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Campbell County Memorial Hospital to terminate Design Build Agreement for the Long Term Care Facility

  • Category: Health News
  • Posted On:
  • Written By: Karen Clarke
Campbell County Memorial Hospital to terminate Design Build Agreement for the Long Term Care Facility

GILLETTE, WY – The Campbell County Health (CCMH) Board of Trustees voted today to terminate without cause the Design Build agreement with Ascent Construction, Inc. for the new long term care facility. The Notice of Termination requires CCMH to provide 15 days written notice to the Design Builder. The original agreement with Ascent requires CCMH to pay the costs of any work completed as of the termination date and a pro-rated portion of the design/builder's construction fee upon the work completed. Work completed includes dirt work and excavation, foundation piers and concrete reinforcing steel.

Ascent Construction has been unable to finalize a GMP (Guaranteed Maximum Price) for the project that meets the original amount of $31,607,000. The inability to finalize the GMP has resulted in the decision to terminate the contract.

"We know that this decision may be unpopular, especially since this is the second design/build contractor we've tried to work with", said Board Chair Dr. Sara Hartsaw. "We have a responsibility to the taxpayers we represent, and to the current and future residents of the long term care center to build the best facility possible with the funds already allocated to the project. We simply couldn't come to an agreement on the price, and therefore couldn't move forward with Ascent."

CCMH will be sending out an RFP (Request for Proposal) for Construction Manager at Risk (CMAR) or General Contractor services to continue the long term care project. In the CMAR model the CMAR is contractually bound to deliver the project within a Guaranteed Maximum Price, which is based on the construction documents and specifications at the time the GMP is established, plus any reasonably inferred items or tasks. The CMAR normally provides professional services and acts as a consultant to the owner (this case CCMH) in the design development and construction phases. The CMAR must manage and control construction costs to not exceed the GMP because contractually any costs exceeding the GMP that are not change orders are the financial liability of the CMAR. In addition, the owner is involved in selection of subcontractors, which typically represents about 85% of the actual construction; and has the advantage of seeing all the costs and bids.

The Facilities Committee of the Board is working with CCMH Administration to develop the RFP documents with the goal of sending out an RFP sometime next week. If all goes well, a CMAR or general contractor could be selected at the March 27 Board of Trustees meeting and construction could proceed without substantial delay.

Media Contact
Karen Clarke
Manager Community Relations
Phone: 307-688-1581
Email: karen.clarke@ccmh.net