The first phase of construction on RiverEdge Park in Aurora is estimated to cost $1,255,360.
That price can become more than an estimate if the city council approves it Tuesday, July 12. It can become a guarantee.
The price tag of just more than $1.2 million was proposed as the project's guaranteed maximum price by R.C. Wegman Construction Co., the Aurora firm hired in May to manage RiverEdge Park construction for a fee of 9.85 percent of the park's total cost.
Alderman had their first formal discussion of the proposal Tuesday and will vote to accept or deny it at the next city council meeting July 12.
The project includes restoration of Blues Island and adjacent Fox River shorelines as well as grading of the future site of the Music Garden, planned for east of the river, according to a memo from Stephane Phifer, Aurora's planning and zoning director.
The island will be cleared with a prescribed burn scheduled for Sept. 19 and restored with native plants and erosion control measures. Contractors will prepare the base of the Music Garden site, install permanent fences where the park borders private properties, and temporary fences around the entire construction area.
Alderman Richard Irvin questioned whether R.C. Wegman has a profit motive to keep the project's costs below the guaranteed maximum price.
“Whenever we say ‘guaranteed maximum price,' usually the contractor tries to hit that price,” Irvin said. “I'm sure as a city we'll be asking them to be below that guaranteed maximum price.”
According to Phifer's memo, the $1.2 million proposed maximum price for this work — including $106,144 as R.C. Wegman's 9.85 percent construction management fee — already comes in 12 percent less than the city budgeted.
And Alderman Lynda Elmore said R.C. Wegman has an incentive to keep this project's costs below the threshold because the company has to foot the bill for any expenses above the agreed-upon maximum.
If city council approves the cost for the first phase, construction is scheduled to begin July 20 and conclude Oct. 6.
Park: Alderman questions ‘guaranteed maximum price'Copyright © 2013 Paddock Publications, Inc. All rights reserved.