Title
Proposed Change Order No. 1
Contract No. 2004825
Construction Manager at Risk for 96-Inch Water Transmission Main Relocation
CIP #122004 / BCE Score: 65.2
Body
Agenda of: October 25, 2023
Item No.: 2023-357
Amount: Original Contract $36,342,500.00
Proposed Change Order No. 1 2,546,613.59
Total Revised Contract $38,889,113.59
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: September 29, 2023
RE: Proposed Change Order No. 1
Contract No. 2004825
Construction Manager at Risk for 96-Inch Water Transmission Main Relocation
Vendor: Kiewit Infrastructure Company
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. 2004825 Proposed Change Order No. 1, “Construction Manager at Risk for 96-Inch Water Transmission Main Relocation” with Kiewit Infrastructure Company, at an increased cost of $2,546,613.59 for a total cost not to exceed $38,889,113.59 and a decreased duration of 1,730 days for a total duration of 640 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
Contract No. 2004825 is a Construction Management at Risk (CMAR) that involves the relocation of approximately 2.5 miles of 96-inch water transmission main (WTM) currently located in a landfill located in Shelby Township, MI. The existing 96-inch WTM was constructed in the mid-1960s and was placed into service in December 1967. The relocated WTM will connect to GLWA’s existing water transmission system near the intersection of 24 Mile Road and the Macomb Orchard Trail on the north and in the intersection of Dequindre Road and Hamlin Road on the south.
The existing 96-inch WTM is part of GLWA’s overall drinking water transmission system that interconnects the Lake Huron Water Treatment Plant (LHWTP) with other water treatment plants (WTPs) and water transmission facilities. The 96-inch WTM begins at GLWA’s Imlay Station which receives flows from the existing 120-inch WTM that are pumped from the LHWTP and transmitted west in an existing 72-inch WTM and south in the 96-inch WTM to the northern Metro Detroit member partner communities. The 96-inch WTM continues south from Imlay Station and terminates at GLWA’s North Service Center station (NSC).
This relocation project involves three phases of work to successfully install a new 96-inch WTM and permanently decommission the existing 96-inch WTM between Rochester Booster Pump Station (RBPS) and Hamlin/Dequindre Rd. Phase 1 of the project focused on the Clinton River crossing and the Avon Road infrastructure improvements.
This Proposed Change Order No. 1 is requesting an adjustment in contract time and cost. GLWA elected to terminate the current CMAR contract and move froward with the following phases as traditional Design-Bid-Build delivery methods. Due to this change, there are costs associated with contract closeout, demobilization, and general conditions that were not included within Guaranteed Maximum Price (GMP) No. 1 since Kiewit Infrastructure Company was scheduled to be involved in GMP No. 2. In addition, GLWA is adjusting the contract final completion date to match the date included within the termination letter.
JUSTIFICATION
Costs included in this proposed change order involve two major items:
• GMP No. 1 cofferdam design and estimate assumptions associated with trade contractor bids. This item accounts for one-third of the change order amount for this Board request.
• General Conditions included in GMP No. 1 through specific timeframes with assumptions of GMP No. 2 carrying costs of staff, equipment, laydown yard, field offices, etc. This item accounts for two-thirds of the change order amount for this board request.
PROJECT MANAGEMENT STATUS
Original Contract Time 2,370 days (02/28/2022 - 08/25/2028)
Proposed Change Order No. 1 (1,730) days (08/25/2028 - 12/01/2023)
New Contract Time 640 days (02/28/2022 - 12/01/2023)
PROJECT ESTIMATE
Original Contract Price $36,342,500.00
Proposed Change Order No. 1 2,546,613.59
New Contract Total $38,889,113.59
FINANCIAL PLAN IMPACT
Summary: Sufficient funds are provided in the financial plan for this project.
Funding Source: Water Construction Bond
Cost Center: Field Engineering
Expense Type: Construction (5519-882411.000-616900-122004)
Estimated Cost by Year and Related Estimating Variance: See table below.
Original Contract Price $36,342,500.00
Proposed Change Order No. 1 2,546,613.59
New Contract Total 38,889,113.59
Amended Financial Plan Estimate 232,527,000.00
Estimating Variance $193,637,886.41
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on October 11, 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.