HomeMy WebLinkAbout4.08 Civic Center Contract Change Order CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: August 8, 1988
SUBJECT Civic Center Project - Contract Change Order
EXHIBITS ATTACHED Contract Change Order No. 3
V_)
RECOMMENDATION Approve Contract Change Order No. 3 and authorize City
Manager to execute same.
FINANCIAL STATEMENT: Amount of Change Order is $31,562. Sufficient funding
is included in the Civic Center Project Budget to
cover this change.
DESCRIPTION The adopted City Council policy on change orders
requires that the City Council review all changes greater than $25,000. The
approved Civic Center Budget included a 5% contingency for changes occuring
during the course of construction.
The contract change order results from the requirement for the grading
subcontractor to remove and recompact soil beneath the building pad. Among
the requirement was the need to remove the soil 5 ' in depth and 10' outside
the building perimeter. The basic intent was to remove any fill dirt and to
reach the native soil . During the grading operations , representatives of
Peter Kaldveer & Associates , were on site to inspect on behalf of the City.
This firm provided the geotechnical services used in the design of the
project.
The engineers felt that it was important to provide a minimum of 3 ' of
engineered fill under the footings in all locations . Once the building pad
was excavated and the elevation of native soil determined, it became
apparent that excavation in excess of 5 ' would need to be performed to
provide appropriate fill in some areas . The need for this additional
excavation further complicated the clarity of the original scope of work.
Harris & Associates , acting as the City' s Construction Manager, coordinated
the interpretations submitted by the designers and the contractor. The
outstanding issue was whether the contractor should have reasonably known
that the subexcavation was required by reviewing the bid documents . Staff
believed the circumstances presented ambiguity in sufficient depth to
warrant a negotiated settlement for . the additional work. Harris &
Associates maintained detailed logs on the labor and equipment utilized on
the work in question. The Construction Manager also reviewed the submitted
cost for its conformity with time sheets and prevailing industry rates . The
change order does not provide for any extension in the amount of time
required to complete the project, although an 8 day extension was requested
by the contractor. The contractor was unable to demonstrate through a
revision to the project schedule that the additional work impacted the
critical work which was scheduled during that period. .: A summary of the
change order negotiations is attached to the Change Order.
Staff recommends that the City Council approve the change order and
authorize the City Manager to execute the document.
COPIES TO:
ITEM NO. t, 48
DUBLIN _CIVIC CENTER •
CONTRACT CHANGE ORDER NO. 3
DATE: May 27 , 1988
OWNER: City of Dublin
Mr. Richard Ambrose . . 40/12
(415 ) 826-4900 �
CONTRACTOR: Dickman-Nourse, Inc. :
Mr. Henry K. Nourse, III 4\ \��5
(415 ) 967-7866 3 -ivz-
CONSTRUCTION Harris & Associates .
MANAGER: Ms. Susan Hyler
(415 ) 828-1571
ARCHITECT: George Miers & Associates
Mr. William Hoffmann
(415 ) 986-0305
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I . DESCRIPTION OF CHANGE:
The Contractor was required to 'subexcavate under the
building pad and ten foot outside the building perimeter
from existing fill subgrade to native soil , as determined by
Kaldveer Associates with on-site • inspection during
excavation. Overall , the Contractor - was required to
excavate to a minimum of 327 . 5 in the southern area of the
Council Chambers and Police Facility to provide a minimum of
three feet of engineered fill under the footings in all
locations . This was required because the native soil was
very shallow at the southern end and site conditions did not
provide the minimum engineered fill as required for the
design of the building. This requirement could not have
been determined until the building pad had been excavated
for and the,_ elevation of the native determined. The
additional excavation requirement further complicated the
clarity of the original scope of work. Once excavated, the
Contractor had to bring the building pad back to the
existing subgrade with suitable native soil or engineered .
fill with 90% compaction as required by the specification.
II . JUSTIFICATION OF CHANGE:
The Construction Manager and the Design Team reviewed the
Contractor' s request and offered the. City • staff
interpretations of the request. The City staff in
• consultation with the City Attorney' s office determined that
Contract Change Order No . 3 - City of Dublin Page 1
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it would be equitable to proceed with negotiations. The
City' s original opinion on this issue was that the
subexcavation was part of the contract work. However, after
discussions with the City Attorney' s office and a review of
the estimated costs to do the work, it was determined that
it did not appear the Contractor included the cost to do
this work in their bid. This determination was made from
the costs provided in the cost loaded construction schedule.
