Moorhead’s downtown community center/library project moved one step closer Monday when the city council approved hiring McGough Construction as CMAR – construction manager at risk.

The McGough firm joins JLG Architects in planning the new facility. Voters approved funding for the project n their passage of a one-half-cent city sales tax last November. The tax, which went into effect in April, is projected to raise $32 million over the next 22 years.

The CMAR will partner with the architecture firm to provide pre-construction services during the design phase now underway. It will oversee preparing, issuing and reviewing bids when the specifications are complete, overseeing the hiring of subcontracts, scheduling, oversight and health and safety measures.

According to Rich Slagle, the company’s director of community services, the key difference between the CMAR’s role and traditional project management lies in the AR – “at risk” – element. The company will ultimately provide a guaranteed maximum price to the city. It also offers price estimating, procurement plans, scheduling and site logistics input during the design phase.

“As the CMAR, we literally own all the contracts,” he explained. “More recently, changes and unpredictability in the supply chain due to Covid, along with other factors, have made it advantageous for government entities and private businesses to hire a CMAR so that the final cost will be guaranteed. If it exceeds the bids, it’s on our dime. If the total comes in below the bid, the difference goes to our client.”

The council agreed to pay the McGough firm $49,000 for its services during the current design phase. The total to be paid for services during the active construction phase is 2.5% of the GMP – the guaranteed maximum price. to be determined after the project scope, schedule and cost are determined.