Title
Proposed Change Order No. 4
Contract No. 1803621
Wick Road 48-Inch Water Transmission Main
CIP #122006 / BCE Score: 54.20
Body
Agenda of: April 26, 2023
Item No.: 2023-122
Amount: Original Contract $20,962,361.00
Change Order No. 1 1,217,151.00
Change Order No. 2 549,032.40
Change Order No. 3 460,000.00
Proposed Change Order No. 4 250,000.00
Total Revised Contract $23,438,544.40
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: March 31, 2023
RE: Proposed Change Order No. 4
Contract No. 1803621
Wick Road 48-Inch Water Transmission Main
Vendor: Ric-Man Construction, 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. 1803621, Proposed Change Order No. 4, “Wick Road 48-Inch Water Transmission Main” with Ric-Man Construction, Inc., with an increased cost of $250,000.00 for a total cost not to exceed $23,438,544.40 and an increased duration of 365 days for a total duration of 1,754 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
GLWA Contract No. 1803621, Wick Road 48-inch Water Transmission Main, involves constructing approximately 17,000 linear feet of 48-inch diameter water transmission main parallel to an existing transmission main to provide redundancy between GLWA’s Wick and Ypsilanti Booster Stations. To date, the contractor has installed roughly 16,500 linear feet of pipe, and remaining work includes the final interconnection and new valve installation near the Wick Booster Station.
Change Order No. 1 consisted of cost and time incurred due to CSX Transportation requirements regarding permeation grouting under the Wick Road railroad crossing. Change Order No. 2 scope of work consisted of time and cost associated with GLWA request for additional restrained pipe sections for securing the transmission line. Change Order No. 3 provided additional funds, along with the additional time for the provisional allowance to cover additional general conditions, equipment standby and Vealy Drain unforeseen conditions during the tunneling process.
This Proposed Change Order No. 4 is requesting additional time and associated costs of $250,000.00 to extend Final Completion of the contract through GLWA’s low demand timeframe ending in Spring of 2024 which is an operational constraint due to other work in the GLWA system.
JUSTIFICATION
GLWA intended to provide Ric-Man isolation for the Wick Booster Station connection in March 2023; however due to expedited rehabilitation of the 14 Mile Transmission Main, GLWA had to reschedule the Wick Booster Station connection to Fall of 2023.
The contractor will need to complete the final connections starting in the Fall of 2023 and restoration in the direct work zone(s) area. This will include but is not limited to, full depth pavement restoration, station grading and pavement markings. All remaining work items are dependent upon the actual system isolation date. The project team is projecting additional costs to be incurred for the contract extension.
ROJECT MANAGEMENT STATUS
Original Contract Time 730 days (08/26/2019 - 08/25/2021)
Change Order No. 1 134 days (08/26/2021 - 01/06/2022)
Change Order No. 2 160 days (01/07/2022 - 06/15/2022)
Change Order No. 3 365 days (06/16/2022 - 06/15/2023)
Proposed Change Order No. 4 365 days (06/16/2023 - 06/15/2024)
New Contract Time 1,754 days (08/26/2019 - 06/15/2024)
PROJECT ESTIMATE
Original Contract Price $20,962,361.00
Change Order No. 1 1,217,151.00
Change Order No. 2 549,032.40
Change Order No. 3 460,000.00
Proposed Change Order No. 4 250,000.00
New Contract Total $23,438,544.40
FINANCIAL PLAN IMPACT
Summary: Sufficient funds are provided in the financial plan for this project.
Funding Source: Water Construction Bond
Cost Center: Field Engineering
Expense Type: Construction (5519-882411.000-616900-122006)
Estimated Cost by Year and Related Estimating Variance: See table below.
Original Contract Price $20,962,361.00
Change Order No. 1 1,217,151.00
Change Order No. 2 549,032.40
Change Order No. 3 460,000.00
Proposed Change Order No. 4 250,000.00
New Contract Total 23,438,544.40
Amended Financial Plan Estimate 23,065,000.00
Estimating Variance ($ 373,544.40)
The award of this change order to the vendor creates a negative estimating variance of $373,544.40. This variance will be funded from capital reserves.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on April 12, 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.