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R,. r March 4} 1998 RM A Morton Mr. Bob Bierscheid CONSTRUCTION MANAGERS Director of Parks and Recreation 821 West St.Germain City of Roseville St.Cloud, MN 56301 2800 Arona St. (320)251-0262 Roseville, IVI N 5511 (320)251-5749 FAX Dear Bob: Thank you for your call indicating that our firm would be your recommendation to provide Construction Management services for your arena project. We understand that your council must approve your selection, no later than 3!23/98, for our contract to be final. We believe that it is in our best interest, due to the tight timeline, to begin our work immediately. We know that we are risking the loss of the time invested if our contract is not approved. We would not expect to be reimbursed if we are not approved. We also believe that Construction Management is being extensively used in the public sector for all the right reasons and especially on the more complex projects. I will attempt to qualify and quantify the reasons for making this statement. A Construction Manager is your working for a known fixed fee. If problems are encountered, the Construction Manager does not become your adver but rather, continue to represent your best interests. 2. A better quality plan and specification results in a better bid; we provide constructability reviews with additional clarifications to help the bidders. 3. Early involvements (not just a ( ) week bid period that a General Contractor would have, but several months) allows us adequate time to determine the reasonableness of the budget and scheduler to determine the pit falls and problem areas and to remedy these issues prior to going to bid. Also deduct alternates become the safety net which we use to bring a budget back into line. 4. Construction Managers can be selected for capability and compatibility with their architect. General Contractors are frequently selected on price qualification alone after a (3)week laid period. Roseville has had an excellent history of working with good quality General Contractors on past projects, but the market is changing and contractors are currently over-e)ctending their resources. The top quality contractors prefer to negotiate for their work and may not be available with their A-team. 5. The Construction !Manager process is a risk management process. We take a large dollar amount (your budget) and break it down into its components as specialized bid packages. We openly discuss your project with specialized contractors, prior to the bid, ways to improve their respective work areas. Plans and specifications evolve to be more bidder f riendly. At bid time} each specialized section competes against their piers without General Contractor negotiation or politics. This area of our work responsibility results in the largest dollar savings to our clients. We refer to this as line item bid competition. I discuss this further in Item 6 and I have provided a handout to demonstrate why our bid matrix is cost effective. Member cf Construction imanagernent Assecat-or1 of Arnerica