Table Of ContentTapestry Senior Living ‐ Wickliffe
Tapestry Wickliffe, LLC
Construction Status Report
February 21, 2018
The OAC (Owner/Contractor/Architect) and draw meeting was held on January31, 2018.
In attendance were Terry Sparrow Tapestry’s owner’s site representative, Greg LaSalle owner’s
representative, Mike Shean, Higley Construction Project Manager, Bob Jensik, Higley
Construction Superintendent, and Michael Knisely, architect.
Construction progress is generally as follows:
Sitework – Site utilities to commence the first of February
Front one story structure – demolition is complete, the slab for the kitchen area has
been removed, and steel has been delivered for the reconstruction of the building
enclosure
Atrium – The slab has been removed, regrading of the floor has been completed,
existing windows were removed and frames are ready to receive the new windows, and
the new elevator shaft is near completion
Residential Floors
o First – Framing and electrical and mechanical rough‐ins in process
o Second – Shower enclosure drywall being completed and electrical and
mechanical rough‐ins in process
o Third – Rough‐ins complete, floor penetration in‐fill in progress
o Fourth – Sheetrock near completion, electrical and mechanical roughs complete,
and shower installation commencing
Materials for the renovation have begun to arrive on site for staged installation. Change Order
#2 has been signed in the amount of $98,161 for unforeseen work to create fire rated exhaust
risers and provide access doors and dampers. To date the contractor has utilized approximately
$72,000 of its $480,000 contract contingency and has utilized approximately $35,000 of its
$230,000 of unforeseen conditions allowances contained in its GMP contract. Total change
orders charged to the Owner to date are $161,089. Additional unforeseen items have been
discovered and least costly solutions for remediation are under investigation, potential change
order requests are currently estimated to be approximately $420,000 and are subject to
change. The project has an overall owner contingency of $1,225,000 and the contractor has a
contract contingency of $480,000 for such items.
The construction draw in the was approved and will paid as required under the construction
contract.
MONTHLY REPORT #03
TAPESTRY WICKLIFFE
WICKLIFFE, OHIO
ZUMBRUNNEN, INC. PROJECT #2016-122
SITE VISIT DATE(S): JANUARY 31, 2018
RECEIPT OF EXECUTED PAYMENT APPLICATION: FEBRUARY 16, 2018
OTHER REQUIRED DOCUMENTS RECEIVED (LATEST DATE): FEBRUARY 9, 2018
REPORT DATE: FEBRUARY 16, 2018
This Report is Specially Prepared for
Mr. Richard Bienapfl
Tapestry Wickliffe, LLC
February 16, 2018
Mr. Richard Bienapfl
Tapestry Wickliffe, LLC
2001 Killebrew Drive, Suite 100
Minneapolis, MN 55425
RE: Tapestry Wickliffe
Wickliffe, Ohio
SUBJ: Monthly Report No. 03
zumBrunnen Project No. 2016-122
Dear Mr. Bienapfl:
Attached for your use and review is the above-referenced report for the site visit conducted on
Wednesday, January 31, 2018. The purpose of this report is to provide documentation of this project
site visit and sufficient information to assist you in project finance administration.
zumBrunnen reports feature a unique and proprietary Contingency Graph in Exhibit A, and a listing
of construction terminology, definitions, and methodology in Exhibit G. These exhibits will assist
you in gaining a more comprehensive understanding of the status of your project, and assurance that
the reports provided by zumBrunnen utilize consistent and professional reporting and analysis tools
from month-to-month and project-to-project.
The data, conclusions, and recommendations contained in this report are based on information
gathered during our project site visit. We trust this report is complete. Should you require additional
information or wish to discuss this report, please contact this office.
Sincerely,
zumBrunnen, Inc.
Doug McMillan, P.E.
