The URL can be used to link to this page

Home My WebLink AboutCOW 2018-07-09 Item 3A - Change Order #3 - 42nd Avenue South Phase III with Active Construction for $2,741,136COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 07/09/18 HH 07/09/18 ►1 Motion 07/16/18 HH I • Bid Award ❑ Public Hearing Mtg Date ❑ Other Mtg Date Mtg Date Mtg Date 07/16/18 Mtg Date Mtg Date ITEM INFORMATION ITEM No. 3A CAS NUMBER: STAFF SPONSOR: HENRY HASH I ORIGINAL AGENDA DATE: 07/09/18 AGENDA ITEM TITLE 42nd Ave S Phase III Project (S 160th St - Southcenter Blvd) Construction Change Order No. 3 with with Active Construction, Inc. CATEGORY -1 Discussion 07/09/18 ►1 Motion ❑ Resolution Mtg Date • Ordinance • Bid Award ❑ Public Hearing Mtg Date ❑ Other Mtg Date Mtg Date Mtg Date 07/16/18 Mtg Date Mtg Date SPONSOR ❑ Council ❑ Mayor • HR ❑ DCD ❑ Finance ❑ Fire ❑ IT ❑ P&R ❑ Police ® PW SPONSOR'S Change Order No. 3 to Contract #17-090 is for additional construction costs for the 42nd SUMMARY Ave S Phase III Project. 42nd Ave S has had major issues with the Gilliam Creek Culvert and utility conflicts which have caused delays and cost overruns. After extensive negotiations, Active Construction's Change Order No. 3 will resolve alt disputes and require that the project be substantially complete by November 2018. Council is being asked to approve Change Order No. 3 with Active Construction for $2,741,136 (with sales tax). REVIEWED BY ❑ COW Mtg. U CA&P Cmte ❑ F&S Cmte Comm. CHAIR: r Transportation Cmte III Utilities Cmte ❑ Arts Comm. • Parks I♦ Planning Comm. DATE: 07/09/18 COMMITTEE THOMAS MCLEOD RECOMMENDATIONS: SPONSOR/ADMIN. COMMIIJEF, Public Works Presented to TIC on same night, 7/9/18 COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $2,741,136.00 $11,774,000.00 $1,992,407.00 Fund Source: 103 RESIDENTIAL STREETS & SURFACE WATER (PAGES 2 & 100, 2017 CIP) Comments: MTG. DATE RECORD OF COUNCIL ACTION 07/09/18 07/16/18 MTG. DATE ATTACHMENTS 07/09/18 Informational Memorandum dated 07/06/18 Active Construction Change Order No. 3 TIC Chair McLeod will report on action from Transportation & Infrastructure 7/9/18 07/16/18 1 2 City of Tukwila INFORMATIONAL MEMORANDUM TO: Transportation and Infrastructure Committee FROM: Henry Hash, Public Works Director /lit BY: Peter Lau, Senior Program Manager CC: Mayor Allan Ekberg DATE: July 6, 2018 SUBJECT: 42nd Avenue South Phase III & Gilliam Creek Culvert Replacement Projects Project Nos. 99410303 & 99341208, Contract No. 17-090 Change Order No. 3 ISSUE Approve Change Order (CO) No. 3 with Active Construction, Inc. (ACI) to resolve all outstanding claims and disputes for the 42nd Avenue South Phase III Project. BACKGROUND The 42nd Avenue South Phase III Project has been challenging. Due to unexpected issues such as excessive ground water, utility conflicts, and working through the winter, there have been construction delays and cost overruns. However, due to a change in direction and negotiating with ACI to develop a better partnership, significant progress has recently been made. Despite all of the challenges, we anticipate that substantial completion of 42nd Ave S will remain close to the original date this fall. Curb and gutters were installed in early June and the first lift of asphalt was placed on 6/25/18 and the road was reopened, as was committed by staff. DISCUSSION & FISCAL IMPACT After numerous negotiation meetings with ACI and Public Works staff, with assistance from the City's legal department, CO No. 3 was mutually agreed to by all parties. CO No. 3 will alter the current procedures of construction philosophy. The execution of CO No. 3 will relieve some of the cost overruns and avoid potential and costly claims and delays, while improving efficiency and productivity. Change Order No. 3 proposals include: • transforms the project culture from spending much of ACT's and City's project