After numerous and prolonged difficulties with recent capital projects, the City of Fayetteville has hired an engineering consulting firm to help improve its Construction Management Division.
The Fayetteville City Council made the decision to hire the firm, Freese & Nichols Inc., at its work session on Monday, after being presented with a report from the consulting agency that revealed significant problems with the way the city manages major construction projects.
The Freese & Nichols (FNI) report was solicited by the city, and included the findings of an FNI staff member who joined the city’s Construction Management Division for three months, from November 2024 through February. The Construction Management Division was established in 2019 to work on the Segra Stadium project, which was successfully completed that year.
Blair Hinkle from FNI presented an assessment of the Construction Management Division at Monday’s work session.
“The purpose of the review was to document things as they are, kind of what’s going well, where there are gaps or potential areas of improvement that could strengthen the ability of the division to become more efficient in the delivery of projects,” Blair said. “And so what we found through that review is there are a number of areas that there are potential gaps or areas of room for improvement. But what we also found is that the approach is right.”
The report provided additional information on the issues facing the Construction Management Division.
“Despite its critical role, the division faces several challenges, including staff shortages and an informal and passive approach to project management,” it stated. The report goes on to say that, though the division oversees 15 projects worth over $150 million, it has five positions and only three are filled. According to the report, the division also does not have a director and one of the project manager positions is vacant. The report also states that the two current project managers “have varying experience” and neither are licensed architects or engineers.
Key problems and recommended solutions
According to the report, there are several issues that can be remedied by implementing its recommendations. These include:
Proactivity and adequate resources:
- Problem: The Construction Management Division has been too passive, relying heavily on outside designers and contractors. There is also a shortage of qualified project managers to oversee the work.
- Solution: Project managers should take full ownership of projects from start to finish. This means actively developing project proposals, managing contracts, overseeing payments, and handling change orders efficiently. The city should also hire additional project managers who are licensed architects or engineers.
Improve accountability:
- Problem: Currently, there’s an over-reliance on external parties to manage project budgets and timelines, and decision-making is done by other entities and not the Construction Management Division.
- Solution: Give project managers clear authority and responsibility for their projects. Set clear expectations for project managers and track their performance. Also, hold design consultants more accountable for delivering what they promise and doing it on time.
Increase transparency in reporting:
- Problem: Project updates are informal and based on Word documents shared in meetings. Change orders, for example, are often done informally, with project managers “sometimes holding them to the point that project expenditures exceed the authorized contract amount.”
- Solution: Document all change orders and other project updates. Implement a formal, real-time reporting system, like a project dashboard. This will give the involved parties easy access to up-to-date information on project budgets, schedules, changes and progress.
Strengthen cost controls:
- Problem: Better budget control is needed during the design phase to keep projects on track financially. In addition, the Construction Management Division is not funded through the general fund, which introduces issues because project budgets might not have originally included the division’s operating costs, leading to less money available for actual design and construction.
- Solution: Introduce regular budget checks at key design milestones. At each check-in, compare the estimated construction cost with the project budget to see if any design changes are needed. Keep contingency money separate for unexpected problems. Fund the division through the general fund.
Next steps
Blair said that a good deal of these suggestions are already being implemented to some degree.
“We’re already seeing increased accountability for consultants and things are moving in the right direction and gaining momentum,” he said.
For example, FNI is in the process of designing and implementing a new construction project dashboard, a project tracking tool on the city’s website designed to provide real-time data and insights on various construction projects managed by the city. City Manager Doug Hewett said the dashboard is a priority, and staff and FNI are working on getting it up and running as quickly as possible. The goal is to have the dashboard operational in less than six months, Hewett said.
Assistant City Manager Adam Lindsay said FNI will work with the Construction Management Division over the next year to implement the recommendations and establish best practices for the department, with the goal of enabling the city to independently manage projects in the future.
“So to that end, we want to keep Freese & Nichols around for about 12 months and effectively work themselves out of a job,” Lindsay said. “We’re in the process of hiring our new director now. And through that and other staffing changes that we’re looking to make, we’re looking to see them be heavy on the front end getting these things in place. And as that 12 months progresses, seeing them taper off and leave us in a really, really sound footing in our project management.”
Government accountability reporter Evey Weisblat can be reached at eweisblat@cityviewnc.com or 216-527-3608.
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