Title
Proposed Change Order No. 2
Contract No. 2301148/SCN-0000488
Water Transmission Main, Valve, Emergency and Other Urgent Repairs
CIP #170506 / BCE Score: 73.60
Body
Agenda of: July 22, 2026
Item No.: 2026-265
Amount: Original Contract $21,500,000.00
Change Order No. 1 20,000,000.00
Proposed Change Order No. 2 13,000,000.00
Total Contract Amount: $54,500,000.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: June 26, 2026
RE: Proposed Change Order No. 2
Contract No. 2301148/SCN-0000488
Water Transmission Main, Valve, Emergency and Other Urgent Repairs
Vendor: Ric-Man Construction, Inc.
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. 2301148(SCN-0000488), Proposed Change Order No. 2 “Water Transmission Main, Valve, Emergency and Other Urgent Repairs” with Ric-Man Construction, Inc., at an increased cost of $13,000,000.00 for a total cost not to exceed $54,500,000.00 and no increase in duration for a total duration of 1,825 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The GLWA Water Transmission Main System consists of a network of approximately 800 miles of large (greater than 24-inch diameter) water mains that serve 3.9 million people across 115 communities that are represented by 88 member partners in eight counties of southeastern Michigan. There are approximately 10,000 air, blow-off, and isolation valves associated with these water mains. The average pipe age is over 60 years old with some exceeding 150 years in age.
This Contract No. 2301148 provides responses to water main breaks/leaks, valve repairs, and other urgent projects as necessary to allow GLWA to provide water of unquestionable quality at the promised level of service to our member partners. In addition, this contract provides support to the Linear System Integrity Program, Valve Exercising Program, Capital Improvement Plan and GLWA/DWSD decommissioning program. This contract is one of two concurrent emergency repair contracts, the other being Contract No. 2003730, that GLWA intends to maintain on a staggered basis.
Change Order No. 1 added $20,000,000.00 to repair the damaged pipe sections on the 36-inch water transmission main on 24 Mile Road that were identified during the Linear System Integrity Program (LSIP) inspection to be incipient failures and past the strength limit of the operating pressure.
JUSTIFICATION
This Proposed Change Order No. 2 is requesting additional funds due to replacing approximately one mile of 42-inch water transmission main along West 14 Mile Road between M-5 and Novi/Decker Road in the City of Novi based on the findings from an inspection from the Linear System Integrity program (LSIP) after an emergency repair of a 42-inch water main break in September 2025. In addition, this Contract has been a part of two (2) of the three (3) major breaks since February 2026. The 48-inch water main break along West 14 Mile Road in Farmington Hills in March 2026 and the 42-inch water main break in Auburn Hills in May 2026.
Due to the size of GLWA’s Water Transmission Main System, there will be emergencies and urgent projects throughout the remaining contract term of approximately three (3) years that will require a quick response to return the system to normal operation and provide partners with water of unquestionable quality. The requested funds will replenish the emergency response contract allowing GLWA to have crews to address emergencies and urgent projects.
PROJECT MANAGEMENT STATUS
Original Contract Time 1,825 days (08/23/2024 - 08/22/2029)
Change Order No. 1 0 days
Proposed Change Order No. 2 0 days
New Contract Time 1,825 days (08/23/2024 - 08/22/2029)
PROJECT ESTIMATE
Original Contract Price $21,500,000.00
Change Order No. 1 20,000,000.00
Proposed Change Order No. 2 13,000,000.00
New Contract Total $54,500,000.00
FINANCIAL PLAN IMPACT
Summary: The proposed contract with Ric-Man Construction, Inc. encompasses Capital Improvement Plan and Operations & Maintenance expenses. Should this contract be utilized to its maximum value, the value of the contract will exceed the current financial plan. If a budget amendment is needed, it will be offset from the unallocated reserve.
Funding Source: Operations & Maintenance (O&M) Budget; CIP 170506; CIP 170602
Cost Center(s): Field Engineering 882411..Centralized Services cost center 882431
Expense Type(s): Construction (616900); Contractual Operating Services-All Water (617901)
Estimated Cost by Year and Related Estimating Variance: See table below.
CIP Plan O&M Budget Total
Original Contract Price $15,000,000.00 $6,500,000.00 $21,500,000.00
Change Order No. 1 20,000,000.00 0.00 20,000,000.00
Proposed Change Order No. 2 9,000,000.00 4,000,000.00 13,000,000.00
New Contract Total 44,000,000.00 10,500,000.00 54,500,000.00
Financial Plan Estimate 49,241,000.00 7,655,720.42 56,896,720.42
Estimating Variance $5,241,000.00 ($2,844,279.58) $2,396,720.42
The award of this change order provides an estimated O&M negative variance of ($2,844,279.58) which will be funded from the unallocated reserves and a CIP positive estimating variance of $5,241,000.00 which will move to reserves. The CIP financial plan (forecast) is from the FY 2027-2031 CIP Plan.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on July 8, 2026.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.