Proposed Denver amendment would raise Cuernavaca Park construction contract to $9.72 million

A proposed Denver contract amendment would increase the maximum construction contract for the Cuernavaca Park Offices and Equipment Shop from $1,584,140 to $9,715,164 — an $8,131,024 increase for a second phase at 3500 Rockmont Drive. The amendment is not effective until required city signatures are completed and, if necessary, Denver City Council approves it. Its signature page is blank, and no separate official record reviewed as of Aug. 26, 2026, confirms final approval or execution.

The project is intended to replace the Park Avenue facility with offices and space for Parks and Recreation materials and equipment, according to Denver’s project procurement page. The Phase 2 proposal covers about 13,760 square feet of office and equipment-shop buildings and related site work.

The added work includes pre-engineered metal buildings, concrete, masonry, elevators, plumbing, HVAC and geothermal systems, electrical and low-voltage infrastructure, solar, earthwork, paving, fencing, irrigation, drainage, security and access-control systems. The $8,131,024 Phase 2 price consists of $6,789,688 in direct costs and $1,341,336 in indirect costs, including operating costs, a 4% construction fee, contingency, insurance and payment and performance bonds, the amendment and attached contractor proposal say.

The amendment identifies the basis for the increase as incorporating Mark Young Construction Group’s Phase 2 guaranteed maximum price and adding capacity for the materials, labor and equipment. It does not attribute the increase to inflation, design changes or prior change orders. The proposal also includes allowances for elevator-core steel, Xcel electric service, internet service, city technology materials, water and sewer tap fees, and permits and plan review.

The amendment sets a 450-calendar-day period from construction notice to proceed through substantial completion, but the record does not provide a formally issued notice-to-proceed date. The contractor’s proposal uses Sept. 1, 2026, as the start of an approximately 12-month construction schedule ending Sept. 1, 2027. A more detailed schedule lists final inspections on Dec. 10, 2027. The documents do not explain how those dates align with the 450-day term, so Sept. 1 should not be treated as a verified notice-to-proceed date.

The record also does not show that the larger solar option was selected. The base proposal calls for an approximately 8.085-kilowatt DC, 7.686-kilowatt AC system intended to provide a 10% annual energy-use offset. A 20% offset system is listed separately as a $16,881 add alternate. The documents do not provide a kilowatt-hour estimate or show that the alternate was accepted and included in the guaranteed maximum price.

The $9.72 million figure is maximum contract capacity, not proof that the city has spent that amount. The amendment says the city’s liability is limited to the maximum, as adjusted by an authorized change order, and that savings below the guaranteed maximum belong entirely to the city. A Dec. 8, 2025, Denver City Council record separately lists the earlier $1,584,140 Cuernavaca Park contract proposal, marked “Failed,” but does not independently establish the status of this later Phase 2 amendment.