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Posted

Project Announcement: University of North Texas Football Stadium; Construction Manager-At-Risk

A Request for Proposal for the Construction Manager-At-Risk for the University of North Texas Football Stadium will be issued Monday, December 15, 2008. A pre-Proposal meeting will be held Thursday, December 18, 2008 at 9:30 a.m. in the Gateway Board Room # 308, located at the University of North Texas, Gateway Center, 801 North Texas Blvd., Denton, Texas 76201.

A programming study for a 30,000-32,000 seat stadium expandable to 50,000 seats has been substantially completed. The stadium will include improved accessibility, press boxes, a club lounge, luxury suites, food service, retail facilities, ticket sales office, locker rooms and associated parking. The total construction budget is estimated at $63,000,000.

http://pps.unt.edu/index.php?option=com_content&task=view&id=211&Itemid=289

Posted (edited)

How Wikipedia defines this position:

CM at-Risk is a delivery method which entails a commitment by the construction manager to deliver the project within a Guaranteed Maximum Price (GMP), in most cases. The construction manager acts as consultant to the owner in the development and design phases, (often referred to as "Preconstruction Services"), but as the equivalent of a general contractor during the construction phase. When a construction manager is bound to a GMP, the most fundamental character of the relationship is changed. In addition to acting in the owner's interest, the construction manager must manage and control construction costs to not exceed the GMP, which would be a financial hit to the CM company.

CM "At Risk" is a global term referring to a business relationship of Construction contractor, Owner and Architect / Designer. Typically, a CM At Risk arrangement eliminates a "Low Bid" construction project. A GMP agreement is a typical part of the CM and Owner agreement somewhat comparable to a "Low Bid" contract, but with a number of adjustments in responsibilities required by the CM. Aspects of GMP agreements will be elaborated below. The following are some primary aspects of the most potential benefits of a CM At Risk arrangement:

So essentially, this is a bid for the general contractor. Looks like we're moving forward, ladies and gentlemen.

Edited by UNTflyer
Posted

Just a couple months ago, we were estimating 60 million. I see it's up to 63 million. We need to get this rolling before it hits 70 million.

Good to hear though.

Posted

Just a couple months ago, we were estimating 60 million. I see it's up to 63 million. We need to get this rolling before it hits 70 million.

Good to hear though.

Hmmm...Fuel costs are down substantially, driving down material costs, the labor market is flooded, and the price just went up 5% in 2 months. What kind of crazy accounting system is this?

Posted (edited)

Hmmm...Fuel costs are down substantially, driving down material costs, the labor market is flooded, and the price just went up 5% in 2 months. What kind of crazy accounting system is this?

It seems reasonable to question whether fuel costs and their impacts on other materials will remain low. After all, who has predicted the recent price swings for fuel costs with any accuracy (Southwest Airlines may have been among the best at that). As far as the labor market, commercial and institutional construction labor are usually separate work forces from residential, with government (as Obama has proposed to favorable reviews) often stepping in to accelerate the pace of public works projects, providing work to said commercial construction workers. Also, those are the construction workers, even in the south, who are more unionized, compared to residential construction, keeping pressure on wages to stay high. Although there may be reason to hope that construction costs will remain low, or even decline, that is not something government officials usually want to assume, for fear of the worse of two alternatives, underestimating project costs.

Edited by eulessismore
Posted

It seems reasonable to question whether fuel costs and their impacts on other materials will remain low. After all, who has predicted the recent price swings for fuel costs with any accuracy (Southwest Airlines may have been among the best at that). As far as the labor market, commercial and institutional construction labor are usually separate work forces from residential, with government (as Obama has proposed to favorable reviews) often stepping in to accelerate the pace of public works projects, providing work to said commercial construction workers. Also, those are the construction workers, even in the south, who are more unionized, compared to residential construction, keeping pressure on wages to stay high. Although there may be reason to hope that construction costs will remain low, or even decline, that is not something government officials usually want to assume, for fear of the worse of two alternatives, underestimating project costs.

Oh stop with your level-headed, reasonable analysis. This is a place of knee-jerk reactions!! :D

Posted

Oh stop with your level-headed, reasonable analysis. This is a place of knee-jerk reactions!! :D

Yeah, I was thinking as I was posting, this sounds kinda like what Republican Texas Comptroller Carole Keeton Rylander (insert whatever other names and political affiliations) said that the previous, Democratic Comptroller Bob Bullock told her. In so many words, it was make sure you don't project revenues higher than your actual revenues, to the extent that you don't cover the actual expenses with your actual revenues. Hmmm, you're right, not too exciting!

Posted (edited)

Material costs aren't necessarily down... Steel is holding stable pretty well.

A good point; I was listening to sort of a DFW regional business roundtable where they were talking about prospects for this area. Local leaders are saying (homers that they are) that we are doing better here than the nation as a whole, but that retail is down. I'm sure other sectors are doing worse, and financial services problems are causing widespread negative effects. I just don't think the business model for construction materials results in deflated prices for those materials; if steel demand is down, steel plants cut production, furlough workers, etc. I think it really does work as a "just in time" supply chain. Conversely, a lot of things seem to cause upward prices on materials; I was experiencing sticker shock from buying copper wire about a year and a half ago. I'd like to see downward pressure on such prices, but still say, don't count on it for a multi-year project.