President
TABLE OF CONTENTS
I. EXECUTIVE SUMMARY .............................................................................................. 4
II. PROJECT DESCRIPTION ............................................................................................. 4
A. Site Work ................................................................................................................ 5
B. Structures ................................................................................................................ 5
C. Stored Materials ...................................................................................................... 6
III. ACTION ITEMS ............................................................................................................... 6
A. Outstanding Project Documents ............................................................................. 6
B. Project Issues to Be Monitored and Resolved ........................................................ 6
C. Status of Permits ..................................................................................................... 6
IV. CONSTRUCTION CONTRACT .................................................................................... 7
A. Changes to the Construction Contract .................................................................... 7
B. Construction Contract ............................................................................................. 7
C. Substantial Completion Terminology ..................................................................... 7
V. CHANGE ORDERS ......................................................................................................... 7
A. Approved and Executed Change Orders ................................................................. 7
B. Pending and Potential Change Orders .................................................................... 8
VI. BUDGET SUMMARY DATA & ANALYSIS ............................................................... 8
A. Budget Summary Data ............................................................................................ 8
B. Budget Summary Analysis .................................................................................... 10
VII. PROJECT SCHEDULE & ANALYSIS ....................................................................... 10
A. Project Schedule Data ........................................................................................... 10
B. Project Schedule Analysis ..................................................................................... 11
C. Project Closeout Certificates and Documents ....................................................... 12
VIII. GENERAL REMARKS ................................................................................................. 12
A. Site Visit and Attendees ........................................................................................ 12
B. Finish Quality, Compliance, Maintenance/Protection, and Reports ..................... 12
C. Site Security, Site Conditions, and Project Activities ........................................... 13
D. Miscellaneous Comments ..................................................................................... 13
IX. CONTRACTOR’S PAYMENT APPLICATION OVERVIEW ................................ 13
EXHIBITS:
A. Project Completion and Contingency Graphs, CPM Schedule
B. Payment Application Documentation
C. Stored Material Documentation and Requirements
D. Change Order Documentation
E. Project Directory and Other Miscellaneous Information
F. Contract Summary; Closeout Documents & Requirements
G. Definitions; Disclaimers
H. Site Plan & Photographs
© zumBrunnen, Inc. 2015 All Rights Reserved Tapestry Wickliffe
zumBrunnen, Inc. Project 2016-122
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I. EXECUTIVE SUMMARY
The following conclusions are based on information available at the time of the issuance of
this report. A checked box ( ) denotes information in the body of this report is pertinent to
a full understanding of the referenced subject.
Action Items:
• Are there outstanding project documents to be expedited: Yes
• Are there issues requiring Project Team’s attention at this time: No
• Have all permits for construction been received: Yes
See Section III for further details.
Budget Analysis and Sufficiency of Funds:
• Total change orders recommended for approval this month: $161,089 (CO #1 & CO #2)
• Total executed change orders to date: $161,089
• Total pending and potential change orders: $353,638
• The remaining construction contingency as a % of zumBrunnen estimated cost-to-
complete is 4.9% and the total committed construction contingency is 42.0%, which is
a significant increase from the previous month, but consistent with our projected curve
at this time. We consider the available contingency reasonable to complete the project.
See Construction Contingency Graph included in Exhibit A.
• See Section VI, Paragraph B for further details.
Time Extensions & Schedule Status:
• Based on cash flow and our observation of the work completed to date, the project is
21% complete and on schedule for substantial completion by the contractual date
shown below. See Project Completion Graph included in Exhibit A.
• Time extension approved this month: 0 calendar days
• Original contract substantial completion date: September 1, 2018
• Current contract substantial completion date: September 1, 2018
• Contractor’s Projected Substantial Completion Date: September 1, 2018
See Section VII, Paragraphs A and B for further details.
Quality & Compliance Status:
• Are finish quality issues noted in this report: No
• Are construction or compliance issues noted in this report: No
See Section VIII, Paragraph B for further details.
Payment Approval:
• Contractor Payment Application #6 for Pay Period ending 01/31/18 requests a current
payment of $1,222,500.21. Retainage in the amount of $376,499.03 is being withheld,
which is 10.3% of completed work and materials stored. Retainage released this month:
$0.00. zumBrunnen recommends disbursement of funds as requested.
See Section IX for further details.
II. PROJECT DESCRIPTION
The Project is the rehabilitation of an early 1970s Holiday Inn with Holidome located at
28500 Euclid Avenue, Wickliffe, Ohio. The project consists of an “L” shaped hotel room
structure containing approximately 121,610 square feet of space to be converted to a
combination of assisted living and memory care units.
© zumBrunnen, Inc. 2015 All Rights Reserved Tapestry Wickliffe
zumBrunnen, Inc. Project 2016-122
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Distyle Design, of Minneapolis, Minnesota, is providing the professional design and
consulting services. The Albert M. Higley Co. LLC, of Cleveland, Ohio (the Construction
Manager), will construct the Project.
A. Site Work
• Contractor has mobilized on site and set a construction trailer, perimeter fencing, and
gates.
• Site clearing and grubbing is complete along with removal of trees.
• Overall site demolition is now complete.
• Site earthwork and cut/fill continued this month and is estimated to be 18% complete.
B. Structures
Existing Building
• Exterior demolition is essentially complete with the existing high and low roof removed
and a temporary waterproofing membrane installed to dry in the building during the
upcoming winter months.
