HomeMy WebLinkAboutTIC 2017-11-14 Item 2G - Final Settlement - Change Order #9 for Interurban Avenue South (South 143rd - Fort Dent Way) with Walsh ConstructionCity
Tukwila
Public Works Deportment - Bob Giberson, Director
INFORMATIONAL MEMORANDUM
TO: Transportation and Infrastructure
FROM: Robin Tischmak, Acting Public Works Director
CC: Mayor Ekberg
DATE: November 9, 2017
SUBJECT: Interurban Avenue South — S 143rd St to Fort Dent Way
Project Number 90310402
Contract 14-067, Change Order No. 9
Allan Ekberg, Mayor
ISSUE
Approve the final settlement and Change Order No. 9 for the Interurban Ave S Project with Walsh Construction.
BACKGROUND
Change Order No. 9 settles the additional compensation request and subsequent mediation effort between the City and Walsh
Construction commenced on June 16, 2017, and all other disclosed or undisclosed disputes on the construction contract. Change
Order No. 9 also increases the contract time by 141.5 calendar days and will allow the Interurban Ave S Project to be closed out.
DISCUSSION
Walsh Construction has asserted that, during construction, the project encountered unexpected impacts to the Contractor's work.
The Contractor has itemized requests for additional compensation that include: 1) unpaid bid items, 2) extra work orders, 3) gravel
borrow, 4) sub -contractor costs for Pearson Drilling and ADP Electric and 5) additional costs for inefficiencies and overhead. The
City responded to these requests for additional compensation and disputed the Contractor's analysis of cost impacts.
On June 16, 2017, the City and Walsh Construction entered mediation to resolve the disputed contract compensation amounts.
Several additional settlement conferences were held throughout the summer to negotiate and discuss specific merits of the
Contractor's request. Item by item negotiations were set aside in favor of a global settlement discussion.
The City Attorney, PW staff, and our construction management consultant met with the Contractor's authorized representatives and
discussed the settlement terms to formally close out the project. The discussed settlement terms included that the City shall
increase the current contract time by 141.5 calendar days, making the total Contract time 1,067.5 calendar days. As a result of the
contract time increase, the City shall rescind the assessed liquidated damage of $358,364.32, which were assessed, but never
collected by the City from the Contractor. On top of the liquidated damage reimbursement, the City shall also pay the Contractor a
total of $1,425,000.00, in addition to other amounts already paid, to arrive at a final settlement amount for the Interurban Ave S
Project.
FISCAL IMPACT
The total contract amount was $7,836,662.16. With the remaining contract balance of $343,740.85, Change Order No. 9 is for
$1,081,259.15 for a total balance owing of $1,425,000 to Walsh Construction. The Transportation Improvement Board has
approved an additional $750,000 in grant funds. We are over the 2017 CIP budgeted amount by $950,000, but with the additional
$750,000 TIB funds and $35,000 in traffic impact fees for signal improvements, the City overage is $165,000. The total final
contract amount is now $8,917,921.31.
RECOMMENDATION
Council is being asked to approve Walsh Construction's Contract No. 14-067's final settlement Change Order No. 9 for
$1,081,259.15 with a contract time extension of 141.5 calendar days and consider this item at the November 27, 2017 Committee
of the Whole and the December 4, 2017 Regular Meeting.
Attachments: Change Order No. 9
Interurban Ave S Project CIP Overview
W:\PW Eng\PROJECTS\A- RW & RS Projects\Interurban Ave S (90310402)\Info Memo for CO #9, Final CA 110717 gl.docx
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Sheet 1 of 1
CITY OF TUKWILA
CONTRACT CHANGE ORDER NO. 9
DATE: November 6, 2017 BUDGET NO.: 104.98.595.300.65.00
PROJECT NO.: 90310402 CONTRACT NO.: 14-067
PROJECT NAME: Tukwila Urban Center Transit Center Project, Andover Park West Street and Water Improvement Project
TO: Walsh Construction
You are hereby directed to make the herein described changes to the plans and specifications or do the following described work not
included in the plans and specifications on this contract:
NOTE: This change order is not effective until approved by the "Owner" and a notice to proceed is issued.
Conditions:
A. The following change, and work affected thereby, are subject to all contract stipulations and covenants;
B. The rights of the "Owner" are not prejudiced;
C. All claims against the "Owner" which are incidental to or as a consequence of this change are waived; and
D. The Contractor must submit all Field Overhead and Home Office Overhead Rates for approval in advance of all change
orders.
