As many of you are aware, the clubhouse was flooded due to the water main bursting in the basement overnight while our maintenance staff was not on site. During the extensive renovation, we discovered mold, yes, mold. We also found a lot of asbestos in the walls... So we've decided to completely tear down the clubhouse and start new. Thanks to a generous contribution by some investors and our equity members, we have been able to bump up our construction timeline.
We've also listened to member feedback and have found some members felt the course had some trees on site that were disrupting the flow of the golf course. We are currently in the process of removing those trees and planting some new trees in areas more appropriate. The removed trees will be sold to toothpick manufacturers for a fair price to supplement the new saplings.
Also, we've been getting a lot of rain this season, so expect water levels to be higher in some areas of the golf course. Please play them as a proper water hazard, they should not be treated as a standing water lie.
If you haven't seen the memo we sent out last month, here is a copy from the last meeting.
As many of you know, we provided an update on the clubhouse project to all members in attendance
at the annual meeting in April. As we begin our season, please allow this memo to serve
as a subsequent update of the activity during the last thirty days:
Recent meetings and activity:
There are meetings, phone calls, emails and more related to the clubhouse project that occurs on a
daily basis. The most recent meeting of importance took place on March 1, 2017, as the Clubhouse
Building Committee and Management met with Fickett Construction (our pre-construction services
Contract Manager); Fickett and Hébert (our architects); DWH Engineering; and HoJo and Associates
(our Owners Representative). The purpose of the meeting was to:
Review the GMP (Guaranteed Maximum Price) cost estimate information
Review “clarifications”with all partiesto the define the “Builder (GMP Contract) costs” versus
“By Owners” costs
Identify Scope Gaps and assign related responsibilities to Builder, Owner or others for
obtaining additional cost estimates
Review all line items that are currently based on allowances; assign responsibility to develop
plansto replace them with hard quotes in the GMP
Review the status of permitting of all facilities (cart facility, Clubhouse and demolition) with
all agencies and trades
Review potential impacts on project timing due to permitting, temporary permitting and
finalization of pricing
Construction Permitting:
The Plans continue to move through Palm Beach County’s permitting department. The demolition,
cart facility, and clubhouse are all separate permits and require multiple review and submittals by
eight (8:) different agencies in the municipality. We review the progress daily online and are in constant
contact with our Architects, Engineers, Construction Manager, and Owners Representative to insure
we are answering all of their concerns in a timely manner. At this point, we anticipate receiving the
approved plans for the cart facility late April and the clubhouse within the first two weeks of May. The
demolition permit is also in the works but cannot be approved until we have terminated all of the
utilities to the buildings following the shutdown.
Clubhouse Closing:
Since we are experiencing a slight delay in construction permitting, we will take advantage of the time
and begin to close down the clubhouse in stages. We will still begin to shut the clubhouse down after
June 29th. Starting with the east end of the clubhouse (library, lounge, Main
Dining Room, Hall of Fame Room, offices) in the first stage, we will work towards closing out the west
end (Kitchen, Grille Room, Quail’s Nest, Pro Shop, Locker Rooms, bag storage and cart barn) within a
few weeks of closing the first stage. This will allow for extended services in the Clubhouse during this
period and we will update you regularly.
Pre-construction and GMP (guaranteed maximum price) Bidding Process:
Before moving onto the current cost estimate of the Project, it is important to review the bidding
process. During June of 2015, we invited five (5) General Contractors to bid on the Project. While
detailed drawings were not available at that time, written narratives along with schematics were used.
We shared the Club’s overall approved budget as it pertained to the building construction portion of
the project for their consideration and we judged the prospective contractors based on:
1. Financial Strength and Reputation, including bonding capacity
2. Their proposed General Conditions costs
3. Insurance rates (General Liability and Performance Bond)
4. Builder’s Fee
5. Knowledge and experience of Clubhouse construction
While we chose the contractor based on the criteria above, our actual commitment to them is for preconstruction
services only at this point. In order to build their cost proposal for a GMP (Guaranteed
Maximum Price) Contract, they have invited approximately 200 sub-contractors to bid on the Project.
Current GMP Contract Estimate:
The preliminary GMP cost information presented by Fickett Construction at our April meeting is $16.3
million. We then add to that the “by owner” costs of $6.4million and itindicates the cost of the project
could exceed the membership-approved budget of $22 million by a cost of $500k to $800k including
almost $1 million in contingency.
The major impact is in the area of sub-contractor labor costs and increased bids in sections of the GMP
that are significantly higher than any of the earlier estimates provided by our Construction Manager.
It appears that the market has incurred a general pricing increase since the time that we first
developed the budget for the project.
It is very important to note that this is not our final number as we continue to complete project
details, look for cost savings opportunities, and work with our Construction Manager to receive
revised bids. It is also worth noting that we do not believe as of this writing that we will find enough
savings to bring us back within the $22 million budget based on our current design.
Membership Financial Impacts and Clubhouse Quality:
Fortunately, when we developed the financing plan that was approved by our members, we planned
for multiple contingencies. The two that are currently impacting our pricing and financial model are:
Slower real estate and membership sales activity
Higher projected costs of construction
We have taken a fresh look at our financial models utilizing current assumptions that allow for reduced
sales, slower pace and additional borrowing (if needed) and the revised pro forma model shows:
Our debt will be paid off from the projected cash flows as indicated in the original model.
The debt will be paid off earlier than its 15-yearterm but could take 2-14 months longer than
the original model based on current events and final pricing.
In either case there will be no increase to the assessment approved by the membership in
April of 2015.
To be more specific, should the price exceed the budgeted amount and ultimately be
approved, members who elected to pay their assessment as a lump sum or in three annual
installments will not be required to pay any additional assessment. Members who elected to
pay their assessment over 160 installments ($70 per month for members under 85 years old
or $35 per month for members who are 85 or older) also will not be required to make any
additional installments or payments.
The project is moving at a very fast pace right now and all parties are diligently working to finalize
pricing, plans and permits. At this point, with project cost and finalized timing changing daily it is
premature to publish final numbers. We anticipate revised pricing in early May. That information will
then be reviewed by the Construction Committee, Finance Committee, and the Executive Committee
for final approval and execution of a notice to proceed.
The Construction Committee, Finance Committee, and Country Club Executive Committee have
emphasized throughout this process that the final product must be consistent with what the members
approved. In other words, the quality of the Clubhouse cannot be sacrificed.
Thank you all for your patience as we work toward the commencement of the largest project in the
history of Quail Ridge. We remain committed to keep you informed each step of the way.
