#Title
Proposed Change Order No. 1
Contract No. 1803990/SCN-0000739
Lake Huron Water Treatment Plant, High Lift Pumping, Metering and Yard Piping Improvements
CIP #111009 / BCE: N/A
Body
Agenda of: September 23, 2026
Item No.: 2026-358
Amount: Original Contract Price $30,022,636.79
Change Order No.1 237,425.00
Change Order No. 2 0.00
Takeover Agreement (Old Contract) (15,382,891.72)
Total Revised Contract Amount $14,877,170.07
Takeover Agreement (New Contract) $15,382,891.72
Proposed Change Order No.1 0.00
Total Contract Amount: $15,382,891.72
Total Project Cost $30,260,061.79
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 28, 2026
RE: Contract No. 1803990/SCN-0000739
Lake Huron Water Treatment Plant, High Lift Pumping, Metering and Yard Piping Improvements
Vendor: Liberty Mutual Insurance Company
Status: Amendment/Change Order
MOTION
Upon recommendation of Cheryl Porter, Chief Operating Officer - Water and Field Services, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into Contract No. 1803990/SCN-0000739, Proposed Change Order No. 1 “Lake Huron Water Treatment Plant, High Lift Pumping, Metering and Yard Piping Improvements” with Liberty Mutual Insurance Company, at no increase in cost for a total cost not to exceed $15,382,891.72 and an increased duration of 1,007 days for a total duration of 3,174 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The Contractor, Weiss Construction Co. LLC, voluntarily defaulted on Contract No. 1803990. The Surety, Liberty Mutual, initiated the takeover process and selected Vertex as the completion consultant and Whiting Turner as the completion contractor. Liberty Mutual has indicated that their approach is to ratify all remaining Weiss Construction Co. LLC subcontractors and suppliers and have the completion contractor manage the remaining work. In addition, the completion contractor will retain a mechanical subcontractor for pump installation and a commissioning agent.
A simplified timeline for the takeover process is provided below:
• 7/11/2025: Weiss Construction Co. LLC voluntary default
• 7/11/2025 through 12/31/2025: Transition period during which Weiss Construction Co. LLC continued advancing submittals and completing work where possible
• 1/9/2026*: Approximate date when Liberty Mutual communicated selection of Whiting Turner as Completion Contractor
• 5/5/2026: Execution of Takeover Agreement between Liberty Mutual and GLWA
• TBD (imminent): Whiting Turner to be subcontracted by Liberty Mutual as Completion Contractor
• TBD: Ratification of remaining subcontracts and purchase orders
• TBD: Execution of mechanical subcontractor and commissioning agent
The baseline completion schedule is still under development. Because Contract No. 1803990 expires on October 2, 2026, a time extension is required before GLWA can formally accept the baseline completion schedule. The request time extension is based on Whiting Turner’s current best estimate of the completion date, supplemented by an additional six months of float added by GLWA to account for schedule uncertainty.
JUSTIFICATION
The contractor’s default resulted in an unavoidable and substantial disruption to project progress, requiring Liberty Mutual to initiate a formal takeover process. This process involved evaluating the project status, procuring a completion contractor, and re-establishing construction activities under new management-activities that necessarily extended the project timeline. A time extension is therefore justified to account for these impacts and to support the orderly, compliant, and ultimately most cost-effective completion of the project. Completing the work under the bonding company’s management remains the fastest and lowest-cost path to finishing the project successfully. Liberty Mutual remains incentivized to complete the project as early as possible to minimize general condition costs related to time and avoid paying the full penal sum of the bond.
PROJECT MANAGEMENT STATUS
Original Contract Time 1,393 days (10/26/2020 - 08/19/2024)
Change Order No.1 774 days (08/20/2024 - 10/01/2026)
Change Order No.2 0 days
Takeover Agreement (New Contract):
Proposed Change No.1 1,007 days (10/02/2026 - 07/05/2029)
New Contract Time 3,174 days (10/26/2020 - 07/05/2029)
PROJECT ESTIMATE
Original Contract Price $30,022,636.79
Change Order No. 1 237,425.00
Change Order No. 2 0.00
Takeover Agreement (Old Contract) (15,382,891.72)
Total Revised Contract Amount $14,877,170.07
Takeover Agreement (New Contract) $15,382,891.72
Proposed Change Order No.1 0.00
New Contract Total $15,382,891.72
FINANCIAL PLAN IMPACT
Summary: Sufficient funds are provided in the financial plan for this project.
Funding Source: 5519 - Water Construction Fund
Cost Center: 880000 - Capital Improvement Program
Spend Category: Construction
Project Worktag: PRJ-111009
Estimated Costs and Related Estimating Variance: N/A
GLWA entered into a takeover agreement with Liberty Mutual, the project surety, with the same terms as the original Weiss contract. The agreement is set to expire on October 2, 2026. The proposed change order is for time only. While this extends the project’s final completion date to FY30, there is no significant financial impact related to this proposed change order.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on September 9, 2026.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.