Tom Wacholz, president, and Rob Barse, project coordinator for ORB Management Corporation, met with the county board Tuesday, November 9, 2010 to talk about a proposed management and consulting agreement for the construction of a new community center/pool complex in Grand Marais.
Thecommittee that is working on the project on behalf of the county recommended ORB Management to help the county through the process of designing and building the complex. ORB Management will play the role of an “owner’s rep” that will look out for the best interests of the county, helping with the design process, negotiating the best deals with contractors and suppliers and overseeing the construction process to make sure that the job is done well.
Owner representatives, or construction advisors, may be the wave of the future. Minnesotan Karl Evald Auleciems, owner of Castle Construction Advisors and author of Stop Ripping Me Off! A New and Revolutionary
Way to Remodel or Build Your Home for Less
While Getting More,
claims that not using a construction advisor can be like consulting a drug or medical supply company for advice when feeling sick instead of going to a doctor.
Getting the best deal on constructing a building is different from finding the lowest price on a car or a TV since a building is oneof a-kind, Auleciems says. Both the customer and the contractor win with a construction advisor, he says. He believes a good contractor will be willing to work with a construction advisor because the customer will be more likely to recommend the contractor after having a positive experience with the building process.
County Attorney Tim Scannell helped draft the contract with ORB Management and consulted with Cook County’s insurance agency, Minnesota Counties Insurance Trust (MCIT), which suggested some changes. He was present for the county board’s discussion with Wacholz and Barse.
The contract calls for Cook County to pay ORB 5 percent of the total cost of construction plus expenses and hourly fees for three of its consultants during the construction phase: a project manager at $105/hour, a site construction manager at $87/hour, and a project coordinator at $62/hour. The contract includes language that would allow Cook County and ORB Management to substitute a lump sum for the 5 percent fee and hourly wages before construction begins.
According to construction advisor Auleciems, who specializes in homes rather than municipal buildings, owner reps typically charge a $6,000 flat fee plus 4-6% of the project cost for a residential building. Hourly fees are sometimes charged for smaller projects, he said.
With Commissioner Bob Fenwick absent, the county board unanimously approved the contract with ORB Management contingent on numerous changes recommended by MCIT and discussed at the meeting.
“We’re getting there!” said Commissioner Jim Johnson.
Added Tom Wacholz, “One step at a time!”
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