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HomeMy WebLinkAboutS4- Public Works CITY OF SAN BERNARDINO -' REQUEST FOR COUNCIL ACTION File No. 1, 871 From: ROGER G. HARDGRAVE Subject: Contract Change Order No. 7 -- Traffic Signal Improvements on Dept: Public Works r Tippecanoe Avenue, from Redlands ` ! Blvd. to Hospitality Lane, per Date: 12-10-97 Plan No.g888 ---- HOLLAND-LOUIE CONSTRUCTION, INC. Synopsis of Previous Council action: 05-06-96 - Plans approved & authorization granted to advertise for bids. 06-17-96 - Resolution No. 96-170 adopted awarding a contract to Holland-Lowe Construction for the low bid price of $326 , 419 . 45 . 01-27-97 - Contract Change Order No. 1 for the installation of two additional catch basins, and the relocation of existing electrical components, at an estimated cost of $41 , 000 . 00 , approved. 02-17-97 - Contract Change Order No. 2 for the additional work for the removal and replacement of unsuitable materials, at a cost not to exceed $44 , 000 . 00 , approved. Recommended motion: 1. That Contract Change Order No. 7, to the contract with Holland-Lowe Construction, Inc. for traffic signal and street improvements on Tippecanoe Avenue, from Redlands Boulevard to Hospitality Lane, in accordance with Plan No. 8888, be approved, and the implementation of the Administrative agreement of Disputed items of work be approved, to provide compensa- tion for the additional Pxcavation that was performed at the jobsite, at an additional cost of $39,636.00; increasing the final contract price from $431,202.02 to $470,838.02. and 2. That the Director of Finance be directed to increase the budget for Traffic Signal and Street Improvements on Tippecanoe Avenue, from Redlands Boulevard to Hos ity Lane, Account No. 250-370-5504-1501, by an amount of $39,636.00. cc: Bill Bopf, IVDA Signa Fred Wilson Barbara Pachon Henry Empeno Contact person: G Hard rave Phone: 5025 Supporting data attached:_ Staff Report & CCO#7 Ward: 1 FUNDING REQUIREMENTS: Amount: $39 , 636 . 00 (Traffic System Fee Fund) Source: (Acct. No.) 250--370-5504-1501 Acct. Descri tion Traffic- Si n .-.- & Stre t Improve- ments - Tippecanoe Ave. , from Redlands Blvd. to Hospitality Lane Finance: Council Notes: / 75-0262 r) Agenda Item No... j ,CITY OF SAN BERNARDINO - REQUK$T FOR COUNCIL ACTION STAFF REPORT Page 1 of 2 The contract documents for street and traffic signal improvements on Tippecanoe Avenue, from Redlands Boulevard to Hospitality Lane, included a bid item for roadway excavation. The estimated quantity for this bid item was 10 cubic yards . After_ roadway excavation was commenced, it quickly became apparent that the actual quantity for this bid item would greatly exceed the estimated quantity. In fact, the actual quantity is 1506 cubic yards. Whenever the actual quantity for a bid item varies more than 25% from the estimated quantity in the bid schedule, the Standard Specifications provide that the unit price is to be re- negotiated. However_ , the Contractor refused. to re-negotiate, due to his interpretation of a new Caltrans ' standard special provision. The Contractor claimed that this standard special provision entitled him to be paid at the unit bid price of $26 . 00 per cubic yard, which would have amounted to $39 , 156 . 00 (1 ,506 C.Y. X $26/C.Y. ) . We did not concur with this interpretation, nor did Caltrans. After a considerable period of time had elapsed, the final payment was processed, in order to avoid the allegation that we were holding up payment of funds that the Contractor was entitled to. The Contractor recently submitted extra work sheets for the road- way excavation, on a time and material basis . The total amont on these extra work sheets was $34 , 176 . 22 . We have reviewed these extra work sheets, and determined that we can recommend approval of $32 ,500 . 00 . This cost is justified, since the Contractor has not been paid for this item of work. The special provisions state that all work shall be completed within 55 working days, from the date of the Notice to Proceed. Also, that the Contractor shall pay to the City of San Bernardino the sum of $250 . 00 per day for each and every calendar day' s delaying in finishing the work. All work was satisfactorily completed within 79 working days. Liquidated damages were, therefore, assessed in the amount of $6 , 200 . 