CITY MANAGER AUTHORITY PROCUREMENT AWARDS
ACTION REQUESTED:
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Approve the award of Change Order #2 to Contract 20-005, 2020 Street Resurfacing Program - City, to K-Five Construction Corporation to reduce the contract amount by $217,344.24 and a total amount not to exceed $2,815,546.26
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DEPARTMENT: Transportation, Engineering and Development
SUBMITTED BY: William J. Novack, Director
BACKGROUND:
City Council awarded Contract 20-005 to K-Five Construction Corporation on June 2, 2020, with a completion date of October 31, 2020. The purpose of this contract is to resurface and reconstruct various city streets as part of the annual street maintenance program.
This is the second and final change order. A previous change order was award for an amount of $9,800.
DISCUSSION:
The contractor has completed all the work required within the contract.
This is a final balancing change order which includes changes in previously approved authorizations. It compares the original awarded quantities and costs with the as-built quantities as measured in the field and accounts for all changes in quantity and cost for each pay item and the overall contract value. The total net amount of all change orders including this final balancing change order decreases the original amount by $207,544.24 and by 0 days. The main reason for the decrease is due to field change of using N50 surface course instead of poly binder for some streets. The change is necessary due to street conditions and the unit price for surface course is much less than poly binder course. This change order also added one pay item of Re-mobilization with a lump sum cost of $2,500. After concrete works have been completed, we found that one subdivision required extra concrete works, so the concrete contractor had to go back several times to work on the added work and additional mobilization occurred. The requested amount is very reasonable.
I, Yifang Lu, of Transportation, Engineering and Development, certify that this work is necessary for successful completion of this work/project/contract. I further certify that: the circumstances said to necessitate the change in performance were not reasonably foreseeable at the time the contract was signed, or the change is germane to the original contract as signed, or the change order is in the best interest of the City and authorized by law.
Contract Award
|
Original Contract Value |
$3,023,090.50 |
|
Prior Cumulative Approved Change Orders |
$9,800.00 |
|
Subtotal |
$3,032,890.50 |
|
(+/-) This Change Order |
($217,344.24) |
|
Total Contract Value |
$2,815,546.26 |
Contingency
|
Authorized Contingency |
Days |
Dollars |
|
Original Amount |
29 |
$151,154.53 |
|
(-) Previously Authorized |
|
$9,800.00 |
|
Subtotal |
|
$141,354.53 |
|
(-) This Change |
|
$0 |
|
Balance Left |
|
$141,354.53 |
FISCAL IMPACT:
CIP #: MP009, MP018
The 2020 Street Resurfacing Program - City is expensed to the Infrastructure accounts listed below. A reduction of $217,344.24 results in a total contract of $2,815,546.26
|
Account Number |
Fund Description |
Total Budget Amount |
|
30282300-551502 |
Bond Fund |
$2,593,864 |
|
30282400-551502 |
Road & Bridge Fund |
$2,170,000 |
*Per Council directive, contingency on construction projects is set at 3% on projects over $500,000 and 5% on projects under $500,000.