Title
Resolution to Approve Change Order #1 to the Construction Contract with Bailey Excavating, Inc. for Water Main Extension on South Division Street ($395,507.00)
Memorandum
Attached for your review and approval is a resolution to approve a change order to the Observatory Street Improvements Project construction contract with Bailey Excavating, Inc. in the amount of $395,507.00 for the construction of a water main extension on South Division Street at East Jefferson Street.
In February and April of 2016, South Division Street Resurfacing between Packard and West Huron, which included the construction of 120 feet of new 12-inch water main, was let for bid. Both times the bids returned were much higher than anticipated. Based on conversation with bidders, staff determined that the small scope of underground work likely made the project undesirable for underground contractors, and paving contractors were not interested in being the prime contractor on a project that included water main work. Removal and replacement of the pavement section consisting of concrete overlaid with asphalt also increased the cost of the water main work.
Based on the bid prices received, staff decided to postpone the resurfacing work on South Division for 2016, and include that work in the 2017 Resurfacing Project; while proceeding with the water main work in 2016 as a separate project. In order to expedite this work and obtain reasonable bid prices, the City opted to solicit quotes from several underground contractors currently under contract with the City for 2016 water main work.
Three contractors submitted quotes for the work, and Bailey Excavating, Inc., the contractor on Observatory Street Improvements Project, submitted the lowest price of $395,507.00. Bailey will begin the work upon completion of the water main construction on Observatory Street, and will start the work after the Art Fair. Bailey Excavating, Inc. complies with the City's living wage and non-discri...
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