Title
Proposed Change Order No. 4
Contract No. 1903598
Construction Manager at Risk for the Assessment and Rehabilitation of WRRF Yard Piping and Underground Utilities
CIP #216006 / BCE Score: 79.0
Body
Agenda of: August 23, 2023
Item No.: 2023-302
Amount: Original Contract $4,863,051.00
Change Order No. 1 685,450.00
Change Order No. 2 596,779.00
Change Order No. 3 0.00
Proposed Change Order No. 4 5,000,000.00
Total Revised Contract $11,145,280.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: August 1, 2023
RE: Proposed Change Order No. 4
Contract No.: 1903598
Construction Manager at Risk for the Assessment and Rehabilitation of WRRF Yard Piping and Underground Utilities
Vendor: The Christman Company
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. 1903598, Proposed Change Order No. 4, “Construction Manager at Risk for the Assessment and Rehabilitation of WRRF Yard Piping and Underground Utilities” with The Christman Company, at an increased cost of $5,000,000.00 for a total cost not to exceed $11,145,280.00 and an increased duration of 243 days for a total duration of 1,231 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
GLWA awarded Contract No. 1903598 to The Christman Company (Construction Manager (CM)) with a start work date of January 15, 2021. This Contract is divided into several phases including (study, preliminary design, final design, and construction) for the piping at the Water Resource Recovery Facility. Through this construction delivery method, change orders are utilized as the funding method to support the progress of the project. As the packages are developed by the designer CDM Smith Michigan Contract No. 1903601 the CM proceeds with advertisement and award with collaboration with GLWA and Designer for execution.
Three Change Orders have been issued under this Contract. Change Order (CO) No.1 for additional condition assessment of the underground utilities, CO No. 2 increased funding for the preliminary and final design phases, and CO No. 3 extended the contract times for bidding and negotiation of the final design packages.
The contract continues to progress, and the improvement documents are approaching 75, 90, or 100% design. Change Order No. 3 set a new completion date for the final design. However, unforeseen design changes and newly realized necessary scope additions pushed the final design to early July. These are also documented in the parallel Amendment No. 4 for Contract No. 1903601, Yard Piping Engineering Services. It is anticipated that four separate packages are necessary to successfully complete the recommended improvements, the first of which will be advertised in late August. The goal is to start construction on the first packages in the fall of 2023.
The proposed Change Order No. 4 seeks to add money for advancement of key long lead items, abatement, and demolition while the bids are formalized into an overall recommendation for the GLWA Board of Directors’ approval. Additionally, the extension in contract time is to allow adequate time in the construction contract to collect all bids and establish Guaranteed Maximum Price (GMP).
JUSTIFICATION
The request for funding is to support early engagement for key long lead item submittals, initiate abatement, and demolition to meet the current planned schedule. This advancement will allow for a seamless transition to the bid packages, minimizing future delays and reducing the escalation factor for key project items. Other important lead time items may come out during the bidding process and this advance construction money will allow the GLWA Engineering, Designer, and Construction Manager at Risk (CMAR) team to move forward without delay as needed. GLWA intends to bring forth future change order when GMP has been established for the remaining packages.
PROJECT MANAGEMENT STATUS
Original Contract time for Study/Design 792 days (01/15/2021 - 03/17/2023)
Change Order No. 1 0 days
Change Order No. 2 0 days
Change Order No. 3 197 days (03/18/2023 - 09/30/2023)
Proposed Change Order No. 4 243 days (10/01/2023 - 05/30/2024)
New Contract Time 1,232 days (01/15/2021 - 05/30/2024)
PROJECT ESTIMATE
Original Contract Price $4,863,051.00
Change Order No. 1 685,450.00
Change Order No. 2 596,779.00
Change Order No. 3 0.00
Proposed Change Order No. 4 5,000,000.00
New Contract Price $11,145,280.00
FINANCIAL PLAN IMPACT
Summary: Sufficient funds are provided in the financial plan for this project.
Funding Source: Sewer Construction Fund
Cost Center: Wastewater
Expense Type: Construction (5421-892211.000-616900-216006)
Estimated Cost by Year and Related Estimating Variance: See table below.
Original Contract Price: $4,863,051.00
Change Order No. 1: $685,450.00
Change Order No. 2 596,779.00
Change Order No. 3 0.00
Proposed Change Order No. 4: $5,000,000.00
New Contract Total: $11,145,280.00
Amended Financial Plan Estimate: 22,449,000.00
Balance reserved for construction: $11,303,720.00
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on August 9, 2023. 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.