Title
Proposed Change Order No. 1
Contract No. 2004082
Rehabilitation of Woodward Sewer System
CIP #260207 / BCE: 76.80
Body
Agenda of: February 22, 2023
Item No.: 2023-036
Amount: Original Contract $18,696,250.00
Proposed Change Order No. 1 0.00
Total Revised Contract $18,696,250.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: January 27, 2023
RE: Proposed Change Order No. 1
Contract No. 2004082
Rehabilitation of Woodward Sewer System
Vendor: Lanzo Construction Co.
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 enter into Contract No. 2004082, Proposed Change Order No. 1, “Rehabilitation of Woodward Sewer System” with Lanzo Construction Co., with no increase in cost at a cost not to exceed $18,696,250.00 and an increased duration of 270 days for a total contract duration of 816 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
GLWA’s Sewer Conveyance System has approximately 130 miles of trunk sewers and 51 miles of interceptors. The Woodward Sewer System (WWSS) is a major combined sewer system aligned with Woodward Avenue starting at McNichols Road and conveys sewage through the cities of Highland Park and Detroit to the Detroit River Interceptor (DRI). In addition, one leg of the WWSS extends sewer service to the east along Chandler and Clay Streets and turns north into the city of Hamtramck. This leg of the sewer, referred to as the WS-300 segment, consists of circular and egg-shaped brick sewers that will be rehabilitated by sliplining. Sliplining is the process of inserting a slightly smaller, corrosion resistant pipe inside the deteriorated brick sewer and grouting the space between the new pipe and the host pipe.
JUSTIFICATION
Between the bid opening and the notice to proceed, pandemic impacts on the supply chain resulted in a significant price increase for materials used in the fabrication of the slipline pipe. Alternative rehabilitation systems were evaluated but deemed inferior to the original design. Force majeure relief was granted due to the unusual circumstances brought about by a world-wide pandemic. The additional material cost is covered by an allowance included in the construction contract. However, the sliplining portion of the project was delayed for the evaluation and manufacturing of the pipe. The Contractor has indicated that more time will be needed to complete the sliplining beyond the contract completion date. The remaining work on Woodward Avenue will comply with the contracted schedule. This change order is for a time extension only. All costs associated with this change order are within the existing available allowance amounts, and no increase in total contract cost is being requested.
PROJECT MANAGEMENT STATUS
Original Contract Time 546 days (10/06/2021 - 04/05/2023)
Proposed Change Order No. 1 270 days (04/06/2023 - 12/31/2023)
New Contract Time 816 days (10/06/2021 - 12/31/2023)
PROJECT ESTIMATE
Original Contract Price $18,696,250.00
Proposed Change Order No. 1 0.00
New Contract Total $18,696,250.00
FINANCIAL PLAN IMPACT
This proposed change order is for an extension of time only, and there is no substantive financial impact.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on February 8, 2023. 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.