TO: Mayor and Members of City Council
THRU: Dr. Douglas Hewett, ICMA-CM, City Manager,
FROM: Jeffrey Yates, ICMA-CM, Assistant City Manager,
Dan LaMontagne, PE, Sr. Project Manager - Freese and Nichols, Inc.
DATE: March 2, 2026
RE:Title
Construction Management Division Update From Freese and Nichols, Inc.
Title
end
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal 3: City Investment in Today and Tomorrow
Goal 4: Financially Sound City Providing Exemplary City Services
Executive Summary:
The City of Fayetteville’s Facilities Capital Program Management initiative strengthens the City’s internal Construction Management Division while ensuring capital improvement projects are delivered efficiently, transparently, and on schedule. The program establishes a unified management framework that standardizes planning, procurement, design oversight, construction oversight, financial tracking, and public engagement processes to improve accountability and coordination across departments and consultants. Through structured workflows, a Master Program Schedule, enhanced financial tracking, and a real-time Power BI dashboard, the City will gain clear visibility into cost, schedule, and overall project performance. The initiative also includes a phased transition plan that builds internal capacity and enables long-term City-led program ownership, creating a sustainable model for managing current and future capital investments.
Background:
On March 19, 2025, Freese and Nichols, Inc. (FNI) completed a comprehensive review of the City of Fayetteville’s Construction Management Division (CMD) to evaluate how the City manages its capital projects and to recommend improvements. FNI was embedded with City staff for approximately three months, working alongside the team to understand current processes, organizational structure, reporting practices, and overall project delivery performance.
Since its creation in 2019, CMD has grown significantly and now manages more than 20 active projects totaling over $150 million. However, the review found that staffing levels, formal processes, and reporting systems have not kept pace with the City’s expanding Capital Improvement Program (CIP). The Division currently operates with limited personnel and relies heavily on external consultants and executive-level decision-making, resulting in a more reactive than proactive approach to project management.
FNI recommended transitioning to a stronger, project manager-centered framework that clearly defines roles, responsibilities, and expectations. Key recommendations include implementing structured tools such as project charters, risk registers, and responsibility matrices; formalizing Service Level Agreements between departments; strengthening design-phase cost controls; and enhancing transparency through improved financial tracking and dashboard reporting. The report also recommends restructuring the Division’s funding model, elevating leadership capacity, increasing project management staffing, and ultimately implementing a Project Management Information System (PMIS) supported by a dedicated Project Controls function.
Collectively, these recommendations are intended to improve accountability, transparency, and efficiency in project delivery while building the internal capacity needed to sustainably manage the City’s growing capital portfolio.
Issues/Analysis:
Budget Impact:
None
Options:
No Decision Points at this Time
Recommended Action::Recommended Action
Receive Update
end
Attachments:
Presentation