Title
Proposed Change Order No. 4
GLWA-PC-797
Wastewater Treatment Plant
Rouge River Outfall Disinfection Project
Body
Agenda of: December 19, 2019
Item No.: 2019-429
Amount: Original Contract $2,696,265.00
Change Order No. 1 2,840,371.00
Change Order No. 2 0.00
Change Order No. 3 38,925,000.00 Proposed Change Order No. 4 0.00
Total Revised Contract $44,461,636.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: December 11, 2019
RE: Proposed Change Order No. 4
GLWA-PC-797
Wastewater Treatment Plant
Rouge River Outfall Disinfection Project
Vendor: CDM Constructors, Inc.
Designer: CDM Constructors, Inc.
MOTION
Upon recommendation of Navid Mehram, Chief Operating Officer - Wastewater Operating Services, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to amend the existing Contract- GLWA-PC-797, “Wastewater Treatment Plant Rouge River Outfall Disinfection Project” with CDM Constructors, Inc. at an increased duration of 182 calendar days for a total contract duration of 1,593 days, and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
On February 19, 2016, Great Lakes Water Authority awarded this contract to design and construct facilities necessary to disinfect effluent discharged to the Rouge River from the Water Resource Recovery Facility (WRRF) as required by GLWA’s NPDES permit. The scope of work includes:
• Design and construction of tanks, pumps, piping, valves and diffusers to disinfect primary effluent by injecting sodium hypochlorite (bleach) solution;
• New piping, valves and diffusers to disinfect secondary effluent by injecting chlorine solution;
• Tanks, pumps, piping and diffusers to protect the environment by dechlorinating flows to the Rouge River through the addition of sodium bisulfite to the plant effluent;
• A new Hypo building to house the tanks, pumps and controls;
• New flow meters and controls to proportion the chemical flows; and
• A new sampling building with instrumentation to monitor the process.
The original required substantial and final completion dates of the project were April 1, 2019 and December 31, 2019, respectively.
The PC-797 project was sufficiently completed by April 1, 2019 to meet NPDES permit requirements, but unanticipated chlorine leaks, the lack of a final certificate of occupancy, and a variety of other issues prevented successful completion of demonstration testing and Substantial Completion until September 12, 2019. As of October 31, 2019, approximately 98.7% of the base contract work has been completed. Currently the Contractor is working to complete final work on the punch list so that the project can be closed out.
JUSTIFICATION
The delay in final completion resulted from a combination of chlorine leaks and other design and construction issues that were within the Contractor's responsibility, coupled with significant differing conditions encountered during the work, and project enhancements requested by GLWA staff to increase employee safety, reduce operating costs, and improve operability and maintainability. Specifically, the Contractor encountered significant unanticipated conditions that included numerous underground utilities that were discovered to be in unexpected locations, requiring design and construction changes. To address these unanticipated conditions, as well as to provide needed project enhancements, GLWA has issued Construction Change Directives for some 62 work items, increasing the volume of required Contract work by about 11%. Among other items, project enhancements have included:
• Improved sulfur dioxide gas alarms for employee safety.
• A redundant sodium hypochlorite line to disinfect dry weather secondary effluent to allow for increased operational/maintenance flexibility.
The Contractor has submitted a time extension request letter to GLWA on November 13, 2019 requesting an extension for final completion of the project to June 30, 2020, to allow completion of work under the contract. GLWA has reviewed the Contractor’s time extension request and the status of the current punch list items work and agreed that 182 calendar days extension to final completion date is needed to complete the remaining punch list work items and close out documents.
Therefore, a contract time extension of 182 calendar days to final completion, at no cost to GLWA, is requested in this proposed change order No. 4 per Article 8.4.2 of the General Conditions of the Contract.
GLWA accepted the project as substantially complete on September 12, 2019 but the Contractor disagrees with that date; it is GLWA’s objective to resolve the issue through negotiation before Final Completion.
PROJECT MANAGEMENT STATUS
Original Contract Time: 1,411 days
Change Order No. 1 0 days
Change Order No. 2 0 days
Change Order No. 3 0 days
Proposed Change Order No. 4 182 days
New Contract Time: 1,593 days
New Date for Final Completion: June 30, 2020
PROJECT MANAGEMENT STATUS
Original Contract Price: $2,696,265.00
Change Order No. 1: $2,840 371.00
Change Order No. 2: $0.00
Change Order No. 3: $38,925,000.00
Proposed Change Order No. 4 $0.00
New Date for Final Completion: June 30, 2020
New Contract Total: $44,461,626.00
FINANCIAL PLAN IMPACT
This proposed change order is for an extension of time only, there is no substantive financial impact currently.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on December 11, 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.