Title
Proposed Change Order No. 3 Final
Contract No. GLWA-CON-133
Water Production Flow Metering Improvements at Northeast, Southwest and Springwells Water Treatment Plants
CIP# 114003 / BCE Score: 50.6
Body
Agenda of: September 23, 2020
Item No.: 2020-306
Amount: Original Contract $6,876,833.00
Change Order No. 1 183,282.49
Change Order No. 2 0.00
Proposed Change Order No. 3 (212,878.93)
Total Revised Contract $6,847,236.56
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: August 31, 2020
RE: Proposed Change Order No. 3 Final
Contract No. GLWA-CON-133
Water Plant Production Flow Metering Improvements at Northeast, Southwest and Springwells Water Treatment Plants
Vendor: LGC Global, Inc.
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-CON-133 Proposed Change Order No. 3 Final, “Water Plant Production Flow Metering Improvements at Northeast, Southwest, and Springwells Water Treatment Plants” with LGC Global, Inc., at a reduced cost of $212,878.93 for a total cost not to exceed of $6,847,236.56 and an increased duration of 45 days for a total contract duration of 1,081 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
Contract No. GLWA-CON-133 with Lakeshore Global Corporation (Contractor) is a construction contract for the rehabilitation and improvement of water production flow metering at the Northeast, Southwest, and Springwells water treatment plants. The work involves rehabilitating a total of 16 venturi-style flow meters and associated equipment at the aforementioned water treatment plants. The contract time commenced July 31, 2017 and ended on June 1, 2020. The Contractor has completed the work and the flow meters are in satisfactory service. All site work was completed prior to the contract end date of June 1, 2020 with the only remaining work being submitting final record documents, operation and maintenance manuals, and similar final project submittals. This remaining work was completed by July 15, 2020. This proposed Change Order No. 3 is a final change order that requests that the Contract Time be increased by 45 days giving a final Contract Completion date of July 15, 2020. This proposed Change Order No. 3 also deducts $212,878.93 from the current contract amount of $7,060,115.49 for a final contract amount of $6,847,236.56.
JUSTIFICATION
The 45-day contract time extension was needed for the Contractor to complete contract closeout activities, mainly submitting final closeout documentation. The deduction of $212,878.93 to the contract amount is due to several credits to the contract for work that was not needed. The total deduction of $212,878.93 also includes a deduction of $42,000 for liquidated damages associated with the Contractor not substantially completing the project by the specified date for substantial completion. The liquidated damage amount specified in the Contract was $2,000 per day. The Contractor was 21 days late in substantially completing the project, which equates to a $42,000 total liquidated damage amount to be deducted from the final Contract Amount. This liquidated damage amount of $42,000 is included in the $212,878.93 total deduction to the contract amount.
PROJECT MANAGEMENT STATUS
Original Contract Time 730 days
Change Order No. 1 306 days
Change Order No. 2 0 days
Proposed Change Order No. 3 45 days
New Contract Time 1,081 days
PROJECT ESTIMATE
Original Contract Price $6,876,833.00
Change Order No. 1 183,282.49
Change Order No. 2 0.00
Proposed Change Order No. 3 (212,878.93)
New Contract Total $6,847,236.56
FINANCIAL PLAN IMPACT
Award of this change order creates a positive estimating variance of $212,878.93. This variance will be funded to Capital Reserves.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on September 9, 2020. 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.