TO: Mayor and Members of City Council
THRU: Jeffrey Yates, ICMA-CM, Assistant City Manager
FROM: Kimberly Toon, Assistant Chief Financial Officer-Procurement
DATE: September 28, 2026
RE:Title
Authorize Construction Manager at Risk Delivery Method for Fire Station 4 Title
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COUNCIL DISTRICT(S):
Council District(s)
4
b
Relationship To Strategic Plan:
Goal 3: Desirable Place to Live, Work and Recreate
Executive Summary:
Staff recommends City Council authorization to use the Construction Manager at Risk (CMAR) delivery method for reconstruction of Fire Station No. 4 on Bragg Boulevard. Following termination of the original construction contract due to significant structural and foundation deficiencies, the rebuild process is focused selecting a qualified general contractor with a demonstrated record of delivering quality facilities. With the design complete, selection will emphasize comparable project experience, reference checks, the qualifications of on-site leadership, subcontractor supervision, and documented quality control practices.
The selected contractor will work with the City, design team, and Cumming Group to review the completed plans and site conditions and establish clear requirements for inspections, materials testing, construction documentation, and correction of deficient work. Competitive bidding to prequalified subcontractors and a Guaranteed Maximum Price will support procurement transparency and cost management. Staff recommends CMAR to strengthen contractor accountability and construction oversight, with particular attention to structural integrity, safety, and compliance with the approved design.
Background:
Fire Station No. 4 on Bragg Boulevard requires reconstruction following termination of the original construction contract due to significant structural and foundation deficiencies. An independent engineering assessment by Applied Building Sciences (ABS) determined that the original superstructure was structurally compromised. City Council subsequently approved demolition and site clearing to prepare the property for rebuilding.
The City has engaged Cumming Group to provide professional project management, cost consulting, and evaluation services. These services will support coordination among the City, design team, and construction contractor and strengthen oversight of project scope, budget, schedule, and construction quality.
Staff recommends the Construction Manager at Risk (CMAR) delivery method to address the specific challenges of rebuilding Fire Station No. 4. Early contractor involvement will allow the project team to evaluate existing site conditions, review the proposed design for construction challenges, and identify potential issues before construction begins. This coordination will also support realistic cost estimates, scheduling, and clear quality control responsibilities.
Under CMAR, the City selects a licensed general contractor based on qualifications, consistent with N.C.G.S. §§ 143-128.1 and 143-64.31. The contractor works with the City’s separately contracted design team, competitively bids construction work to prequalified subcontractors, and establishes a Guaranteed Maximum Price for the agreed scope. The price remains subject to approved changes and other adjustments permitted by the contract. City oversight, inspections, and verification of construction quality remain essential throughout the project.
Issues/Analysis:
With the design for Fire Station No. 4 complete, staff recommends CMAR primarily to support selection of a qualified construction partner with demonstrated experience, capable personnel, and strong quality control practices. Traditional design-bid-build requires award to the lowest responsible, responsive bidder under applicable law. CMAR allows the City to select the general contractor based on qualifications and then negotiate a fair and reasonable fee. Neither method eliminates all project risks; responsibility for unforeseen conditions depends on the contract.
CMAR offers several advantages for the reconstruction:
• Qualifications-Based Selection: The City can evaluate comparable project experience, reference checks, proposed personnel, past performance, and the contractor’s approach to quality, safety, and subcontractor supervision.
• Construction Readiness and Quality Control: Before construction, the selected contractor will work with the design team and Cumming Group to review the completed plans and site conditions, identify potential construction challenges, and establish clear procedures for inspections, testing, documentation, and correction of deficient work.
• Cost Management: The contractor will develop a Guaranteed Maximum Price for the agreed construction scope. This provides a contractual limit on covered costs, subject to approved changes and other adjustments permitted by the contract.
• Competitive Subcontractor Bidding: Under N.C.G.S. § 143-128.1(c), the CMAR must publicly advertise and competitively bid construction work to prequalified first-tier subcontractors. Public bid openings and documented selection criteria support transparency and accountability. During this phase, the City can work with the general contractor to focus recruitment on small, local businesses.
This approach places greater emphasis on the qualifications and performance of the general contractor while maintaining competitive subcontractor bidding and the City’s responsibility for active oversight.
Budget Impact:
Planned funding includes remaining proceeds from the 2022 installment financing, premium proceeds from the 2022 Public Safety Bond, and future installment financing, subject to required approvals.
The CMAR process will establish a Guaranteed Maximum Price for the agreed construction scope, supporting cost management and budget accountability. The GMP remains subject to approved changes and other adjustments permitted by the contract. Authorization to use CMAR does not establish the final construction price or authorize additional financing.
Options:
1. Authorize the City Manager to pursue the construction of the project using the Construction Manager at Risk (CMAR) delivery method
2. Do not authorize City Manager to pursue the construction of the project using the Construction Manager at Risk (CMAR) delivery method
Recommended Action::Recommended Action
Authorize the City Manager to pursue the construction of the project using the Construction Manager at Risk (CMAR) delivery method
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Attachments:
None.