Title
Proposed Change Order No. 3
Contract No. 2004082
Rehabilitation of Woodward Sewer System
CIP #260207/BCE Score: N/A
Body
Agenda of: May 22, 2024
Item No.: 2024-173
Amount: Original Contract Price $18,696,250.00
Change Order No. 1 0.00
Change Order No. 2 0.00
Proposed Change Order No. 3 0.00
New Contract Total $18,696,250.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: April 29, 2024
RE: Proposed Change Order No. 3
Contract No. 2004082
Rehabilitation of Woodward Sewer System
Vendor: Lanzo Construction Co.
MOTION
Upon recommendation of Navid Mehram, Chief Operating Officer - Wastewater Operating Services, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into Contract No. 2004082, Proposed Change Order No. 3, “Rehabilitation of Woodward Sewer System” with Lanzo Construction Co., with no increase in cost at a total cost not to exceed $18,695,250.00 and an increased duration of 61 days for a total duration of 1,031 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The Woodward Sewer System (WWSS) is a major combined sewer interceptor aligned with Woodward Avenue starting at McNichols Road and conveys sewage through the cities of Highland Park and Detroit to the Detroit River Interceptor (DRI). In addition, one leg of the WWSS extends sewer service to the east along Chandler and Clay streets and runs north into the city of Hamtramck. This leg of the sewer, referred to as the WS-300 segment, consists of circular and egg-shaped brick sewers that are being rehabilitated by sliplining and Cured in Place Pipe (CIPP).
Change Order No. 1 extended the contract time for sliplining of the WS-300 sewer to allow for extended material procurement time due to the pandemic and additional time for evaluation of potential substitutions.
Change Order No. 2 extended the key milestones for substantial and final completion dates by 42 days without liquidated damages. There was no change in contract value associated with this change order.
JUSTIFICATION
This request is to extend the key milestone dates of the project’s final completion 110 days without liquidated damages from February 12, 2024, to June 1, 2024, and further extending the contract time. The contract time extension keeps the contract current past the final completion date, while allowing for performance of the contract beyond final completion without interruption, if necessary, with GLWA reserving the right to assess liquidated damages for time beyond the key milestone of final completion.
PROJECT MANAGEMENT STATUS
Original Contract Time 547 days (10/06/2021) - (04/05/2023)
Change Order No. 1 270 days (04/06/2023) - (12/31/2023)
Change Order No. 2 153 days (01/01/2024) - (06/01/2024)
Proposed Change Order No. 3 61 days (06/02/2024) - (08/01/2024)
New Contract Time 1,031 days (10/06/2021) - (08/01/2024)
PROJECT ESTIMATE
Original Contract Price $18,695,250.00
Change Order No. 1 0.00
Change Order No. 2 0.00
Proposed Change Order No. 3 0.00
New Contract Total $18,695,250.00
FINANCIAL PLAN IMPACT
Summary: Sufficient funds are provided in the financial plan for this project.
Funding Source: Wastewater Construction Fund
Cost Center: Wastewater Field Engineering
Expense Type: Construction (5421-892411.000-616900-260207)
Estimated Cost by Year and Related Estimating Variance: See table below.
Original Contract Price $18,696,250.00
Change Order No. 1 0.00
Change Order No. 2 0.00
Proposed Change Order No. 3 0.00
New Contract Total 18,696,250.00
Amended Financial Plan Estimate 18,695,000.00
Estimating Variance ($ 1,250.00)
This proposed change order is for an extension of time only and there is no substantive financial impact.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on May 8, 2024. The Operations and Resources Committee unanimously recommended that the GLWA Board adopt the resolution as presented.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.