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Hall County Board approves construction manager at risk contract for courthouse addition

By Carol Bryant Aug 27, 2024 | 11:48 AM

Hall County Courthouse, (Carol Bryant, Central Nebraska Today)

GRAND ISLAND – The Hall County Board of Commissioners voted 4-1 Aug. 27 to approve a construction manager at risk contract with Chief Construction concerning building an addition to the Hall County Courthouse.

Commissioner Gary Quandt voted against the motion. Commissioners Karen Bredthauer and Jane Richardson were absent from the Aug. 27 meeting.

Chief Construction will receive $37,5000 for preconstruction costs. Then, Chief Construction will receive 2.7 percent of the final price. Commissioners have approved $40 million in bonds to pay for the project. 2.7 percent of $4 million is $108,000.

Commissioners Board Chairman Ron Peterson said that the industry common percentage fee for construction manager at risk is 3.5 percent.

“It’s a standard contract that is used by architects,” he said.

The local committee that had oversight of the construction manager at risk contract had the Woods/Aitken law firm in Lincoln review a draft of the contract. Peterson said that the county has used the law firm for other projects. After the Lincoln law firm made suggestions, the local committee reviewed those suggestions and came up with a final contract. At the Aug. 27 meeting, Chief Construction had already signed the contract.

The contract has set some dates as to when certain items will be completed, Peterson said. Schematic cost estimates will be completed in September. In November, a design development cost estimate will be completed. In March 2025, a construction cost estimate will be done. In May 2025, a guaranteed price will be confirmed. According to the contract, construction will begin in June 2025, and the “substantial completion date” will be October 2027.

Peterson said that Chief Construction will be involved from the very beginning of the project from this point forward. An advantage is that when, for instance, a heating and air conditioning system is being selected, Chief Construction will make recommendations to help in the selection process.

“It’s very evident this system is being used more,” Peterson said. “Chief’s been very good to work with.”

Quandt said, “I don’t believe we’re doing it right.” Quandt said that Commissioners should have decided to build a separate building for the addition. He also said that Commissioners should have had the public vote concerning approval of the $40 million in bonds for the project.

“It’s an injustice to the taxpayer,” he said. He noted that Chief Construction is a good company.

The Commissioners met in closed session regarding negotiations with the Nebraska Department of Health and Human Services (DHHS) regarding relocating their staff to another site. DHHS currently has staff on a building in the construction area for the courthouse, and that building would be demolished as part of the construction project. Commissioners did not take any action regarding negotiations with DHHS.

The Hall County Board of Commissioners approved a construction manager at risk contract with Chief Construction Aug. 27 concerning an addition to the Hall County Courthouse, (Carol Bryant, Central Nebraska Today)