Title
Contract No. GLWA-PC-796
Proposed Change Order No. 1
Aeration System Improvements
Body
Agenda of: September 26, 2018
Item No.: 2018-907
Amount: Credit $150,000.00
Time: 180 calendar day extension to Substantial Completion
180 calendar day extension to Final Completion
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: September 6, 2018
RE: Contract No. GLWA-PC-796
Proposed Change Order No. 1
Aeration System Improvements
Vendor: Weiss Construction Company, LLC
Designer: METCO Services, Inc
MOTION
Upon recommendation of Suzanne Coffey, Chief Planning Officer, Interim Chief Operating Officer - Wastewater, The Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into Contract No. PC-796 Change Order No. 1, “Aeration System Improvements” with Weiss Construction Company, LLC, at a decreased cost of $150,000.00 and an increased contract length of 180 days for both the Substantial Completion date and Final Completion date for a total contract duration of 900 days, and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
On October 3, 2016, Great Lakes Water Authority awarded this contract to rehabilitate and upgrade the Water Resource Recovery Facility (WRRF) aeration system. The scope of work includes the replacement of process piping, magnetic flow meters, valves, sluice gates and actuators, and variable frequency drives (VFD), as well as miscellaneous architectural, structural, HVAC, electrical and instrumentation controls components.
The original required substantial and final completion dates of the project are July 25, 2018 and September 24, 2018, respectively.
The work associated with aeration basins 3 and 4 has been completed and returned to service, however, the official 30-day demonstration test has not been completed. Currently, the Contractor is working on aeration basins 1 and 2.
The project is expected to be substantially complete in January 2019.
JUSTIFICATION
The project has encountered a variety of unforeseeable delays. The delays include:
a) inability to isolate aeration basins 3 and 4 due to an existing 48” valve that was leaking;
b) inspection of two existing 96” expansion joints;
c) shut down approval delays due to operational needs/part 41 permit restrictions;
d) start up issues with VFD for the intermediate lift pump (ILP) 4;
e) VFD testing delays due to operational constraints; and
f) additional pipe support for a large diameter process pipe.
The Contractor submitted a time extension request to GLWA on April 22, 2018. GLWA reviewed the time extension request and analyzed the delays as well as the remaining activities to be completed for the project. After a detailed analysis of the delays as of June 30, 2018, GLWA and Weiss mutually agreed that both parties are responsible for the delays and that the contractor is responsible for a larger portion of the delays and that 180 calendar days extension is needed to complete this project.
GLWA and Weiss further mutually agreed that $150,000 would be credited to GLWA as compensation for the reasonable GLWA labor costs associated with the extension of completion time. Therefore, 180 calendar days extension to both the substantial and final completion dates is being requested via this Change Order No.1.
PROJECT TASKS/COSTS
Projected changes to the Contract as a result of this proposed Change Order are:
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A |
Time: |
Add 180 calendar days to the date of Substantial Completion |
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Add 180 calendar days to the date of Final Completion |
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B. |
Amount Credited to the Contract: |
($150,000.00) |
PROJECT MANAGEMENT STATUS
Original Start Work Date: October 23, 2016
Current Substantial Completion Date: July 25, 2018
Current Final Completion Date: September 24, 2018 (720 Days)
Change Order 1 Substantial Completion Date: January 21, 2019 (180 Days)
Change Order 1 Final Completion Date: March 23, 2019 (900 Days)
PROJECT ESTIMATE
Original Contract Price: $ 15,985,000.00
Change Order No. 1: (150,000.00)
Change Order No. 1 Contract Total: $ 15,835,000.00
FINANCIAL PLAN IMPACT
Contract Value: $15,985,000.00
Less: Change Order Value: $ (150,000.00)
New Contract Value: $15,835,000.00
Positive Budget Variance: $ 150,000.00
SAVINGS, COST OPTIMIZATION, AND REVENUE ENHANCEMENT IMPACT
The $150,000 budget reduction resulting from the authorization of this change order for the Aeration System Improvements Change Order No. 1 will be recorded in wastewater capital reserve account.
Current contract value: $15,985,000.00
New contract value: 15,835,000.00
Capital reserve adjustment: $ 150,000.00
RETURN ON INVESTMENT
This contract is necessary to provide GLWA with more reliable and flexible operation of the aeration system and therefore maintain continuing compliance with NPDES permit requirements.
COMMITTEE REVIEW
This item is being presented directly to the full Board of Directors for consideration.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.