The City of Savannah and AECOM/Hunt Inc. have entered into an agreement for construction manager at risk (CMAR) services for the new arena. The City Manager recommends a modification to the agreement to allow for the payment of certain early-release packages to allow arena work to be performed prior to completion of final construction documents and prior to the establishment of a guaranteed maximum price (GMP).  

It is anticipated that the following activities will occur prior to the establishment of the GMP:

• 1. Groundbreaking prep
  2. Site work (clearing, prep, grading, etc.)
  3. Underground utilities
  4. Foundations
  5. Elevators
  6. Steel procurement (detailing, shop drawings, etc.)
  7. Steel material and labor

Estimated cost of these early-release packages is $23,530,000. The construction manager will invoice the City for the cost of these early release packages. All payments made by the City to the construction manager for the early packages shall then become a component of the guaranteed maximum price when it is established.

On September 13, 2018, City Council approved the agreement with AECOM/Hunt to manage construction of the arena in the amount of $11,166,016. The engagement of a construction manager at risk is designed to minimize project risk; enhance collaboration among the construction manager, architect, and operator during the design phase; and maximize DBE and local vendor participation.   

Since approval, AECOM/Hunt has been working with the development team to design a roughly 9,500-seat multi-purpose arena. When construction documents are near completion, AECOM/Hunt will issue a detailed guaranteed maximum price for construction of the facility, anticipated at $165 million.  A number of construction packages will be ready for release prior to completion of final construction documents, which will expedite completion of the arena and reduce costs.

Approval