• Mass demolition at the front of the building is essentially complete along with the
removal of the mansard roof.
nd th
• Interior demolition of the suites is complete on the 2 through 4 floors and nearing
st
completion on the 1 floor.
• Exterior light gage framing and installation of sheathing continued this month with work
accomplished this month along the north wall of the Atrium with window/glass
installation scheduled to begin in early February in this location.
• Atrium slab has been demolished and removed.
st
• Placement of interior footings on the 1 floor commenced this month and is estimated to
be 50% complete.
• New elevator pit was previously placed and concrete masonry walls for the elevator pit
are now constructed to the underside of the roof deck.
• Structural steel erection commenced this month and is continuing at this time at the north
exterior wall of the one-story portion of the building.
st
• Underground plumbing rough-in continued on the 1 floor this month and is
approximately 80% complete. Concrete placement at utility trenches is now underway
st
on the 1 floor.
• Interior sanitary and water pipe rough-in for the interior suites also continued this month
nd
and is approximately 80% complete overall with the 2 floor complete and work
st rd th
underway on the 1 , 3 , and 4 floor at this time.
• Installation of interior gas piping is unchanged from last month and is approximately
40% complete.
• Fire sprinkler pipe rough-in continues on all floors.
• Delivery of sheet metal duct and accessories has commenced, with rough-in just
beginning in the interior suite areas.
• Electrical boxes, low voltage conduit rough-in, and installation of cabling is underway in
all areas.
© zumBrunnen, Inc. 2015 All Rights Reserved Tapestry Wickliffe
zumBrunnen, Inc. Project 2016-122
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• Interior light gage framing continued this month in the interior suite areas on all floors.
Second floor bathroom framing is essentially complete with work continuing on the other
floors at this time.
• Drywall installation behind prefabricated shower units commenced this month and is
underway at this time.
th
• Installation commenced for resident suite unit entry door frames on the 4 floor this
month and is continuing at this time.
C. Stored Materials
Stored Material Inventory Log is enclosed: N/A
Materials Stored On-Site
• Materials added this month: Underground MEP materials, light gage framing, sanitary,
water, and gas pipe, HVAC duct, prefabricated tub/shower units, structural steel, low
voltage wiring and conduit, and exterior sheathing
• Materials are observed to be secured from theft: Construction fence is installed around
the project site
• Materials are observed to be protected from the weather: N/A
Materials Stored Off-Site
The requirements for off-site stored material documentation are detailed in Exhibit C. See
Section IX of this Report for recommendations pertaining to funding approval and detail of
any outstanding documentation.
• New materials added this month: Structural steel is stored off site and is in the process of
being delivered to the site
III. ACTION ITEMS
A. Outstanding Project Documents
The following documents are required:
• Outstanding documents to be provided to zumBrunnen as required for financial closing:
None
• Other:
o None
B. Project Issues to Be Monitored and Resolved
• Status of Transmittal and Shop Drawing Log: Unknown; not provided during site visit
• Status of RFI Log: Unknown; not provided during site visit
• Other: None
C. Status of Permits
• Outstanding permit status:
o The City of Wickliffe and Lake County have issued the building permits. Copies of
these permits were included in our Monthly Report #1 in December 2017.
© zumBrunnen, Inc. 2015 All Rights Reserved Tapestry Wickliffe
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See Section VII, Paragraph C pertaining to status of certificates of occupancy.
IV. CONSTRUCTION CONTRACT
A. Changes to the Construction Contract
For this month’s reporting period, have changes been made to the construction contract terms
and conditions as detailed below or in Exhibit F: No
B. Construction Contract
Construction Contract Type and Amount: The Owner, Lake County Ohio Port and
Economic Development Authority, has entered into a construction agreement with The
Albert M. Higley Co. LLC, of Cleveland, Ohio, for the construction of the Tapestry
Wickliffe project. The Lake County Ohio Port and Economic Development Authority is
acting as the issuer of the bonds and will own the property that Tapestry will lease from
them. LaSalle Development Group, Ltd will act as the construction agent for this project
and control all aspects of project development and construction.
• Standard Form of Agreement between Owner and Contractor: AIA Document A102-
2007 and AIA A201-2007 serves as General Conditions
• Basis of Payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price.
• Original contract amount: $17,220,882.00
• Contractor’s fee: $501,579 (3.0% of Cost of Work)
C. Substantial Completion Terminology
Please note that zumBrunnen or others in verbal or written reports may make reference to
various activities or construction of various components of work for the Project as
substantially complete. Only when the reference includes the term "contract" can these
references to substantially complete (or substantial completion) be interpreted as compliance
with the requirements for the construction contract substantial completion schedule, as
defined in the project construction contract documents. When the term "contract" is not
included, it is then interpreted that the work per the construction contract referenced is
simply "nearly complete" and has no direct relationship to the construction contract schedule
for substantial completion.
