August 30, 2024
Revised September 12, 2024
CITY OF GARDEN GROVE
P3 PROJECT FEASIBILITY AND
PROJECT MANAGEMENT
CONSULTING SERVICES
GARDEN GROVE CIVIC CENTER
PROJECT
PHASE 4 AND 5 PROPOSAL - REVISED
Project Finance Advisory Limited
GARDEN GROVE CIVIC CENTER - P3 CONSULTING SERVICES 1
ADDITIONAL BUDGET REQUEST
PFAL requests additional budget to cover work performed in July, August and September 2024 and Phase 4 and Phase 5 of the Civic Center Revitalization Project ("the Project"). The total budget request is $296,776 as described below. Appendix A describes optional/on call services not included in this budget request.
To date, PFAL’s team has provided services to identify cost savings and challenge developer costs to help the City deliver an affordable project that meets the City’s needs. Some examples of this work include:
• S
upporting the City in saving nearly $1.5 million in cost of issuance for their bond debt. • Recommending adjustments to achieve $4.8 million in cost savings to the City based on the 100% Design Drawing cost estimate.
• Arguing against approximately $2 million in developer change orders for elements included in the Project Specifications.
• Providing independent evaluation of the project’s current construction pricing to provide confidence to the City and its leadership about the costs being proposed by the developer. • Identifying a discrepancy between market rates and the developer’s proposed general conditions costs of over $2.1 million.
In demonstration of our commitment to support the City, PFAL re-allocated $134,000 of our own budget to our subcontracted firms to support delivery of additional services requested by the City.
The recommended services represent significant value to the City. We note that contract/construction management fees are typically 10% of the total value of a project’s construction cost. Our recommended costs are only 0.2% of the total cost estimate provided by the developer at 100% Design Drawings.
BUDGET REQUEST BREAKDOWN
1. Work already completed during July and August 2024 and expected to be completed in September 2024 includes:
Task Description Task Parameters Task Total
Work completed in July and
August - Invoice 1520
Weekly check in calls with City and/or subcontractor team, design review and meeting attendance, cost estimate review and briefing, strategic advice
$53,923.97
Work completed in
September (estimate)
Weekly check in calls with City and/or subcontractor team, design review and meeting attendance, cost estimate review and briefing, strategic advice
$17,748.89
TOTAL $71,672.86
GARDEN GROVE CIVIC CENTER - P3 CONSULTING SERVICES 2
The work to be carried out by the PFAL team in Phases 4 and 5 of are focused on (1) supporting the City in evaluating the affordability of the final design and guaranteed maximum price for the Project and (2) monitoring and overseeing construction activity and any associated waivers or change orders.
Throughout Phases 4 and 5, PFAL will continue to perform project management and coordination, provide strategic input and advice, maintain an issues list and meeting schedules, and assist in protecting the City’s interests. PFAL’s continuity of representation and participation in the design process is critical to assessing the GMP affordability and evaluating proposed change orders through the construction phase.
Work Required in Phase 4: Recommended Contract Amount $78,278 to attend October & November meetings associated with evaluation and finalization of the GMP, review CDs, review monthly invoices and reports over 2 months
Task Description Task Parameters Task Total
Project Management until
approval of 100% CD and
GMP (2 months)
Weekly check in calls with City and/or subcontractor team, invoicing, schedule maintenance and coordination, strategic advice and maintain issues list
$18,440.00
100% CD Design and Cost
Review, 100% CD Estimate
CM Reconciliation
Review 100% CD plans and provide review comments,
perform market cost validation exercise; Full measurement, take-off and pricing, including all below the line mark -ups; Prepare CM / Dharam estimate comparison. Carry out CM
reconciliation with Clark Construction. Arrive at a mutually agreed GMP contract value and recommend ation to the City. $42,052.00
Review CM monthly
applications for payment.
Check, validate and agree application value and recommend payment amount. Validate based upon market pricing, and Clark subcontract agreements.
$17,786.00
TOTAL $78,278.00
The important deliverables during Phase 4 are:
Design Review PFAL will participate in weekly design meetings, provide commentary on design documents, and review the 100% Construction Drawings
Meeting Notes and
Follow up
PFAL will hold weekly meetings with the City and attend weekly technical meetings with the developer team.
