Situational Case Study
Buena Vista Racing Corporation planned a new regional stock car racing track and spectator grandstand facility in the Township of Hopewell Springs, West Virginia. The new facility would replace an existing grandstand and bleachers with a new, modern, fully enclosed air-conditioned grandstand with state-of-the-art video and sound systems, a motor racing museum, and restaurant and support facilities. The existing oval racing track will be replaced with a new track surface and sidewalls, stadium lighting for nighttime racing, and crew pit areas and 5000 SF support maintenance building. The budget has been set at $65 million with design-build (DB) selected as the project delivery system.
A contract award has been made to the VMI Construction Corp of Lexington, VA. with an agreement signed between Buena Vista Racing Corp and VMI. Design-Build was selected by Buena Vista as the PDS because of the need to fast-track the project. The project has a contract completion date of 18 months after the Notice to Proceed (NTP) – to be ready for the opening summer event that will accommodate 75,000 racing enthusiasts.
A guaranteed maximum price (GMP) for the project was set for $65,255,000 with the completion of 75% construction documents (CDs), including the design, the construction work, construction management fees, and general conditions. A contingency fund of $3,000,000 under the control of both the project owner and the design-build contractor was agreed on and included in the overall price of the contract amount. A savings clause was also included in the contract where VMI Construction would receive 25% of the savings amount below the GMP.
Last Completed Projects
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