceeds two times the amount specified by the laws of the State of Ohio) may be awarded by the Manager without competitive bidding to a construction manager at risk pursuant to this section when authorized and directed by ordinance of the Council; provided, however, that the Finance Director has first certified the availability of funds for the contract.
(c) Advertising for Construction Manager at Risk.
(1) Before entering into a contract for the services of a construction manager at risk, the City of Chardon shall advertise, in a newspaper of general circulation in Geauga County, notice of its intent to employ a construction manager at risk. The notice shall invite interested parties to submit proposals for consideration and shall be published at least thirty days prior to the date for accepting the proposals. The City also may advertise in appropriate trade journals and otherwise notify persons believed to be interested in contracting with the City as a construction manager at risk.
(2) The newspaper advertisement shall include a general description of the project, a statement of the specific management services required, and a description of the qualifications of the construction manager at risk required for the project.
(d) Selection of Construction Manager at Risk; Negotiation of Price and Terms.
(1) Before entering into a contract for construction management services with a construction manager at risk, the Manager shall evaluate the proposals submitted and shall select the three most qualified to provide the required construction management services. When the Manager determines in writing that fewer than three qualified construction managers at risk are available, then the Manager shall select and rank fewer than three.
(2) The City shall provide each construction manager at risk selected for consideration with a description of the project, including a statement of available design detail, a description of how the guaranteed maximum price for the project shall be determined, the estimated level of design detail upon which the guaranteed maximum price shall be based, the form of the construction management contract, and a request for a pricing proposal.
(3) The pricing proposal of each construction manager at risk shall include at least the following:
A. A list of key personnel for the project;
B. A statement of the general conditions and contingency requirements;
C. A fee proposal divided into a preconstruction fee, a construction fee, and the portion of the construction fee to be at risk in a guaranteed maximum price.
(4) The Manager shall evaluate each pricing proposal submitted and may hold discussions with individual construction managers at risk to further review their proposals, including the scope and nature of the proposed services and potential technical approaches.
(5) After evaluating the pricing proposals, the Manager shall rank the selected construction managers at risk based on the evaluation of the value of each pricing proposal, including the proposed project cost and qualifications of personnel who will perform the work.
(6) The Manager shall negotiate a construction management contract with the construction manager at risk who submits the pricing proposal which the Manager determines to be the best value under subsection (d)(5) hereof. Contract negotiations shall be directed toward:
A. Ensuring that the construction manager at risk and the Manager mutually understand the essential requirements involved in providing the required construction management services, including the provisions for the use of contingency funds and the possible distributions of savings in the final costs of the project;
B. Ensuring that the construction manager at risk will be able to provide the necessary personnel, equipment, and facilities to perform the construction management services within the time required by the construction management contract;
C. Agreeing upon a procedure and schedule for determining a guaranteed maximum price using an open book pricing method that shall represent the total maximum amount to be paid by the City to the construction manager at risk for the project and that shall include the costs of all the work, the cost of its general conditions, the contingency, and the fee payable to the construction manager at risk.
(7) If the Manager fails to negotiate a construction management contract with the construction manager at risk whose pricing proposal was selected as the best value under subsection (d)(5) hereof, the Manager:
A. Shall inform the construction manager at risk, in writing, of the termination of negotiations; and
B. May negotiate with the construction manager at risk who was ranked next highest under subsection (d)(5) hereof, and if those negotiations fail, negotiate with the construction manager at risk ranked next highest under subsection (d)(5) hereof.
(8) If the Manager fails to negotiate a construction management contract with one of the construction managers at risk, the Manager may select additional construction managers at risk to provide pricing proposals or may select an alternative delivery method for the project.
(9) Nothing in this section shall limit the City's right to accept or reject a proposal in whole or in part.
(e) Financial Assurance Required Prior to Commencing Work. Before construction begins pursuant to a construction management contract, the construction manager at risk selected by the Manager shall provide a surety bond or other financial guarantee to the City of Chardon acceptable to the City and approved by the Law Director.
(f) Prequalification of Prospective Bidders; Solicitation of Bids.
(1) The construction manager at risk shall establish criteria by which it will prequalify prospective bidders on subcontracts awarded for work to be performed under the construction management contract. The criteria established by a construction manager at risk shall be approved by the Manager and shall be consistent with the rules adopted by the Ohio Facilities Construction Commission pursuant to Section 153.503 of the Ohio Revised Code and this section.
(2) For each subcontract to be awarded, the construction manager at risk shall identify at least three prospective bidders that are prequalified to bid on the subcontract. The construction manager at risk may identify fewer than three if the construction manager at risk establishes to the satisfaction of the Manager that fewer than three prequalified bidders are available. The Manager shall verify that each prospective bidder meets the prequalification criteria and may eliminate any bidder determined to be not qualified.
(3) After the prospective bidders are prequalified and accepted by the Manager, the construction manager at risk shall solicit proposals from each bidder. The solicitation and selection of a subcontractor shall be conducted under an open book pricing method.
(g) Award of Subcontracts.
(1) The construction manager at risk may award a contract to one of the prequalified bidders for each subcontract but is not required to do so if the bids do not meet the criteria established by the construction manager at risk or do not strictly comply with the bid proposal. The construction manager at risk shall not be required to award the subcontract to the low bidder.
(2) The Manager may accept a subcontract awarded by the construction manager at risk, or may reject a subcontract if the Manager determines that the bidder is not responsible.
(3) If the construction manager at risk is authorized by the Manager to self-perform a portion of the work, the construction manager at risk shall submit a sealed bid for the portion of the work prior to accepting and opening any bids for the same work.
(h) Prevailing Law. The requirements set forth in this section for the bidding, selection, and award of a construction management contract shall prevail in the event of a conflict with any other section of this chapter.
(Ord. 2774. Passed 2-14-13.)