Title
Proposed Change Order No. 5
GLWA-CON-250
Pumping Station No. 1 Rack & Grit and MPI 1 & Jefferson Sampling Stations Improvements
CIP # 211004
Vendor: Weiss Construction Company, LLC
Body
Agenda of: January 26, 2022
Item No.: 2022-001
Amount: Original Contract: $6,193,801.41
Change Order No. 1: 0.00
Change Order No. 2: 0.00
Change Order No. 3: 0.00
Change Order No. 4: 0.00
Proposed Change Order No. 5: (-1,074,923.13)
Total Revised Contract: $5,118,878.28
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Interim Chief Executive Officer
Great Lakes Water Authority
DATE: January 4, 2022
RE: Proposed Change Order No. 5
GLWA-CON-250
Pumping Station No. 1 Rack & Grit and MPI 1 & Jefferson Sampling Stations Improvements
CIP # 211004
Vendor: Weiss Construction Company, LLC
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 Interim Chief Executive Officer (ICEO) to enter into Contract GLWA-CON-250, Proposed Change Order No. 5, “Pumping Station No. 1 Rack & Grit and MPI 1 & Jefferson Sampling Stations Improvements”, with Weiss Construction Company, LLC at a decreased cost of $1,074,923.13 for a total cost not to exceed $5,118,878.28, and an increased duration of 230 days for a total duration of 1,477 days; and authorizes the ICEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
On November 13, 2013, the Detroit Water and Sewerage Department (DWSD) entered into Contract No. PC-789 (Pumping Station No. 1 Rack and Grit and Main Plant Influent (MPI) 1 and Jefferson Sampling Stations Improvements) with Weiss Construction Company, LLC in the amount of $20,335,000.00. It was an open competitive low bid contract.
Major elements of work include, but are not limited to, the following:
PS -1 Rack & Grit (R&G) Building and New Building Additions:
• Replacement of the existing eight bar racks, sixteen grit collection units, screenings, and grit belt conveyors.
• Replacement of existing grit cross conveyors #1 and #2, grit flight conveyors #1 and #2 and screenings cross conveyor #2.
• Construction of new south off-load and north conveyor buildings including electrical, lighting, HVAC, and plumbing work.
MPI 1 Sampling Station:
• Replacement of two existing sample pumps and all related plumbing, electrical, I&C and HVAC work to ensure a functional sampling system.
Jefferson Sampling Station:
• Replacement of two existing sample pumps and all related plumbing, electrical, I&C and HVAC work to ensure a functional sampling system.
On May 27, 2015, the Board of Water Commissioners approved Change Order No. 1, increasing the PC-789 contract amount by $580,000.00 to bring the total contract amount to $20,915,000.00.
On June 12, 2015, the City of Detroit and the GLWA entered into certain lease agreements which, in relevant part, assigned certain contracts to the GLWA, including this contract effective January 1, 2016.
On August 21, 2017, GLWA approved a second change order to the contract increasing the time duration by 183 calendar days with no additional funds to allow time for a third-party investigation. Because of the challenges with quantifying grit removal and the complex hydraulics of the grit channels, the third-party expert’s results were inconclusive regarding pre- and post-construction grit collection efficacy. However, the expert opinions were invaluable in increasing GLWA’s ability to understand the complex properties of the grit removal system and identify and implement low-cost, minor modifications to the bucket design which has shown to have improved grit removal efficiency.
On January 30, 2018, the DWSD PC-789 Contract was transitioned to GLWA-CON-250 Contract. GLWA-CON-250 contract amount was established as $6,193,801.41 based on the amount remaining from the PC-789 contract ($4,453,801.41), Contractor compensation negotiated for delays/impacts/unresolved claims ($740,000.00), and the additional owner requested cost ($1,000,000.00) for the outstanding changes/unforeseen conditions. The required substantial and final completion dates of the CON-250 Contract were March 22, 2019, and September 22, 2019, respectively.
Many separate substantial completions were declared for major equipment/systems for beneficial use by GLWA. Eventually, the project’s substantial completion was achieved on June 10, 2019. During construction, changes were made to the proposed conveyor system and screening conveyors 1 & 2 were eliminated. Thus, modification to the fire protection system was required.
Between August 2019 through April 2021, Board of Directors approved several no cost time extension requests through Change Order No. 1 through 4 to allow for design and construction of the fire protection system including coordination with the City of Detroit Fire Marshal.
All the modification work to the fire protection system has been completed and approved by the City of Detroit Fire Marshal on November 3, 2021. Therefore, this contract is ready to be closed out. This proposed final change order establishes the final value of the contract and credits the unspent money to GLWA. This Change Order No. 5 proposes to extend the final completion date to February 15, 2022, so that the final payment can be made to the contractor and the contract can be closed out.
JUSTIFICATION
The fire alarm modification was significantly impacted by COVID-19. The fire alarm’s modification work includes the design, construction, and review of the revised drawings by the Fire Marshal. The modification scope includes the relocation of the deluge system, delivery of necessary parts of the fire alarm system and conveyor chute followed by installation, startup, testing, and commissioning of the modified fire protection system in the R&G building. All these activities were followed by final inspection and approval of the system by the City of Detroit Fire Marshall.
This proposed change order is the final change order for this contract. GLWA is requesting to extend the contract’s final completion time by 230 days from June 30, 2021 to February 15, 2022. After reconciliation of all the changes to date, and the remaining unspent amounts, a credit amount of $1,074,923.13 is due to GLWA from the contractor. This proposed change order will reduce the contract value by $1,074,923.13, and thus the revised contract value shall be $5,118,878.28.
PROJECT MANAGEMENT STATUS
Original Contract Time: 600 days (01/30/18 - 09/22/19)
Change Order No. 1: 180 days (09/23/19 - 03/20/20)
Change Order No. 2: 224 days (03/21/20 - 10/30/20)
Change Order No. 3: 182 days (10/31/20 - 04/30/21)
Change Order No. 4: 61 days (05/01/21 - 06/30/21)
Proposed Change Order No. 5: 230 days (07/01/21 - 02/15/22)
New Contract Time: 1,477 days (01/30/18 - 02/15/22)
PROJECT ESTIMATE
CON-250 Original Contract Price: $6,193,801.41
Change Order No. 1: $0.00
Change Order No. 2: $0.00
Change Order No. 3: $0.00
Change Order No. 4: $0.00
Proposed Change Order No. 5: (1,074,923.13)
New Contract Total: $5,118,878.28
FINANCIAL PLAN IMPACT
Summary: Sufficient funds are provided in the financial plan for this project.
Funding Source: Sewer Construction Fund
Cost Center: Wastewater
Expense Type: Construction (5421-892211.000-616900-211004)
Estimated Cost by Year and Related Estimating Variance: See table below.
CON-250 Original Contract Price: $6,193,801.41
Change Order No. 1: $0.00
Change Order No. 2: $0.00
Change Order No. 3: $0.00
Change Order No. 4: $0.00
Proposed Change Order No. 5: (1,074,923.13)
New Contract Total: $5,118,878.28
Amended Financial Plan Estimate: 6,193,801.41
Estimating Variance: $1,074,923.13
The award of this change order creates a positive estimating variance of $1,074,923.13. A budget amendment will be prepared to return funds to the Capital Reserves.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on January 12, 2022. 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.