The Buda City Council unanimously voted Tuesday to set the Guaranteed Maximum Price (GMP) for Propositions 1 and 2 at approximately $24 million.
With the GMP set, construction on a new municipal building site along south Main Street, which is part of Proposition 1, will begin on Jan. 18, 2017.
Brian Hallot, a representative with JE Dunn Construction, said Buda had an agreement with JE Dunn Engineering to deliver the projects to the city within a GMP based on the construction drawings at the time of the GMP presentation.
The GMP for Proposition 1 totaled $18.7 million, while Proposition 2 had a GMP of $4,762,433. Hallot said the city saved roughly $200,000 as the GMP for the projects were both under budget.
Hallot said this is the best arrangement for the city since the company managing construction would absorb any costs over the GMP.
“The owner’s risk is limited, providing the construction documents are complete and the construction manager has made allowances,” Hallot said during his presentation.
After the approval of the GMP, a more concrete schedule for the completion of Propositions 1 and 2 can be defined.
Hallot said JE Dunn had accounted for inflated construction costs, which answered a question from council member Bobby Lane.
Council member Eileen Altmiller said the GMP would come in below the tax rate promised to voters.
“Staff has worked very closely with JE Dunn and Page and are comfortable with proceeding with the proposed GMP,” said Chance Sparks, director of planning and interim assistant city manager.
