Date:

May 19, 2017

To:

Mayor Nancy Vaughan
City Council Members
City Manager Jim Westmoreland
From: Coliseum Director Matt Brown
Re:

Tanger Center Phase 1 GMP Update

Despite Staff’s success to reduce Skanska’s proposed Phase 1 GMP requests from $2,705,132 to
$2,318,471 to most recent $2,235,403, we continue to object to Skanska’s intentions to include
allocations for Professional Fees within their General Condition costs which are defined as Scope of
Work related to Phase 2. We believe that Skanska is contractually obligated to perform the Phase 2 Scope
of Work under their current Pre Construction Services Contract with us.
Of equal concern, is Skanska’s attempts to assert that their proposed Phase 1 GMP Document would
supersede their existing Pre Construction Services Contract (they recently dropped this request) or the
State Construction Management Contract which would take affect with the approval of the GMP.
After several unsuccessful attempts and unreasonable delays on Skanska’s part to reach an agreement,
City Manager Westmoreland asked that we make one final request to Skanska that, they agree to:
1.) Remove the Phase 2 Scope of Work and related General Condition Fees that they included in the
Proposed Phase 1 GMP, and,
2.) That they accept the NC State Construction Management Contract as the Legal Document for the
Phase 1 Work.
Skanska response below (emphasis added for clarity), reiterated they would NOT agree to either request.
“Please be advised that Skanska Rentenbach, A Joint Venture (“Skanska-Rentenbach”), is in
receipt of your letter dated May 10, 2017 wherein you have rejected our proposed Phase 1 GMP
dated May 4, 2017. Please see our response below.
(1) Please note that the general condition costs, as submitted, accurately reflect the
costs associated with performing our responsibilities for Phase 1 Work. Therefore, we
will not be revising our GMP #1.
(2) Please note that we will not remove the requirement that Phase 1 GMP
Assumptions, Clarifications and Exclusions supersede the Construction Management
Contract, which is currently not executed”.
As a result, City Staff and our Architectural and Civil Engineering consultants immediately prepared Bid
Specifications and Documents for issuing a Request for General Contractors to submit Bids under the
City of Greensboro’s Formal Bid Process to perform the intended Proposed Phase 1 Scope of Work.
Similar to the Skanska CMAR Bid process, General Contractors will be required to meet good faith
efforts to achieve the City’s STPAC MWBE Participation Goals of 20% (M-10%W-10%).
Staff has set the following schedule for completing this Phase 1 Scope of Work:
Advertise Bid Project
May 21
Issue Bid Documents
May 23
Pre Bid Meeting
May 25
Accept Bids
June 20
Review Bids
June 26-29
Award Bid/NTP
June 30
Construction
July 15-October 15
Staff projects that City Bids for the Proposed Phase 1 Scope of Work will be less than the City Council’s
$2.5M authorization and well below Skanska’s Proposed Phase 1 GMP.