GMP Validation PFAL's team will perform validation of the proposed and final guaranteed maximum price.
Invoice Review and
Commentary
The PFAL team will agree the form of invoice with the developer, review the developer's invoices, and provide commentary to the City.
2. Work required in Phase 5: Recommended Contract Amount $146,825 to review monthly invoices and reports over the entire construction period
Task Description Task Parameters Task Total
Project Management over 18
months
Weekly check in calls with City and/or subcontractor team, invoicing, schedule maintenance and coordination, strategic advice and maintain issues list
$ 51,425.00
Review CM monthly
applications for payment.
Check, validate and agree application value and recommend payment amount. Validate based upon market pricing, and Clark subcontract agreements.
$ 58,130.00
Monthly project reporting
and validation.
Ensure the CM provides a comprehensive monthly project
report that addresses all elements identified within the $ 37,270.00
GARDEN GROVE CIVIC CENTER - P3 CONSULTING SERVICES 3
construction contract. Check and validate the CM report for accuracy and completeness.
TOTAL $ 146,825.00
The important deliverables during Phase 5 are:
Invoice Review and
Commentary
The PFAL team will review the developer's invoices, and provide commentary to the City.
Commentary on
Change Orders
PFAL will support and lead negotiations with the Developer to finalize the exclusive negotiation agreement and design build agreement including all design and technical components. PFAL will advise of any issues under the terms of the Negotiation Agreement.
Commentary on
Claims
PFAL will review the developer’s financial plan and address and risks and concerns prior to execution. PFAL will also oversee and monitor the financial close process to ensure compliance with the approved financing strategy.
Commentary on
Waivers
The PFAL team will update the Project’s cost model and develop materials to assist the City in managing the construction process.
GARDEN GROVE CIVIC CENTER - P3 CONSULTING SERVICES 4
APPENDIX A
PHASE 4 AND 5 ONCALL/OPTIONAL BUDGET
On Call/Optional Work not included in this budget request during Phase 4 includes:
Task Description Task Parameters Task Total
Owner's Representative &
Project Management
Support
Attendance at weekly technical meetings. Provide technical, life cycle cost, and O&M Project management support as
necessary to support City.
$ 110,952.00
Review and validate GMP Perform validation of proposed and final GMP. Review final accounting application. Check, validate and agree final GMP contract value. Measurement and pricing updates from the 100% CD design document set to the GMP document set
issue. Prepare CM / Dharam estimate comparison. Carry out CM reconciliation with Clark Construction. Arrive at a mutually agreed contract value and recommend to the City.
$ 34,032.00
Contract implementation
and compliance
Monitor performance to development agreement terms and
conditions
$ 7,420.00
Engineering and Park
Specialist Review - 100% CD
Design and Cost Review,
100% CD Estimate CM
Reconciliation
Review 100% CD plans and provide review comments,
perform market cost validation exercise; Full measurement, take-off and pricing, including all below the line mark -ups; Prepare CM / Dharam estimate comparison. Carry out CM
reconciliation with Clark Construction. Arrive at a mutually agreed contract value and recommend to the City
$ 44,277.86
TOTAL $ 196,681.86
On Call/Optional Work in Phase 5 that is not included in this budget request includes:
Task Description Task Parameters Task Total
Change Order Management Receive CM’s change order requests. Review all supporting information and provide feedback / challenge the CM.
Negotiate and agree final change order value. Review for contractual applicability and value. Maintain record of changes. $ 165,651.00
Cash flow forecasting.
Monitor CM cash flow
monthly reporting of
planned v actual progress.
Review planned vs actual expenditures from invoices, monitor CM cash flow and provide monthly review and summary
report.
$ 33,834.00
Schedule management. Review contractors schedule reporting and validate progress.
Identify critical path issues that will impact draw down requests.
$ 54,030.00
Claim Review Review any CM claims. Review for contractual applicability, value and negotiate and agree claim.
$ 42,792.00
Contract implementation
and compliance
Monitor performance against Project Agreement terms and conditions
$ 25,402.00
Waiver Management Review waiver requests. Anticipate no more than 1x per month $ 38,660.00 TOTAL $ 360,369.00