Audits raise red flags on city contracts

At its Tuesday, Oct. 21, meeting, Scottsdale City Council is likely to approve 19 items on the consent agenda – somewhat mundane items that it votes on collectively, without individual presentations or discussion.

One is to authorize a $2 million contract with Ameresco, Inc. “for design-build manager (DBM) construction phase services, guaranteed maximum price … for 2019 bond project 58: install parasol solar shade structure at City Hall parking lot.”

Regarding similarly-structured Scottsdale contracts over the last five-plus years, city auditors have raised red flags.

Auditors have repeatedly criticized the implementation of “construction manager at risk” (CMAR) and the “guaranteed maximum price” (GMP) contracts.

This method contrasts with the traditional “low bid” process, in which qu