Title
Proposed Change Order No. 3
Contract No. GLWA-SP-563
1958 Filter Replacement and Facilities Rehabilitation at Springwells Water Treatment Plant
Body
Agenda of: October 31, 2019
Item No.: 2019-365
Amount: Original Contract $75,899,000.00
Change Order No. 1 0.00
Change Order No. 2 0.00
Proposed Change Order No. 3 950,000.00
Total Revised Contract $76,849,000.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: October 2, 2019
RE: Proposed Change Order No. 3
Contract No. GLWA-SP-563
1958 Filter Replacement and Facilities Rehabilitation at Springwells
Water Treatment Plant
Vendor: Walsh Construction 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. GLWA-SP-563 Change Order No. 3 “1958 Filter Replacement and Facilities Rehabilitation at Springwells Water Treatment Plant” with Walsh Construction Company, at an increased amount of $950,000.00 for a total cost not to exceed $76,849,000.00, and an increased duration of 149 days for a total contract duration of 2,467 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
Contract No. SP-563 is a construction contract that involves reconstruction of all forty (40) 1958 filters and nineteen (19) 1930 filters, and architectural, structural, heating, ventilating, air-conditioning, dehumidifying, electrical, and control system improvements in several major buildings at the facility, including the 1930 filter building, 1958 filter building, 1958 service building, 1958 rapid mix building, 1958 flocculation building, and administration building. The contract expires on November 12, 2019; however, the work remaining will not be completed by this date. The remaining work principally includes process control system startup, testing and commissioning, and completion of miscellaneous improvements such as the laboratory renovation, locker room renovation, painting, and grating system installation.
This negotiated change order adds $950,000.00 to the total contract amount and pays all balances remaining in unit price pay items ($371,172.04) and the remaining provisional allowance ($8,956.88) to compensate the Contractor for extended general conditions on the project due to the following remaining work under the Contract:
1. Construction, testing and commissioning of plant-wide process control system improvements, including Allen-Bradley PLCs and overall Ovation distributed process control network for the plant.
2. Final HVAC upgrades on the 2nd floor of the administration building.
3. New, submersible limit switches on the influent and drain valve operators on all 40 filters in the 1958 filter plant.
4. Miscellaneous work in the administration building, including sample pump bypasses and condensate pump improvements.
This negotiated change order also changes the scope of warranties to include only the elevators installed under the Contract and the process control system for 1-year beyond the date of Substantial Completion because the following filters have been producing water for the past two years:
• 40 rehabilitated filters in the 1958 filter plant
• 19 rehabilitated filters in the 1930 filter plant
JUSTIFICATION
GLWA substantially changed the scope of process control system improvements beyond that originally specified in the Contract to conform to GLWA’s current standards and best industry practices for control system. Similarly, the heating, ventilating and air-conditioning system on the second floor of the administration building was improved to a greater extent than originally specified due to the final architectural renovations made in this building. Lastly, the addition of the submersible limit switches for the 1958 filter influent and drain valve operators and miscellaneous improvements in the administration building were best performed under this current contract.
PROJECT MANAGEMENT STATUS
Original Contract Time 1,710 days
Change Order No. 1 243 days
Change Order No. 2 365 days
Proposed Change Order No. 3 149 days
New Contract Time 2,467 days
New Date for Substantial Completion of the Contract January 10, 2020
New Date for Final Completion of the Contract April 9, 2020
PROJECT ESTIMATE
Original Contract Price $ 75,899,000.00
Change Order No. 1 0.00
Change Order No. 2 0.00
Proposed Change Order No. 3 950,000.00
New Contract Total $ 76,849,000.00
FINANCIAL PLAN IMPACT
Summary: Sufficient funds are provided in the financial plan for this project.
Funding Source: Water Construction Bond
Cost Center: Water Engineering
Expense Type: Construction (5519-882111.000-616900-114003)
Estimated Cost by Year and Related Estimating Variance: See table below.
Original Contract Price $ 75,899,000.00
Change Order No. 1 0.00
Change Order No. 2 0.00
Current Contract Total $ 75,899,000.00
Proposed Change Order No. 3 950,000.00
New Contract Total $ 76,849,000.00
Amended Financial Plan Estimate 75,899,000.00
Negative Estimating Variance $ (950,000.00)
The award of this change order to the vendor creates a negative estimating variance of $950,000.00. This variance will be funded from capital reserves
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on October 9, 2019. 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.