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TIC 2017-11-14 Item 2G - Final Settlement - Change Order #9 for Interurban Avenue South (South 143rd - Fort Dent Way) with Walsh Construction
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2017-11-14 Transportation and Infrastructure
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TIC 2017-11-14 Item 2G - Final Settlement - Change Order #9 for Interurban Avenue South (South 143rd - Fort Dent Way) with Walsh Construction
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1/14/2021 12:29:55 PM
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11/7/2017 4:36:23 PM
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Council Committees
Committees Date (mm/dd/yy)
11/14/17
Committee Name
Transportation and Infrastructure 2017-2020
Record Type
Agenda Packet
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EXHIBIT "A" <br />CHANGE: <br />This Change Order settles the Contractor's request for additional compensation and is meant to <br />settle all dispute, both disclosed and undisclosed, on the Contract. This Change Order also <br />increases the Contract time by 141.5 calendar days, and will allow this Project to be closed out. <br />Change Order Details: <br />The Contractor, Walsh Construction, has asserted that, during construction, the project <br />encountered unexpected impacts to the Contractor's work that resulted in significant additional <br />expense to the Contractor. The Contractor has itemized requests for additional compensation <br />that include: 1) unpaid bid items, 2) extra work orders, 3) gravel borrow, 4) sub -contractor costs <br />for Pearson Drilling and ADP Electric and 5) additional costs for inefficiencies and overhead. <br />The City responded to these requests for additional compensation and disputed the Contractor's <br />analysis of cost impacts. <br />On June 16, 2017, the City and Walsh Construction entered mediation to resolve the disputed <br />contract compensation amounts. Several additional settlement conferences were held to negotiate <br />and discuss specific merits of the Contractor's request. Item by item negotiations were set aside <br />in favor of a global settlement discussion. <br />The City's project representatives met with the Contractor's authorized representatives, and <br />discussed the settlement terms to formally close out this project. The discussed settlement terms <br />are as follow: <br />Included in this Change Order #9, the City shall increase from the current Contract time <br />by 141.5 calendar days, making the total Contract time at 1,418 calendar days. As a <br />result of the Contract time increase, the City shall rescind the assessed liquidated damage <br />of $358,364.32, which was assessed, but never collected by the City from the Contractor. <br />On top of the liquidated damage reimbursement, the City shall also pay the Contractor <br />$1,425,000.00 as a final settlement amount for all outstanding compensation claims. <br />Once this Change Order #9 is executed, the final payment will be issued, and the Release of <br />Claims form will be completed by the Contractor. Thereafter, the construction project can be <br />closed out by the City Council. <br />Page 1 of 1 <br />155 <br />
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