1. Fire Hall DiscussionREPORT TO:
City of Kalispell
Past Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406)758-7700 Fax(406)758-7758
Honorable Mayor and City Council
FROM: Chris A. Kukulski, City Manager
SUBJECT: Project Delivery Options
MEETING DATE: July 16, 2001
BACKGROUND: During the July 2 City Council meeting the issue of design delivery options for the new
fire station was tabled. Since that time, I have two additional pieces of information to help us in making this
decision. 1', Glen is fairly certain that the City can NOT do a design -build project delivery option and fit
within current state law. 2nd, Randy Brodehl has had first hand experience utilizing "value engineering"
within the confines of the traditional design -bid -build contract.
This is a process that occurs after the contractor is chosen. The contractor can then request review of
different construction options that will decrease the cost of the project. The architect reviews the request
with the city representative and approves, modifies, or denies it. The contractor splits the savings with the
city at a percentage rate identified in the contract.
The project book typically specifies brands and type of installation for everything from siding to paper towel
dispensers. The contractor often finds an equal too or better option, for a lower price. When this happens,
most of the savings are passed on to the city, and the contractor is rewarded for quality frugality.
This is a win/win option for all players and fits within Montana's laws regulating public project delivery
options. Therefore, I would recommend we utilize `value engineering" language within the traditional
design -bid -build project delivery option.
RECOMMENDATION: The Council direct the staff to place this item on the next regularly scheduled
meeting for approval of "value engineering" within the design -bid -build project delivery system.
FISCAL EFFECTS: Unknown.
ALTERNATIVES: As suggested by the Council.
Respectf illysubmitted,
C"A,
Chris A. Kukulski
City Manager
Report compiled July 12, 2001
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