R7B- page 49 and 51Guaranteed Maximum Price (GMP) Amendment for Clark Construction Group, LLC for the Miami Beach
Convention Center Renovation and Expansion Project
October 21, 2015
Page 3 of 7
Owner's (City's)Cost:
City Staffing & Expenses
Consultant Fees (SAG)
Owner's Rep (Hill lnt'l)
Design Fees (Fentress)
Owner's Cost Estimator (US Cost)
Pre GMP CMAR Fee (Clark)
Testing & lnspections
Permit & Plan Reviews
Site Studies / Other
Public Art (AIPP)
MBCC FF&E
I nsurance (Al lowance):
o GL Wrap
o Builder Ris]</Building (net)
. Professional Liability Umbrella
Carl Fisher Renovation (Allowance)
Total Owner's Cost
Subtotal
Owner's (City's) Contingency
Total Project Budget
1,561,000 0.25%
1,047,725 0.17%
5,585,673 0.e1%
26,669,442 4.33%
400,030 0.06%
2,594,073 0.42%
2,328,943 0.38%
2,400,000 0.3e%
847,041 0.140/0
6,900,000 1.120h
6,830,945 1.11%
9,000,000
1,600,000
1,000,000
2.500.000
71 ,264,872 11.570/o
580,722,930 94.32%
35,000,000 5.68%
$615,722,930 100.00%
1.46%
0.26%
0.16%
0.41yo
Trade Costs - The trade cost budget was developed through a bidding process managed by
Clark for the major first tier subcontract work, in accordance with the Agreement approved by
the Mayor and City Commission pursuant to Resolution No. 2015-29028. The trade bidding
process was monitored by the City's Owner's Representative, Hill lnternational (Hill). The
following is a summary of the process:
. Clark issued a notice to potential subcontractors to participate in a Subcontractor
Networking Event held on July 30, 2015. The notice was sent to over 1,000 potential
bidders in the Clark database, a notice was posted in regional newspapers (Miami
Herald, Daily Business Review, and the Orlando Sentinel), and notifications were sent to
ABC East Florida, Broward Biz, Dodge, Miami Chamber of Commerce, Miami Dade
Chamber of Commerce, Miami Dade Government, Small Business Administration, and
South Florida Associated General Contractors. The networking event had over 175
subcontractors and vendors sign up with actual attendance over 225.
. Clark issued a Request For Proposals to potential subcontractor bidders in early August.
A notice was sent to the subcontractors in Clark's database, regional newspapers, and
the other organizations listed above.
. On August 20, Fentress Architects issued a "GMP Drawing Set" with 65% complete
construction documents. The set included 2,250 drawings, and 3,000 pages of
specifications. Clark created 62 separate trade bid packages from the GMP Drawing
Set, and issued RFP's to the qualified bidders, which included scope descriptions to
facilitate comparable bidding. The 62 trade packages were those traditionally utilized in
the industry, such as electrical, plumbing, HVAC, concrete, steel, demolition, audio
visual, etc. Bidders were asked to prepare a base bid consistent with the GMP Drawing
49
Guaranteed Maximum Price (GMP) Amendment for Clark Construction Group, LLC for the Miami Beach
Convention Center Renovation and Expansion Project
October 21 , 2015
Page 5 of7
Payment & Performance Bond - Cost of the payment and performance bond related to the
construction of the project.
General Liability lnsurance - Cost of Clark's general liability insurance required under
Construction Manager At-Risk Agreement. This is separate from other insurance required for
the Project.
CMAR Fees (3.8%) - Clark's fee as previously approved by the City Commission in the
Construction Manager At-Risk Agreement, equates to 3.8% of the costs under the control of
Clark.
Gonstruction Manager's Contingency - Funds for Clark's use for risks assumed by Clark in
providing the GMP with uncertainties that are beyond their control as specified in the GMP
Amendment. Costs payable from the CM's Contingency include additional costs of the Project
that are reasonably inferable from the 65% complete design documents, bid escalation costs if
actual trade bids are higher than those budgeted, costs for implementing a hurricane
preparedness plan, and other Clark costs as defined in the Agreement.
Convention Center Facility GMP - The guaranteed maximum price for construction of the
convention center is $502 million, 0.33% higher than the conceptual budget of $500.3 million.
Other GMP ltems - ln additional to the convention center construction, the GMP will include
can allowance for the P-Lot Park and the costs for an underground storm water pipe through the
convention center site to move off-site storm water from 17th Street to the Collins Canal.
Total Guaranteed Maximum Price (GMP) - The guaranteed maximum price is $515,458,058
for the convention center expansion and renovation, the convention center (P-lot) park, and the
storm water pipe.
Shared Savings - lf actual costs are below the Guaranteed Maximum Price, the savings are to
be allocated 75o/o to the City and 25o/o to Clark.
Direct Purchase Tax Savings - The City plans to purchase certain materials directly. The
sales tax savings from any items purchased directly by the City will be a deductive change order
to the GMP, with 100% going to the City. This anticipated sales tax savings are estimated to be
$6,000,000.
Owner's (City's) Costs - The City is directly responsible for various costs related to the
project. Contracts for several of these items have already been approved by the City
Commission, including those for design (Fentress), owner's representative (SAG/Hill), and Pre-
GMP services (Clark). Other City costs include those for testing and inspection, permit & plan
reviews, Art in Public Places, furniture, fixtures & equipment, an allowance to renovate the
historic Carl Fisher Clubhouse, and insurance.
!nsurance - lnsurance costs include coverage for the following:
. General Liability and Excess Liability for third-party claims for property damage and
bodily injury as a result of construction activities. The limits of liability are targeted to be
$200,000,000, with a $250,000 deductible.
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