Due to a lean time frame, Penticton city council voted unanimously to convert a contract for the community centre to a fixed-price agreement.
John Kirbyson, director of parks and recreation, outlined the details of his report during a special council meeting on Friday.
Kirbyson said the tight schedule became necessary because plans are to complete the project in one year.
“It‘s important for us to utilize every possible means to expedite this project and fast-track it at every step,” he said, noting there is very little difference between having a fixed-price or construction management contract.
On Jan. 25, council approved Stuart Olson Construction of Vancouver for the project at a cost of $2.7-million.
Construction fees are $230,000, with $1.5 million in fixed general expenses and $864,000 in possible additional expenses that could not be fixed at the time of the contract.
Kirbyson said that with a fixed-price agreement, estimates for each work phase will take place and Stuart Olson will put the work up for tender. Once bids are returned, the city will award the contract for those tenders that come within budget. Any excess funds would be placed in the city‘s contingency account.
Bids over budget would go to city staff, and design changes or an alternate plan would be formulated to be within budget.
“There are no additional payments to Stuart Olson and (it) does not do any additional work on the site,” said Kirbyson. “All work is contracted out to the various sub-trades contractors.”
Kirbyson emphasized that Stuart Olson‘s role is also to help the city with design issues, scheduling and budget administration.
“It‘s much like having Stuart Olson become our general contractor on site,” he said. “This is not an uncommon step in the construction management processes.”
