Title
Proposed Change Order No. 1
Contract No. 2101878-1
Hazmat Building Rehabilitation
CIP #260901/BCE Score 52.1
Body
Agenda of: May 22, 2024
Item No.: 2024-174
Amount: Original Contract Price $2,932,000.00
Proposed Change Order No. 1 0.00
New Contract Total $2,932,000.00
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. 1
Contract No. 2101878-1
Hazmat Building Rehabilitation
Vendor: LaSalle Construction Services
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. 2101878-1, Proposed Change Order No 1, “Hazmat Building Rehabilitation” with LaSalle Construction Services with no increase in cost at a total cost not to exceed $2,932,000.00, and an increased duration of 182 days for a total duration of 548 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
GLWA awarded LaSalle Construction Services, Inc. (Contractor) the construction agreement for the HAZMAT Building Rehabilitation. The purpose of this contract is to do a comprehensive renovation of the existing HAZMAT facility including the expansion of the equipment bay, building envelope upgrades, complete interior renovations, site upgrades, and the demolition of the guard shack.
The project is progressing, and the communication cable installation is being finalized to facilitate the demolition of the guard shack. The furniture order has been approved and is on track to be completed in time for the revised contract end date.
JUSTIFICATION
Based on the current rate of progress, the project will not achieve the substantial and final completion contract milestone dates. There have been several concurrent delay issues that are contributing to the overall delay of the project where all parties may bear a contractual responsibility for parts of the delay.
Final resolution of responsibility for the delay has yet to be determined. However, the net schedule impact for all delays was assessed by GLWA, resulting in a revised contract completion date. To facilitate the completion of the project while resolution of the responsibility and potential associated costs is resolved, this change order is being processed on a unilateral basis. It should be noted that when GLWA was presented a bilateral change order for this time extension, the Contractor requested an additional $106,250.00 in extended general conditions costs. Should any additional costs resulting from this request be owed in compliance with the Contract, they will be presented to the board in a future change order after negotiation with the Contractor.
PROJECT MANAGEMENT STATUS
Original Contract Time 366 days (05/30/2023 - 05/29/2024)
Proposed Change Order No. 1 182 days (05/30/2024 - 11/27/2024)
New Contract Time 548 days (05/30/2023 - 11/27/2024)
PROJECT ESTIMATE
Original Contract Price $2,932,000.00
Proposed Change Order No. 1 0.00
New Contract Total $2,932,000.00
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 (5421-892211.000-616900-211002)
Estimated Cost by Year and Related Estimating Variance: See table below.
Original Contract Price $2,932,000.00
Proposed Change Order No. 1 0.00
New Contract Total $2,932,000.00
Amended Financial Plan Estimate $2,932,000.00
Estimating Variance 0.00
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.