Title
Proposed Change Order No. 1
Contract No. 2004082/SCN-0000918
Contract Title: Rehabilitation of Woodward Sewer System
CIP #260207 / BCE: N/A
Body
Agenda of: August 26, 2026
Item No.: 2026-304
Amount: Original Contract Price $18,695,250.00
Change Order No. 1 0.00
Change Order No. 2 0.00
Change Order No. 3 0.00
Change Order No. 4 0.00
Tender Release/Substitution Agreement (Old Contract) (3,586,151.80)
Original Contract Retention 934,762.50
Revised Original Total Contract Price (Closeout) $16,043,860.70
Tender Release/Substitution Agreement (New Contract) $1,945,284.96
Proposed Change Order No. 1 (New Contract) 1,644,355.27
Total Release/Substitution Agreement (New Contract) $3,589,640.23
Total Project Cost $19,966,500.23
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: July 31, 2026
RE: Proposed Change Order No. 1
Contract No. 2004082/SCN-0000918
Rehabilitation of Woodward Sewer System
Vendor: Pamar Enterprises, Inc.
Status: Amendment/Change Order
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/SCN-0000918, Proposed Change Order No. 1 “Rehabilitation of Woodward Sewer” with Pamar Enterprises, Inc., for an increased cost of $1,644,355.27 for a total cost not to exceed $3,589,640.23 and no increase in duration for a total duration of 779 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
On October 6, 2021, GLWA entered into Contract No. 2004082 (SCN-0000060) with Lanzo Construction Co. (Lanzo) to rehabilitate the Woodward Sewer System. GLWA issued Notices to Cure to Lanzo repeatedly in 2022 and 2023 indicating default under the original contract by failure to perform. Lanzo demobilized in June 2024 with some remaining Contract work incomplete. GLWA made a claim on Lanzo’s performance bond in June 2025. Liberty Mutual Insurance Company (Liberty) arranged for Pamar Enterprises, Inc. (Pamar) to complete the work and Liberty, Lanzo, Pamar and GLWA entered into a Tender, Release, and Substitution Agreement wherein, amongst other things, Liberty tendered to GLWA the services of Pamar as the completion contractor and the completion contract sum of $1,945,284.96, which GLWA held, was to be paid to Pamar. Subsequently, GLWA entered into a new contract (SCN-0000918) with Pamar for the amount referenced above to complete the remaining obligation of the original contract. The Tender Agreement with Liberty did not include the Standby Days, Cash Allowance, and Provisional Allowance.
JUSTIFICATION
This Amendment updates the new contract to include the balances for Standby Days, Cash Allowance, and Provisional Allowance from the original contract with Lanzo to the new contract with Pamar in the amount of $1,644,355.27, to remain available for unforeseen conditions, stand-by days, or Engineer-Directed additional services.
The addition of the transferred funds for standby days and allowances ensures that all remaining work under the original contract is completed and that sufficient funding is available to cover unforeseen conditions or required changes.
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)
Change Order No. 3 61 days (06/02/2024 - 08/01/2024)
Change Order No. 4 304 days (08/02/2024 - 06/01/2025)
Total Tender Release/Substitution Agreement
(Old Contract) 1335 days (10/06/2021 - 06/01/2025)
Tender Release/Substitution Agreement
(New Contract) 779 days (07/15/2026 - 08/31/2028)
Proposed Change Order No. 1 0 days (07/15/2026 - 08/31/2028)
Tender Release/Substitution Agreement
(New Contract) 779 days (07/15/2026 - 08/31/2028)
Total Project Time 2,522 days (10/06/2021 - 08/31/2028)
PROJECT ESTIMATE
Original Contract Price $18,695,250.00
Change Order No. 1 0.00
Change Order No. 2 0.00
Change Order No. 3 0.00
Change Order No. 4 0.00
Tender Release/Substitution Agreement (Old Contract) (3,586,151.80)
Revised Original Total Contract Price (Closeout) $15,109,098.20
Tender Release/Substitution Agreement (New Contract) $1,945,284.96
Proposed Change Order No. 1 (New Contract) 1,644,355.27
Total Release/Substitution Agreement (New Contract) $3,589,640.23
Total Project Cost $18,698,738.43
FINANCIAL PLAN IMPACT
Summary: Sufficient funds are provided in the financial plan for this project.
Funding Source: 5421 - Wastewater Construction Fund
Cost Center: 880000 - Capital Improvement Program
Spend Category: Construction
Project Worktag: PRJ-260207
Estimated Costs and Related Estimating Variance: See table attached.
Following acceptance of the tender offer, GLWA authorized a contractor substitution to complete the remaining work and retained the original contractor’s retention, totaling $941,017.02 including interest.
Change Order No. 1 increases the total contract balance by $938,250.93. The retained funds discussed above ($941,017.02) ensure sufficient funding for the replacement contractor’s remaining and additional work while reducing reliance on construction bond funds.
Sufficient funding is available within the project plan to support this change order.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on August 12, 2026.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.