The City decided to pursue an equitable settlement for the
work performed, since the inclusion of the work in the
original scope was somewhat ambiguous . The subcontractor
had also indicated that legal proceedings were likely to be
pursued if agreement was not reached.
III . COST OF CHANGE:
Subexcavation of the Building Pad:
-TOTAL THIS CHANGE $31 , 562 .00
IV. ADJUSTMENTS IN CONTRACT AMOUNT:
A. Original Contract $9 , 695 ,000
B. Previous Change Orders 16 ,094
C . Current Contract $9 , 711 , 094
D. This Change Order $ 31 , 562
E. New Contract Amount $9, 742 ,656
V. ADJUSTMENTS IN CONTRACT COMPLETION:
A. Original Duration: 440 Calendar Days
B. Original Completion Date : April 10 , 1989
C . Previous Extension: -0-
D. Current Duration: 440 Calendar Days
E. This Extension: -0-
F. New Duration: 440 Calendar Days
G. New Completion Date : April 10 , 1989
VI . CONDITIONS OF CHANGE ORDER:
It is understood and agreed that this Change Order provides
full compensation to the Contractor for all claims arising
out of the changes constituting the subject matter of this
Change Order and that this Change Order is pursuant to and
in accordance with other relevant provisions, conditions and
requirements contained in the Contract Documents .
Contract Change Order No . 3 - City of Dublin Page 2 •
r
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ACCEPTED: RECOMMENDED FOR ACCEPTANCE:
CONTRACTOR: CONSTRUCTION MANAGER:
Dickman-Nourse, Inc. Harris : Associate
By: i� '� '` 4 /Vt"CCL.,--i.,, By: Ai,axl& 46
Henry A. Nourse, III Susan Hy lrr
Date:
ii-// rg Date: 54:71' 6
OWNER: ARCHITECT:
City of Dublin George Miers & Associates
By: By:
Richard Ambrose William Hoffmann
Date: Date:
Contract Change Order No . 3 - City of Dublin Page 3
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SUMMARY OF NEGOTIATIONS: •
Dickman-Nourse, Inc . in their letter No. 102 , dated 3/24/88 ,
provided a compilation of the time and material sheets signed by
Harris & Associates plus 10% for the costs associated with Joe .
Foster Excavating' s work. To this number they added additional
layout time and field supervision and their allowed 5% markup for
a total of $34 ,105 . 00 .
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Harris & Associates met ,with Dickman-Nourse, Inc. and Joe Foster
Excavating on May 23 , 1988 to 'discuss the subexcavation of the '
building pad and the costs as presented in DNI ' s letter No . 102 .
We reviewed the time and materials sheets presented by Foster and
which had been signed by a Harris & Associates' representative
during the work to verify the labor and equipment used to do the
disputed work. The hours used by Foster were as agreed to and
the labor rates were comparable to those calculated by- Harris &
Associates , and the equipment rates were well below the maximum
rates as allowed by the Contract Documents.
It was agreed to accept the costs as submitted by Joe Foster
Excavating for their work in doing the subexcavation of the
building pad. Harris & Associates , however, objected to the cost .
included by DNI to revise the CPM schedule, since the ' schedule
has not been revised. In addition, Harris & Associates objected
to the field supervision being charged, since these costs are
included in the overhead percentage. We did agree to allow eight
( 8 ) hrs for supervision on Sunday February 7 , 1988, since the
assistant superintendent was on site and is a working foreman
which is allowed to be charged in addition to overhead. We
agreed to delete the charge of $100 for revising the CPM schedule
and charge eight ( 8 ) hrs at $55/hr for the field supervision on
Sunday. The total revised and agreed to price for this change
order was $31 , 562 .
In DNI ' s letter No . 102 , they requested that an eight ( 8 ). day
time extension be granted for this change. Harris & Associates
indicated to DNI that in order for a time extension to be
considered they needed to submit a time analysis as: specified in
Section 1310 , Part 4 , Time Impact Analysis For Changes, Delays ,
Time Extensions, and Contractor Requests. Harris & Associates
also indicated that a time analysis verifying that the job was
delayed would be difficult to produce, since the structural steel
was the critical activity which was not delayed.
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