Edited by eulessismore
Guest GrayEagleOne
Posted

In the grand scheme of things, a 5% increase isn't a lot. Consider that, in addition to increased cost of living (gas price drops were not factored in at the time), and changes to the original plans (certain items are not feasable and requires a modification) that would likely be the "not to exceed" cost. The total cost could come in under that figure.

Posted

In the grand scheme of things, a 5% increase isn't a lot. Consider that, in addition to increased cost of living (gas price drops were not factored in at the time), and changes to the original plans (certain items are not feasable and requires a modification) that would likely be the "not to exceed" cost. The total cost could come in under that figure.

I think that's a reasonable "fudge factor" in large construction projects. However much fuel prices have direct or indirect impacts on the project, costs would have to be estimated from a longer baseline than just the relatively short time those prices have been in decline.

Posted

Material costs aren't necessarily down... Steel is holding stable pretty well.

Interesting, I work in construction in Houston and steel is less than $3.00 per stick down from almost $5.00 per stick just two months ago, concrete is down a few dollars a load and companies are removing their fuel surcharge with deseil down a little, but nothing like gasoline.

Posted

A pre-Proposal meeting will be held Thursday, December 18, 2008 at 9:30 a.m. in the Gateway Board Room # 308, located at the University of North Texas, Gateway Center, 801 North Texas Blvd., Denton, Texas 76201.

So, who is going to pose as a potential contractor and be at this meeting and get us the scoop? :ph34r:

Guest GrayEagleOne
Posted

Oh, wait. Where is our environmental study? Do we even know that we can build a stadium at that location?

Posted

Oh, wait. Where is our environmental study? Do we even know that we can build a stadium at that location?

We will hang a banner that says "No albino squirrels were harmed in the production of this stadium."

Posted

Project Announcement: University of North Texas Football Stadium; Construction Manager-At-Risk

A Request for Proposal for the Construction Manager-At-Risk for the University of North Texas Football Stadium will be issued Monday, December 15, 2008. A pre-Proposal meeting will be held Thursday, December 18, 2008 at 9:30 a.m. in the Gateway Board Room # 308, located at the University of North Texas, Gateway Center, 801 North Texas Blvd., Denton, Texas 76201.

A programming study for a 30,000-32,000 seat stadium expandable to 50,000 seats has been substantially completed. The stadium will include improved accessibility, press boxes, a club lounge, luxury suites, food service, retail facilities, ticket sales office, locker rooms and associated parking. The total construction budget is estimated at $63,000,000.

http://pps.unt.edu/index.php?option=com_content&task=view&id=211&Itemid=289

What is a "programming study"?

Posted

"A Programming Study is a pre-design activity that results in a document that establishes project scope, cost and amount of time to complete and resources required for implementation."

Posted

"A Programming Study is a pre-design activity that results in a document that establishes project scope, cost and amount of time to complete and resources required for implementation."

So this pre-design activity is only substantially completed? Where does that put us with regard to final design?

Posted

So this pre-design activity is only substantially completed? Where does that put us with regard to final design?

Since we are now looking for the contractor, I'd imagine that what is currently incomplete is not of any great significance.

Posted

Since we are now looking for the contractor, I'd imagine that what is currently incomplete is not of any great significance.

OK........so RV said the reason ground breaking would be late spring, early summer was because the architectual plans, costing some 3.5 million, would have to be drawn up...taking several months. This wouldn't start until the State Legislature approval was obtained....so it sounds like the "programming study" is before the plans are actually done? Does it define what the stadium is to look like, all the functions, rooms, seats, etc?....that is, "this is what we want" so draw up some plans?

Posted

OK........so RV said the reason ground breaking would be late spring, early summer was because the architectual plans, costing some 3.5 million, would have to be drawn up...taking several months. This wouldn't start until the State Legislature approval was obtained....so it sounds like the "programming study" is before the plans are actually done? Does it define what the stadium is to look like, all the functions, rooms, seats, etc?....that is, "this is what we want" so draw up some plans?

Sounds like it.

Posted (edited)

How Wikipedia defines this position:

So essentially, this is a bid for the general contractor. Looks like we're moving forward, ladies and gentlemen.

Flyer,

This construction manager would be the liason between the general contractor and the university. This construction manager represents the university in its dealings with the general contractor, and works for the university. This is not a bid for the general contractor as the general contractor will not work for the university so to speak. You would not get a general contractor until you had your plans finalized so the general contractors could bid to construct it. The university's construction manager would of course work in getting plans together and facilitating this process. The general contractor actually builds the stadium.

Edited by Green Dozer
Posted

After approval by the Texas legislature, I would assume the next step is to have all detailed construction drawings completed, then go out for bid to general contractors who will actually build it. Low bid of course.

Posted

Flyer,

This construction manager would be the liason between the general contractor and the university. This construction manager represents the university in its dealings with the general contractor, and works for the university. This is not a bid for the general contractor as the general contractor will not work for the university so to speak. You would not get a general contractor until you had your plans finalized so the general contractors could bid to construct it. The university's construction manager would of course work in getting plans together and facilitating this process. The general contractor actually builds the stadium.

So what does the "at-risk" mean in relation to the contruction manager? (Construction manager at-risk)

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