V. CHANGE ORDERS
A. Approved and Executed Change Orders
This month’s change order(s) approved by the Owner, Architect, and Contractor are
submitted for approval with zumBrunnen’s recommendations as detailed below:
• Change Order No. 1; (+) $62,928.01; time extension: 0 calendar days;
o Description/comments: Additional asbestos abatement, ductwork, and support rails
for RTUs 5 & 6, and re-routing of underground hot water lines to be above ground
o Reason for the change order: Mandatory
o Recommended to be funded from: Project Contingency
• Change Order No. 2; (+) $98,161.06; time extension: 0 calendar days;
o Description/comments: Insulation, dampers and fire access to bathroom walls, and
© zumBrunnen, Inc. 2015 All Rights Reserved Tapestry Wickliffe
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change hollow metal door frames in concrete masonry walls to solid welded frames
o Reason for the change order: Mandatory
o Recommended to be funded from: Project Contingency
CHANGE ORDER LOG*
C.O. No. Amount
Previous total through N/A $0
1 - 2 This month's executed changes $161,089
Total $161,089
*Where applicable and available, the Contractor's change order log is included in Exhibit D.
• A copy of each change order executed this month is enclosed with this report: Yes
• zumBrunnen recommends approval of the following change orders submitted by the
Borrower for approval by the Lender: COs #1 and #2
• Change orders included in this month’s payment application: CO #1
B. Pending and Potential Change Orders
Total pending and potential change orders: $353,638; see Exhibit D for the Contractor’s
Change Order / Contingency Log
• The following pending changes may be in dispute:
o None
• zumBrunnen may recommend that the following pending changes not be approved:
o None
This log does not include estimates or an allowance for unknown future change orders. An
estimated allowance for these change orders is included in the zumBrunnen estimated cost-
to-complete in Section VI, Paragraph A.
VI. BUDGET SUMMARY DATA & ANALYSIS
A. Budget Summary Data
The following summary table includes an analysis of the total committed hard cost project
funds to date, including executed change orders and estimated values for pending changes.
These costs are compared to the hard cost project budget, to determine, in zumBrunnen’s
opinion, if the remaining HC contingency will be sufficient to complete the project. This
analysis helps provide the earliest possible notice of a hard cost construction budget overrun.
© zumBrunnen, Inc. 2015 All Rights Reserved Tapestry Wickliffe
zumBrunnen, Inc. Project 2016-122
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BUDGET SUMMARY TABLE
Project Hard Cost Budget
Original Construction Budget $17,220,882.00
Combined (Hard Cost/Soft Cost) Project Contingency¹ $1,225,000.00
Total Hard Cost Budget $18,445,882.00
Project Hard Costs
Original Construction Contract $17,220,882.00
Executed Change Order(s) #1 & #2 $161,089.00
Pending & Potential Change Orders $353,638.00
Total Projected Hard Costs $17,735,609.00
Remaining HC Contingency (Balance) $710,273.00
Committed (Encumbard) HC Contingency Funds $514,727.00
zumBrunnen Estimated Cost-To-Complete* $14,438,319.00
Remaining HC Contingency as a % of zumBrunnen Cost-To-Complete 4.9%
Committed HC Contingency as a % of HC Contingency Budget 42.0%
*zumBrunnen Estimated Cost-To-Complete: Calculated based on data and assumptions as
detailed in Exhibit G - Definitions.
¹ The amount currently shown in the chart reflects the full hard and soft cost contingency for
the project. zumBrunnen will confirm each month as to whether any of this contingency
amount was allocated for use other than hard cost constructions.
History of budget transfers/adjustments between HC Contingency and Soft Cost Contingency
or the Total Project Budget:
• No changes to date
Contractor’s G702 and G703 Contract Budget Update:
• Percentage of buyout completed: Unknown at time of site visit
• Remaining contractor contingency including any projected buyout savings:
o In total dollars: $469,525.86
o As a percentage of zumBrunnen Estimated Cost-to-Complete: 3.3%
• Has the Contractor made any significant changes in his scope of "self-performed" work?
No
HC Contingency Chart: See Exhibit A (for an explanation of the chart see Exhibit G –
Definitions).
• Projected project HC contingency usage through this month: 40%
• Actual Committed (Encumbered) HC Contingency through this month: 42%
• See below paragraph B for further discussions for significant variances or month to
month changes
© zumBrunnen, Inc. 2015 All Rights Reserved Tapestry Wickliffe
zumBrunnen, Inc. Project 2016-122
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