00 (25 X $250±) . The Contractor has appealed this assessment; on the basis that the special provisions provide that no work shall be performed above grade, until all materials have been received. Since this provision required that the Contractor defer starting work until the traffic signal equipment had been delivered, he contended that this waiting time should not be counted as a part of the 55-day period allowed to complete all work. 12-10-97 75-0264 CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION STAFF REPORT Public Works Staff Report Page 2 of 2 After reviewing this appeal , we have concluded that the time allowed was not sufficient for delivery of materials and to perform the work. Therefore, we have determined that the $6 ,200 . 00 assessed in liquidated damages was not justified, and should be paid to the Contractor. Contract Change Order No. Seven will 'authorize payment of $32 ,500 . 00 for roadway excavation, on a time and materials basis, and extend the time allowed to complete all work by 25 working days . This action will allow the $6 ,200 . 00 to be paid to the Contractor. An audit of the Contractor' s records revealed that 8 lineal feet of 12-inch RCP had not been billed. We have reviewed our files, and agree that the Contractor has not been compensated for these 8 lineal feet of RCP. Change Order No. 7 authorizes payment of these 8 lineal feet at the unit bid price of $117 . 00 , for an amount of $936 . 00 . The $39 , 636 . 00 supplemental final payment will constitute payment in full for this roadway excavation, the $6 ,200 . 00 withheld as liquidated damages , and the 8 lineal feet of RCP. All of this cost will be charged to Account No. 250-370-5504--1501 . Federal- Aid STP Funds will be provided through SANBAG to finance about 880 of the cost for Change Order No. Seven with the 120 local agency share being provided by the Inland Valley Development Agency. 110 City funds will be used to finance any portion of the cost for Change Order No. Seven. We recommend that Change Order No. 7 be approved, and the Director of Finance be authorized to increase the budget for this project by $39 , 636 . 00 . URGENCY CLAUSE: The Contractor has threatened to commence action to collect payment of outstanding charges. It is necessary for this matter to be settled at the Council meeting of 12-15-97 in order to preclude the Contractor commencing legal action. 1?.-10-97 75-0264 COATACT CHANGE ORDER NO. 7 REV NO. SUPPL. NO. TIPPECANOE @ I-10 SHEET 1 OF 1 FED NO. STPLN-5033 (009) CONTRACT NO. 8888 TO: HOLLAND-LOWE CONSTRUCTION You are hereby directed to make the herein described changes from 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 State Highway Engineer Description of work to be done, estimate of quantities, and prices to be paid. Segregate between additional work at contract price, agreed price and force account. Unless otherwise stated, rates for rental of equipment cover only such time as equipment is actually used and no allowance will be made for idle time The last percentage shown is not accumulated increase of decrease from the original quantity in the Engineers Estimate. EXTRA WORK AT FORCE ACCOUNT: Settlement of the Roadway Excavation issue through the Administrative Review Process was agreed upon at the meeting of 12/5/97, as to how payment for the 1,506 Cubic Yards of Roadway Excavation that the contractor had removed from the site was to be provided. (1) The contractor shall be compensated for all of the remaining work associated with the additional earthwork on the project, in excess of the quantities paid under the bid items of work, at a total final price of $ 32,500.00. (2) Adjust Contract Bid Item No. 19, Install 12' R.C.P. , to correct for an error in the final contract quantity, from 1 to 9 L.F. , at an additional $ 936.00. (3) As part of Contract Change Order No. 7, the contractor is being given an additional 25-Working Days for the extra work. This additional time will result in the release of liquidated damages in the amount of $ 6,200.00, that was withheld as a result of no additional time being given for CCO#7 due to the disputed work. Resolution of the issues has resulted in the additional time that is warranted being allotted. Total Additional Cost of Contract Change Order No. 7 is $ 39, 636.00. By reason of this order the time of completion will be adjusted as follows: 25 - working days Submitted by: Resident Engineer, Date: Approval Recommended: CITY ENGINEER DATE 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 material, except as may otherwise be noted above, and perform all services necessary for the work above specified, and will accept as full payment therefor the prices shown above Accepted Date: Contractor: Holland-Lowe Construction, Inc. By: Title: If the contractor does not sign acceptance of this order, his attention is directed to the requirements of the specifications as to proceeding with the work and filing a written protest within the time therein specified.