January 15, 2025
CITY OF GARDEN GROVE
P3 PROJECT FEASIBILITY AND
PROJECT MANAGEMENT
CONSULTING SERVICES
GARDEN GROVE CIVIC CENTER
PROJECT
PHASE 6 PROPOSAL
Project Finance Advisory Limited
GARDEN GROVE CIVIC CENTER - P3 CONSULTING SERVICES 1
ADDITIONAL BUDGET REQUEST
PFAL is providing this proposal at the request of the City of Garden Grove (“the City”) to review monthly payment applications for the entirety of the anticipated remaining construction period of the Civic Center Revitalization Project ("the Project").
This budget is requested to cover costs for monthly payment application review from January 1, 2025 through the end of the construction period, assumed to be September 26, 2026.
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:
• Supporting 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.
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 requested budget is only 0.1% of the total GMP.
BUDGET REQUEST BREAKDOWN
1. Recurring Monthly Charges
Task Task
Description
Task Parameters PFAL Dharam Task Total
1 Monthly
Applications for
Payment
Check, validate and agree
application value and
recommend payment
amount. Validate based
upon market pricing, and
Clark subcontract
agreements.
$ 5,659.50 $ 144,144.00 $ 149,803.50 2 CM Cash Flow
Forecasting
Reviews
Review planned vs actual
expenditures from invoices,
monitor CM cash flow
$ - $ - $ - 3 CM Schedule
Monitoring
Review contractors schedule
reporting and validate
progress. Identify critical
path issues that will impact
financing draws.
$ - $ - $ -
GARDEN GROVE CIVIC CENTER - P3 CONSULTING SERVICES 2
Task Task
Description
Task Parameters PFAL Dharam Task Total
4 Monthly CM
Project Report
Monitoring
Provide monthly report and
check in calls to review
findings on payment
applications, forecasting
reviews, and schedule
monitoring
$ - $ - $ - TOTAL
$ 5,659.50 $ 144,144.00 $ 149,803.50 The expected cost per month to the City is $7,133.50.
The work to be carried out by the PFAL team in Phase 6 is focused on checking, validating and agreeing the value of the developer’s monthly payment applications only. This work is needed to monitor the validity of payment requests and is to be undertaken by Dharam Consulting.
Exclusions from this scope are:
1. Cashflow forecasting reviews
2. Schedule monitoring
3. Monthly CM Project Report monitoring
4. Change Order management
5. CM Final Account Review, Negotiation & Waiver Management
6. Claims work
7. Design phase construction cost estimating of any description
8. Life cycle costing
9. Value engineering
10. Formal risk management process
11. CM Reconciliation
12. Construction scheduling and logistics
13. Provision of on-going and continuous cost management during the design phases
14. Any work in connection with Phase II
TOTAL BUDGET REQUEST
The total budget request for this Phase 6 of the construction program is $149,803.50. We have made an effort to reduce our effort expectations to provide the best value to the City.
Victoria Taylor
President & CEO
Project Finance Advisory Limited