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Home My WebLink AboutUtilities 2008-04-07 Item 3C - Final Acceptance - Southcenter Boulevard Water Main by RL Alia Company INFORi\1ATION MElVIO To: From: Date: Subject: Mayor Haggerton Public W orks Directo~ April 2, 2008 Southcenter Boulevard Water Main Project No. 98-WT05, Contract 07-054 Project Completion and Acceptance ISSUE Accept contract as complete and authorize release of retainage. BACKGROUND The Notice to Proceed for Contract No. 07-054 with R.L. Alia Company of Renton was issued April 10, 2007. This project became critical after the 2001 Nisqually Earthquake broke the existing 12-inch cast iron water main in the Green River Trail. The water main was repaired but it was determined that the existing line needed to be upgraded to ductile iron pipe. This contract was totally completed on November 13, 2007. Change Order No.1 was issued in the amount of $24,000 for installing one 4" conduit for Time Warner Communications along with two 2" spare conduits for Tukwila. Time Warner reimbursed Tukwila for the cost of the 4" conduit. Change Order No.2 was issued as a fmal contract settlement in the amount of $73,000.00, which caused the project to be over budget. Change Order No.2 was approved by City Council on February 19, 2008. The change orders, fmal payment, and all fmal documentation have been processed and the project is ready for closeout. The contract costs are as follows: Contract Award Amount Change Orders Subtotal Sales Tax (8.9%) Total Contract Amount $ 703 ,000.00 97.000.00 $ 800,000.00 71.200.00 $ 871.200.00 RECOMMENDATION It is recommended that this contract be forwarded to the Tukwila City Council on the consent agenda for formal acceptance and authorize release of the retainage, subject to the standard claim and lien release procedures. Attachments: Vicinity Map Information Memo Change Order No.2 Notice of Completion of Public Works Contract P:\PROJECTS\A- wr Projects\98wt05 Southcenter Blvd\JNFO MEMO Acceptance - ALIA - Scu Blvd Water Main.doc Southcenter Boulevard Water Main Aerial Photo Map Project No. 98-WT05, Contract 07-054 Project Completion and Acceptance INFORMATION MEMO TO: Mayor Haggerton FROM: Public Works Director DATE: February 6, 2008 SUBJECT: Southcenter Boulevard Water Main Replacement Project Project No. 98-WT05, Contract No. 07-054 Change Order No.2 - Final Settlement - Budget Shortfall ISSUE Approval of Change Order No.2 brings total final project cost over budget. BACKGROUND R.L. Alia Company overran the contract time by approximately 100 days and was initially assessed liquidated damages of over $100,000. Subsequently, R.L. Alia fIled a protest and provided additional documentation and details demonstrating that, in a lawsuit, they may be able to show that the plans were not clear enough to allow the bidder to plan for all the intricacies required to install the new water main across the Southcenter Boulevard Bridge through existing knockouts and penetrations without significant extra labor, materials, equipment and contract time. Subsequently, the final settlement Change Order was negotiated in the amount of $73,000 to compensate R.L. Alia Company for all additional direct labor, equipment and material costs. The fmal total for the construction contract is estimated to be $871,200. Due to the overruns in time, the base contract of $89,615 for construction management (CM) was increased with Amendment 1 by $12,414 and Amendment 2 is pending at $6,771, for a CM total of $108,800. The attached closeout budget analysis shows that the expenditures exceed the budget amounts by $49,035. ANALYSIS This fmal settlement Change Order is a fair and equitable complete compensation. Furthermore, this settlement minimizes the risk of a protracted battle with a.contractor and eliminates potential litigation costs. An upcoming agenda item for an interlocal agreement with King County Metro includes savings of up to $110,000 for the City of Tukwila. King County will pay for the design and construction if Tukwila agrees to pay for bidding and construction management. See page 81 of the 2008 CIP for proposed savings. RECOMMENDATION Authorize the Mayor to sign Change Order No.2 for $73,000 and approve using ending water fund balance due to savings in the Interurban Water Reuse project to pay for project budget shortfall. Attachments: Closeout Budget Analysis 2008 CIP page 81 C:\TempIXPGrpWlSe\Info Memo C0#2 2-06-08 - UC budget paper gLdoc From: State of Washington Department of Revenue PO Box 47474 REVENUE Olympia WA 98504 -7474 Contractor's Registration No. (UBI No.) 600 149 378 Date 3/20/08 City of Tukwila 6200 Southcenter Boulevard Tukwila, WA 98188 Southcenter Boulevard Water Main (Proj. 98 -WT05) Contractor's Name Sub -Total 800,000.00 Amount of Sales Tax Paid at 8.9 71,200.00 (If various rates apply, please send a breakdown) TOTAL 871,200.00 Comments: 8.9 Finance Approval NOTICE OF COMPLETION OF PUBLIC WORKS CONTRACT Name Address of Public_Agency r\ d Notice is hereby given relative to the completion of contract or project described below Description of Contract Contract Number R.L. Alia Company Contractor's Address 107 Williams Avenue S, Renton, WA 98057 Date Work Commenced Date Work Completed Date Work Accepted 4/10/07 11/13/07 3/15/07 Surety or Bonding Company Hartford Fire Insurance Company Agent's Address Parker Smith Feek Inc. 2233 112th Ave NE, Bellevue WA 98004 Contract Amount 703,000.00 Additions 97,000.00 Liquidated Damages 0.00 Reductions 0.00 Signature Type or Print Name Diane Jaber Phone Number (206) 433 -1871 Department Use Only Assigned To Date Assigned 07 -054 Telephone Number 425- 226 -8100 Amount Disbursed 831,200.00 Amount Retained 40,000.00 lsbitrsing. officer: TOTAL 871,200.00 The Disbursing Officer must complete and mail THREE copies of this notice to the Department of Revenue, PO Box 47474, Olympia, WA 98504 -7474, immediately after acceptance of the work done under this contract. NO PAYMENT SHALL BE MADE FROM RETAINED FUNDS until receipt of Department's certificate, and then only in accordance with said certificate. To inquire about the availability of this document in an alternate format for the visually impaired, please call (360) 753 -3217. Teletype (TTY) users please call (800) 451 -7985. You may also access tax information on our Internet home page at http: /dor.wa.gov. REV 31 0020e (6- 27 -01)