staff time on assessing and quantifying disputes, to having both parties working cooperatively in order to complete the construction project as soon as possible; • allows City's project staff to work with ACT's construction crews directly as a team, in order to efficiently finish the construction project at the least amount of cost; • compensates ACI for the actual construction costs plus a 14% mark-up, which includes costs for bond, insurance, other general and administrative overhead costs, and profit; • resolves all outstanding disputes between the City and ACI, and agrees not to pursue legal action against each other when this CO is strictly followed; • and requires ACI to complete the construction project by November 13, 2018, weather permitting and timely utility work completion. W:IPW Eng\PROJECTS\A• RW 8 RS Projects142nd Ave S Phase III (99410303 94-RS03)IConstruc6on14.050 - Budget 8 Funding Doss Info Memo for CO 63 070618.docx 3 4 The table below shows the project budget and expenditures, including CO No. 3: Design CM CH2M Hill Design $1,563,995 AECOM Original CM & Sup #1 $1,768,424 CH2M HIII Supplemental No. 7 & 8 79,272 AKANA Consultant Contracts 79,450 Widener & WSDOT JA 9753 18,000 Active Construction Contract 17-090 Active Change Order Nos. 1 & 2 SWM Active Construction CO No. 3 w/ sales tax Total Grand Total Cost Overrun $1,563,995 Construction Budget $1,611,000 1,222,000 $6,599,266 6,933,000 916,864 1,000,000 2,741,136 1,008,000 $1,945,146 $10,257,266 $13,766.407 $11,774,000 $ 1,992,407 To pay for the $1,992,407 cost overrun, staff is proposing the following funding sources: 104 Fund - South 144th Street Phase 2 Project Surplus $ 230,000 104 Fund - 2018 Overlay & Repair Surplus 40,000 A Budget Amendment from Utilities 474,961 A Budget Amendment from 412 Surface Water Fund 1,247,446 $1,992.407 Total RECOMMENDATION Council is being asked to approve CO No. 3 to Contract No. 17-090 with ACI in the amount of $2,428,504.03 for the 42nd Ave S Phase IH and Gilliam Creek Culvert Replacement Projects and consider this item on the Agenda at the July 16, 2018 Regular Meeting. Attachment: Change Order No.3 W:\PW Eng1PROJECTSIA- RW & RS Projects142nd Ave S Phase III (99410303 94-RS03) ConstructionWF.050 - Budget & Funding Docs0nfo Memo for CO #3 070618.docz DATE: CITY OF TUKWILA CONTRACT CHANGE ORDER NO. 3 June 21, 2018 BUDGET NOs.: 103.98.595.300.65.00 412.98.59 4.382.6 5.00 PROJECT NO.: 99410303 CONTRACT NO.: 17-090 PROJECT NAME: 40th - 42nd Avenue South Phase III Project TO: Active Construction, Inc. 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," incorporated herein by this reference. 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 the prices shown above and below as full payment for ACCEPTED: Date ( (2Z /ZC) 18 Contractor: Active Construction, Inc. By-p-VF-t3rt Title '(o a..c-r- Original Contract (without tax) $6,599,266.04 APPROVED BY THE CITY OF TUKWILA Previous Change Order $ 916,863.94 Date This Change Order (without tax) $2,428,504.03 (to be finalized) By Mayor REV. CONTRACT AMOUNT $9,944,634.01 (to be finalized) Previous Contract Time: 200 Working Days Additional Contract Time for this Change Order: 121 Working Days Updated Contract Time: 321 Working 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 5 6 40th — 42nd Avenue South Phase III Project Contract Change Order No. 3 EXHIBIT A DESCRIPTION OF WORK Due to numerous challenges with the project and unexpected condition changes in the field, assessing, quantifying and determining the necessary and applicable contract changes has become a difficult task for both the City and the Contractor (ACI). In the spirit of cooperation and in order to move the project forward in the most expeditious and financially responsible manner, the City and ACI have mutually agreed to work collaboratively to complete the project by or before