Title
Proposed Change Order No. 4
Contract No. 1802775
Park-Merriman Road 24-Inch Water Main
CIP #122011 / BCE Score: 30.2
Body
Agenda of: April 27, 2022
Item No.: 2022-134
Amount: Original Contract $6,796,714.65
Change Order No. 1 2,093,850.86
Change Order No. 2 273,814.41
Change Order No. 3 0.00
Proposed Change Order No. 4 200,000.00
Total Revised Contract $9,364,379.92
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Interim Chief Executive Officer
Great Lakes Water Authority
DATE: April 1, 2022
RE: Proposed Change Order No. 4
Contract No. 1802775
Park-Merriman Road 24-Inch Water Main
Vendor: Salenbien Trucking & Excavating, Inc.
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 Interim Chief Executive Officer (ICEO) to enter into Contract No. 1802775 Proposed Change Order No. 4 “Park-Merriman Road 24-Inch Water Main” with Salenbien Trucking & Excavating, Inc., at an increased cost of $200,000.00 for a total cost not to exceed $9,364,379.92 and an increased duration of 273 days for a total contract duration of 1,389 days; and authorizes the ICEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
GLWA Contract No. 1802775, Park-Merriman Road 24-inch Water Main, involves the construction of 7,000 linear feet of 24-inch diameter water transmission main. Once completed, this new transmission main will parallel existing single feed main and as a result will provide the necessary redundancy. The Contract was awarded to Salenbien Trucking & Excavating, Inc. (Salenbien) and commenced to run on March 11, 2019. The substantial completion date was June 30, 2021, and the Contract final completion date is April 1, 2022. To date, approximately 6,990 linear feet of 24-inch transmission main has been installed. Remaining construction of the main involves one final connection into GLWA’s existing transmission main system to connect the new master meter WY-02 to serve the City of Wayne, our member partner. This work requires the Michigan Avenue Booster Station line pumps to be shut down and only operate the reservoir pumps. The project team has attempted this shutdown and continues to find pressure related issues downstream. GLWA is working internally with the City of Wayne, to develop an alternate shutdown plan to complete the connection. This Proposed Change Order No. 4 requests that 273 days be added to final contract completion. This additional time will allow for the completion of the final connection and closeout activities.
Change Order No. 1 was due to unforeseen contaminated materials found during the installation of the new transmission main, which resulted in additional costs. Change Order No. 2 was due to unforeseen site conditions that surfaced during a shutdown causing delays because of a failed isolation, which resulted in additional cost and time. Change Order No. 3 was for a time extension only to complete the final tie-ins for the project and project close out. Those tie-ins failed; therefore, an additional change order is requested.
The additional funds of $200,000.00 along with the additional time are requested as part of this Proposed Change Order No. 4 to add to the provisional allowance to cover additional general conditions, bond, insurance, additional mobilization and demobilization, and downtime during the shutdowns.
JUSTIFICATION
The additional contract amount and time requested in this proposed change order are a result of unforeseen site conditions that were outside the control of the contractor and changes to the shutdown schedule for the project. Approval of this change order will allow GLWA to proceed with the completion of this transmission main redundancy as well as finishing related master meter improvements.
PROJECT MANAGEMENT STATUS
Original Contract Time 730 days (03/11/2019 - 03/10/2021)
Change Order No. 1 54 days (03/11/2021 - 05/04/2021)
Change Order No. 2 227 days (05/05/2021 - 12/17/2021)
Change Order No. 3 105 days (12/18/2021 - 04/01/2022)
Proposed Change Order No. 4 273 days (04/02/2022 - 12/29/2022)
New Contract Time 1,389 days (03/11/2019 - 12/29/2022)
PROJECT ESTIMATE
Original Contract Price $6,796,714.65
Change Order No. 1 2,093,850.86
Change Order No. 2 273,814.41
Change Order No. 3 0.00
Proposed Change Order No. 4 200,000.00
New Contract Total $9,364,379.92
FINANCIAL PLAN IMPACT
Summary: Sufficient funds are provided in the financial plan for this project.
Funding Source: Water Construction Fund
Cost Center: Water Field Engineering
Expense Type: Construction (5519-882411.000-616900-122011)
Estimated Cost by Year and Related Estimating Variance: See table below.
Original Contract Price $ 6,796,714.65
Change Order No. 1 2,093,850.86
Change Order No. 2 273,814.41
Change Order No. 3 0.00
Proposed Change Order No. 4 200,000.00
New Contract Total 9,364,379.92
Amended Financial Plan Estimate 7,217,000.00
Estimating Variance $(2,147,379.92)
The award of this change order to the vendor creates a negative estimating variance of $2,147,379.92. This variance will be funded from capital reserves.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on April 13, 2022. 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.