Title
Resolution for Approval of Settlement and Change Order #6 for the Construction Contract for the Box Hangar/SRE Building Project at the Ann Arbor Airport with CMA Design/Build Inc. ($34,218.00)
Memorandum
This Resolution requests approval of change order #6 (copy attached) to the contract with CMA Design/Build Inc., d/b/a CMA Construction Services, Inc. (“CMA”) for constructing the box hangars and SRE building at the Ann Arbor Airport which was originally approved by City Council on May 5, 2008. The total amount of the contract approved at that time was $2,390,000.00. Of this amount, $1,101,000.00 was for the local portion of the work; the remainder was for work that was funded with state and federal grant funds, including a local share of $43,135.00.
As CMA failed to complete the project, the City terminated their contract and their bonding company, North American Specialty Insurance Co., stepped in to finish the work. CMA filed a lawsuit against the City requesting payment of a variety of outstanding claims for additional costs. A number of these claims were alleged to be the result of two stop work orders issued by Pittsfield Township during the project because of jurisdictional issues between the City and the Township relative to permits for different aspects of the project. Some of the claims were for changes in work that were valid but never processed for payment by CMA.
One of CMA’s subcontractors on the project also filed a lawsuit against CMA, and the subcontractor’s claims were assigned to two of its suppliers.
As a result of court ordered mediation, the City was able to settle all claims from the lawsuit through two change orders, one of which also resolves claims against CMA by its subcontractor that were included in CMA’s claims against the City. Change order #5 in the amount of $12,020.00 has been approved administratively because the cost does not exceed the approved contract value of $1,101,000.00 for the locally funded portion of the pro...
Click here for full text