November 13, 2018. The City agrees to compensate the contractor for the actual cost of construction, plus an additional 14% markup on such actual cost to compensate ACI's general and administrative overhead cost, and profit. The actual cost of this 40th — 42nd Avenue South Phase 3 Project refers to all the direct expenditures spent by the Contractor on this particular construction project, including the mobilization/field overhead cost. However, if the expenditure was caused by ACI's own negligence or error, such expenditure will not be counted as part of the actual costs to be paid by the City, and ACI will remain fully responsible for such expenditures. As for all the subcontracts among ACI and it's subcontractors, this Change Order (00) #3 will not apply to any subcontracts executed prior to the execution of this CO #3, and all the corresponding Bid Items paying for these subcontracts. The City will just pay for these subcontract costs and an additional 14% markup. As a result, the existing payment mechanism among ACI and it's current subcontractors will be preserved. After the execution of CO #3, all new subcontracts among ACI and it's future subcontractors will be subjected to the same 14% mark-up as the subcontractors' direct costs. ACT's actual cost for this 40th — 42nd Avenue South Phase 3 Project will be subject to a detailed review monthly before the issuance of the monthly pay estimate for such work, and before the issuance of the final payment by the City. At the option of the City, the actual cost reviews and verifications may be conducted by a Certified Public Accountant or other City of Tukwila designated representatives. The current projected total cost for ACI to complete this 40th — 42nd Avenue South Phase 3 Project is $8,723,363.17, per the enclosed projected cost breakdown provided by ACI. Adding 14% to the projected cost of $8,723,363.17, it would result in $9,944,634.01 as the final cost. The enclosed project schedule shows that the construction project is to be physically completed by November 13, 2018, or before. The parties agree that after the execution of this CO #3, the City's CM team will have the option of determining the means and methods of ACI in constructing this project. The execution of this CO #3 supercedes the previous COs #1 and #2 on the payment and bid item parts, but the scope issues and Contract time increase will remain in effect. This CO #3 also supercedes all other applicable Contract terms and conditions of the 40th — 42nd Avenue South Phase 3 Project. The parties agree that mutual execution of this CO #3 resolves any and all outstanding disputes between the parties relating to the Project, including any claims for prior delays, and ACI and the City hereby release each other from any such claims. Both the City and ACI agree not to pursue legal action against each others if both parties strictly abide by the terms of this CO #3. The parties agree to continue to discuss and negotiate when necessary, in order to resolve any additional Contract disputes that arise after the execution of this CO #3. The City looks forward to continuing to work with ACI to complete this important project. CONTRACT TIME Currently, • with Contract time of 200 working days after the execution of CO #2; • suspension of work from November 18, 2017 to March 6, 2018, per the Project Specifications, Special Provisions, Section 1- 08.6, Page 2 of 3 • and 5 weather days in working day accounted for as of the execution of this CO #3; the Contract is scheduled to be completed by August 27, 2018. However, the suspension of work never actually occurred. Thus, an addition of 67 working days is needed to cover for the time between November 18, 2017 to March 6, 2018. By extending the project completion date to November 13, 2018, the Contract time will need to be increased by 121 working days total. As