School opts for construction manager

Kalispell school trustees set aside tradition this week and opted for a "construction manager at risk" process to steer $50.7 million worth of school building projects over the next 2 1/2 years.

It means that probably two individuals or firms will shepherd the $39.8 million new high school construction and Flathead High renovations and the $10.9 million Kalispell Junior High addition and renovations.

The projects were approved by voters on Nov. 2.

Traditionally, large projects have been done through a design/bid/build process. In that, an architectural firm draws up construction documents, the owner - in this case, the school district - puts those documents out for bid, then a general contractor oversees subcontractors to complete the project.

A construction manager at risk, however, teams with the owner and architect from the start, drawing his contractor's expertise into the design phase to avoid surprises at bid opening that could delay a project.

The board's decision should help keep the construction process on a fast track by piggybacking the design, bidding and construction phases.

With the design/bid/build process, an architect must finish all work before the school could advertise for bids, and bidding would have to be complete before construction begins. That could put off occupancy until May 2008, according to Swank Enterprises Inc.

The manager process, however, has the schools ready for occupancy in August 2007, essential if the school is to meet its projected fall 2007 opening date for all three schools.

Trustees Tony Dawson and Bill Sutton, facilities manager Chuck Cassidy and Superintendent Darlene Schottle researched the options and made the recommendation for the construction manager.

Thus far in the process - the school has enlisted community support and gathered academic and activities input - the two processes would show no differences, Dawson told the board.

"But when we get to the design phase," Dawson said, "there are a lot of changes."

Cost to the school would be the same with either method.

But at some point during design - often when construction documents are 75 percent complete - the construction manager at risk gives the school a guaranteed maximum price for the entire project. If it goes over that, the manager absorbs the overrun - giving rise to the "at risk" terminology.

Two local firms, both bondable up to the dollar level needed to complete at least one of the major school projects while continuing with ongoing work, are well-versed in the manager process.

Dewey Swank with Swank Enterprises told the school board that probably 80 percent of his firm's work is done through the construction manager process.

Steve Conway of Martel Construction Inc. said 95 percent of his firm's bid work uses a construction manager.

Most of the eligible managers are sizable contractors themselves, Sutton told the board, so could solicit bids from their own firms.

Having that expertise could help keep the work local.

Under a contractor bidding process, however, such a large project not only may cut out Montana firms that would use up all their bonding capacity, it almost certainly would attract out-of-state firms. If one of them submitted the lowest bid and clean credentials, it would have to be selected.

However, a construction manager at risk, Sutton noted, could hire among local subcontractors.

It also would streamline the process in terms of time and ready access to the expertise needed to assess and carry out specific work.

But that same expertise could prevent Swank and Martel from bidding for work if the other firm were hired as the manager, Dewey Swank explained. To justify the cost of having one person with the knowledge needed to size up projects to submit bids, he would need to be acting as the manager himself.

Each firm, however, could consider submitting proposals to be the manager for one, two or all three of the school construction projects, trustees pointed out.

This would allow them to work cooperatively but on separate projects without pushing either to their maximum bondable capacity with just one client.

Some trustees voiced concerns about committing to one manager in advance. But, with two major phases on such a project, Dawson suggested a safety valve.

"You can hire a CMAR for the preconstruction phase and if they did well, you can stay with them for the construction phase," Dawson said. "If not, then you can advertise for a different CMAR for construction."

In the end, trustees voted to advertise for three separate requests for proposals from firms or individuals interested in acting as the construction manager at risk.

Separate proposals are needed for the new high school, renovations at Flathead High and addition and renovations at Kalispell Junior High.

Reporter Nancy Kimball may be reached at 758-4483 or by e-mail at nkimball@dailyinterlake.com