The North Carolina Department of Transportation (NCDOT) awarded a $103.5 million contract to Flatiron and their joint venture partner, Fred Smith Company, to deliver road infrastructure improvements in anticipation of the upcoming U.S. Open Championships at the Pinehurst Country Club.
As per information from the USGA (United States Golf Association), the tournament is scheduled for June 13th to 16th, 2024, and will take place on Course Number 2 at the Pinehurst Resort. This will be the fourth time the Country Club has hosted the U.S. Open in the past 25 years.
NCDOT – Roadway improvements for US Open at Pinehurst – Project Summary
Project Summary | Details |
Name | NCDOT Roadway Improvements for U.S. Golf Open Championships at the Pinehurst Country Club |
Client | NCDOT (North Carolina Department of Transportation) |
Contractor | Flatiron and Fred Smith Company (Joint Venture) |
Contracting Style | Construction Manager/General Contractor (CM/GC) agreement |
Contract Value | $103.5 million (USD) |
Summary Scope of Works | Design Development and pre-construction tasks (construction planning) Roadways improvements, including widening and upgrading N.C. 5, U.S. 15 / 501 and U.S. 1 Utility relocation Traffic management |
NCDOT – Roadway improvements for US Open at Pinehurst – Project Details
The roadway improvements are primarily focused on mitigating traffic conflicts at intersections in the Southern Pines, Aberdeen, and Pinehurst regions, improving safety and traffic flow efficiency.
The construction will encompass the widening and upgrading of N.C. 5, U.S. 15 / 501, and U.S. 1. The project team is already working closely with the North Carolina Department of Transportation (NCDOT) to create a comprehensive plan for utility relocation, construction phasing, and traffic management.
This plan is designed to ensure that traffic flows smoothly and provide continued access to local businesses and residences during construction.
A significant water line relocation is required before commencing the roadway improvements. This relocation involves moving a significant water line from U.S. 1 to Poplar Street, specifically from Elm Street to Mac’s Breakfast Anytime driveway. According to NCDOT, The project also includes additional enhancements, such as measures for erosion control and pavement resurfacing.
NCDOT – Roadway improvements for US Open at Pinehurst – Contract Details
NCDOT entered into a Construction Manager/General Contractor (CM/GC) agreement with the Flatiron-Fred Smith JV. This contracting approach shares similarities with Early Contractor Involvement (ECI) contracting methodology.
Unlike traditional procurement methods, where contractors typically join the process during the later stages of design development, the CM/GC method involves the contractor from the early stages to facilitate concept design, mitigate risks, and optimize the construction delivery strategy. Typically, CM/GC and ECI agreements encompass two phases:
- Phase 1 – Design Development Phase (Construction Manager Phase): During this phase, the contractor is engaged for a fee to assist the client in the project’s initial development and acts like a “consultant”. The contractor’s compensation at this stage can vary from a lump-sum agreement to a cost-plus-fee arrangement where the contractor is reimbursed for preliminary costs, overheads, and profits.
- Phase 2 – Construction Phase (General Contractor Phase): Once the design is finalized and the owner decides to proceed with the construction phase, a new contract is executed under the general contracting principles. Generally, the commercial terms established in Phase 1 serve as the basis for Phase 2. However, Clients typically engage an independent cost estimator to ensure that the price submitted by the Contractor for phase 2 is fair and might even run a new procurement process for the construction phase, if there is no agreement between the parties on the price offered.
Suggested Article: What is an ECI Contract? (And How It Works) (Click here to read it)
The CM/GC delivery method is considered ideal due to the complexity of coordinating with six other projects within this initiative. The primary objectives are to enhance construction safety, minimise engineering risks, increase quality, and efficiency while also providing greater certainty regarding construction cost and schedule.
NCDOT – Roadway improvements for US Open at Pinehurst – Flatiron Leadership Comments
Jim Schneiderman, Flatiron’s Senior Vice President for the Mid-Atlantic, expressed the company’s enthusiasm for collaborating with Fred Smith Company and NCDOT to enhance transportation flow in preparation for significant events in the Pinehurst area.
Schneiderman emphasized that they are already engaged in developing the project plan and will continue to work collaboratively to find innovative solutions to address challenges as they arise.
This project aligns with Flatiron’s strategic approach to building successful relationships within local markets. It further reinforces Flatiron’s prominent position in infrastructure construction in North Carolina.
This includes involvement in:
- Three I-95 improvement projects worth over $900 million,
- The $59 million U.S. 70 Freeway and Interchanges project, a 1.5-mile segment of the Winston-Salem Northern Beltway valued at $126 million (with a previously completed adjacent segment exceeding $400 million), and
- The N.C. 540 A&B projects, with a combined value exceeding $400 million.