part of this CO #3, the parties agree that the Contract time will not be extended further, even with the utility cutover work anticipated to be started in July 2018, with the exception of • weather related delays; • further unanticipated delays caused by third party utilities beyond the 74 working days of utility cut over time from July 11, 2018 to October 23, 2018; • delays encountered that are out of the control of the Contractor or the City; • and unanticipated changes to the work where extension of Contract time would otherwise be determined in accordance with Section 1-08 of the WSDOT Standard Specifications, 2016 version. Any determination made which authorizes additional Contract time will be performed on the project completion schedule provided in this CO. Page 3 of 3 7 8 Fiscal Year: 18 Period: 05 LL 0 co U oa �, Yco o rn o m co I- (.4 (D (0 0 Oi O (0 (0 0 N N 0 0 -4 0 (O .-) h 0) .-4 0 .. EN) 0) (0 .-) E o (0 N. o Z = .-( � y 4) m u O I,' c V u d 0 U of i C C u C A t 0 0 0 O 0 TV 4 'CC U y Q 41 C (3j L 47 O w a O 0 W a W a Customer Code: Job Status: 0 O 0 h Job Number: Estimated 40th -42nd Ave S, Tukwila Start Date: R Heathers Current Balance Job Progress m r. (D 0 40 CO 0\ c0 O 00 N O O u1) Ln 04 rotor �o c4 m 0 0 O 0 0 7,672,275.87 -1,931,447.78 IF 4) d c O E E 0 0 Costs to Date 0 0 o 0 O O O O o o O O N N CO 01 a (OD N co S W 003 N M O W E c0 c O-4: 04 0)) 00)) (00 00) n O U V Oh) CO N M N N O g V Ocd c4 6 ') 0 0D N 0 N N CO ( C h N (D CO CO (O 0) M O I4 r (0 0) h (V (V 04 � )() sr c0 Q LLQ'] 1) COh ((4 40r 3,157,335.92 N 0 N 0 N 0)O O O 0 H) 0) o a W CO N 0 t0 ('7 O O 0 N 1+ n 0 N.1., h h t0 co uJ CO 0 N O t, o ,4 00 K) Ci N N 0 VN N Cf 10 T N M M 0 m 0) 0 0 N E fp GS (0 [17 , N (C M Y Q 0 0 0 r 0 4') M (D M 0st. 0 '- V .0 0 0 al r N r h h m O CO (0 co N O V m e o N N O r W ..,C.)_.' N O (�i cG Cc 0 'p c0 c0 O) U r 43 (O (D tC 1) tri (i is 7. t00 Q0i 00) O .- r �{ M 0 M M 41 u0) Oh) T V W (OD c, V 0 )N+^ (0') 'O O (C) .- O o P) Q CO r (, -4 r (V 0. Job to Date V) N (O r 0a) N. W 0 1- (0') (0D V? N p1 CV e a N Q O V. ' F O in M 0 4') (O 0 0 (() N m 0 V 0 (0 r N 4.45. cri 0) 0 a).sr'0 (r) CV N 0) 4)0... V N O 0 f') M tV 4- 4- g 0 a 0 E — U 0 0 4) C '0 c m L N W v maa 4 '5 4) c0) N 4) E h o n o (o ro N N r M W Job to Date O c0 0 O 00 LL Q hMh O M uJ z EZ V- >4 Q ~ W (44m G 0 5§ MATERIALS TAXE SUBCONTRACTS r N ci V 40 co h c0 0) V) Job Totals: Printed by ROS as of 06/06/18 9: 26AM 9 10 YL } ni i 1 / s • 3 } K` a ep j i !t t E F 41 1a e- Iti. i. 2 t S 4 2.-N__1 J 11.,i _Lq y %3 ig g_ gp SS .. Y �. s .. ._ F f. ,F-. F S, z a: Y. e z F C z ga % :, F 6.7M74 € E z 9 6§ S i: 3 Y' S 1 S 1! S i }! a- 1 = i i 5< 1 1 4 1 1 x 1-11W a e a 1 S - i 3}` 1} Lf 3 1p t I gF pp $$ EE AA S S§ g 1 S s=% s L> 8 3 5 3 ? s 1 i; 6 s i i i S '- ; i i i i i s 5 i i i }}} i i§ a .. a! S- s 3} d 1 1§ a §§ 1} 1 i - 1§ a 1 s i} i} i• 1 1# i i 3 3 i°_ d i i__ _ .. 9 3 't 1. ;•. i R 1 a! I a a a E!- E : 1 3 i} 1} iF .111 $ 11 S g i S ltz1" =as i3I"ii1 t2lii� e � ��3 3i1 f} PII « a 9- x x i F{{% i g 9: C P § €> € s $ 5 }, i i S 9 i, 4 } l'§ x 1 2 1:§ 1 1}} 1 1 q II i ii i s i S} 5 i i 3 1 s l i 1 d• 1 1 1 P.• 11/4 p- : 3 d a i i 3$ 1 3 i S 1 S} j I; ii i 18R z 13 ® 1 A s 1 9 1ygl e _ e a_ a e i :. A x .. r. z z F z P= P 9. C • 1' b p Y a F 1 12 N cq� to ii ti 11 1 a31_I 11 ti A— ilt 41 ; {jti t ....._,., ;` •J a .. 9 ..... �. I I 1 I f .. r, IJ . . 1 .._........... ......_..... 3j� .. ,l1 S L r .....:. .. ... It, .... f _. . .. .... :, § § r-E.� e ice+ .......... ....._.,_.. = I s s s S §@££ [ b{ £i S 5 5 5 �� #s �§� 3 s 3 s s "s s §§ a' d!}§ 1§ 4' 1' 1: z§< i{ 1§ a F§ g d S j' I§§€ f+ s § s e ¢:Li a z" �. e¢ ii 1 .t T i e § I S k S a 2 3} t S§. 3. n } } F . .. ¢ _ i : R s £ 1 ± 1 , ¢ i 4 1 2 1 § , i a -. . _ . i _ S r 1 S i l e§` e g F E 1;k z s S a i s•'r. ,. , . - - _ z a . e x : u x : a .. e a 3 S z x a e k l' ' _ _ _ _ _ I_ I_