CHANGE: See Attached Exhibit "A"
We the undersigned Contractor, have given careful consideration to the change proposed and hereby agree, if this proposal is
approved, that we will provide all equipment, furnish all materials, except as may otherwise be noted above, and perform all services
necessary for the work above specified, and will accept as full payment therefore the prices shown above and below.
ACCEPTED: Date Contractor
By Title
Original Contract (with tax) $ 7,597,833.39 APPROVED BY THE CITY OF TUKWILA
Previous Change Orders $ 238,828.77 Date
This Change Order(withouttax) $ 1,081,259.15 By
Mayor
REV. CONTRACT AMOUNT $ 8,917,921.31
Original Contract Time: 450 Calendar Days
Additional Contract Time for this Change Order: 141.5 Days
Updated Contract Time: 1,067.5 Calendar Days
City Engineer
ORIGINAL: City Clerk (1 of 2)
Contractor (2 of 2)
PW Project Finance File
cc: Finance Department (w/encumbrance)
Project Management File
154
(11/2014)
EXHIBIT "A"
CHANGE:
This Change Order settles the Contractor's request for additional compensation and is meant to
settle all dispute, both disclosed and undisclosed, on the Contract. This Change Order also
increases the Contract time by 141.5 calendar days, and will allow this Project to be closed out.
Change Order Details:
The Contractor, Walsh Construction, has asserted that, during construction, the project
encountered unexpected impacts to the Contractor's work that resulted in significant additional
expense to the Contractor. The Contractor has itemized requests for additional compensation
that include: 1) unpaid bid items, 2) extra work orders, 3) gravel borrow, 4) sub -contractor costs
for Pearson Drilling and ADP Electric and 5) additional costs for inefficiencies and overhead.
The City responded to these requests for additional compensation and disputed the Contractor's
analysis of cost impacts.
On June 16, 2017, the City and Walsh Construction entered mediation to resolve the disputed
contract compensation amounts. Several additional settlement conferences were held to negotiate
and discuss specific merits of the Contractor's request. Item by item negotiations were set aside
in favor of a global settlement discussion.
The City's project representatives met with the Contractor's authorized representatives, and
discussed the settlement terms to formally close out this project. The discussed settlement terms
are as follow:
Included in this Change Order #9, the City shall increase from the current Contract time
by 141.5 calendar days, making the total Contract time at 1,418 calendar days. As a
result of the Contract time increase, the City shall rescind the assessed liquidated damage
of $358,364.32, which was assessed, but never collected by the City from the Contractor.
On top of the liquidated damage reimbursement, the City shall also pay the Contractor
$1,425,000.00 as a final settlement amount for all outstanding compensation claims.
Once this Change Order #9 is executed, the final payment will be issued, and the Release of
Claims form will be completed by the Contractor. Thereafter, the construction project can be
closed out by the City Council.
Page 1 of 1
155
CITY OF TUKWILA CAPITAL PROJECT SUMMARY
2017 to 2022
PROJECT: Interurban Ave S (S 143 St - Fort Dent Way) Project No. 90310402
DESCRIPTION: Design and construct sidewalks, pavement restoration, drainage, and lighting.
JUSTIFICATION: Pedestrian traffic is forced to walk in traveled way, lighting is substandard, drainage is poor and
pavement failure is accelerating.
STATUS: Completed final design in 2013. Construction awarded on 5/5/14 and construction completed in 2016.
MAINT. IMPACT: Reduce annual pavement repairs and increase pedestrian safety.
COMMENT:
Federal Hwy STP Grant of $389,000 for design. State TIB grant of $5m, Federal STP grant of $2.145m,
and developer mitigation of $260,000. City Bond for $3.465m in 2014/15.
FINANCIAL Through Estimated
(in $000's)
EXPENSES
2005-11 2012 2013
2014
2015
2016
2017
TOTAL
Design
Land (R/VV)
Const. Mgmt.
Construction
TOTAL EXPENSES
FUND SOURCES
Awarded TIB Grant
Awarded STP Grant 389
Mitigation/Traffic Impact
Bond
City Oper. Revenue 75
TOTAL SOURCES 464
464
464
2
2
369
209
578
87
760
1,494
2,341
74
1,395
4,868
6,337
577
1,139
1,716
71
1,425
1,496
996
209
2,803
8,926
12,934
2
2
578
578
296
1,571
99
375
2,341
2,847
552
85
3,558
(705)
6,337
779
937
1,716
966
530
1,496
4,888
2,512
184
3,558
1,792
12,934
BUDGET Diff
996
:aS
209
TM
2 2r1IF
hill
2,455
(348)
8,324
(602)
11,984
(950)
4,138
750
2,512
149
35
3,558
1,627
165
11,984
950
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