Title
Proposed Change Order No. 1
Contract No. 1803990
Lake Huron Water Treatment Plant High Lift Pumping Metering and Yard Piping Improvements
CIP #111009/BCE Score: 75.7
Body
Agenda of: August 28, 2024
Item No.: 2024-249
Amount: Original Contract Price $30,022,636.79
Proposed Change Order No. 1 237,425.00
Contract Total $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: July 31, 2024
RE: Proposed Change Order No. 1
Contract No. 1803990
Lake Huron Water Treatment Plant High Lift Pumping Metering and Yard Piping Improvements
Vendor: Weiss Construction Co., LLC
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, Proposed Change Order No. 1, “Lake Huron Water Treatment Plant High Lift Pumping Metering and Yard Piping Improvements” with Weiss Construction Co., LLC, at an increased cost of $237,425.00 for a total cost not to exceed $30,260,061.79 and an increased duration of 744 days for a total duration of 2,167 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The design build agreement (GLWA Contract No. 1803990) was executed on September 23, 2020 with Weiss Construction Co., LLC. for a total contract value of $30,022,636.79. The major scope includes the design, procurement and construction of three high lift vertical turbine pumps each rated for 20 million gallons per day (MGD), one 84-inch triple offset butterfly valve, three 24-inch cone valves, three 42-inch double disc gate valves, and one 72-inch flow meter.
The three new high lift pumps will operate alongside with the existing pumps or will be operated standalone to allow for reduced high lift discharge flows as required for the 96-inch relocation project. A separate engineering services agreement (GLWA Contract No. 1803769) is currently in progress to design improvements to the overall high lift pumping capabilities, incorporating the new high lift pumps being installed under Contract 1803990. Following coordination efforts across projects, the project team for Contract 1803769 recommended changing the pumps to a higher speed. This change would enable the pumps to operate over a broader operating pressure range, a determination made necessary following completion of flow modeling and consideration of future demand changes. The project team for Contract 1803990 assessed the feasibility of this change and concluded that the request could be accommodated with minor impacts, such as pump delivery delays and design rework. This modification was also coordinated with the 96-inch relocation project team, who concluded that the delays would have no adverse impacts. Consequently, a change to the new high lift pumps was requested by GLWA and authorized by Construction Change Directive No. 5 on June 29, 2022, which included $279,097.00 for reworking the design. The costs, in the amount of $237,425.00, associated with the time extension for this change order were negotiated in July of 2022 and include escalation, bonds and insurance, project management, trailers, and other general conditions work items required to keep the work moving.
After the pump design changes initiated by GLWA, the Contractor and Contractor’s pump manufacturer caused unexpected delays due to untimely submittals that could not be approved due to noncompliance with the design and contained numerous quality issues. The overall time impact that is presented in this change order is at risk of further delay since the corrected submittal was due on July 26, 2024, and the Contractor received on August 16, 2024. The Contractor has implemented various corrective actions with the pump supplier, including regular engagement with senior leadership, frequent meetings between the supplier and Engineer, and legal involvement. No costs related to time delays caused by the pump manufacturer are included in this change order.
This proposed Change Order No. 1 would extend substantial completion to October 17, 2024, versus the Contractor requested date of April 3, 2026, and would extend final completion to March 11, 2025, versus the Contractor requested date of October 2, 2026. This change order is being processed unilaterally since Weiss Construction Co.; LLC does not agree with the dates that GLWA has proposed for board approval as the potential start for assessing liquidated damages. Before assessing liquidated damages, GLWA will meet with Weiss Construction Co., LLC to determine if alternate dates for liquidated damages are justified with sufficient backup.
JUSTIFICATION
Allowing for additional time to procure and install three high lift vertical turbine pumps, each rated for 20 MGD, will not negatively affect plant operations, downstream projects and represents only a minor additional cost. Once installed, these pumps will offer energy savings by being more energy-efficient than the current pumps and will enhance operational flexibility. If additional time is not approved, the alternative is contract termination that would have costs for GLWA to assume ownership or pursue refunds for unused project-specific materials and equipment.
PROJECT MANAGEMENT STATUS
Original Contract Time 1,393 days (10/26/2020 - 08/19/2024)
Proposed Change Order No. 1 774 days (08/20/2024 - 10/02/2026)
New Contract Time 2,167 days (10/26/2020 - 10/02/2026)
PROJECT ESTIMATE
Original Contract Price $30,022,636.79
Proposed Change Order No. 1 237,425.00
New Contract Total $30,260,061.79
FINANCIAL PLAN IMPACT
Summary: Sufficient funds are provided in the financial plan for this project.
Funding Source: Water Construction Fund
Cost Center: Water Engineering
Expense Type: Construction (5519-880000-616900-PRJ111009)
Estimated Cost by Year and Related Estimating Variance: See table below.
Original Contract Price $ 30,022,636.79
Proposed Change Order No. 1 237,425.00
New Contract Total 30,260,061.79
Financial Plan Estimate 30,023,000.00
Estimating Variance $ ( 237,061.79)
This negative estimating variance will be funded from Capital Reserves.
COMMITTEE REVIEW
This item is being presented directly to the GLWA Board of Directors.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.