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Guilford County commissioners are planning how they’ll build the most expensive project they’ve ever attempted in Guilford County: a $115 million jail that voters approved in a bond referendum in May.

THE ISSUE

Original plans had the county going with the traditional method, called “design build,” which bids a project out to the lowest bidder.

But a new way to handle the project has surfaced. The new way can be more expensive and circumvents state rules for a lowest bidder. That method, called “construction manager at-risk,” means that a contractor works on building the facility but only through subcontractors.

Under this method, contracts may not go to the lowest bidder but can go to who the construction manager believes is the best bidder. Supporters say the construction manager at-risk method can create more minority contracts and benefits that the lowest-bidder system can’t accomplish.

Construction plans are about 70 percent completed, according to the jail committee. Design build construction usually brings in a builder after the plans are done, but the construction manager at-risk method usually works with architects through all planning.

THE METHODS

Design build: Architects design the project, contractors bid on the plans, and the county hands the contract to the lowest bidder capable of doing the job.

Pros

• Can save money by using the lowest bidder
• Familiar method of construction
• Often finishes on time

Cons

• Cost overruns can appear later by contractors that bid too far under actual cost to win contracts.
• Not much collaboration between county commissioners and subcontractors

Construction manager at-risk: A contractor makes several smaller contracts with subcontractors to get the project done but does not handle any of the construction with its own company.

Pros

• Involves contractor in the design phase
• Allows for the potential of more minority businesses to work because of the smaller contracts
• Greater potential for communication between parties involved in the process

Cons

• Less requirement to have the lowest bidder on a project
• Potential for cronyism on subcontracts because of the opportunity to use the “best” bidder rather than the lowest bidder

WHAT THEY’RE SAYING

“The lowest responsible bidder is usually the person that made the biggest mistake” in their construction estimate.

— Commissioner Paul Gibson, chairman of the jail construction committee

“What I see here is that point in the process that it’s a little late in the game for a construction manager at-risk process, and it just represents a major shift in thinking.”

— Commissioner Steve Arnold, who voted against the construction manager at-risk process

“If you ask me whether you save any money on this, I could make a case and say yes or say no. There is a lack of delays and lack of claims, better coordination and better construction.”

— David Grantham, Guilford County’s property management director on the construction manager at-risk method

WHAT’S NEXT?

The new method was recommended to the county commissioners this week by the jail construction advisory committee. Guilford County Commissioners will discuss the plan in an Aug. 12 work session.

THE INSIDE SCOOP: Read more about the issue at the News & Record’s blog at blog.news-record.com/scoopblog

Sources: Guilford County Commissioners Jail Construction Advisory Committee, Popular Government

Contact Gerald Witt at 373-7008 or gerald.witt@news-record.com